MEMORANDUM OF UNDERSTANDING (MOU) Entered into by and between DEPARTMENT OF HIGHER EDUCATION AND TRAINING. (Hereinafter referred to as the DHET )

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1 MEMORANDUM OF UNDERSTANDING (MOU) Entered into by and between DEPARTMENT OF HIGHER EDUCATION AND TRAINING (Hereinafter referred to as the DHET ) (Herein represented by Mr. Gwebinkundla Felix Qonde, in his capacity as the Director-General of the Department of Higher Education and Training and duly authorized thereto) And THE OFFICE OF THE PREMIER: (Name of Province) (Hereinafter referred to as Premier s Office ) (Herein represented by (full name of DG) in his capacity as the Director-General in the Office of the Premier and duly authorized thereto) 1

2 1. PREAMBLE 1.1. WHEREAS the Director-General in the Office of the Premier undertakes to determine the priority geographical area or sector in the province where the Strategic Integrated Projects (SIPs) and other provincial strategic projects have a significant footprint and on which the work outlined below will focus; 1.2. AND WHEREAS the Director-General in the Office of the Premier undertakes to use the 21 STEP PROCESS, attached as Annexure A to this agreement, as a basis on which to develop a skills plan for the identified priority areas or sectors, as identified in sub-paragraph 1.1 above; 1.3. AND WHEREAS the Director-General in the Office of the Premier undertakes to work with the Special Projects Unit of the DHET to develop an agreed Project Plan derived directly from the 21 STEP PROCESS, which shall be considered by the Director-General of the Premier s Office and the Director-General of the DHET, and once approved and signed by both will be added to this agreement as Annexure B and be the basis on which the work is rolled out and managed; NOW THEREFORE THE PARTIES HEREBY AGREE AS FOLLOWS: 2. INTERPRETATIONS AND DEFINITIONS In this MOU, unless the context indicates otherwise: 2.1 The headings to clauses of this MOU are inserted for reference purposes only and shall not govern or affect the interpretation thereof; 2.2 Any Annexures to this MOU form an integral part hereof and words and expressions defined in this MOU shall bear, unless the context otherwise requires, the same meaning in such Annexures; 2.3 Unless the context clearly indicates a contrary intention, words importing the singular shall include the plural and vice versa; 2

3 2.4 Reference to any gender shall include the other gender and any reference to a natural person shall include a legal persona and vice versa. 2.5 In this MOU, unless clearly inconsistent with or otherwise indicated by the context: COGTA means Cooperative Governance and Traditional Affairs; "DBSA" means the Development Bank of Southern Africa; DHET means the Department of Higher Education and Training; DPSA means the Department of Public Service and Administration; Effective Date means the date of signature of the last Party to sign this MOU; ESSA means Employment Services South Africa of the Department of Labour; MISA means Municipal Infrastructure Support Agent of the COGTA; MOU means this Memorandum of Understanding and includes any Annexures hereto: NSF means the National Skills Fund; SETAs means Sector Education and Training Authorities; and SIPs means Strategic Integrated Projects. 3. COMMENCEMENT AND DURATION 3.1 This MOU shall come into operation on the effective date and will continue until 31 March The Parties may agree to terminate this MOU at an earlier date or may agree to extend it to such time as the parties by mutual written consent agree. 4. OBLIGATIONS OF THE DIRECTOR-GENERAL OF DHET The Director-General in the Department of Higher Education and Training shall: 3

4 4.1 Provide a programme of training and support on the 21 STEP PROCESS as agreed to by the parties and, when longer than five days, shall be captured in writing and annexed to this agreement as Annexure C; 4.2 Develop standard operating procedures and templates for each of the STEPS by not later than 31 December 2015 which documents will be loaded onto the SIP Skills Portal for use by relevant parties; 4.3 Provide a SIP Skills Portal on which all available resource documents (including all completed skill prototypes) and required templates can be accessed and onto which all completed documents and reports can be uploaded for analysis, use and reference by all relevant parties; 4.4 Develop the SIP Skills Portal to offer an interactive capability to enable relevant parties to engage with one another on line locally, provincially and where appropriate, nationally (e.g. in relation to national occupational standards); 4.5 Establish Occupational Teams to execute STEPs 5 and 13 of the 21 STEP PROCESS; 4.6 Execute the functions for which it is primarily responsible in terms of the 21 STEP PROCESS in particular STEPS 12 and 13 and to the extent that the Sector Education and Training Authorities (SETAs) and the National Skills Fund (NSF) have a role to play in relation to steps 14 and 15, actively promote their support for the project plan, as indicated in sub-paragraph 1.3 above; 4.7 Co-ordinate with other national departments and entities referenced in the 21 STEP PROCESS to optimise their contribution to the implementation of the project plan referenced in sub-paragraph 1.3 above, in particular with the Development Bank of Southern Africa (DBSA); the Employment Services South Africa (ESSA) division of the Department of Labour; the Construction Industry Development Board (cidb) of the Department of Public Works; 4

5 Department of Public Service and Administration (DPSA), the Departments of Cooperative Governance and Traditional Affairs (COGTA) and Municipal Infrastructure Support Agent (MISA). 4.8 Convene quarterly meetings of all SIP Skill Coordinators, as identified on the SIP Skills Portal, together with the Provincial 21 STEP Managers and Chairpersons of the SIP Skills Committees of all the provinces, as elaborated in paragraph OBLIGATIONS OF THE DIRECTOR-GENERAL OF THE PREMIER S OFFICE The Director-General in the Office of the Premier shall: 5.1. Identify a Provincial 21 STEP PROCESS Manager, at a level no lower than a Senior Manager in the public service with a performance contract to undertake this responsibility and with the required logistical support to execute the work. The person should report directly to a senior manager appointed by the Director- General. The name and contact details of the person and that of their supervisor will be Annexure D to this agreement; 5.2. Ensure that the Provincial 21 STEP Manager, contemplated in sub-paragraph 5.1 above, can secure inputs into the process by relevant technical experts in the province, wherever these may be located, as well as inputs from key strategy drivers and implementers in provincial government departments; 5.3. Co-ordinate constructive engagement with Metropolitan, District and Local Municipalities, for the implementation of the relevant steps of the 21 STEP PROCESS; 5.4. Use the Skills Portal supplied by the DHET for skills planning and skills reporting on a quarterly and annual basis this can include linking the DHET system to a provincial system where so required; 5.5. Provide quarterly and annual reports against their Project Plans and upload them on the SIP Skills Portal; 5

6 5.6. Establish a Provincial SIP Skills Committee, consisting of no more than twenty members, including: Chairperson nominated by the Director-General of the Premier s Office; STEPS 1-3 (Planning Office in Province, supported by a technical expert nominated by DHET); STEP 6 (DoL); STEP 10 (cidb); STEP 11 (DBE); STEPS 4, 5, 7, (DHET); STEPS 14 &15 (DHET/SETAs/NSF, Province, Employers, SIPS); STEPS (DPSA/COGTA/MISA); Provincial 21 STEP Process Manager; Statistics, IT and data support person/s (from DHET/Province) Communications person; Secretary for record keeping purposes; The functions of this Committee shall be those outlined in section 6 below Establish such sub-structures of the Provincial SIP Skills Committee as may be required for the execution of the relevant functions 1 ; 5.8. Provide transport, venue, accommodation and food for the meetings of the Provincial SIP Skills Committee (excluding transport and accommodation costs for national departments and entities which shall be required to fund themselves); and 5.9. Require the Provincial 21 STEP PROCESS Manager to report quarterly to the SIP Skills Committee no later than one calendar month after the conclusion of each quarter. This report will be uploaded onto the Portal as a draft report. The SIP Skills Committee must then submit a recommended report to the Director-General in the Premier s Office. The Director-General in the Premier s Office will consider the recommended report, and once approved, replace the draft report 1 In the case of STEPS 1 3, for example, consultations with the SIPs with a footprint in the province will be required as too will consultations with other strategic project drivers in the province. 6

7 with an authorised report on the SIP Skills Portal. The authorised report will be uploaded no later than two calendar months after the completion of each quarter. 6. FUNCTIONS OF THE SIP SKILLS COMMITTEE The functions of the SIP Skills Committee include: 6.1 Preparation of the 21 STEP PROCESS Project Plan for consultation with wider audiences and for final adoption by the Premier s Office and the DHET; 6.2 Determination of the priority occupations on which the province will focus for the duration of a specified planning period (after consultation with the SIP Coordinators whose projects have a footprint in the province). 6.3 Setting of targets for the training and/or recognition of prior learning for the priority occupations identified; 6.4 Oversight of the implementation of the 21 STEP PROCESS Project Plan and the resolution of any blockages that may occur; 6.5 Running of employer campaigns, in collaboration with SETAs, to secure workplace-based learning opportunities for priority occupations referenced in subparagraph 2.2 above; 6.6 Recommend adoption or revision of quarterly and annual reports from the Provincial 21 STEP Process Manager and once agreed, approve uploading the report onto the SIP Skills Portal; 6.7 Identifying any matters that could not be resolved at SIP Skills Committee level to the Director-General in the Office of the Premier; 6.8 Make presentations, as required, to the national quarterly meetings to be convened by DHET with all SIP Skill Coordinators (STEPS 16 and 20); 6.9 Appoint representatives to the quarterly national meeting of provinces and SIP Skill Coordinators; and 6.10 Manage communication to and consultation with key stakeholders and partners in the province. 7. NON VARIATION 7

8 No amendment or variation to this Agreement shall be of any force unless it is in writing and signed by both parties. 8. BREACH 8.1 If any party commits a breach of any term of this agreement and fails to remedy such breach within twenty one (21) days after being given written notice to remedy the breach, the aggrieved party shall be entitled to cancel this Agreement. 9. GOOD FAITH 9.1 Parties shall display the highest degree of good faith towards each other in all matters pertaining to the Agreement. 9.2 Parties shall use their best endeavors to ensure that objectives of the project are achieved. 10. GOVERNING LAW 10.1 This MOU shall be governed by and construed in accordance with the laws of the Republic of South Africa. 11. DISPUTE RESOLUTION 11.1 Any dispute arising out of this MOU shall be resolved amicably by the parties; 11.2 If the parties are unable to reach a settlement, a formal intergovernmental dispute may be declared by the aggrieved party in terms of section 41 of the Intergovernmental Relations Framework Act, 2005 (Act No 13 of 2005); and 8

9 11.3. If a formal intergovernmental dispute has been declared, the procedures in sections 42 to 45 of the Intergovernmental Relations Framework Act, 2005 shall apply. 12. INDEMNITY The Director-General in the Office of the Premier indemnifies the DHET against any claim for loss, accidents, death and injury or damages suffered by itself or its employees, agents, visitors or trainees/learners in or near the premises irrespective of the cause thereof. 13. ADDRESSES The parties choose the following addresses for the purposes of serving any notice, payment of any sum, serving of any legal process or for any other purpose arising from this agreement: THE DEPARTMENT OF HIGHER EDUCATION AND TRAINING Physical Address: 123 Francis Baard Street PRETORIA 0001 Private Bag X174 PRETORIA 0001 Telephone No.: (012) Facsimile No.: (012)

10 OFFICE OF THE PREMIER: Physical address: Postal address:. Telephone No.: Facsimile No.: Each party will be entitled from time to time by written notice to the other party to change to any other address within the Republic of South Africa, provided that one of the addresses shall always be a physical address at which the service of legal processes can be effected; 13.3 Any notice which: Is delivered by hand at the addressee's physical address shall be deemed to have been received by the addressee at the time of delivery; or is posted by prepaid registered post from an address within the Republic of South Africa to the addressee at its physical shall be deemed, until the contrary is proved by the addressee, to have been received by the addressee on the seventh day after the date of posting; and If transmitted by telefax to the addressee at its physical, shall be deemed to have been received by the addressee on the date of transmission or, if the transmission is made outside of normal business hours, on the first business day following after the date of transmission. 10

11 14. SIGNATURES OF THE PARTIES SIGNED at on this.... day of For THE DEPARTMENT OF HIGHER EDUCATION & TRAINING AS WITNESSES (DHET) SIGNED at.. on this. day of For OFFICE OF THE PREMIER: AS WITNESSES:

12 Annexure A: The 21 Step Process A methodology developed to generate the list of occupations in demand nationally and to propose actions to address the scarcity identified, has been developed, and is summarised below. It can be used to generate similar lists and intervention strategies at provincial and sectoral levels, and can be used to generate lists of occupations in demand for new strategic projects. This methodology has been codified as the 21 STEP PROCESS. It outlines a systematic set of steps to be followed from the demand to the supply side (and back again). WHAT SKILLS ARE NEEDED? 1 PROJECT LIST Develop a list of SIP projects planned for the area, and regularly update it. A template, for capturing relevant project information, has been developed and captured on the skills portal, with the following items: Project Comment SIP Sector Sub-sector Project Size Unit of Measure Phase Start Date End Date Construction method Total Project Cost Province District Municipality Local Municipality % in Area Prototype link Identifier Efficiency Multiplier Complexity Factor Scale Multiplier 2 SKILLS PROTOTYPES Develop skills prototypes consisting of the occupations needed for a typical project in each type of sub-sector together with an initial estimation of the scarcity of each occupation, derived from the experience of project managers. To achieve this, cluster the projects into sectors, (e.g. energy, rail, etc) and then into sub-sectors (e.g. for energy: generation, transmission, distribution and where relevant into sub-sector types (e.g. for generation: solar, coal, wind, biofuels, nuclear). An Excel-based toolkit has been developed for this purpose, which can be found on the portal. It has drop-down menus to make the task of generating the prototypes easier. It enables experts to capture the occupations required for each typical project under a set of standard headings as follows: Role Agency Agency Level National Department Major OFO category Minor OFO category OFO Occupation Typical number required Scarcity Start Date End Date Duration in months A library of 43 prototypes can be downloaded from the portal. Others are encouraged to add to this library. 3 SKILLS REQUIRED Estimate total skills required for all projects. A methodology (supported by technology) has been developed which enables professionally-informed planners to use the prototypes to estimate the total occupational requirements for all projects of a similar type and then to estimate the total occupations in demand across a timeline. The final list is no longer linked to any one project, sub-sector or sector; but is a consolidated list for ALL projects on the project list. 12

13 Overall occupations in demand for SIPs therefore, to be an estimate of the total demand for the occupation(s) in question. 5 OCCUPATIONAL TEAMS Set up Occupational Teams (OTs) to act as expert advisers per occupation. An OT is composed of theory and practical training providers, employers (drawn from all sectors where the occupation is employed) and those from registering or certifying bodies. The methodology also enables the generation of a list, across a timeline, and estimated demand of those occupations which are considered scarce, using the scarcity estimates from STEP 2. Overall demand for SIPs scarce occupations A detailed list of individual occupations can be drawn down in each case. 4 NATIONAL DEMAND Determine the national demand for occupations identified as scarce in STEP 3. Use the Linked Macro-Education Model (LM-EM) developed by Dr Asghar Adelzadeh 2 to forecast estimated national demand for occupations considered scarce, or use detailed research per occupation where available. Their initial role is to gather data and input from their communities of expert practice to refine the demand model. A further role is to verify the learning pathways people should follow to attain occupational competence. This includes the mapping of relevant theoretical and practical qualifications to occupations. OTs should in the process review the pathways defined on the DHET s National Careers Advice Portal (NCAP) 3. Generic Occupational Learning Pathway This step is needed as there is no guarantee that someone with the required skill will work on a SIP project, they could work anywhere. There has, 2 Commissioned by DHET as part of the Labour Market Intelligence Partnership and was undertaken under the Centre for Researching Education and Labour at the University of the Witwatersrand

14 6 SKILLS AVAILABLE Determine the number of people with the required occupational skills both in the workforce and who are unemployed. Use the Quarterly Labour Force Survey published by Statistics South Africa (StatsSA) to determine those with the required skills in employment and use the Department of Labour s Employment Services South Africa (ESSA) to get insight into the number of similarly skilled people in the ranks of the unemployed. 7 INFLOW OF SKILLS Estimate the number of those entering the labour market with the required skills. DHET to provide past and projected future graduation rates of learners with the necessary theoretical qualifications. Consider immigration, use of retirees, transfer of public officials and recognition of prior learning as short-term options where required. STEP 1 to determine approximately where, when and how many of each occupation will be required. This is input data needed for STEP 12. WHAT SHOULD BE DONE? 10 Training Standard. TRAINING ON PROJECT SITES Encourage those issuing tenders to include the cidb The cidb Training Standard 4 must be brought to the attention of those who are issuing the tenders for projects listed under STEP 1. They must be encouraged to include the conditions in project tenders 8 WHERE ARE THE GAPS? Determine which occupations are not being developed at the required rate to meet the demand. Develop a graph for each occupation based on the Lawless Skills Flow Model, shown below, using data from STEPS 4, 6 and 7 plus other sources for occupations identified in STEP SCHOOL SUPPORT Consider schools in the area as feeders for training. Provide career guidance and support for and science. gateway subjects such as in maths In collaboration with the Department of Basic Education the National Career Advice Portal (NCAP) can be used to highlight to local schools the occupations that will be in demand in their area. A programme is being developed to generate this graph automatically once the data is entered. Where development falls short of demand, interventions are required. 9 WHERE AND WHEN? Provide an indication of the scale, place and timeframe of demand for each occupation. Map occupations back to projects under 12 training providers should focus on developing which skills. Identify Centres of Specialisation as near as possible to the source of demand, where appropriate. CENTRES OF SPECIALISATION Determine which education and DHET in partnership with colleges, universities and OTs is to determine which institutions would be best 4 ations/ind_reps_other/ind_reps_skills.pdf 14

15 placed to specialise in the delivery of needed occupations. These can become Centres of Specialisation. A structured process of consultation will need to be undertaken in the relevant areas. 13 DELIVERY CAPACITY The OT for each priority occupation should visit Centres of Specialisation and determine their capacity and support required. OTs to visit their Centres of Specialisation to determine their current capacity and measures required to lift their performance to that which is required for the SIPs and other strategic projects. They must produce, together with the Centre, a costed plan for needed interventions, including both individual learner support measures (e.g. bursaries) as well as measures to support the capacity of the institution to assist throughput of learners (e.g. lecturer development, qualification and curriculum development, materials, equipment, infrastructure etc.). 14 WORKPLACES Find workplace-based learning opportunities for needed occupations. The SETAs must be encouraged to inform public and private employers of workplace-based learning opportunities required for the occupations in demand and to incentivise them, with grants, to offer their workplaces. This will require active campaigning and other measures. Travel and accommodation for learners to get to such workplaces will need to be considered. 15 RESOURCES Secure resourcesfor the OT plan from SETAs, NSF and other sources. The SETAs must be encouraged to support the implementation of the plans produced in STEPS 13 and 14. Funds from the National Skills Fund, the three tiers of government, public entities and the private sector must also be mobilised. 16 implementation. IMPLEMENT, MONITOR & EVALUATE PLANS Monitor and evaluate Funded plans must then be implemented. In addition, simple, streamlined systems for monitoring and evaluation must be put in place. THE SPECIAL CASE OF GOVERNMENT The implementation of the projects listed under STEP 1 has implications for government. Government officials are frequently the ones to conceptualise the projects, undertake (or cause to undertake) prefeasibility and feasibility assessments, environmental impact studies, consider water licenses and land use applications, secure funding, manage contracts, ensure delivery to the required quality, within budget and given timeframes and undertake operations and maintenance once construction is completed. The capacity of the relevant departments needs to be evaluated to determine whether they are able to perform these functions to the required standard. This is a function which falls under the mandate of the Department of Public Service and Administration and the Department of Cooperative Governance and Traditional Affairs. It goes to the heart of service delivery and must be addressed as part of the overall plan. 17 WHICH DEPARTMENTS? Determine which municipal, provincial or national departments need to play a role? 18 their skill requirements, match these against available skills and determine priorities/gaps. WHAT SKILLS ARE NEEDED? Define the roles each must play and determine Consideration needs to be given to the suitability of organograms, job descriptions, conditions of service as well as the education, training and experience of those filling posts associated with each of the roles. 19 PLANNING AND RESOURCING Put together a plan and identify resources. The plan may include revising structures, appointing additional staff, developing current incumbents and/or putting long-term skills 15

16 training plans across the whole skills pipeline in place for each department. 20 these plans for government capacity building. GOVERNANCE 21 IMPLEMENT, MONITOR & EVALUATE PLANS Implement, monitor and evaluate GOVERNANCE Establish a robust governance structure to oversee the implementation of project implementation plans. Projects of this complexity, with all the necessary partners, need to be project managed with responsibility for each step carefully allocated and resources for its execution identified. A two-tiered approach is being debated with national policies, systems and procedures (templates, portals, norms and standards for funding, funding sources etc.) complemented by provincial, district and municipal project plans implemented and overseen at the relevant level. Partnerships with the Offices of the Premiers are currently being sought for the next phase. Annexure B: PROVINCIAL SKILLS DEVELOPMENT PLAN Annexure C: AGREED PROGRAMME OF TRAINING Annexure D: NAME AND CONTACT DETAILS OF 21 STEP PROJECT MANAGER AND HIS/HER SUPERVISOR 16