W&RSETA WholeSay June2020

WHOLESAY June 2020 Newsletter

Celebrating the youth of the W&R Sector value of the month

Agility

the w&rseta condemns all forms of gender-based violence

• We are responsive to the ever- changing needs and trends of industry • We are demand-driven • We work with foresight • We strive to be proactive through leadership

Message

from the Editor-in-Chief

2020/2021 Annexure II submissions..................................3 Youth Month 2020............................................................4 SSP Stakeholder Consultation Process................................6 Impact of COVID-19 on the W&R Sector............................7 Revised 2020/2021 APP....................................................9 2020/2021 Discretionary Grant Funding Window............11 Whole Diary...................................................................12

Editorial Team The youth of South Africa inspires hope in spite of a global crisis On 1 June 2020 South Africa entered the third phase of the national lockdown as part of government’s risk-adjusted strategy to deal with the COVID-19 pandemic. Alert level 3 has allowed for the entire Wholesale and Retail Sector to reopen after a 2-month trade restriction on non-essential sub-sectors of the sector. The further reopening of the economy has been largely welcomed which has seen over seven million people return to work, thereby allowing companies to generate revenues that will sustain the workforce. However, the alarming increase of infections remains a concern. We must all continue to play our part to flatten the COVID-19 curve by following the health and safety measures. We are encouraged by the contribution of our stakeholders in curbing the spread of the virus.

On a positive note, the month of June presents us with an opportunity to celebrate the young people of our country.

This year’s Youth Month is especially significant as we pay tribute to the young people in the frontline in the fight against COVID-19. These are the young people on the shop floors of our wholesale and retail companies who are demonstrating courage as they continue to serve the nation. We are also

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June 2020 Newsletter

Martha Shingange – Editor-in-Chief Rhulani Mavunda – Editor Desmond Mashao – Production Coordinator

proud of the young entrepreneurs who are working tirelessly to provide necessities during these uncertain times. The Wholesale and Retail Sector is in good hands.

As we navigate through this pandemic, it is undeniable that skills development plays a key role in assisting companies to manage the impact of COVID-19 and prepare for the economic recovery. This has been obvious in the SSP stakeholder engagement sessions that commenced on 3 June 2020. The annual sessions have provided us with key insights on the issues that our stakeholders are grappling with as we all seek solutions to get us through these uncertain times. Highlights from the first five sessions that were conducted in this month are on page xxx.

With the easing of restrictions allowing trading and learning to resume, we are encouraged that companies, training providers and the learners are eager to return to some level of normalcy. We have issued a communique on measures to be implemented for classroom learning. You can read more about these developments on page 4.

I look forward to sharing the latest developments in the next issue. Until then, stay healthy and safe.

Yours in skills development,

Martha

Manager: Marketing and Communications

Thank you to our stakeholder companies for meeting the 2020/21 Annexure II submission deadline

The extended deadline for the submission of the 2020/21

ourselves in. This response will ensure that the W&RSETA and

Annexure II closed on 31 May 2020 allowing stakeholders

our stakeholder companies continue to contribute to skills

to make their submissions during the most challenging

development and respond to the impact of COVID-19 in the

time for our country as we continue to fight the COVID-19

sector during these challenging times.

pandemic. This year’s process was particularly challenging as most companies remained closed due to the national

The W&RSETA would like to thank all companies for submitting

lockdown. As a result, the W&RSETA allowed companies

their applications on time under trying circumstances. Together

to make submissions manually to address challenges that

we are moving our country forward through skills development.

some stakeholders encountered with the system, particularly bulk uploads. We are heartened by the high number of

In the next few weeks our regional teams will be working

submissions of the Annexure II documents from our small,

around the clock to finalise allocations and contracting to

medium and large companies which was more than what

ensure that training commences timeously.

we had anticipated given the uncertain period that we find

June 2020 Newsletter

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Celebrating

the youth of the Wholesale and Retail Sector During the month of June, South Africa remembers

Management Development Programmes

the courage of the youth of 1976 for their contribution

The W&RSETA’s management development programmes

towards achieving a democratic South Africa that we live

have contributed to addressing leadership skills and providing

in today. It is a period for the W&RSETA to celebrate the

opportunities for young people to ascend to senior management

young people who have embraced the fruit of the struggle

positions in the sector. Young people who have completed the

against apartheid. We celebrate the young people who

International Leadership Development Programme and Retail

have completed or are currently participating in our

Management Development Programme have advanced their

programmes including learnerships, graduate programmes,

careers and are making significant strides in professionalising

management development programmes and those who

the Wholesale and Retail Sector.

have used these programmes to create employment for themselves and their communities.

Learnerships These programmes have benefitted thousands of young people, providing them with skills to enter the job market.

Through these programmes, some of the young people have become entrepreneurs.

Sihle Mkhuleseni From Trolley Packer to National General Manager at Boxer Superstores.

Mongezi Phalaza From Casual Worker to Store Manager at Boxer Stores.

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June 2020 Newsletter

Workplace Experience Programme The W&RSETA collaborates with wholesale and retail companies to assist students and graduates from Technical and Vocational Education and Training colleges, universities of technology and university graduates to acquire workplace experience to prepare them for the world of work. Over 4000 graduates have benefitted from the programme.

Rayvin Daniels From unemployed to Deputy Divisional Training Manager at Shoprite Group.

Bursary Scheme The W&RSETA has opened doors of learning to thousands of young people from disadvantaged backgrounds to pursue their studies at TVET colleges and institutions of higher learning through its Bursary Scheme.

Jackie Mabotja From intern to Accounting Clerk at the Consumer Goods of South Africa. Jackie is currently serving articles with the South African Institute of Chartered Accountants.

UNEMPLOYED YOUTH ASSISTANCE PROGRAMME PROJECT (UYAP) Over 5000 young people have benefitted from the W&RSETA Unemployed Youth Assistance Programme which was aimed to contribute to reducing youth unemployment.

Mellisa Jula has progressed to become a Food Scientist at Monteagle International UK Limited handling private brands for some of the local major retailers.

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June 2020 Newsletter

Stakeholders inform skills priorities in the COVID-19 period Chantel Butler, Head of Organisational Effectiveness at Woolworths, provided an overview on how the Wholesale and Retail Sector has been affected by COVID-19. Butler emphasised the need of reskilling employees on digital programmes in order to respond to the disruption brought about by the pandemic. Leadership skills would also need to be a key focus requiring the W&RSETA to review its management programmes. The W&RSETA Retail Leadership Chair at Durban University of Technology (DUT), Yunus Doba, The W&RSETA is committed to ensuring continuity on skills

presented on the pre, during and post COVID-19 economy,

development during these uncertain times to ensure that the

particularly the impact on the Wholesale and Retail Sector.

sector is positioned to respond to the impact of COVID-19.

This was one of the main themes of this year’s Sector Skills Plan

During the Mpumalanga session, Sarah Koster, Director

(SSP) stakeholder consultation process which commenced on

at Mica Nelspruit, shared her perspective on the impact

3 June 2020. It is the first time that the sessions are being

of COVID-19 on the hardware sub-sector in terms of

conducted virtually due to the COVID-19 pandemic and we

supply and demand during the lockdown. Koster further

are pleased with the stakeholder participation as we navigate

indicated the challenges of online shopping which had

through the new normal. Sessions have been conducted for

affected mainly small hardware retailers due to insufficient

the Gauteng, KwaZulu-Natal, Western Cape, Eastern Cape,

resources for digital shopping.

Mpumalanga and Free State provinces.

The main areas of engagement are around the following: The update to this year’s SSP will assist the W&RSETA to align

•

critical skills needs including Hard to Fill Vacancies (HTFVs), scarce and critical skills gaps. Importantly, the process will assist

responding to labour market disruptions?

•

the W&RSETA to identify urgent skills needs that are required to respond to COVID-19. During the sessions, stakeholders

What priority skills interventions to implement when What are the occupational changes as a result of COVID-19 disruptions?

•

engaged on the challenges that they are facing as a result

What are the key focus areas to avoid massive job retrenchments?

of the coronavirus and how the sector and the SETA should

•

What are the 3 skills priorities areas for the sector?

respond to these. The W&RSETA also outlined its COVID-19

•

What type of support is required in order to simulate

measures and key interventions that are being implemented.

growth for small and informal businesses?

The sessions will be concluded in July 2020 with the final draft of the SSP due for submission to the Department of Higher Education and Training on 31 August 2020. Please refer to page 12 for details on the outstanding sessions.

Stakeholders can continue to provide input to these focus areas by sending an email to Mxolisi Maphakela on mmaphakela@wrseta.org.za.

Chantel Butler, provided an overview on the impact of COVID-19 in the W&R sector

Click here to participate in the W&RSETA COVID-19 Economic Survey.

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Extract on the impact of COVID-19 on the economy within the W&R Sector from Yunus Doba, the W&RSETA Retail Leadership Chair at DUT

Prior to November 2019 and before the declaration of the

Training is also affected as these budgets have been reduced.

global disaster, everything was normal. The South African

Strategic planning, talent management, succession planning

economy was fragile with an unabated unemployment

and employment equity will be suspended until the economy

rate. South Africa was beginning to adjust to digitalisation,

stabilises. Training for the new digital normal will be sacrificed

e-commerce, online shopping and e-learning. In December

by smaller class sizes observing social distancing, costs of

2019, the Coronavirus started to impact the world’s economy

safety protocols, remote learning, utilising alternate modes

with South Africa going into lockdown from 26 March 2020.

and the cost of bandwidth and data.

The lockdown has exacerbated unemployment and a decline in the economy, is currently being addressed by government

Beyond COVID-19, the country will need to put a catch up plan

through measures to assist businesses and the unemployed.

in place due to the economy contracting which is not expected to normalise within the next three years. It is inevitable, but

Retailers experienced a shortage of stock with the business

retrenchments and unemployment will increase with the rand

supply and demand of inventory determining pricing

slowly recovering to relatively healthy economic levels.

structures resulting in price hikes. Another challenge was the restriction of trade on non-essential goods. The sector also declined due to losing out on the peak sales normally experienced over the Easter holidays. Should COVID-19 restrictions persist indefinitely, it will be disastrous for retailers.

As a result of job losses and lack of income, consumers are spending less on non-essential goods. However, retailers still have overheads leading to low profits. Additionally, procuring protective equipment has burdened cash flow. The pandemic has also resulted in reduced employment as companies have resorted to staff rotations or termination of staff.

Retail Chair, Yunus Doba

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June 2020 Newsletter

The Sector Keeping an Eye on the ball • Retailers have to plan their businesses by being relevant in Implications of COVID-19

view of the economy post COVID-19.

• Consumers rely on home grown products and less

• Businesses have to be agile and flexible in terms of

on imports with positive spin-offs for employment

technology and adapt fast due to the uncertainties

opportunities

around how long the health crisis will last. The greatest

• e-Commerce will result in skill-sets misfits and employability

lesson COVID-19 has taught the world is to question how

of learners and graduates. Educational programmes

prepared we are to manage crises and the importance of

within the value chain of employability inclusive of basic

contingency planning.

education, learnerships and higher learning have to be reconfigured in view of digitalisation.

• The lockdown forced companies to keep operating by exploring alternative ways of working. Efficacy of working

• Learnerships in their current form will become irrelevant.

from home has challenged traditional norms of work and

Learning content has to include data analytics, digital

digitalisation has given credence to this thinking as the

marketing, technology driven order placement, order

new normal is embraced.

fulfilment, stock replenishment, artificial intelligence,

• The new customer has the luxury of online price checks

robotics, etc. The W&RSETA’s intention of re-engineering

prior to purchase and this gives them the power to

the sector to be competitive in e-commerce has to be

easily migrate to where they receive the greatest value.

swift.

Companies need to focus on enhancing their value

• The Solidarity Fund only offers temporary relief as the damage caused remains.

• The digital economy is now a clear challenge to brick

offering as the new customer is more informed. With all things equal in terms of pricing, differentiation in the value offered will be key.

and mortar. However, South Africa’s stark rural-urban

• Retail Darwinism seems appropriate to see who will

dichotomy will see some communities utilising the medium

survive in a new economy, the survival of the fittest will

which will further highlight the disparities between the

be determined by business innovation, being customer

“have’s and have nots”.

orientated and pivoting the business in terms of need.

COVID-19 has brought with it anxieties about health and safety but it has also made a significant impact on the socio-economic landscape. South African retailers need to plan for the unexpected and be market driven by keeping up with international trends with local realities in order to win brand loyalty amongst consumers. It is all about innovation, agility and realistically wrapping our arms around the new economy and to trade with distinction.

June 2020 Newsletter

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REVISED

2020/2021 ANNUAL PERFORMANCE PLAN (APP) In response to the impact of the COVID-19 pandemic, the W&RSETA has revised its 2020/2021 APP to reprioritise skills development interventions. This reprioritisation was also necessitated by the Skills Development Levy holiday for companies which has reduced the SETA’s projected income from R1.44 billion to R786 million.

Interventions including the ILDP, RMDP, and Recognition of Prior Learning have been deferred to the following year.

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June 2020 Newsletter

The revised APP has prioritised the following key focus areas: • Job retention for employees through re-skilling or multi-tasking of activities for possible changes in business processes.

• Increased number of skills programmes to address re-skilling and multi-skilling of employees to adapt to new business processes and COVID-19 requirements.

• Implement a project to train 600 graduates to assist companies with the screening of customers and learners, and health and hygiene management at wholesale and retail companies over a 12-month period.

• Increase the number of learners completing programmes.

• Assist vulnerable youth to gain access to opportunities for education, training and employment.

• Support vulnerable sectors of the economy, particularly SMMEs, informal traders, cooperatives and NGOs. • Implement reasonable accommodation measures to support the sector with COVID-19 regulations, including the provision of Personal Protective Equipment and through the C19 TERS.

The targets for the 2020/21 financial year have been reduced from 69 to 44 and are as follows:

PROGRAMME 1 Administration

PROGRAMME 2 Research & Innovation

• 90% implementation of approved structure

• 2 research interventions responding to strategic

• 65% levy resources directed to low-level skills

partnerships

• Direct 15% levy resources to intermediate-level skills

• Conduct 2 research reports

• 20% levy resources directed to high-level skills

• Complete 2 sector directed tracer, evaluation and

• 10 stakeholder sessions to advocate skills development • 80% reduction of manual processes

impact study reports • Approved SSP and SP /APP

• Unqualified audit opinion

PROGRAMME 3 Learning Programmes • WSPs/ATRs approved for 2800 small, 700 medium and 350 large companies • 2000 bursaries for new unemployed and 500 continuing students • 200 bursars completing qualifications • 3000 unemployed learners registered on NQF levels 2-5 learnerships and 1500 completions • 800 unemployed learners registered on skills programmes and 200 completions • 500 employed learners complete NQF levels 2-5 learnerships • 8000 employed learners registered on skills programmes and 1000 completions • A needs analysis conducted on candidacy programmes • Place 1200 graduates in the workplace to assist with implementation of COVID-19 measures • 600 graduates placed on internships and 200 completions • Establish partnerships with 10 TVETCs and HETIs for workplace opportunities • 50 employed learners complete RPL programmes • Support 2400 SMEs to participate in skills development • Conduct capacitation workshops for 2400 informal traders and micro enterprises • Support 20 co-operatives and 100 NGOs/CBOs/NPOs to participate in mainstream economy • 200 apprenticeships for employed and unemployed learners • 200 people trained on Entrepreneurship Development Programmes • Capacitate 800 trade union officials

PROGRAMME 4 qqa • Establish partnerships with 10 TVET colleges and HETIs for workplace opportunities • Develop 1 W&RSETA model for Centres of Specialisation for the sector • Establish 1 working group for the sector curriculum review • Support 3 TVETCs to become assessment centres for retail occupational programmes • Support 7 CET colleges through W&RSETA infrastructural development

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The W&RSETA has opened a Discretionary Grant Funding Window for 2020/2021 to allow small, medium and large levy-paying companies to apply for funding for the following interventions:

• Bursaries for continuing students; • Bursaries for new, unemployed students; • Unemployed learnerships at NQF levels 2-5 or occupational programmes in line with the sector’s hardto-fill vacancies (HTFV); • Learnerships for the unemployed at NQF levels 2-5 or part qualifications in line with the HTFV; • Skills programmes for unemployed learners at NQF levels 2-5 or part qualifications in line with the sector’s HTFV; • Graduate placements for students from TVET colleges and HET institutions to gain workplace experience for a period of 12 months; and • Internships for TVET college students to gain workplace experience in order to obtain their qualifications (N6 students) for a period of 18 months

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June 2020 Newsletter

Applications must be made online ONLY at www.wrsetaonline.org.za Please refer to the system user manual for guidance on the submission of applications. Applications will close on 17 July 2020. No late applications will be considered.

Click here to access the advert

Whole Diary INVITATION:

2020/2021 Online Sector Skills Plan (SSP) Engagement Sessions Wholesale and retail employers are invited to participate in the 2020/2021 annual SSP engagement sessions. The purpose of these sessions is to interact with stakeholders to solicit inputs on critical areas around skills development, economic and labour market to mitigate the impact of COVID-19.

It is important that stakeholders participate in this process to

Sub-sector consultations

ensure that the W&RSETA develops and updates an SSP that

Priority will be given to struggling sub-sectors as per economic

reflects the skills priorities of the Wholesale and Retail Sector.

performance and contribution to the sector. The sessions are

This process will also enable the W&RSETA to allocate funding

as follows:

to key skills priorities in line with the Grant Regulations.

PROPOSED

SUB-SECTOR Stakeholders that missed sessions in their provinces are welcome to attend any of the following remaining sessions: SSP Stakeholder Engagement Date

Region / Province

06 July 2020

Northern Cape

20 July 2020

North-West

22 July 2020

Limpopo

DATE

General Dealers

06 July 2020

Household Furniture and appliances

09 July 2020

Clothing

13 July 2020

Pharmaceutical cosmetics and toiletries

16 July 2020

Fuel Retailers and motor trade

20 July 2020

Sessions will be conducted virtually through Microsoft Teams.

Please confirm your attendance to tmnisi@wrseta.org.za June 2020 Newsletter

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Name of Province

Proposed date

Event

Midrand, Gauteng

4-5 March 2020

2020 Black Business Summit

49 Heystek Street Rustenburg 0299

You TA Tube

014 592 0483 Call Centre: 086 270 027 Web: www.wrseta.org.za