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Minister Nxesi at the launch of UIF-LAP Job Creation Project in KZN with the FUZE Institute for Humanitarian Praxis
4 March 2022
Page Content
Protocol
Programme director
His worship the mayor, Cllr Mxolisi Kaunda
The Vice-Chancellor and Deputy Vice-Chancellor of the University of KZN – Prof Poku and Prof Mkhize, respectively
The CEO of the Fuze Institute, Thandi Ngcobo
The many partners in this project: o Mr Nhlakanipho Nkontwana, HOD of the Department of Economic Development
Ms Pearl Bengu, GCEO Ithala Development Bank
Mr Ciko Thomas, Group Managing Executive for Retail and Business Banking
Ms Nelisiwe Gumede, Project Leader for Business Support Tourism and Markets, Ethekweni Municipality
Ms Sharon Peetz, COO: MyTechie Pty Ltd
Mr Simakade Thomo, Communications and Project Manager: Intermediate Data Systems
Mr Sanele Mlotshwa, Principal: Amajuba TVET College
Honourable Mr Kwazi Mshengu MPL, MEC for Education
Dr Sipho Nzimande of Higher Education and Training
Most importantly, representatives of the beneficiaries
Ladies and gentlemen
Welcome one and all to this important occasion – the launch of a UIF Labour Activation Programme (LAP) Job Creation Project – jointly with the Fuze Institute for Humanitarian Praxis.
I think we can all agree, that in the face of rising unemployment, all efforts to create and preserve jobs, and to provide employable skills are to be welcomed.
Today we are launching training projects aimed at creating jobs in the fibre optics, food handling and mixed farming sectors.
The projects are being undertaken through a partnership agreement between the Fuze Institute for Humanitarian Praxis and the Unemployment Insurance Fund (UIF) Labour Activation Programme (LAP), an entity of the Department of Employment and Labour.
The UIF, through its Labour Activation Programme (LAP), has set aside R551 million for the three projects for nearly 20,000 (19 921) beneficiaries – 70% of which are former UIF contributors who lost their jobs – to undergo training in the following skills disciplines:
• 14 771 beneficiaries as Chief Food Handlers;
• 5000 beneficiaries in Enterprise Development (mixed farming); and
• 150 beneficiaries as Fibre Optic Technicians.
Already, the 14 771 food handling beneficiaries have been employed by the Department of Education in KwaZulu-Natal after completing their training.
The Department of Economic Development, Tourism and Environmental Affairs in KwaZulu-Natal has pledged to support the 5,000 learners' co-operatives by purchasing their farming produce while Link Africa has committed to employing the 150 beneficiaries as Fibre Optic Technicians upon completion of training.
The training programmes include theory and practicals, while learners also receive monthly stipends.
The Fuze Institute for Humanitarian Praxis signed a 36 months Funding Agreement with the Department of Employment and Labour (DEL) to be funded through the Unemployment Insurance Fund (UIF) - Labour Activation Programme - to provide training for nearly 20,000 beneficiaries. The Funding is for three programmes as follows:
1. Project 1: Food Handlers
Number of UIF Beneficiaries: 14 771
Duration: 3 Months Skills Training
The total budget for this project is R 347 million which includes the payment of stipends, training, protective clothing, tools of trade, support & incubation including Monitoring and Evaluation. The project is being implemented across the following Districts: Zululand; uMkhanyakude, King Cetshwayo, iLembe, Ugu, Harry Gwala, uMgungundlovu, uThukela, uMzinyathi, Majuba and the eThekwini Metro.
The Food Handlers training was provided in partnership with the KZN Department of Education and the training
provider was the Majuba TVET College. The Department of Education committed to absorb all the beneficiaries trained in this programme and have since absorbed all of them.
2. Project 2: Enterprise Development (Mixed Farming)
Number of UIF Beneficiaries: 5 000
Duration: 6 Months Skills Training
The total budget for this project is R 198 million which, like the Food Handlers project, includes the payment of stipends, training, protective clothing, tools of trade, support & incubation including Monitoring and Evaluation. The project is being implemented in the following Districts: Zululand; iLembe; King Cetshwayo; uMzinyathi; uMgungundlovu, uMkhanyakude and the eThekwini Metro.
All the 5 000 were trained by Nokusho & Lungi Consulting. The partners of Fuze Institute in this project are KZN Department of Economic Development,
Tourism and Environmental Affairs – Radical Agrarian Socio-Economic Transformation (RASET) and Nedbank. Fuze Institute has created market linkages for the co-operatives that are being created from the project. A total of 500 cooperatives are being registered for the 5 000 beneficiaries with each cooperatives comprising of 10 members. The cooperatives will be supplying vegetables to schools as part of the KZN DoE nutritional programme.
3. Project 3: Fibre Optic Technicians
Number of UIF Beneficiaries: 150
Duration: 6 Months Skills Training
The total budget for this project is R 6 million which caters for payment of stipends, training, protective clothing, tools of trade, support and incubation including Monitoring and Evaluation. The project is implemented in the eThekwini Metro in partnership with Intermediate Data Systems and MyTechie with training provided by Ayishi and Eduworks. 8
All 150 UIF beneficiaries are currently training but have guaranteed employment on completion of the training. They will be installing fibre in three different districts.
Let me step back for a moment and explain the thinking behind these employment creation projects. In 2019, the President expanded the mandate of my Department to include issues of employment alongside labour issues. As we reconfigure the Department accordingly, our strategies included:
• Leveraging existing resources and programmes – such as the UIF LAPS - to contribute to job creation and preservation, as well as linking training and skills development to actual jobs.
• At the same time, we seek out new partners in pursuit of these objectives.
Let me unpack the elements of these projects. The Labour Activation Programme (LAP) skills development contributes to the reduction of unemployment and poverty alleviation. LAP was established in order to 9
enhance the employability of Unemployment Insurance Fund (UIF) beneficiaries – ie workers who have lost their jobs - and ensure their re-integration into the labour market.
LAP entails Training Layoff Schemes (TLS), Training of the Unemployed (TOU), Entrepreneurial Programmes, Turnaround Solutions (TAS) and Enterprise Development. TLS is a temporary suspension of work for a worker or group of workers that will be sent for training. The scheme is aimed at companies that face a potential risk of retrenching workers due to tough economic conditions.
The long term plan of this approach is to ensure that the trainees are linked with state financial institutions whereby they will receive financial and non-financial support. The Fund also partners with Technical and Vocational Education and Training (TVET) colleges across the country and SETAs (training authorities) to train beneficiaries on the above outlined programmes. 10
The strategic objectives of these projects include the following:
• To re-integrate UIF beneficiaries into the labour market: the UIF fights unemployment by ensuring that UIF beneficiaries are trained and re-skilled for re-employment;
• Saving jobs and growing the economy: the UIF – together with the CCMA (Council for Conciliation, Mediation and Arbitration) and Productivity SA - is there to assist struggling companies with solutions to turn them around to prevent job losses and contribute to economic growth;
• Promoting entrepreneurship: UIF promotes and supports entrepreneurship by providing relevant training and skills; and
• UIF contributes to poverty alleviation: UIF benefits are a lifeline to unemployed contributors, their families and communities.
Although today's event is to officially launch these projects, as you can see, much progress has already been made. Our hope is that these projects can provide a model and lessons for more job creation projects to come.
Thank You.
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