Labour Court challenge to reduction of SETA Mandatory Grants successful – Judgement attached


Front Page Looking For… Skills Development Facilitators Labour Court challenge to reduction of SETA Mandatory Grants successful – Judgement attached

This topic contains 1 reply, has 15 voices, and was last updated by  sylvia hammond 2 years, 7 months ago.

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  • #29345

    sylvia hammond
    Keymaster

    Note: Full Judgement now attached 

    The following message has been received from Global Business Solutions and ASDSA.

    “On Friday, 7 August 2015, the Labour Court upheld a challenge to the amendment of the SETA Grant Regulations which effectively resulted in the reduction of mandatory grants to only 20% per annum.
     
    Earlier this year, Business South Africa (BUSA) challenged this amendment by the Minister of Higher Education and Training which not only gave effect to a substantial reduction in mandatory grant regulations, but also allowed for the unspent SETA funds allocated to the National Skills fund. 
     
    However, the Court did suspend the effect of the Order of invalidity until 31 March 2016 to give the State and SETA’s an opportunity to prepare to revert to the previous Grant Regulations.
     
    The Minister may still apply for Leave to Appeal the judgment,
     
    We will keep you informed of further developments in this regard.”

    .

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  • #29367

    Lerato Monyatsi
    Participant

    Thank you Sylvia

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  • #29366

    Oh wow! That’s amazing and hugely welcomed

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  • #29365

    Claudia Nicholl
    Participant

    That’s good news indeed.

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  • #29364

    Daniel Hadebe
    Participant

    This is definitely good news. I fully support the Labour Court on this one.

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  • #29363

    Des Squire
    Participant

    Best news I have heard in a long time. Allowing these grants to be used for any purpose other than workplace skills training, for which they were originally intended – would confirm employers original worry that the levy was just another tax.   

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  • #29362

    sylvia hammond
    Keymaster

    I would like to read the judgement – so whoever locates it first – please send me a copy or upload a copy to this discussion.  

    Then the next thing to watch out for is whether the DHET will appeal.

    What makes it even more interesting is the timing – we are anticipating the announcement on the SETA reorganisation – or clustering – also to take place for implementation 1 April 2016.  

    This is truly more exciting than a TV soapie.

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  • #29361

    Ian Webster
    Participant

    It is indeed!

    The government tends to appeal everything, mindlessly, so I have little doubt they will appeal or find a way around.

    Thanks Sylvia for keeping your eyes open for these things. 

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  • #29360

    Andrew Carlsson
    Participant

    Many thanks for the feedback – now we wait and see what will happen

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  • #29359

    Hi Sylvia

    This is great news, particularly in the light of the amended BBBEE Act which came into effect from 1 May 2015 with the huge spending companies need to make to skills development.  Any extra grants are welcomed.

    Herewith attached please find the Judgement as per your request.

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  • #29358

    I am so pleased to hear this! 

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  • #29357

    sylvia hammond
    Keymaster

    Hi Thanks for that Christine – yet I did manage to access it from someone else & the link is included in the discussion now.  Thanks for your help though – much appreciated. 🙂 

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  • #29356

    Werner Rossouw
    Participant

    Hi Sylvia

    For the sake of clarification, what does this mean for employers who ordinarily complete WSP/ATR? 

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  • #29355

    Renee’ McGibbon
    Participant

    Good news indeed! Thanks Sylvia.

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  • #29354

    Goood news Sylvia

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  • #29353

    sylvia hammond
    Keymaster

    According to my reading of the judgement the DHET Minister has the following options:

    • appeal the decision to the Labour Appeal Court
    • implement the 40% Mandatory Grant that was consulted on
    • consult on the 20% Mandatory Grant that was implemented or
    • consult on any other % including 0% Mandatory Grant.
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  • #29352

    Exceptionally interesting, thanks. 

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  • #29351

    Thank you Global Business Solutions, Sylvia and Christine.

    I must say that this judgement reads even better than a soapie! Just when I thought The Minister and Government couldn’t sink any lower, they they continue to reinvent and redefine creativity in attempting to wriggle themselves out of accountability!

    Some gems even I as a non-legal participant include (and I am writing it as I would have hoped was at least thought if not said): 

    Respondent – We can’t talk about these things now because The Labour Federations are not included here, but because they are labour, they must be. Give us time to get them here to.

    LC Response – While the unions represent labour, it only you who said that they must be here in their capacity as party of interest. The Law doesn’t say so. No. [47-49]

    Respondent – Ok, sorry ne. We know we took long to come here. But they too took too long to appeal. It’s not our fault!

    LC Response – No baba! It is your fault that you signed on a date before and only ‘consulted’ them after. It is you who only answered their application 16 months after they learnt about is and lodged the appeal! I am not stupid. [65-71]

    Respondent – We did consult the Authority through NEDLAC because the same people that serve the Authority and they couldn’t agree, so we took matters into our own hands and MADE THEM THINK that they were “consulted” by giving them the “draft”. We just “forgot” to tell them that it is already signed.

    LC Response – Urm sorry baba! Only 3 out of 30 individuals from the INDEPENDENT LEGAL ENTITY serve in NEDLAC and Applicant simultaneously. That is not consultation. Try another one. [108-111]

    Respondent – But if more money goes to the Fund, then they will have better skilled workers with qualifications!

    LC Response – Urm, not necessarily because you only fund qualifications that you decide are important. If they spend money on targeted training they have wait forever to get their money back, IF they get it back. [112.5]

    Respondent – Ja but by Government instructing that the SETA’s must use 95% of their money by a certain time of the year, we are actually helping the Applicant to get access to the monies!

    LC Response – Thina?! How so if they couldn’t spend the monies before you bring in this new ruling? How will that help? Tell me another one. [119.4]

    The nerve!!

    Thank you judge AJ Coetzee and attorneys.

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  • #29350

    Kerrin Badham
    Participant

    I have been wondering what is going to happen to the SETAs.  Many qualifications have expired and training providers are not re-registering.  All waiting to see what will happen.  Also a new Skills Development Strategy is needed.  The current one NSDS III expires in 2016.  I hope it won’t be a bomb shell.

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  • #29349

    Claudia Nicholl
    Participant

    🙂 🙂 🙂

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  • #29348

    sylvia hammond
    Keymaster

    Hi Kerrin,

    Personally, I don’t think that there is any need to be overly pessimistic. 

    The qualifications that have not been used have been terminated. SAQA has confirmed the extension of legacy qualifications until 30 June 2018. They will be revised into the QCTO format, or also fall away if no longer necessary.  So I’m not sure why you say they have “expired”.  Have a look at the main SAQA website and the following link, where you will find all qualifications and part-qualifications:

    http://www.saqa.org.za/show.php?id=7391

    I am aware that the status of SETAs is under discussion in the various consultation forums.  It is highly unlikely that the SETA model would be scrapped altogether but various amended versions have been suggested.

    On the new NSDS, the challenges of South Africa such as: youth and general unemployment, poor education outcomes, low levels of literacy and numeracy, lack of artisan skills are all pretty obvious. Secondly, the DHET Minister has made clear the vision for post-school adult education in the White Paper, so I don’t think anything should come as a surprise.

     

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  • #29347

    Kerrin Badham
    Participant

    Thanks for your response Sylvia.

    Could you tell me what a legacy qualification is?

    The process of revising qualifications on the QCTO appears to be very slow.  I looked a month or more ago on the QCTO website and was concerned to find only 50 or so qualifications that have been approved by them.  Sadly, none of them suited our training. A qualification that we are accredited to run expired on 30th June 2015 (for new registrations of learners).  There is not yet anything similar on the QCTO site.   This makes one concerned.

    Does one take course material to be accredited straight to the QCTO now, or still to the relevant SETA? 

    Much appreciate the knowledge shared.  Glad to have found this forum.  Have been looking for a discussion group for a long time, where I can share my concerns and find solutions.  

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  • #29346

    sylvia hammond
    Keymaster

    Hi Kerrin,

    My apologies for the jargon – legacy qualifications is the term for the old unit standards based qualifications before the QCTO.

    Yes, I think that most would agree that the QCTO has been a very slow process so far.

    If I understand correctly the qualification you are referring to should be part of those that have been extended until June 2018 – or am I missing something?  

    On accreditation, a number of skills-universe members are experts in that field – so I would wait for them to respond.

    Skills-universe members are always very helpful and prepared to share their knowledge and experience so I am sure that we can collectively make progress for you. 

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