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Skills shortage is genuine threat to growth, say bosses
May 24, 2007

By SIBONGILE KHUMALO and NTEBO MMOPE

Johannesburg - Skills shortages in critical areas of business posed a major threat to economic growth, top business executives said yesterday.

They were responding to the dismissal of the skills shortage by Jimmy Manyi, the chairman of the Commission of Employment Equity, as an urban legend based on racism

Manyi's comment stirred up mixed reactions from business industry players, who refuted his claim as an emotional and absurd outburst.

Grinaker-LTA managing director Eddie Durant said the construction industry was experiencing shortages of relevant talent in key areas of operation: "Experience is a very important factor and should not be left out when addressing the skills problem," he said.

"Lack of skills in specific areas, like engineering and specialised welders, was found across all races. We can't pick and choose talent based on race. The talent that we have does not have enough experience to carry out some civil supervision and technical work."

Grinaker is training graduates and importing welders from countries such as Malaysia, Ireland and India. Europe has been the best recruiting ground for engineering skills.

"The skills that we import are effective in improving skills and developing experience," said Durant. "Qualification alone cannot match experience. A person who is fresh from university cannot be matched with someone with 10 years of experience."

A survey by the SA Institute of Architects, in conjunction with the Joint Initiative on Priority Skills Acquisition (Jipsa), shows that 80 percent of the country's architectural practices have shortages of 40 percent.

Jipsa has been involved in a nationwide campaign to train graduates and unskilled people in different fields of work.

Maria Ramos, Transnet's chief executive, said the skills challenge was a temporary thing. "People often confuse the existence of people with degrees and qualifications with people with experience. Having many people that had graduated with an engineering degree does not mean having experienced engineers.

"I would hate to be a young engineer, because you are in so much demand," said Ramos. "Everybody is quite happy to pay you a lot of money, they expect the world from you and you do not have the experience to deliver the world.


Hansgeorg Niefer, the chairman of DaimlerChysler SA, called for more investment in specialised skills and the development of local talent. "The need for skills does not stop with artisans and engineers but spreads across various specialised areas of work," he said.

Albert Schuitmaker, chief executive of Cape Regional Chamber of Commerce, said many businesses in South Africa found it increasingly difficult to recruit skilled employees at virtually all levels in the company. "There are particularly problems with artisans, engineers and project managers, based on actual recruitment drives by individual companies that want to expand," Schuitmaker said.

Sasol reported shortages of welders, instrument mechanics, X-ray technicians, turbine fitters and riggers. It had trained 800 artisans, and last year it imported 1 300 artisans and welders from Thailand to bolster the local workforce.

Mlambo-Ngcuka backs claim

The claim that the skills shortage is an urban legend was partly correct, deputy president Phumzile Mlambo-Ngcuka said yesterday.

She agreed with the view "in a sense", and it was borne out by research. There was a misalignment of the skills black graduates had and those in demand in some cases, she said, and many with technical skills did not have "soft" skills.

"But we also have skilled black South Africans in positions that are way below their qualifications" who ultimately resigned, she said. - Sapa

Manyi must go, says Solidarity

Jimmy Manyi should be replaced as the Employment Equity Commission chairman, trade union Solidarity said yesterday.

Union secretary-general Flip Buys said Manyi did not use any statistics to support his allegations that the skills shortage was a racist urban legend. The chairman should look at the joint initiative on priority skills acquisition report that said there was a severe shortage of qualified and experienced artisans in South Africa, not to mention engineers, Buys said. - Sapa
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