SUBSECTOR SKILLS PLAN

PHARMACEUTICALS

DRAFT: 16 SEPTEMBER 2014

CONTENTS

1. INTRODUCTION............................................................................................................................1

2. STATISTICAL OVERVIEW................................................................................................................2

3. KEY CHALLENGES AND OPPORTUNITIES........................................................................................4

4. SKILLS DEVELOPMENT PRIORITIES................................................................................................5

5. PRIORITY AND SCARCE SKILLS.......................................................................................................7

ANNEXURE A Methodology used to weight WSP data to sector totals..............................................10

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1. INTRODUCTIONThe Chemical Sector Education and Training Authority (CHIETA) consists of five chambers that represent the nine subsectors of the Chemical Sector. The five chambers are:

Petroleum and Base Chemicals Fast Moving Consumer Goods and Pharmaceuticals Explosives and Fertilisers Speciality Chemicals and Surface Coatings Glass.

Skills planning is a core function of all SETAs and according to CHIETA’s constitution, this function cascades down to its constituent chambers. According to the CHIETA constitution the chambers are (among other things) responsible to consult with the nine subsectors in areas of skills development and planning. The ultimate objective of such consultation is to compile a SSP for the Chemical Sector that takes into consideration areas of skills demand, skills supply, and scarce and critical skills as they manifest in the respective subsectors and a strategic plan that addresses the needs of the total Chemical Sector and its subsectors.

In 2013 the CHIETA commissioned subsector skills plans for each of the nine subsectors. These documents provided detailed analyses of each of the subsectors and were meant to assist the respective chambers in skills planning and to reflect the skills needs of and skills planning for each of the subsectors.

In 2014 the CHIETA decided to prepare much shortened versions of the subsector skills plans – with a strong focus on the most recent challenges and opportunities identified in the respective subsectors and the skills development priorities identified by the chambers responsible for the subsectors.

This shortened version of the subsector skills plan consists of the following sections:

Statistical Overview

This overview is based on the levy payment information for the 2013-2014 financial year and the workplace skills plans (WSPs) submitted to the CHIETA in March 2014. The data was weighted in order to extrapolate it to subsector totals (see Annexure A). The statistical overview provides information on the organisations in the subsector and the employees working in the subsector.

Key Challenges and Opportunities

At a series of chamber meetings held in July 2014 the key skills development challenges facing the Chemical Sector as a whole (as identified in the 2014 SSP update) were presented and discussed. The ways in which each of the subsectors and chambers were affected and reacted to these challenges were highlighted. Challenges and opportunities that were unique to each subsector were also identified. These discussions form the basis for this section in the subsector skills plan.

Skills development Priorities

The skills development priorities that each of the chambers set for itself are reflected in this section of the subsector skills plan.

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Scarce skills

A list of occupations in which skills shortages exist in the Chemicals Sector was compiled for the 2014 SSP. This list was based on the scarce skills information provided by employers in the WSP submissions of March 2014. In the last section of this subsector skills plan the skills shortages identified by employers in this particular subsector are listed in table format. The table is an extract from the scarce skills list of the total sector and contains information on the number of vacancies identified in the subsector. It also provides a sector perspective, i.e. whether it is regarded as a priority skill in the Chemical Sector as a whole, total employment in this occupation in the Chemical Sector, the total number of vacancies in the Chemical Sector and vacancies and percentage of total employment.

This subsector skills plan is a draft document for further discussion in the chamber meetings that will be held in October 2014.

2. STATISTICAL OVERVIEW

ORGANISATIONS IN THE SUBSECTORNumber of levy-payers in subsector 167Percentage of levy-payers in the Chemical Sector 9Percentage of levies paid in the Chemical Sector 14

EMPLOYMENT IN THE SUBSECTORTotal employment 23 653

PROVINCIAL DISTRIBUTION OF EMPLOYEESProvince N %

Eastern Cape 4 364 18.4Free State 219 0.9Gauteng 14 290 60.4KwaZulu-Natal 1 808 7.6Limpopo 8 0.0Mpumalanga 11 0.0North West 414 1.8Northern Cape 11 0.0Western Cape 2 529 10.7Total 23 653 100.0

AGE DISTRIBUTION OF EMPLOYEESAge category N %Younger than 35 8 621 36.435 - 54 12 533 53.055 - 59 1 578 6.760 and older 921 3.9Total 23 653 100.0

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OCCUPATIONAL DISTRIBUTION OF EMPLOYEESOccupational Group N %

Managers 2 896 12.2Professionals 6 619 28.0Technicians and associate professionals 3 608 15.3Clerical support workers 2 835 12.0Service and sales workers 179 0.8Skilled and related trades workers 442 1.9Plant and machine operators and assemblers 3 508 14.8Elementary occupations 3 362 14.2Learners 204 0.9Total 23 653 100

EQUITY

Race and gender distribution of employeesFemale Male Total

N %* N %* N %*African 5 291 22.4 5 116 21.6 10 406 44.0Coloured 2 435 10.3 1 707 7.2 4 142 17.5Indian 1 219 5.2 820 3.5 2 039 8.6White 4 444 18.8 2 621 11.1 7 066 29.9Total 13 389 56.6 10 264 43.4 23 653 100.0*Percentage of total employment in subsector.

Number of women and Blacks per occupational group

Occupational GroupWomen Blacks

N %* N %*Managers 1 303 45.0 1 143 39.5Professionals 4 361 65.9 3 060 46.2Technicians and associate professionals 1 978 54.8 2 848 78.9Clerical support workers 1 834 64.7 2 296 81.0Service and sales workers 96 53.6 142 79.4Skilled and related trades workers 90 20.4 326 73.8Plant and machine operators and assemblers 1 478 42.1 3 293 93.9Elementary occupations 2 126 63.3 3 284 97.7Learners 122 59.9 195 95.6Total 13 389 56.6 16 587 70.1Percentage of employment in occupational group.

Number of disabled people employed 203Disabled people as % of employment 0.9

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HIGHEST EDUCATIONAL QUALIFICATIONS OF EMPLOYEESNQF Level N %

Below Level 01 210 0.9Level 01 402 1.7Level 02 623 2.6Level 03 520 2.2Level 04 5 933 25.1Level 05 751 3.2Level 06 4 085 17.3Level 07 3 206 13.6Level 08 1 644 7.0Level 09 385 1.6Level 10 345 1.5Undefined 5 548 23.5Total 23 653 100

3. KEY CHALLENGES AND OPPORTUNITIES

Key challenges and opportunities in the Pharmaceuticals subsector were highlighted in a presentation by the dti at a chamber meeting held on 16 July 2014. These include the following:

The growth in pharmaceutical imports from India gives reason for concern as South Africa is not only becoming increasingly dependent on imported pharmaceutical products, but it is also becoming more dependent on a single country. The increase in imports is driven by competitive pricing as well as availability of raw materials in our trading partners. Although the increase in imports has major implications for local pharmaceutical companies, local capacity is being developed and promoted.

Project Ketlapela is still on hold following the withdrawal of the Swiss based company, Lonza, from the project. The aim of Ketlapa is to manufacture anti-retroviral drugs (ARVs) locally. The costs and benefits of the project need to be considered now that the global price of generic ARVs is coming down sharply.

A Medical Device Strategy is in the process of being drafted by the dti following a study by Deloitte which was concluded in May 2014. The draft strategy will be tabled at the Ministerial Cluster meeting and will be presented to private health sector stakeholders before submission to Cabinet for approval.

The dti will be actively involved in the monitoring of suppliers following the designation of tenders. The dti and the Department of Health are working together and the dti is making recommendations to the Department of Health regarding tenders issued in the public health sector. The dti has to actively justify its role in the designation of tenders.

Onderstepoort Biological Products is in the process of obtaining full good manufacturing processes (GMP) compliance and they are upgrading their facilities for the manufacturing of veterinary vaccines. This will increase their capacity and market access.

The dti is collaborating with the United Nations Industrial Development Organisation (UNIDO) which made one million Euros available for SA pharmaceutical industry skills

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interventions. This funding will be used for regulatory training for Medicines Control Council (MCC) officials, for capacity building of training institutions as well as graduate training (clinical research laboratory technicians). CHIETA is also involved in the UNIDO/dti project.

The SA Pharmacy Council recently engaged CHIETA to develop qualifications together.

Some of the more general challenges facing the Chemical Sector as a whole also have an effect on the Pharmaceutical subsector. These include:

Poor maths and science education at school level. CHIETA as well as companies in the sector are contributing towards the building of the skills pipeline through bridging and school support programmes.

Weaknesses in the public FET sector. FET sector is not seen as very relevant to the pharmaceutical and FMCG subsectors. Organisations in these subsectors are more interested in higher education.

High drop-out and low throughput rates. Lack of relevance of qualifications. Some of the qualifications offered are not sufficiently

relevant to the industry and the content of the courses are not always up-to-date. In order to address these issues, more structured relationships between industry and the universities is required. There is some capacity available in private HET institutions (e.g. the Da Vinci Institute). This needs to be harnessed and CHIETA needs to engage with these providers on behalf of the industry.

Challenges related to the education and training of engineers. A plateau was reached in the awarding of engineering qualifications over the past two years notwithstanding the fact that engineering skills were in high demand. Engineers that qualified/graduate were not registering with the Engineering Council of South Africa (ECSA).

Work integrated learning (WIL) and access to workplaces. WIL is a national priority both in terms of in-service training to complete qualifications as well as post qualification workplace experience. Some of the companies in the sector provide WIL to students. However, CHIETA bureaucratic requirements and the amount of paperwork involved are blockages in the efficient functioning of the system.

Lack of career guidance and access to learning opportunities. Shortage and capacity of education and training providers including experienced workplace

mentors. Transition between education and the labour market. The majority of new entrants to the

labour market find it very difficult to obtain first entry. Lower skills levels in rural areas. Delays in QCTO processes and uncertainty about managing the transition on quality

assurance issues. Lack of articulation between qualifications.

4. SKILLS DEVELOPMENT PRIORITIES

For the Pharmaceuticals and FMCG Chamber the following are priorities:

The review and development of an integrated approach to qualifications for the pharmaceuticals subsector. This includes

o Working with the professional associations and relevant SETAs, specifically the HWSETA and WRSETA, in relation to professional occupations and support personnel.

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o Identifying critical pre-competitive programmes related to key occupations that are currently not accredited but may be worth formalising.

Supporting IPAP imperatives in relation to growing the pharmaceuticals and cosmetics subsectors with emphasis on the development of regulatory pharmacists and toxicologists.

Development and dissemination of career information to workers within companies as well as young people. This information will emphasise the legal requirements of occupations.

The continued training of pharmacists, including industrial pharmacists, and sales and marketing personnel with a professional skills base.

Provision of in-service training. Continuing to work with public universities and UoTs to ensure relevant programmes and

delivery modes (e.g. part time classes, e-learning etc.). Promoting the alignment of BBBEE skills development objectives with training in support of

transformation. Increasing the number of engineers who obtain professional registration and who attain the

GCC.

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5. PRIORITY AND SCARCE SKILLS

Occupation Code Occupation Name Pr

iorit

y Sk

ill in

Ch

emic

al S

ecto

r

Tota

l Em

ploy

men

t in

Chem

ical

Sec

tor

Scar

ce S

kill

in C

hem

ical

Se

ctor

Empl

oyer

s in

Chem

ical

Se

ctor

who

Iden

tified

Sc

arce

Ski

llsTo

tal V

acan

cies

in

Chem

ical

Sec

tor

Vaca

ncie

s as %

of

Empl

oym

ent

Comments

Vaca

ncie

s Ph

arm

aceu

tical

s

121201 Human Resource Manager YES 537 NO 2 2 0.3 2121901 Corporate General Manager YES 1 297 NO 4 13 1.0 1121908 Quality Systems Manager YES 437 YES 14 30 6.8 10122301 Research and Development

ManagerYES 287 NO 6 9 3.3 1

132102 Operations Manager - Manufacturing

YES 1 843 NO 12 28 1.5 Plant managers scarce in certain areas, e.g. East London.

3

132104 Engineering Manager YES 916 YES 13 61 6.6 1132106 Manufacturing Quality Manager YES 420 NO 6 8 2.0 1132401 Supply and Distribution Manager YES 978 NO 8 9 0.9 2132402 Logistics Manager YES 247 NO 3 3 1.3 1211101 Physicist YES 1 NO 3 27 2090.

01

211301 Chemist YES 261 YES 22 51 19.6 21211302 Manufacture Research Chemist YES 95 YES 4 15 15.9 15212103 Statistician YES 28 NO 1 1 4.0 1213108 Microbiologist YES 134 NO 4 5 3.5 1213110 Medical Scientist YES 255 YES 10 16 6.3 14213111 Pharmaceutical Physician YES 144 NO 3 5 3.7 5

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Occupation Code Occupation Name Pr

iorit

y Sk

ill in

Ch

emic

al S

ecto

r

Tota

l Em

ploy

men

t in

Chem

ical

Sec

tor

Scar

ce S

kill

in C

hem

ical

Se

ctor

Empl

oyer

s in

Chem

ical

Se

ctor

who

Iden

tified

Sc

arce

Ski

llsTo

tal V

acan

cies

in

Chem

ical

Sec

tor

Vaca

ncie

s as %

of

Empl

oym

ent

Comments

Vaca

ncie

s Ph

arm

aceu

tical

s

213202 Agricultural Scientist YES 108 NO 1 1 0.9 1213205 Food and Beverage Scientist YES 38 NO 3 4 10.0 4214101 Industrial Engineer YES 750 YES 15 61 8.2 Engineers not registered. Experienced

engineers are scarce.10

226202 Industrial Pharmacist YES 406 NO 9 20 4.9 Shortages of pharmacists. Need for learnership.

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226203 Retail Pharmacist YES 22 YES 8 48 211.8 48242213 Regulatory Affairs Officer YES 476 NO 10 24 4.9 15242401 Training and Development

ProfessionalYES 708 NO 3 15 2.1 5

243102 Market Research Analyst YES 640 NO 3 2 0.3 1243103 Marketing Practitioner YES 1 830 NO 10 31 1.7 8243302 Sales Representative - Medical

and Pharmaceutical ProductsYES 3 031 NO 12 33 1.1 Medical Reps shortage 28

252302 Network Analyst YES 14 NO 1 1 7.9 1263101 Economist YES 49 NO 3 8 16.7 1311101 Chemistry Technician YES 3 736 NO 14 38 1.0 1311102 Physical Science Technician YES 380 NO 1 8 2.0 8311301 Electrical Engineering Technician YES 569 NO 6 10 1.8 1311501 Mechanical Engineering

TechnicianYES 432 NO 3 9 2.1 6

311905 Industrial Engineering Technician YES 61 NO 1 6 10.6 6312201 Production Supervisor -

ManufacturingYES 5 893 NO 7 18 0.3 16

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Occupation Code Occupation Name Pr

iorit

y Sk

ill in

Ch

emic

al S

ecto

r

Tota

l Em

ploy

men

t in

Chem

ical

Sec

tor

Scar

ce S

kill

in C

hem

ical

Se

ctor

Empl

oyer

s in

Chem

ical

Se

ctor

who

Iden

tified

Sc

arce

Ski

llsTo

tal V

acan

cies

in

Chem

ical

Sec

tor

Vaca

ncie

s as %

of

Empl

oym

ent

Comments

Vaca

ncie

s Ph

arm

aceu

tical

s

313907 Food and Beverage Manufacturing Process Controller

YES 15 NO 3 4 25.5 4

314101 Life Science Technician YES 103 NO 3 7 7.2 5332208 Pharmacy Sales Assistant YES 24 NO 2 6 26.6 6351101 Computer Operator YES 16 NO 1 2 11.1 2411101 General Clerk YES 3 855 NO 6 8 0.2321201 Medical Laboratory Technician YES 66 NO 2 3 5.1 2321301 Pharmaceutical Technician YES 336 YES 6 27 8.1 27713101 Chemical Production Machine

OperatorYES 10

027NO 12 56 0.6 19

832907 Chemical Plant Worker YES 4 372 NO 7 25 0.6 2642701 Air-conditioning and

Refrigeration MechanicYES 8 NO 1 6 77.1 6

653311 Manufacturing Machine Setter YES 76 NO 1 3 3.4 3671202 Millwright YES 1 114 NO 9 51 4.6 13671203 Mechatronics Technician YES 68 NO 1 5 7.5 5

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ANNEXURE A Methodology used to weight WSP data to sector totals

The information that employers submit annually to the CHIETA in their Mandatory Grant applications (WSPs/ATRs) provides detailed information on employment in the sector. In order to compensate for organisations that did not submit mandatory grant applications, the data was weighted to sectoral figures. This was done by using the size of the levy amount paid as a proxy for employment. Weighting was calculated separately for each subsector and for the different size organisations in each, because of wage differentials that occur between subsectors and organisations of different sizes.

In each of the subsector-size categories the weights applied were calculated as follows:

Weight = Levy amount paid (all organisations)/levy amount paid (organisations who submitted WSPs)

The weights were applied to the individual employee records and were used throughout the analysis of the sectoral profile. The weights that were applied to each subsector are shown in the table below.

Subsector

< R100 000

R100 000 - R999 999

R1 mil –R4 999

999

R5 mil –R9 999 99

9R10 mil +

Base Chemicals 4.5 1.1 1.3 1.0Explosives 1.0 1.0FMCG 2.2 1.1 1.2 1.0Fertilisers 3.7 1.2 1.0Glass 5.3 1.7 1.0Petroleum 1.9 1.3 1.3 1.0 1.0Pharmaceuticals 1.8 1.1 1.3Speciality Chemicals 1.7 1.1 1.0 1.0Surface Coatings 2.0 1.1 1.0

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