20
E NABLING GROWTH WITHIN COMMUNITIES JCT BIENNIAL REPORT 2008 – 2010 E

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Page 1: nabling growth within communities - Job Creationjobcreation.org.za/wp-content/uploads/2017/07/JCT... · government, business and the Reserve Bank to look into growing JCT’s capacity

En a b l i n g g r o w t h

w i t h i n c o m m u n i t i e s

J C T B I E N N I A L R E P O R T 2 0 0 8 – 2 0 1 0

E

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1.AddressbytheChair● WillieMadisha

2.ExecutiveDirector’sAddress● SharmielaGarnie

3.ProjectReports● ForiegnLanguageProgramme

● MJC’sAgricultural&Bio-fuelsProgramme

● CreativeDesignCompany

4.FinancialReport● Ending31March2009

● Ending31March2010

ContEntSC

Sponsors and service providers to JCT: Old Mutual, Wesbank, DBSA, Shereno Printers, Saffron Consulting, Meltz Le Roux Motshekga Attorneys

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A D D R E S S BY T H E C H A I R : W I L L I E M A D I S H A

Twelve years ago, in �998, the

South African government, the

labour movement, business and

civil society organisations held a national

jobs summit at which they resolved to es-

tablish the Job Creation Trust (JCT).

The resolution was a consequence

of a common commitment to address a

very high unemployment rate in the coun-

try, which affected millions of the South

Africans.

JCT was finally established and

started operating in the year 2000, when

South African workers contributed one

day’s wages, which came to R89 million.

It is unfortunate that although the

other summit participants made a com-

mitment that they would contribute, that

never happened. At this moment we are

still making a call to business and govern-

ment to make both financial and other

relevant contributions to ensure the suc-

cess of JCT in job creation and poverty

reduction in South Africa.

And while we make this call, we

must also note that many workers who

contributed their salaries for the formation

of JCT have lost their jobs either through

retrenchments, the collapse of companies

that employed them or for other reasons.

Ourpurpose

When JCT was established, South Africa

faced almost 40% unemployment. Al-

though there has been an improvement

over the past ten years, the unemploy-

ment rate is still unacceptably high and

that has led to increased poverty and

other related problems.

JCT’s mission therefore is to con-

tribute in the creation of jobs amongst the

poor and the unemployed, particularly in

the rural, semi- rural and working class

communities.

Secondly, JCT was tasked to help in

job creation particularly for those workers

W e ’ r e e x c e e d i n g

e x p e c tat i o n sWwho lost their jobs through retrenchments

or collapsed companies. This would be

realised through the formation of projects

owned and actively managed by workers.

Thirdly, the JCT was tasked to help

the unemployed youth to acquire skills

that would help them to find employment,

or use such skills to create employment

for themselves and others.

Fourth, to ensure that the relation-

ship between the JCT and the national

Job Summit organisations, such as

government, labour, business and civil

society would be that of close co-opera-

tion so that all the primary objectives of

JCT would become a reality.

Operationalperformance

The JCT is proud to claim an excellent

and successful operational performance

over the past ten years. In pursuance of

its mandated mission it has, inter alia,

succeeded in the creation of �9 ��7 jobs.

Further, JCT ensured that those

who became workers in those projects

also became the collective owners. That

has further ensured that the products

and profits of these endeavours do not

just benefit individual workers but also

strengthens the collective.

We acknowledge that initially, when

JCT started out, there were individu-

als who used projects for their personal

benefits. After uncovering this abuse,

the Trust took swift action and we have

consequently introduced the proper mea-

sures and administrative practices (such

monitoring and evaluation systems) to

stem this abuse of funds.

As indicated in the table on page

4, these are examples of successful

projects that were established to create

jobs. More projects exist and operate in

all provinces of South Africa and that has

been the case over the past ten years. All

the projects are labour intensive.

Goingforward

Without doubt, the resources that JCT

possess are not unlimited will soon be ex-WillieMadisha,thechairpersonofJCt.

Frontrow:WillieMadisha,MaryMalete&JosephMaqhekeni.Backrow:EddieWebster,PetrusMashishi,Amonntuli&EliamBiyela.Absent:MahlomolaSkhosanaandSamelaManene.

AshleyBenjamin

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FFE X E C U T I V E D I R E C T O R ’ S A D D R E S S : S H A R M I E L A G A R N I E

I am pleased and excited by the quali-

tative and positive changes that have

occurred at the Job Creation Trust

during this reporting period. Most, if not

all of these changes have their roots in

decisions made and direction taken by

the trustees. It is therefore on the imple-

mentation side of those directives that

I wish to reflect for April 2008 to March

20�0.

Of all the various developments,

the purchasing of the JCT building and

the consequent move from Johannes-

burg CBD to Midrand was certainly the

most dramatic. The one moment we are

all settled in with have all our files and

documents in one place and the next

the entire organisation is in boxes and in

unfamiliar surroundings. Fortunately, and

with dedication, we have made the Mid-

rand offices our home with ample space

to grow if and when needed.

Almost echoing the change in loca-

tion, JCT has also made changes in its

staff and salary structures. On recom-

mendation of the Trustees, we introduced

the position of Executive Director (firmly

establishing the executive arm of the

Trust) and adjusted salaries to reflect the

market for the relevant posts. This was

an important process as the Trust wanted

to ensure that the work of JCT should im-

prove and professionalise in line with its

growing responsibilities.

From its inception, JCT has been

fortunate to have the ongoing support of

the Development Bank of SA (DBSA).

The DBSA has helped the JCT with proj-

ect implementation infrastructure and the

information technology platform to moni-

tor and evaluate projects. In this reporting

period, JCT has begun to take over these

functions from the DBSA. This has meant

that we needed to amend our agreement

with the DBSA to reflect new areas of

responsibilities.

For JCT it required the employing

of additional staff to manage the wider

a c i l i tat i n g a

g r o w i n g

o r g a n i s at i o n

hausted. That will be counter-productive

to the excellent jobs creation ideals and

objectives of JTC, which are even more

important today in South Africa.

As chairman I believe that more

must be done through, amongst others,

ensuring that JCT gets more resources

from the �998 Jobs Summit partners.

Added to that, JCT will urge both

government and business

organisations to establish

structures that will work

with JCT to implement

the mission and vision

identified in 1998 summit.

JCT supports the

understanding that for as

long as the economy is

controlled by only �0% of

South Africans, and out

of the remaining 90% a

very small percentage

of people works, then

poverty and many other major challenges

will remain.

The Trust will support the Finance

Minister in his proposed action plan to

urge and persuade the South African Re-

serve Bank to look into ways and means

of job creation.

We will also call on the Minister and

the Reserve Bank to create space for

JCT to play a role in their proposed jobs

creation projects.

A proposal will be made to the

government, business and the Reserve

Bank to look into growing JCT’s capacity

to achieve the �998 summit objectives.

The Trust has not just delivered on its

mandate but has begun to exceed initial

expectations.

A good example is the language

skills project in partnership with Wits

University. This innovative project has

already created jobs for

those who have come

through the programme

and are today working

in embassies, as court

interpreters and so on.

More skills will be devel-

oped in other areas e.g.

farming, building, etc.

As we all do all

these, we call on South

Africans, government

and business to be com-

mitted to the Proudly

South African campaign. The campaign

will help in ensuring that the products

from the established projects (products

produced locally) get priority and that will

sustain the created jobs and projects.

This campaign also encourages that

South Africans produce quality that can

compete with any other product interna-

tionally.

The agreement reached with

Woolworths to source children’s clothing

produced by a JCT project (the Creative

Design Company, CDC) is commendable

and will help in the creation of more jobs.

Already, 8�� jobs have been created and

sustained in the first 6 months. The Trust

has discovered that there are more major

retailers that are interested in deals of

this nature. This shows that buying local

and supporting the Proudly South African

campaign can work.

JCT will also urge both government

and business to use the people trained

through JCT projects (and other similar

projects) in all relevant institutions and

initiatives. As South Africans we must pri-

oritise South African skills to reduce the

employment rate of our citizens instead of

importing skills.

As the Trust, we discourage the rise

in labour brokerage and casualisation of

workers. In most instances this leads to

the exploitation of foreign workers. We

believe that more can be done, through

locally produced skills and products.

CONCLUSION

I thank all the Trade Union centres in the

country (namely FEDUSA, COSATU,

NACTU) for their excellent contribution

in the success of JCT over the past ten

years. Through encouraging workers to

contribute towards the formation of JCT

and sending trustees who were mandated

to run the Trust for more than a decade

their contribution has been invaluable.

I also thank institutions such as

Wits University and others that have

shown interest in taking forward the skills

development project for purposes of jobs

creation led by JCT.

JCT, workers and the �998 Job Summit

must also thank members of staff for their

commitment and enthusiasm in advanc-

ing the mandate given to Job Creation

Trust.

Thank you

Willy Madisha

(Chairperson from 2000)

Examples of jobs creating projects over the past few years include:

PROJECT NAME PROVINCE PERIOD JOBS CREATED

MJC Poverty Alleviation Programme Western Cape 2008/2009 100

Pilot Bio-diesel Western Cape 2008/2009 10

2009/2010 2

Kalkfontein Western Cape 2008/2009 26

West Coast Environment Western Cape 2008/2009 15

Karoo delight Northern cape 2008/2009 15

Creative Designs House Western cape 2009/2010 851

JCT/WLS Language Programme Gauteng 2008/2009 174

JCT/WLS Language Programme Gauteng 2009/2010 107

Bophani Izidwaba Makhosikazi Gauteng 2009/2010 17

Sub-Total 1317

“...wearestill

makingacallto

businessandgovern-

menttomakeboth

financialandother

relevantcontributions

toensurethesuccess

ofJCtinjobcreation

andpovertyreduction

inSouthAfrica.”

SharmielaGarnie,executivedirectorofJCt.

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scope and introduce effective implemen-

tation as well as monitoring and evalua-

tion of projects. These changes allow JCT

a more hands-on approach and better

scrutiny of projects, particular when it

comes to delinquent projects that either

requires support or more stringent mea-

sures. At the same time, this has afforded

the Trust to implement projects that con-

solidates a new direction for JCT.

Our flagship in this regard is cer-

tainly the Creative Design Company.

Located in the clothing industry, JCT has

taken the brave move of investing in a

project to both retain job as well potential-

ly create new jobs in an industry badly in

need of support. Through this initiate we

have established partnerships with gov-

ernment departments as major business

interests in that industry. Some of these

partners are now eager to start new initia-

tives with JCT. That, however, is some

interesting developments we will reflect

on in the next report.

Besides the critical direction and

support provided by the Trustees, none of

these developments and initiatives would

have been possible without our wonderful

staff members. Whether its answering the

telephone in a warm tone or paying better

attention to the needs of a specific proj-

ect; all of the tasks that our staff fulfil are

equally important. As executive director,

I am most thankful to both trustees and

staff for your support and commitment.

With those pillars we can certainly build a

formidable JCT.

The Job Creation Trust had a vi-

sion of doing something different.

In 2008 the JCT Executive Direc-

tor, Ms Sharmiela Garnie contacted Prof

Twala at the Wits Language School to

discuss this vision through which unem-

ployed youth would be trained in various

languages that would give them an edge

in finding jobs. The first challenge for the

JCT was to be told that the programme

normally lasts 2 years, but could be done

intensively over a year, not the � months

they envisaged.

In November 2009, ��� students

out of an intake of �40 graduated with

their level 3 and 4 certificates in French,

German, Portuguese, Spanish and Man-

darin Chinese. The year was exhilarat-

ing and challenging at the same time.

For the project, there were a number of

lessons that they learnt at the end of the

first year: students need social skills; they

need computers and a library; they have

too much time on their hands, can get

into mischief; and language skills are not

enough.

Prof Twala says that in 20�0, most

of the lessons learnt in the first year were

resolved. Wits added tourism into the cur-

riculum of the language students, as an

additional job finding area. However, prof

Twala believes that young people should

be trained in language as a tool, as lan-

guage is a contested terrain.

In 20�0, 80 students enrolled to

learn French, German, Portuguese and

Mandarin Chinese. In May, a French stu-

dent, Busisiwe Nhlabathi won a French

essay competition.

Projectmanagement

The main co-ordinator

in 2009 was Ales-

sia Milanese, who

recruited the language

teachers, and assist-

ed in the administration of the teaching

programme. Leander Ngwenya man-

P R O J E C T R E P O R T S : F O R E I G N L A N G U A G E P R O G R A M M E

IIn V e s t i n g i n

t h e F u t u r e

o F o u r n at i o n

JCT staff, from top left in clockwise position: abie seiso, raisibi buthelezi, thaabid adams, macharly ngoepe, lebo molai and attorney Julian meltz

theJobCreationtrustbuildinginMidrand.JCtBoardmemberswithstudentsofthelanguageproject.

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ages special projects in the AAE (African,

Asian, European languages).

In 20�0, Joan Sole became the

manager of the AAE. Joan says that her

tasks are less focused on the teaching

aspect, with more strategic management

required. Joan instituted an assembly,

which has elected class reps and meets

twice per term. The main purpose of the

assembly is to smooth communications

and manage perceptions. Student rep-

resentatives meet with administrators at

least once a week for approximately �0

minutes. For Joan this programme has an

enormous public benefit – youth develop-

ment empowerment.

Teachingstaff

Isabel Maria Fernandes de Gouveia

– Portuguese

Isabel, a teacher of

FADO (an Arabic-Bra-

zilian form of music)

says it’s great that so

many youngsters are

learning a new language. Even though

neurologists say that at the age of seven

language acquisition shuts down, she is

inspired by the success stories. She has

been teaching for �0 years and says that

the person who thought of this must be

congratulated!

Regina Estor – German

Regina uses chimes to

signal when too much

English is spoken in

class. She is inspired

by the groups of

students ‘carrying each other’. Because

resources are not always available, she

bought CD’s, books and other material

from a German bookstore. Regina wants

students to have more exposure to job

situations and job opportunities.

Denise Buxbaum – French

Denise finds her class of students warm

and co-operative – on the day of the in-

terview they were lively

and dancing the diski.

She thinks French is

important as it is spo-

ken all over Africa, it

sounds very beautiful, needed all over for

business, exposed to other cultures. Also

gives status and mental ability. A major

challenge is getting weaker students to

speak.

Li Chien – Mandarin

Li says her students

are very hardworking,

which is important,

as Mandarin is a very

difficult language to

learn. What has helped greatly, is taking

students to Chinese temples and other

cultural sites, as well as eating at Chi-

nese restaurants.

Fitnessprogramme

There is a coach to help students stay fit.

Harry Mabeba Masilo, a fourth year Phys

Ed. teaching major are working with the

students on a weekly basis. They play

soccer, run races and do the diski dance.

Fitness is part of the tourism curriculum,

and classes are from Monday to Thurs-

day, although some students come on

a daily basis. Harry says his personal

motivations are: face your fears, know

yourself, reflect on disappointments and

obstacles to gain achievement

Harry grew up in Limpopo and was

a good athlete – could not participate

though due to lack of birth certificate,

then a knee injury forced him to stop. He

plays soccer and loves drama.

His major challenge is absenteeism

(2-3 per class), and Harry puts this down

to over-abundance of energy.

The highlights for Harry are: Getting

students to enjoy sport not just soccer,

working as a team, getting someone who

never thought it was possible, to enjoy

sport; and personal motivation.

Thestudents

The real stars of the day, of course, are

the students. They’ve had to overcome

many hardships and challenges to partici-

pate in this programme. The biggest one

being their exposure to a new language

and a new culture. What shines through,

however, is their determination to suc-

ceed. For this they give full credit to their

teachers.

StudentsfromtheJCt/WitsLanguageProgrammeinvariousclassactivities,enjoyingtheirperformancesandpracticingtheirnewlyacquiredlanguageskills.

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In 2002, the Muslim Judicial Council

(MJC) responded to the government’s

call to mobilise faith-based organi-

sations in order to alleviate poverty and

unemployment in the Western Cape. The

MJC is the official body organising Mus-

lim clerics in the Western Cape.

The MJC’s Poverty Eradication

Project took up a �0% share in the Philip-

pi Agricultural Market, whose mandate is

to develop 2,�00 emerging farmers and

provide a market for their produce. In an

area of just over �,000 ha, the Phillipi

Horticultural Area currently provides over

2 000 permanent jobs; a further � 7�0

seasonal (9 months of the year) jobs; op-

portunities for hawkers to sell produce;

potential of jobs for new migrants from

mainly rural areas. 75 – 80% of the pro-

duce is sold to the Epping Market.

With funding from the Department

of Social Development in the West-

ern Cape, the Job Creation Trust, and

the Department of Agriculture: Farmer

Support and Development, the Agricul-

tural Resource Information and Training

Centre (AgRIC) was established with the

following objectives:

● Broad based agricultural develop-

ment and transformation through skills

training in farming methods;

● Access to markets and expertise net-

works for emerging farmers;

● Harnessing underused farming land to

provide food security to poor neigh-

bouring communities;

● Providing mechanisation through

the use of tractors, fertiliser sprayer,

plough, and implements with funny

sounding names.

AgRIC has fully equipped training

rooms, but farmers have the greatest fun

in the “Training with Production” pro-

gramme where they produce vegetables

after the land has been prepared and

seedlings planted.

The most exciting part of this

project is the fact that it is located in the

P R O J E C T R E P O R T S : M J C ’ S A G R I C U LT U R E & B I O - F U E L S

EEn V i r o n m e n t a l ly

F r i e n d ly

s o c i a l i n V e s t m e n t

middle of the area targeted for develop-

ment. There is ongoing consultation with

stakeholders. The MJC has two farms

for the purposes of farming and train-

ing. There are a number of challenges

such as additional funding; crime in the

area; poor people’s sense of despair at

their situation. Yet there is great expecta-

tion when poor people have a sense of

ownership.

Bio-fuelsproject

With their track record in taking people

back to the land, AgRIC was mandated

by the JCT to investigate the potential for

job creation in the bio-fuels sector. The

term bio-fuels refer to fuels made from

organic waste, or derived from chemical

production of oil reacted with alcohol or

methanol. Biodiesel is a carbon neutral

fuel, hence minimising the damaging

effect of carbon emissions caused by

the burning of fossil fuels like petrol and

petro-diesel. Sulphur dioxide emission is

completed eliminated from biodiesel.

The plant equipment was donated

by a failed Eastern Cape project to start a

pilot project. The plant is run by Achmat,

an analytical chemist. The idea is to filter

used oil and turn it into useful consumer

products. However, getting used oil is dif-

ficult because of pre-existing agreements

between suppliers and bulk buyers. So it

was fortunate that marine diesel present-

ed a more lucrative opportunity.

Green Tank – the original plant, is

the heart of the filtering mechanism. By

law, the International Shipping Agency

must clean its fuel every regular period.

The project has an agreement with the WithinvestmentsfromJCt,theMJCagriculturalprojectinvolvescommunitymembersfromsurroundingareasinPhilippiintheWesternCape.

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cleaning agency to buy marine diesel

at R�,00 per litre, starting with � kilolitre

(�000 litres). The plant can clean about

700l per day. According to Achmat, what

is required is passion, technical know-

how and a “feel” for what’s next. He has

undergone special training to learn how

to regenerate resins.

In a demonstration by Yasier, one

sees that 20% of bio-diesel is waste – a

degreasing liquid. A supply of waste is

readily available. Out of the waste, by-

products like shampoo, soap, candle and

glycerine products are made. Bio-die-

sel, which is the main product, is a more

environmentally-friendly product than

petro-diesel, as it contains no sulphur and

cleans the engine while it runs. Purified

glycerine is used in many other products

as well.

In the context of sustainable human

development, the search for alterna-

tive energy sources is one of the major

challenges. This project provides critical

facilities to enhance their competitive

edge. This project has been lauded by

the JCT’s Willie Madisha, who articulated

the JCT’s commitment to ‘roll out this

project in all the provinces’ on successful

completion of the Western Cape pilot.

The clothing sector, especially

in the Western Cape, has had

major challenges in the past ��

years. There has been very little reinvest-

ment in the sector in terms of equipment

upgrading and skills development.

Banks and other financial insti-

tutions have shunned this sector and

therefore access to finance for expansion

has not been available. Coupled with the

current recession, and the remodeling

of the clothing manufacturing sector, the

question remains how do we create jobs

and at the same time retain jobs so that

the sector does not breed unemployment

at the present rate?

After reviewing this situation and re-

searching the area for a resourceful and

innovative intervention, the Job Creation

Trust decided to invest in the Creative

Design Company (CDC). CDC is a cloth-

ing manufacturing company that already

had extensive management expertise

in the industry, with an experienced and

skilled workforce and already had the

respect of buyers in the market. But this

opportunity was more than just about job

retention and creation.

The added significance of this initia-

tive is that this is the first black-owned

design house in South Africa and could

just be the stimulus needed to spark re-

structuring in the clothing industry. CDC

is �00% owned by the Job Creation Trust.

The strategy is to initially have 4 to 6 key

CMT’s (groups that do cut, make and

trim) in the Western Cape to produce the

niche lines of the design house cluster.

The target CMT must have at least �00

employees, and service a key retailer,

with the objective of injecting Capex

working capital and thereby increasing

their staff compliment by 60% within 12

months.

But those are part of future plans.

After months of planning, CDC has

already secured the buy-in for its initial

niche lines from groups such as Wool-

P R O J E C T R E P O R T S : C R E AT I V E D E S I G N C O M PA N Y

RRe ta i n i n g a n d

c r e at i n g J o b s i n

t h e c lo t h i n g s e c t o r

StaffmembersoftheJCt/MJCbiofuelspilotproject(topright)andademonstrationofaneffectivedegreaserwhichisaby-productofturningusedmarinedieselintouseableeco-friendlydiesel.

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worths and Pick ‘n Pay clothing with oth-

ers in the pipeline. The niche lines include

baby ware, home ware and replenish-

ment items. Involving both design and

manufacture in the supply chain, CDC

will initially create employment for about

�00 employees essentially in the Western

Cape. According to Fachmi Abrahams

of the SA Clothing and Textile Workers’

Union (Sactwu), “This is a wonderful op-

portunity because it shows that social

enterprise works. Through this initiative,

JCT is signalling that the game (in the

clothing industry) is changing.”

What has also been significant

in this initiative is management’s com-

mitment to the development and social

well-being of staff. After encountering

a number of problems such as family

members of staff struggling with drug ad-

diction and the need for debt counselling,

management has engaged the services

of social worker to consult with workers

to help them work through issues. When

bonuses were paid in February, manage-

ment organised that it be paid into school

fees that were in arrears.

And because the CDC has its in-

vestment from JCT, it means that the the

design house will be more jobs-driven

than profit-driven and this will enable

the design house products to be com-

petitively priced. This initiative would not

have been possible if not for the added

support secured from Clotex, CSIR, and

the Provincial Department of Economic

Development. CDC has also applied for a

DTI Clothing Cluster incentive. AAu d i t e d

F i n a n c i a l s

F I N A N C I A L S : Y E A R E N D I N G 3 1 M A R C H 2 0 0 9

ManagementofJCt’sCreativeDesignCompanyinaplanningsession.

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F I N A N C I A L S : Y E A R E N D I N G 3 1 M A R C H 2 0 1 0

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Physical address

Unit 9, High Tech Village

Superior Road, Midrand

Johannesburg

Postal address

PO Box 32130 Braamfontein 2017

Telephone

+27 11 312 9480

Fax

[F]: +27 11 312 9483

Website

www.jobcreation.org.za

Trust Number

IT 1791/99

Design & production: Saffron Consulting