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CHAMBER: FAST MOVING CONSUMER GOODS (FMCG) AND PHARMACEUTICALS
SUBSECTOR: PHARMACEUTICALS
MARCH 2014
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Please Note:
The CHIETA developed subsector skills plans for the first time in 2013/2014, to achieve the mandate of the Chambers in terms of schedule 9(a) of the SDA 97 of 1998; to consult with the 9 sub-sectors of the Chemical Sector in areas of skills development and planning. The objective of such consultation is to compile a SSP for the sector that takes into consideration areas of skills demand, and skills supply.
The CHIETA subsector skills plans are a great start but will continue to be strengthened going forward as work in progress with particular emphasis on detailed planning.
TABLE OF CONTENTS
1 INTRODUCTION......................................................................................................................1
1.1 BACKGROUND........................................................................................................................1
1.2 SCOPE OF THE SUBSECTOR....................................................................................................1
1.3 FORMAT OF THIS SUBSECTOR SKILLS PLAN...........................................................................2
2 PROFILE OF THE SUBSECTOR...................................................................................................3
2.1 OVERVIEW OF THE SUBSECTOR.............................................................................................3
2.2 ORGANISATIONS IN THE SUBSECTOR....................................................................................4
2.2.1 EMPLOYERS AND EMPLOYER ORGANISATIONS.............................................................4
2.2.2 INDUSTRY ASSOCIATIONS..............................................................................................5
2.2.3 TRADE UNIONS..............................................................................................................5
2.3 EMPLOYEES IN THE SUBSECTOR............................................................................................6
2.3.1 TOTAL EMPLOYMENT....................................................................................................6
2.3.2 TYPE OF EMPLOYMENT..................................................................................................6
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2.3.3 EQUITY PROFILE.............................................................................................................7
2.3.4 EDUCATIONAL QUALIFICATIONS....................................................................................8
2.3.5 AGE..............................................................................................................................10
2.4 CONCLUSION.......................................................................................................................12
3 ECONOMIC GROWTH AND FACTORS IMPACTING ON THE SUBSECTOR..................................13
3.1 INTRODUCTION....................................................................................................................13
3.2 ECONOMIC GROWTH...........................................................................................................13
3.3 FACTORS THAT IMPACT ON THE SECTOR.............................................................................14
3.3.1 LEGISLATION, REGULATIONS, PLANS AND POLICIES....................................................15
3.3.2 RESEARCH AND DEVELOPMENT...................................................................................18
3.3.3 ACCESS TO MEDICINE..................................................................................................18
3.3.4 THE DEVELOPMENT OF EXPORT MARKETS..................................................................19
3.3.5 COUNTERFEIT MEDICINES............................................................................................19
3.3.6 TRANSFER OF TECHNOLOGY........................................................................................19
3.3.7 GLOBAL INTEGRATION.................................................................................................20
3.4 CONCLUSION.......................................................................................................................20
4 THE DEMAND FOR SKILLS IN THE SUBSECTOR........................................................................22
4.1 TRENDS IN EMPLOYMENT....................................................................................................22
4.2 THE OCCUPATIONAL COMPOSITION OF DEMAND...............................................................23
4.3 CONCLUSION.......................................................................................................................29
5 THE SUPPLY OF SKILLS TO THE SUBSECTOR............................................................................31
5.1 NEW ENTRANTS TO THE LABOUR MARKET..........................................................................31
5.2 THE TRAINING AND DEVELOPMENT OF EMPLOYEES...........................................................34
5.3 CONCLUSION.......................................................................................................................36
6 SKILLS SHORTAGES IN THE SUBSECTOR.................................................................................37
6.1 SKILLS SHORTAGES IN THE SUBSECTOR...............................................................................37
6.2 TRAINING EMPLOYEES.........................................................................................................39
6.3 CONCLUSION.......................................................................................................................40
7 SKILLS PLAN FOR THE SUBSECTOR.........................................................................................41
REFERENCES…………………………………………………………………………………………………………………………………….41
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LIST OF TABLES
Table 2-1 Levy-paying companies and WSP submissions......................................................................4Table 2-2 Levy-paying companies and WSP submissions in the Pharmaceutical Subsector..................5Table 2-3 Highest qualification level of employees in the Pharmaceutical Subsector...........................8Table 2-4 Occupational distribution of employees whose qualifications were not indicated...............9Table 2-5 Occupations by age in the Pharmaceutical Subsector.........................................................11Table 4-1 Average percentage change in employment, 1970-2020....................................................23Table 4-1 Managers in the Pharmaceutical Subsector.........................................................................24Table 4-2 Professionals in the Pharmaceutical Subsector...................................................................25Table 4-3 Technicians and Associate Professionals in the Pharmaceutical Subsector.........................26Table 4-4 Clerical Support Workers in the Pharmaceutical Subsector.................................................27Table 4-5 Service and Sales Workers in the Pharmaceutical Subsector...............................................28Table 4-6 Skilled and Related Trades Workers in the Pharmaceutical Subsector................................28Table 4-7 Plant and Machine Operators and Assemblers in the Pharmaceutical Subsector................29Table 4-8 Elementary Occupations in the Pharmaceutical Subsector..................................................29Table 5-1 Number of diplomas and first degrees awarded in Chemistry and Pharmaceutical Science: 2001-2011...........................................................................................................................................33Table 5-7 Number of national diplomas and first degrees awarded in selected fields in Life Science: 2010 - 2011..........................................................................................................................................33Table 5-5-1 Training opportunities in the Pharmaceutical Subsector..................................................35Table 6-6-1 Vacancies in the Pharmaceutical Subsector......................................................................38Table 6-2 Learning interventions to address scarce skills, 2011/2012................................................40
LIST OF FIGURES
Figure 2-1 Total employment in the Chemical Sector and its subsectors..............................................6Figure 2-2 Type of appointment of employees in the Pharmaceutical Subsector.................................6Figure 2-3 Race distribution of employees in the Pharmaceutical Subsector........................................7Figure 3-1 Average percentage change of Gross Value Added: 1970-2020.........................................14Figure 4-1 Employment in the Pharmaceutical Subsector compared to total employment in the Chemical Sector from 1970 to 2012....................................................................................................22Figure 4-2 Main occupations in the Pharmaceutical Subsector...........................................................23Figure 5-1 Proportion of employees who received training opportunities according to occupational category: March 2012..........................................................................................................................34
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ACRONYMS AND ABBREVIATIONS
AIDS Acquired Immune Deficiency SyndromeAPIs Active Pharmaceutical IngredientsART Antiretroviral TreatmentARVs AntiretroviralsASGISA Accelerated and Shared Growth South AfricaBBBEE Broad-based Black Economic EmpowermentCAGR Compound Annual GrowthCEPPWAWU Chemical, Energy, Paper, Printing, Wood and Allied Workers UnionCFO Chief Financial OfficerCHIETA Chemical Industries Sector Education and Training AuthorityCMS Alliance of major European law firmsDAC Department of Arts and CultureDEAT Department of Environmental Affairs and TourismDHET Department of Higher Education and TrainingDNA Deoxyribonucleic acidDPLG Department of Provincial and Local GovernmentDST Department of Science and Technologydti Department of Trade and IndustryDWAF Department of Water Affairs and ForestryEPA Environmental Protection AgencyFET Further Education and TrainingFMCG Fast Moving Consumer GoodsGDP Gross Domestic ProductGIWUSA General Industries Workers Union of South AfricaHET Higher Education and TrainingHIV Human Immunodeficiency VirusHRDC-SA Human Resource Development Council of South AfricaICH International Conference on HarmonisationICT Information Communication TechnologyIDC Industrial Development CorporationIFPMA International Federation of Pharmaceutical Manufacturers and AssociationsIGPA International Generics Pharmaceutical AllianceIK Indigenous KnowledgeIMSA Innovative Medicines South AfricaIPAP Industrial Policy Action PlanIPRs Intellectual property rightsJIPSA Joint Initiative for Priority Skills AcquisitionJSE Johannesburg Stock ExchangeMCA Marketing Code AuthorityMCC Medicines Control CouncilMN Multi-nationalNAPM National Association of Pharmaceutical ManufacturersNDoH National Department of HealthNECSA South African Nuclear Energy CorporationNEPAD New Partnership for Africa's DevelopmentNGOs Non-Governmental OrganisationsNGP New Growth Path
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NHI National Health InsuranceNPAT Net profit after taxNQF National Qualifications FrameworkOFO Organising Framework of OccupationsOHSC Office of Health Standards CompliancePHC Primary Health CarePHIF Public Health Innovation ForumPIASA Pharmaceutical Industry Association of South AfricaPPPFA Preferential Procurement Policy Framework ActQCTO Quality Council for Trades and OccupationsQLFS Quarterly Labour Force SurveyR&D Research and DevelopmentSACWU South African Chemical Workers UnionSADC South African Development CommunitySARS South African Revenue ServicesSEP Singly Exit PriceSHE&Q Safety, Health, Environment and QualitySIC Standard Industrial ClassificationTB TuberculosisTRIPS Trade-Related Aspects of Intellectual Property RightsUASA United Association of South AfricaUSD United States DollarWHO Word Health OrganisationWSP Workplace Skills Plan
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EXECUTIVE SUMMARY
INTRODUCTION
The Fast Moving Consumer Goods (FMCG) and Pharmaceuticals Chamber comprises two subsectors among the nine CHIETA subsectors: FMCG and Pharmaceuticals. Pharmaceutical products are in a separate subsector due to their highly controlled (registration, manufacturing and distribution) environment, as well as the impact of Government in controlling the major share of the end-use market. Economic activities in the Pharmaceutical Subsector are defined by SIC Code 33530: Manufacture of pharmaceuticals, medicinal chemicals and botanical products, which include: Manufacture of medicinally active substances; processing of blood; manufacture of medicament (antisera and other blood fractions, vaccines and diverse medicaments, including homeopathic preparations); manufacture of medical diagnostic preparations; manufacture of radioactive in-vivo diagnostic substances; manufacture of biotech pharmaceuticals.
The pharmaceutical industry is a knowledge-intensive sector, comprising R&D, manufacturing and sales and distribution.
The Pharmaceutical Subsector is linked with many other economic sectors, subsectors and industries, especially the health sector, tertiary education indigenous knowledge (IK), the broader chemical sector, as well as trade and industry.
PROFILE OF THE PHARMACEUTICAL SUBSECTOR
There are 131 levy-paying companies in the Pharmaceutical Subsector, which forms 8.5% of levy-paying companies in the Chemical Sector as a whole. Sixty-four of these companies submitted workplace skills plans (WSPs) to CHIETA in 2012; this represents almost half (48.9%) of the levy-paying companies in the Pharmaceutical Subsector. Even though the levy-paying companies in the subsector only forms 4.2% of levy-paying companies in the Chemical Sector as a whole, they contributed 12.9% of the total levies paid in the Chemical Sector in 2012.
About a third (32.8%) of levy-paying companies in the subsector was categorised as micro. Only seven (16.3%) of them submitted WSPs. Conversely, large companies constituted less than a quarter of all levy-paying companies in the Chemical Sector and 80.6% of them submitted WSPs. There are four large pharmaceutical firms listed on the JSE: Aspen Pharmacare, Adcock Ingram, Cipla Medpro and Litha Healthcare. Aspen Pharmacare has factories in Kenya and Tanzania, while Adcock Ingram manufactures drugs in Ghana, and has a presence in Kenya. Half of the small and almost two thirds (61.3%) of medium sized companies submitted WSPs in the 2012 period.
The Pharmaceutical Subsector employed 22 100 people – 14.2% of the employees in the total Chemical Sector. In this regard it is the fourth largest subsector in the Chemical Sector. Most (87.5%) employees in the subsector were permanent workers. In terms of equity 43.8% of workers were African, females constituted just more than half (54.4%) of the workforce, and 0.5% of workers were living with a disability. Females formed the majority in all occupational groups in the Pharmaceutical Subsector, except in the managerial, skilled and trades workers, and plant and machine operators and assemblers categories. Females comprised 47.2% of managers, two-thirds (66.4%) of the professionals and just more than half (56.2%) of the technicians and associate professionals.
In terms of educational qualifications more than half (54.5%) of the workers had a post-school qualification. This is an indication of the nature of the subsector; a large contingent of highly qualified people is employed in the subsector. A further 33.8% of workers held qualifications at NQF Level 4. The average age of all workers in the Pharmaceutical Subsector was 41. Managers and service and sales workers had the highest (44) average age; while professionals were the youngest
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group with an average age of only 39 and only 4.2% were nearing retirement. This could be an indication that professionals become managers during their career paths.
ECONOMIC PERFORMANCE AND FACTORS IMPACTING ON THE SUBSECTOR
The Pharmaceutical Subsector has a strategic role in the South African economy (especially in healthcare, science and tertiary education) and contributes 1.6% to South African GDP. Furthermore, the average percentage change in GDP over five-year periods from 1970 to 2010 shows that the subsector outperformed the whole Chemical Sector and the total economy for large parts of the period. The projected figures show an average of 2.8% for the 2010-2015 period and 4.0% for the 2015-2020 period.
It is the largest pharmaceutical sector in Africa and was estimated at R30 billion in 2011. Globally, however, the South African pharmaceutical sector accounts for only 0.4% by value and 1% by volume and it had a negative trade balance of R14.84 billion as a result of imports of R15.96 billion against exports of R1.12 billion in 2011. The pharmaceutical industry is vulnerable to competition with imports from low-cost countries, but this situation is due for improvement with the revised Preferential Procurement Policy Framework Act (PPPFA) Regulations that empowers the dti to designate locally manufactured pharmaceuticals in State procurement contracts. The Pharmaceutical Subsector is the fifth largest contributor to South Africa’s import burden, which needs to be reversed whilst still ensuring that affordable healthcare is available.
The pharmaceutical industry is, because of its nature, subject to certain regulations. The Medicine Control Council (MCC) is the statutory body that controls medicine registration and regulatory processes. Currently there are requirements, regulations, plans and policies pertaining to aspects such as health service standards, local manufacturing, access to export markets, intellectual property rights (IPR) and IK.
The establishment of Ketlaphela, a joint venture between Government through Pelchem, and Lonza, a leading global player in pharmaceuticals, will have an influence on the growth of the subsector. This R1.6 billion project will result in the establishment of the first pharmaceutical plant to manufacture active pharmaceutical ingredients for antiretroviral medicines in South Africa. This is in line with the country’s plan to address HIV and AIDS through local and cost effective production of antiretroviral drugs. Ketlaphela will significantly reduce the country’s dependence on imported drugs and will provide a security of supply of priority drugs and stable pricing with less sensitivity to exchange rate fluctuations.
THE DEMAND FOR SKILLS IN THE SUBSECTOR
The demand for labour in absolute numbers in the Chemical Sector has been declining steadily over the last two decades, with investments in capital equipment being largely used to replace labour. The reduction in employment has mainly impacted on low-skilled and semi-skilled workers, resulting in the skills mix tending towards the higher level skills. Employment in the Pharmaceutical Subsector more or less followed the same trajectory as total employment in the Chemical Sector. Employment grew steadily from 1970 to the early nineties. It then dropped steadily until 2000 but increased again until 2005, decreasing again in the 2005 to 2010 period. The projected growth is 0.7% for the 2010 to 2015 and 1.1% for the 2015 to 2020 period.
The largest occupational group in the Pharmaceutical Subsector is professionals, with 25.5% of employees. This is followed by the managerial group (14.9%) of which many are professionally qualified. The size of the elementary occupational group (14.6%); technician and associate professional group (14.5%); and plant and machine operator and assembler category (14.1%) are in the same range, in support of production processes. The sector does not employ many (2.2%) artisans. Although the service and sales workers component is small (1.4%), the Pharmaceutical Subsector employs many professionals as technical sales people..
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THE SUPPLY OF SKILLS TO THE SUBSECTOR
The supply-side of the labour market consists of the stock of skills – the skills currently employed in or available for work in the subsector and the flow of skills – the flow of new entrants into the market. In the analysis of the flow of skills the following is considered: the output from the basic education system, the further education and training colleges and higher education and training institutions. Work-based training such as apprenticeships and learnerships also plays an important role in the flow of new entrants to the market.
In respect of the supply of new skills to the subsector there has been substantial growth in the numbers of new graduates from universities and universities of technology in certain engineering fields. In terms of average annual output of national diplomas, growth is reported at 7.0% for diplomas in chemical engineering and technology and 6.0% for first degrees in the same field. Despite these positive growth trends, increases have not yet been sufficient to meet the needs of the national economy, the Chemical Sector, and the Pharmaceutical Subsector in particular. In order to ensure future growth it will be necessary to support higher education institutions through a variety of initiatives. These include: bridging programmes to promote access and success; increased physical and teaching resources to engineering departments; and programmes that promote workplace-training opportunities for students from the universities of technology.
The national diplomas in Chemistry increased steadily over the period 2001 to 2011 at an average annual growth rate of 5%. First three-year degrees increased until 2009. Figures dropped in 2010 - possibly because of the changes in the classification system. First four-year degrees in Pharmaceutical Sciences increased at an average annual growth rate of 4% over the 2001 to 2011 period. Information on output in the fields Botany/Plant Biology, Microbiological Sciences & Immunology, Pharmacology & Toxicology and Biotechnology is at this stage insufficient to discern any trends.
The output from the school system stays a concern in respect of the following: inadequate (in terms of quantity and quality) supply of school leavers with Mathematics and Physical Science passes that can pursue studies to become engineers, technologist, technicians and artisans; and inadequate education levels of the general workforce that enters the Chemical Sector without previous training. The supply of new skills from the further education and training sector into the Chemical Sector has traditionally been very limited. However, government’s recent focus on increasing both the quality and quantity of output from further education and training colleges indicates that this sector may in future play a more important role in the supply of skills to the Chemical Sector.
The skills of current employees need to be augmented in the workplace in order to ensure that workers acquire the skills necessary for specific positions, that they can progress in career paths and that they remain abreast of new technologies and developments in their specific fields. Employers are to a large extent responsible to ensure that employees are afforded further education and training opportunities.
In 2011/2012 training opportunities were afforded to almost two thirds (64.5%) of employees in the Pharmaceutical Subsector. A quarter of professionals received training. About 15% of managers, technicians and associated professionals; plant and machine operators and assemblers; and workers in elementary occupations, received training respectively. Stakeholders in the Pharmaceutical Subsector indicated that a lot of in-house training is being done in the subsector to address specific specialised shortages. In total about 58 441 training opportunities were afforded to employees (one employee can have access to more than one training opportunity). Just more than a quarter (29.0%) were induction training, about another quarter (26.0%) were job specific development programmes, and almost another quarter (23.2%) short courses. Just more than a tenth (11.5%) of the opportunities related to skills programmes.
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Stakeholders indicated that there is a range of supply constraints that has an impact on the subsector. Some of the constraints are insufficient funding for training, the use of non-accredited short courses, the lack of a structured internship, the lack of partnerships with FET colleges and HEIs, and the lack of a formalised framework for mentoring and coaching.
SKILLS SHORTAGES IN THE SUBSECTOR
Of the 64 organisations whose WSPs were submitted to CHIETA in 2012, 30 (46.9%) indicated that they experienced a scarcity of skills. The total number of people reported to be needed in occupations in which there were skills shortages is 506; this equates to 2.3% of total employment in the subsector. The data shows that the skills of pharmacist assistants and industrial pharmacists are highly in demand (this was confirmed by stakeholders at a workshop). The shortage of pharmacist assistants is to a large extent contributed to the fact that many of them are trained to become regulatory pharmacists that are very scarce and there are not many training providers that train pharmacist assistants.
Stakeholders also confirmed the shortage in clinical research associates, quality validation technicians, mechatronic skills, quality engineers (mechanical and electrical engineers are usually trained in-house to become quality engineers), clinical trial assistants and dieticians. Some of the reasons that were given for the difficulty in finding certain skills relate to the lack of training in certain fields, the lack of articulation between qualifications, legal requirements for certain positions and insufficient development of career paths that lead to certain occupations. The CHIETA is currently engaged in a range of partnerships, agreements and plans to contribute to both the development of new skills for the sector as well as the development of skills within the existing workforce. These initiatives range from support for further and higher education institutions and partnerships with government and industry associations.
SKILLS PLAN FOR THE SUBSECTOR
The dti has conducted a study regarding the skills development of human capital in the Pharmaceutical Subsector. Some of the recommendations for skills planning, based on this research are the following:
Financial benefits and personal growth opportunities are some of the incentives that need to be addressed in order to attract more life science skills to the country. Current laws and processes involving the importation of skills need the collaboration of industry and relevant government departments in establishing and promoting scarce resources.
Partnerships with organisations and universities abroad need to be formed. Increased collaboration is required between higher education, CHIETA, industry, trade
associations, the Pharmacy Council and research organisations. Pharmaceutical specialist training institutions need to be established. A sector strategy upon which all other strategies and initiatives can build, including skills
planning and development, is required.
A major challenge is to increase lecturing capacity and improve curricula, equipment, machinery and training facilities to align with new production methods and technology in the Pharmaceutical Subsector. The aggregate size and quality of graduate supply across the education and skills development chain has not provided a sufficient base to support growth opportunities in the Manufacturing Sector in general and new and emerging sectors in particular. The establishment of the dti-driven industry working groups (metals, plastics and pharmaceuticals) will provide further impetus for alignment with IPAP priorities, while putting a stronger focus on the promotion of a medium to long-term perspective on training for employment. Furthermore, the IPAP Pharmaceuticals Skills Strategy envisages:
Training for medicine control regulators and regulatory affairs personnel.
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Training to meet the needs for ARV APIs at Pelindaba for Project Ketlaphele, which includes the training of 50 people abroad.
A training programme for the Biovac Project (to reduce dependency on rotavirus and streptococcal pneumonia vaccine imports), which also includes the training of 50 people abroad.
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1 INTRODUCTION
1.1 BACKGROUND
The 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; and Glass.
A skill 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 developed subsector skills plans for each of the nine subsectors. These documents provide detailed analyses of each of the subsectors and are 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 June 2013 nine workshops were held with representatives of each of the nine subsectors. The workshops were meant to inform the subsector skills plans and covered the following topics:
• The skills planning process and chambers’ responsibilities in this regard.• The profiles of the subsectors.• Economic growth of the subsectors and factors that influence the growth of the subsectors.• The demand for skills in the respective subsectors.• The supply of skills and supply-side challenges and constraints.• Skill shortages.• Key interventions taking place and needed in the respective subsectors.
Apart from the workshops, the subsector skills plans are also based on a detailed analysis of the workplace skills plans (WSPs) and annual training reports (ATRs) submitted to CHIETA by employers in the sector in June 2012. In 2012 employers submitted individual employee records to CHIETA. For the purpose of this report, the data were weighted to extrapolate it to subsectoral totals.
Further information was obtained from desktop research and national data sources such as national accounts data. (National accounts data series were obtained from Quantec.)
1.2 SCOPE OF THE SUBSECTOR
Economic activities in the Pharmaceutical Subsector are defined by SIC Code 33530: Manufacture of pharmaceuticals, medicinal chemicals and botanical products, which include: Manufacture of medicinally active substances; processing of blood; manufacture of medicament (antisera and other blood fractions, vaccines and diverse medicaments, including homeopathic preparations); manufacture of medical diagnostic preparations; manufacture of radioactive in-vivo diagnostic substances; manufacture of biotech pharmaceuticals.1
1 dti, (2011). Human Capital Outlook Implications for Skills Development in the Pharmaceutical Sector.
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1.3 FORMAT OF THIS SUBSECTOR SKILLS PLAN
In the rest of this first chapter, the scope of the subsector and the economic activities that comprise the subsector are described. Chapter 2 provides a profile of the subsector. This profile includes the most important organisations in the subsector, as well as the employees working in the subsector.
Chapter 3 deals with the economic performance of the subsector and the factors that influence its performance. These factors include Government interventions specifically aimed at stimulating the growth of the Chemical Sector.
Chapter 4 of this subsector skills plan focuses on the demand for labour. The demand for labour is analysed from the perspective of the occupations that make up the subsector. The occupational information in turn provides insight into the type and level of skills needed.
Chapter 5 describes the supply of skills. As the subsector shares in the broader supply of skills to the Chemical Sector as a whole and to the total South African labour market, it is not possible to give a detailed analysis of supply as it would meet the demand for skills in the subsector. Instead a broad overview of supply trends is given together with supply-side interventions and constraints as identified by subsector representatives in the workshops.
Chapter 6 hones in on the mismatches that exist between the demand and supply sides of the labour market. Typically, these mismatches manifest in skills shortages and in skills deficiencies in the current workforce.
The last chapter of the sector skills plan should include the strategic planning of skills interventions aimed specifically at this subsector. This chapter will be completed once the Fast Moving Consumer Goods (FMCG) and Pharmaceutical Chamber has engaged with the content of the report and has attended to its own strategic plan.
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2 PROFILE OF THE SUBSECTOR
This part of the report provides a profile of the Pharmaceutical Subsector. It starts with and overview of the subsector and a description of its linkages with other sectors in the economy. This is followed by a description of the different role-players in the subsector such as employers, industry associations, employers’ associations and trade unions active in the industry. It also describes the employees working in the subsector as at the end of March 2012.
2.1 OVERVIEW OF THE SUBSECTOR
The major product categories produced by the Pharmaceutical Subsector are: tablets, capsules, liquids, creams, steriles and injectables. Tablets account for the majority of solid medications, while after tablets, the most common solid oral dosage form is the capsule. In formulating a liquid product, the ingredients are first weighed and then dissolved in an appropriate liquid. Ointments are usually made by blending the bulk active ingredient with a base. The production of sterile preparations is carried out in areas maintained to an appropriate standard of cleanliness and supplied with air that has passed through filters of the required efficiency.2 Injectables refer to drugs taken via intramuscular injection or subcutaneous (skin directly below the dermis and epidermis) injection.3 Sterile injectable drugs include, for example, oncology drugs used in chemotherapy, anesthesia agents and basic parenteral nutrition products like vitamins and electrolytes.4
The pharmaceutical industry is a knowledge-intensive sector, comprising research and development (R&D), manufacturing and the sales and marketing of pharmaceutical products.
The South African pharmaceutical industry is not strong in terms of local manufacturing of Active Pharmaceutical Ingredients (APIs). However, the local formulation sector is relatively strong, as 59% (by value) of the total pharmaceutical market is locally formulated. 5
In South Africa, the public health sector accounts for 75% of the volume and 35% of the value of the market for pharmaceutical products. The public health sector is essential to most domestic manufacturers of generic medicines because its purchases warrant production volumes of sufficient scale to keep costs and prices low.6 Spending on medicines in the public sector has been rising fast due to the increasing number of AIDS patients receiving free ARVs. However, the healthcare spend continues to be in favour of the private sector where the largest proportion of available funds are being spent.7
Pharmaceutical exports are very small. As a result, there is a large trade imbalance in the industry.
The self-regulatory code of practice for the marketing of medicines provides a foundation for the ethical marketing of health products, which includes all medicines that need to be registered by the Medicines Control Council (MCC), medical devices, in vitro laboratory diagnostics and veterinary medicines. Currently, alternative and complementary medicines are excluded. The code brings together manufacturers of innovative medicines, generics, veterinary medicines, over-the-counter medicines, and even industries such as laboratory diagnostics and medical devices. The pharmaceutical industry, all associations representing suppliers of health products, wholesalers and distributors have committed to the implementation of the code of practice that will assure access to
2 World Health Organization, (2011). WHO Technical Report Series, No. 961, 2011.3 http://infertility.about.com/od/infertilityglossary/g/injectables.htm. Accessed 5 June 2013.4 Yurukoglu, A. (2012). Medicare Reimbursements and Shortages of Sterile Injectable Pharmaceuticals. Graduate School of Business, Stanford University and NBER.5 Walwyn, D.R. (2008). Proposed Support for the Local Manufacture of Active Pharmaceutical Ingredients. Pretoria: dti. 6 dti, (2013). Industrial Policy Action Plan: Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.7 www.imsa.org.za. Accessed 9 June 2013.
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health products by patients, the appropriate use of health products, accurate information, fair competition and legal advertising.8
2.2 ORGANISATIONS IN THE SUBSECTOR
2.2.1 EMPLOYERS AND EMPLOYER ORGANISATIONS
Employers in the Pharmaceutical Subsector include foreign owned, multi-national and local companies. They are involved in various activities including importing, manufacturing, packaging, distribution, marketing and research and development. 9 There are four large pharmaceutical firms listed on the JSE: Aspen Pharmacare, Adcock Ingram, Cipla Medpro and Litha Healthcare. Aspen Pharmacare has factories in Kenya and Tanzania, while Adcock Ingram manufactures drugs in Ghana, and has a presence in Kenya. "Aspen is already quite active outside South Africa and has made various acquisitions, with manufacturing facilities in Tanzania and Kenya.10
In the 2011/2012 financial year, 131 employers in the Pharmaceutical Subsector paid skills development levies to CHIETA, which represents 8.5% of all CHIETA levy-paying companies (refer to Table 2-1). These companies paid 12.9% of all levies in the Chemical Sector. About half (48.9%) of all levy-paying companies in the Pharmaceutical Subsector submitted WSPs.
Table 2-1 Levy-paying companies and WSP submissions
Subsector Number of levy-
paying companies
% WSP submissions
% of total companies
in sector
% of total companies
in subsector
% of total levies paid
Petroleum 251 16.3 85 5.5 33.9 43.2
Base Chemicals 314 20.4 127 8.2 40.4 13.2
Pharmaceuticals 131 8.5 64 4.2 48.9 12.9
Fertilisers 89 5.8 23 1.5 25.8 8.2
Speciality Chemicals 266 17.3 113 7.3 42.5 7.9
Glass 124 8 19 1.2 15.3 5.4
FMCG 162 10.5 72 4.7 44.4 3.5
Surface Coatings 118 7.7 60 3.9 50.8 3.5
Explosives 7 0.5 2 0.1 28.6 1.8
Other 80 5.2 6 0.4 7.5 0.4
Total 1 542 100 571 37 100
Source: SARS Levy data, 2011/2012; WSP submissions, June 2012.
About a third (32.8%) of levy-paying companies in the subsector was categorised as micro. Only seven (16.3%) of them submitted WSPs. Conversely, large companies constituted less than a quarter of all levy-paying companies in the Pharmaceutical Subsector and 80.6% of them submitted WSPs.
8 www.IMSA.org.za. Accessed 29 May 2013.
9 dti, (2011). Human Capital Outlook Implications for Skills Development in the Pharmaceutical Sector.10 Kahn, T. (2013). Pharmaceutical firms eye Africa. Business Day, 17 January 2013.
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Half of the small and almost two thirds (61.3%) of medium sized companies submitted WSPs in the 2011/2012 period.
Table 2-2 Levy-paying companies and WSP submissions in the Pharmaceutical Subsector
Glass Levy-paying companies WSP submissions
N % N % of levy-paying companies
Large 31 23.7 25 80.6
Medium 31 23.7 19 61.3
Small 26 19.8 13 50.0
Micro 43 32.8 7 16.3
Total 131 100.0 64 48.9
Source: SARS Levy data, 2011/2012; WSP submissions, June 2012.
2.2.2 INDUSTRY ASSOCIATIONS
The National Association of Pharmaceutical Manufacturers (NAPM) was established in 1977 as a Section 21 Trade Association. It is a voluntary, non-profit organisation consisting of South African and generics-based pharmaceutical manufacturers and distributors. Part of the NAPM’s function is to ensure that the sector plays a constructive role in our country’s economic growth, development and transformation.11
The Labour Affairs Association of the pharmaceutical industry was deregistered in 2007, resulting from the 2002 Labour Relations Act.12 The Pharmaceutical Industry Association of South Africa (PIASA) has also closed as of March 2013.
2.2.3 TRADE UNIONS
The following are the main trade unions active in the Chemical Sector:13
Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAWU)
General Industries Workers Union of South Africa (GIWUSA)
Solidarity
South African Chemical Workers Union (SACWU)
United Association of South Africa (UASA)
These trade unions are all active in the CHIETA structures and the first four are members of the National Bargaining Council for the chemical industry.
11 http://napm.co.za/. Accessed 17 June 2013. 12 http://www.caselaw.co.za. Accessed 28 June 2013. 13 CHIETA, (2013). Five year Sector Skills Plan for the Chemical Sector: Annual update 2013-2018.
5
2.3 EMPLOYEES IN THE SUBSECTOR
2.3.1 TOTAL EMPLOYMENT
It is estimated that in 2011/2012, the total Chemical Sector employed approximately 156 000 people. The Pharmaceutical Subsector employed 22 100 people – 14.2% of the employees in the total sector. It is the fourth largest subsector in the Chemical Sector (Figure 2-1).
Base Chemicals 14.4% (22 466)
Explosives3.4% (5 287)
Fast Moving Consumer Goods15.2% (23 794)
Fertilisers3.6% (5 651)
Glass5.1% (8 002)
Petroleum28.4% (44 371)
Pharmaceuticals 14.2% (22 100)
Speciality Chemicals9.9% (15 381)
Surface Coatings5.3% (8 261)
Other0.5% (786)
Figure 2-1 Total employment in the Chemical Sector and its subsectors
Source: WSP submissions, June 2012.
2.3.2 TYPE OF EMPLOYMENT
Most (87.5%) employees in the Pharmaceutical Subsector were permanent workers (Figure 2-2). Only 3.0% were contract workers and 9.6% were temporary workers. Temporary workers are usually seasonal workers such as seasonal packers. Contract workers on the other hand, are mostly part of the core clinical research component appointed on a long-term basis.14
Contractor3.0% (656)
Permanent87.5% (19 329)
Temporary9.6% (2 114)
Figure 2-2 Type of appointment of employees in the Pharmaceutical Subsector
Source: WSP submissions, June 2012.
14 Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.
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2.3.3 EQUITY PROFILE
Race and gender
The majority of workers in the Pharmaceutical Subsector were African (43.8%), Coloured (18.5%) and Indian (8.4%). Females constituted just more than half (54.4%) of the workforce (Figure 2-4).
African 43.8%
(9 682)
Coloured18.5% (4 082)
Indian8.4%
(1 867)
White29.3%
(6 469)Female54.4% (12 025)
Male45.6% (10 075)
Figure 2-3 Race distribution of employees in the Pharmaceutical Subsector
Figure 2-4 Gender distribution of employees in the Pharmaceutical Subsector
Source: WSP submissions, June 2012.
Females formed the majority in all occupational groups in the Pharmaceutical Subsector, except in the managerial, skilled and trades workers, and plant and machine operators and assemblers categories (refer to Annexure 1). The managerial component consisted predominantly (29.4%) of White males and females (26.8%). Although females comprised 47.2% of managers, African females especially need to obtain opportunities to become managers. In the skilled and trades workers (artisan) component, females represented only 4.7% of the employees. African females formed a mere 3.6%, and Coloured females only 1.2% of the artisans, while there were no Indian or White female artisans. Females were better (35.5%) represented in the plant and machine operators and assemblers category, where 19.7% were African females, 13.9% were Coloured females, but only 1.1% Indian females and less than one per cent White females.
Two-thirds (66.4%) of the professionals and just more than half (56.2%) of the technicians and associate professionals were females. Most (60.0%) of the clerical support workers were also females. Transformation is most visible in the service and sales workers category and the elementary occupational category, where females not only formed the majority, but where most of the employees were African females. Among service and sales workers (where 55.1% of the workforce were females), African females represented 30.4% and among elementary workers (where 59.7% of employees were females), African females constituted 41.1%. More than half (54.9%) of the learners in the Pharmaceutical Subsector were females and half of them African females.
Disability
There were 892 employees with disabilities working in the Chemical Sector as a whole. This equates to 0.6% of all employees in the sector. Figure 2-5 below displays the proportion of disabled employees by subsector. The proportion of disabled employees in the Pharmaceutical Subsector was 0.5%.
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Stakeholders noted that it is difficult to employ disabled people (depending on their disability) in certain occupations due to health and safety requirements. It is particularly difficult in key production occupations. However, there was an acknowledgement that more effort needs to be made to identify those occupations in which people with disabilities can be employed and to recruit people with disabilities for these occupations. In addition, CHIETA will work with stakeholders on training around disability awareness. CHIETA is supporting projects aimed at people with disabilities through the discretionary grants.
Base Chem
icals
Explosiv
esFM
CG
Fertilise
rsGlas
s
Petroleu
m
Pharmace
uticals
Speci
ality
Chemica
ls
Surfa
ce Coati
ngsOther
0.0
0.2
0.4
0.6
0.8
1.0
1.2
0.7
0.9
0.3
0.4
1.1
0.6
0.5
0.6
0.4
0.25
Perc
enta
ge
Figure 2-5 Percentage employees with disabilities per subsector: March 2012
Source: WSP submissions, June 2012.
2.3.4 EDUCATIONAL QUALIFICATIONS
In the 2012 mandatory grant submissions, employers provided information on the highest qualification of 77.3% of the workers employed in the Pharmaceutical Subsector. A third (33.8%) of these employees had a National Senior Certificate (NQF Level 4) and more than half (54.5%) had a post-school qualification with 29.1% at NQF Level 6. Only 2.5% had very limited schooling and had not reached NQF Level 1 (Table 2-3).
Table 2-3 Highest qualification level of employees in the Pharmaceutical Subsector
NQF Level N %
Below NQF Level 1 432 2.5
NQF Level 1 256 1.5
NQF Level 2 612 3.6
NQF Level 3 695 4.1
NQF Level 4 5 764 33.8
NQF Level 5 1 099 6.4
8
NQF Level N %
NQF Level 6 4 977 29.1
NQF Level 7 1 796 10.5
NQF Level 8 1 127 6.6
NQF Level 9 234 1.4
NQF Level 10 81 0.5
Total 17 073 100.0
Undefined 5 027
Total subsector employment 22 100
Source: WSP submissions, June 2012.
There was no indication of the qualification levels of 22.7% of employees in the Pharmaceutical Subsector (Table 2-4). Of this group 22.2% worked as professionals; 17.0% as clerical support workers; 14.7% as elementary workers; 14.5% as technicians and associate professionals; another 14.5% as plant and machine operators and assemblers; 13.8% as managers; 1.9% as service and sales workers; 1.1% as skilled agricultural, forestry, craft and related trades workers; and less than one per cent were learners.
Table 2-4 Occupational distribution of employees whose qualifications were not indicated
Occupations in which qualifications were undefined N %
Managers 695 13.8
Professionals 1 115 22.2
Technicians and associate professionals 728 14.5
Clerical support workers 856 17.0
Service and sales workers 97 1.9
Skilled agricultural, forestry, fishery, craft and related trades workers 53 1.1
Plant and machine operators and assemblers 729 14.5
Elementary occupations 741 14.7
Learners 13 0.3
Total 5 027 100.0
Source: WSP submissions, June 2012.
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2.3.5 AGE
The average age of employees in the Pharmaceutical Subsector was 41. The age distribution is provided in Table 2-5. Almost a third (32.5%) of employees were between the ages of 35 and 44, and 31.0% were between 25 and 34. Only 2.2% were younger than 25 and only 1.2% were older than 65.
Managers, and service and sales workers had the highest (44) average age, while professionals were the youngest group with an average age of only 39 (refer to Table 2-5). Only 4.2% of managers in the subsector were nearing retirement. This is probably because a large proportion of professionals become managers in the later parts of their careers.
.
10
Table 2-5 Occupations by age in the Pharmaceutical Subsector
Occupations Age groups Total Average age
Close to retirement
(55-60)
15-24 25-34 35-44 45-54 55-64 65+
N % N % N % N % N % N % N % N %
Managers 20 0.6 459 14.1 1 278 39.2 1 006 30.9 436 13.4 63 1.9 3 263 100.0 44 317 9.7
Professionals 84 1.5 1 992 35.6 1 993 35.6 1 129 20.2 343 6.1 59 1.0 5 600 100.0 39 234 4.2
Technicians and associate professionals
59 1.8 1 138 35.7 1 008 31.6 610 19.2 326 10.2 44 1.4 3 185 100.0 40 220 6.9
Clerical support workers 96 3.4 985 34.9 772 27.4 613 21.7 330 11.7 26 0.9 2 822 100.0 40 226 8.0
Service and sales workers 4 1.4 53 17.3 113 36.9 79 25.7 47 15.4 10 3.3 306 100.0 44 40 13.1
Skilled agricultural, forestry, fishery, craft and related trades workers
9 1.8 119 24.6 143 29.7 142 29.4 63 13.1 7 1.5 482 100.0 43 39 8.0
Plant and machine operators and assemblers
47 1.5 911 29.4 935 30.2 723 23.4 449 14.5 31 1.0 3 097 100.0 42 350 11.3
Elementary occupations 116 3.6 1 129 35.1 918 28.6 646 20.1 382 11.9 23 0.7 3 214 100.0 40 273 8.5
Learners 41 31.9 71 54.9 14 11.0 3 2.2 0 0.0 0 0.0 130 100.0 28 0 0.0
TOTAL 476 2.2 6 857 31.0 7 174 32.5 4 951 22.4 2 376 10.8 263 1.2 22 099 100.0 41 1 699 7.7
Source: WSP submissions, June 2012.
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2.4 CONCLUSION
The Pharmaceutical Subsector is a relatively large subsector, employing around 14% of the total Chemical Sector’s workforce. It has an important role to play in moving the country towards a knowledge based economy, as the pharmaceutical industry is seen as one of the sectors with great potential in the ten-year innovation plan for science and technology.15
The Pharmaceutical Subsector employs mainly middle to high-level skilled people – i.e. people with a post-school education. The majority of employees in the sector are professionals and approximately 19% have degrees. This subsector is highly involved in and dependent on R&D. At present about 2% of the total workforce have master’s and doctoral degrees.
15 DST, (2008). Innovation Towards a Knowledge-based Economy – A Ten Year Plan (2008-2018).
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3 ECONOMIC GROWTH AND FACTORS IMPACTING ON THE SUBSECTOR
3.1 INTRODUCTION
The Pharmaceutical Subsector has a strategic role in the South African economy, especially in healthcare, science and tertiary education, and contributes 1.6% to the South African GDP. It is the largest pharmaceutical sector in Africa and was estimated at R30 billion in 2011. Globally, however, the South African pharmaceutical sector accounts for only 0.4% by value and 1% by volume and it had a negative trade balance of R14.84 billion as a result of imports of R15.96 billion against exports of R1.12 billion in 2011.
This chapter looks in more detail at the economic performance of the subsector and at the factors that influence its performance.
3.2 ECONOMIC GROWTH
The pharmaceutical industry plays a pivotal role in any healthcare system and according to European Commission statistics: five of the 10 leading global R&D firms in 2010 were pharmaceutical companies, accounting for 19% of the R&D of the top 1 400 companies. It is forecast that the pharmaceutical market will reach nearly USD1 100 billion by 2015 (an increase of USD244 billion since 2010), with leading emerging countries accounting for 28% of global spending on pharmaceuticals as compared to 12% in 2005. Conversely, the US share will decline from 41% in 2005 to 31% in 2015, while Europe’s share will fall from 27% in 2005 to 19% in 2015. Branded products accounted for nearly two thirds of global pharmaceutical spending in 2010, but with patents expiring in developed markets, that share is expected to decline. Revenues from generics in 2015 are expected to reach USD400-430 billion, 70% of which will be outside developed markets, as most of the growth in the leading emerging markets is driven by spending on generic medicines. 16 Globally, products with an annual market of USD5 million (R50 million) lost their patent protection in 2010 and a further USD4 million (R40 million) branded products lost their protection in 2011. In 2013 the next wave of patent losses is expected, where an estimated USD3 million (R30 million) will be exposed to generic activity.17
In 2011 the South African pharmaceutical market was estimated at R30 billion18 and the market is forecast to grow to R38 billion by 2015 with the retail sector being the major contributor. 19 Increasingly, there are more and more synergies between the pharmaceutical and consumer units, and brand awareness of consumer products also helps sales of pharmaceutical products, while both markets have strong growth prospects.20 South African consumers spend approximately 1.9% of total household expenditure on medical and pharmaceutical products21 and in 2012 they spent R23 341 million on these products, which represents an increase of 19% since 2009.22
In the national accounts data the pharmaceutical industry is grouped with several others in the subsector “Other Chemicals and Man-made Fibres”. Figure 3-1 below reports the average
16 International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), (2011). The pharmaceutical industry and global health: Facts and figures. Geneva: IFPMA. 17 http://www.imshealth.com. Accessed 9 July 2013. 18 dti, (2013). Industrial Policy Action Plan Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.19 http://www.imshealth.com. Accessed 9 July 2013. 20 David Redfern, Glaxo chief strategy officer , Business Day, (2012). Glaxo to raise stakes in India, Nigeria units. Business Day, 27 November 2012.
21 http://www.health24.com/Medical/Meds-and-you/Inside-the-lab/The-pharmaceutical-industry-at-a-glance-20130521. Accessed 16 June 2013.22 Calculating SARS data. http://www.sars.gov.za. Accessed 18 June 2013.
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percentage change in GDP of this subsector over five-year periods from 1970 to 2010 in comparison with the total Petroleum, Chemical and Glass Sector/Subsectors, as well as the total economy. It also shows the projections up to 2020. It seems that the subsector outperformed the whole Chemical Sector and the total economy for large parts of the period. The projected figures show an average growth of 2.8% for the 2010-2015 period and 4.0% for the 2015-2020 period. However, industry stakeholders said they believe that the growth figures are underestimated when taking into consideration expected developments in the subsector.
1970
-197
5
1975
-198
0
1980
-198
5
1985
-199
0
1990
-199
5
1995
-200
0
2000
-200
5
2005
-201
0
2010
-201
5
2015
-202
0
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Other chemicals & man-made fibres Total petroleum, chemicals & glassTotal economy
Figure 3-4 Average percentage change of Gross Value Added: 1970-2020
Source: Quantec data, July 2013.
3.3 FACTORS THAT IMPACT ON THE SECTOR
Growth of the South African pharmaceutical industry, especially the generic segment, has been a host of factors including: patent expiries of blockbuster molecules; the largest treatment programme in the world of the HIV/AIDS epidemic; increasing use of generic medicines; an increase in lifestyle diseases; an aging population; a greater number of people accessing health services; and a need to contain costs.23 Stakeholders were of the view that the proposed introduction of the National Health Insurance (NHI) Scheme will have a profound impact on the subsector while the subsector will also be influenced by the sourcing of the bulk of raw materials from abroad, the exchange rate and the geopolitical climate.24
The subsector is also highly affected by the actions of Government. This section starts with a discussion of the Government interventions that affect the subsector.
3.3.1 LEGISLATION, REGULATIONS, PLANS AND POLICIES
23 dti, (2011). Human Capital Outlook Implications for Skills Development in the Pharmaceutical Sector.24 Stakeholder workshop for Pharmaceutical Subsector, 25 June 2013.
14
The pharmaceutical industry is, because of its nature, subject to certain regulations. The Medicine Control Council (MCC) is the statutory body that controls medicine registration and regulatory processes. Currently there are requirements, regulations, plans and policies pertaining to aspects such as health service standards, local manufacturing, access to export markets, intellectual property rights (IPRs) and indigenous knowledge (IK). Some of the key elements are the following:
Health service standards.
Government needs to assure that health products are safe, efficacious and of good quality. The 2011-2014 Strategic Plan of the National Department of Health (NDoH), that guides all healthcare strategies and programmes in the country, is now in its third year of implementation. In order to improve the quality of health services in the country, the NDoH is responsible for policies related to legislation governing the establishment and functioning of the Office of Health Standards Compliance (OHSC) as a national certification body. The OHSC will monitor public health services and address complaints of non-compliance, while developing guidelines and providing information on the implementation of health service standards required for the roll-out of the NHI.25
With regards to the regulatory approval process, South Africa’s medicine regulatory environment follows global standards and the Medicines Control Council (MCC) is a statutory body that controls medicine registration and regulatory processes such as marketing of medication and the registration of clinical trials. Government has made great strides in addressing many gaps in the healthcare system, but delays in the medicine regulatory process still need to be addressed.
Legislation, regulations and plans addressing health service standards include:26
o The National Health Act, 61 of 2003 which provides for the protection, promotion and maintenance of the health of the population.
o The National Department of Health 10 Point Strategic Plan that guides all healthcare strategies and programmes in the country.
o The SA Code of Practice for the marketing of health products that has been effective since 2012. The code serves as an important step towards guiding the ethics of the local healthcare industry.27 The Marketing Code Authority (MCA) will oversee the South African Marketing Code of Practice.
o The National Drug Policy of 1996 that aims “to ensure an adequate and reliable supply of safe, cost-effective drugs of acceptable quality to all citizens of South Africa and the rational use of drugs by prescribers, dispensers and consumers”.
o The Medicines and Related Substances Control Act of 1997 (as amended) that provides for mandatory generic substitution, for the establishment of the MCC, for the setting of single exit price regulations, for the regulation of dispensing fees for pharmacists and logistics fees, for international benchmarking, and for pharmaco-economic evaluations, among others.
o The Consumer Protection Act, 68 of 2008 that promotes a fair, accessible and sustainable marketplace for consumer products and services, and establishes national norms and standards relating to consumer protection.
o The Counterfeit Goods Act, 37 of 1997 that introduces measures to counteract trade in counterfeit goods and protects trademarks, copyrights and intellectual property rights
25 http://dai.com. Accessed 13 June 2013.26 http://www.acts.co.za. Accessed 28 June 2013.27 http://www.frontshop.co.za. Accessed 4 June 2013.
15
o The Pharmacy Act, 53 of 1974 that provides, inter alia, for the ownership of pharmacies.
o The Single Exit Price regulations (2003), which flowed from the Medicines Act and was promulgated with the aim of controlling the prices of medicines.
Local Manufacturing.
The need to reduce Africa’s dependence on imports and donations of pharmaceuticals has been expressed and in 2005 the African Union began work on developing a NEPAD-inspired “Pharmaceutical Manufacturing Plan for Africa”. The South African Development Community (SADC) published its pharmaceutical business plan for the period 2007-2013 and focused on increasing generic production in Africa.28
Government has introduced a number of policies to improve the performance of the Pharmaceutical Sector. Industrial Policy Action Plan (IPAP) II has identified key opportunities for development in the Pharmaceutical Sector that targets domestic production of: Active pharmaceutical ingredients for key antiretrovirals (ARVs); reagents for AIDS/HIV diagnostics under licence; vaccines under licence; and biological medicines such as erythmpoietin, monoclonal antibodies and vaccines. IPAP II highlighted the removal of certain regulatory barriers and constraints such as the lack of key skills in highly specialised areas of new drug design, pharmaceutical formulation and pharmaceutical biotech in supporting the growth of the clinical research market in the country. The ‘second wave’ of the designation of certain pharmaceutical products for domestic production that is in line with the amendments of the Preferential Procurement Policy Framework Act (PPPFA), includes 70 pharmaceutical products.
The pharmaceutical industry is vulnerable to competition with imports from low-cost countries, but this situation is due to improve with the revised PPPFA that empowers the dti to designate locally manufactured pharmaceuticals in State procurement contracts.
Project Ketlaphela is a R1.6 billion joint venture of the IDC and Pelchem (NECSA) in partnership with the Swiss company Lonza. The project will meet 50% of South Africa’s needs for ARV APIs from 2017. Further independent projects planned in the Ketlaphela cluster (the Pelindaba valley) are bio-pharmaceuticals (insulin, erythropoietin, etc.), various fluorine-related APIs and fine chemicals. The SA vaccine project, Biovac, a 40-60 public-private partnership has been experiencing long delays since its inception in 2003 due to a sharp increase in the project’s capital cost – from R40 million (2003 estimates) to R250 million – driven by the need to keep up with rapid advances in the sophistication of vaccine technology globally. Biovac is expected to be fully operational by 2017. It will be the third vaccine factory in Africa (after Egypt and Senegal).29
Access to export markets.
It is highlighted in IPAP30 that the potential for economic growth and improved quality, and potential to access export markets are underpinned by the capacity to comply with international standards, norms and technical regulations. The dti’s regional integration key action programmes target the Pharmaceutical Subsector, among other sectors, for adopting or adapting international and regional standards.
Intellectual Property Rights (IPRs).28 dti, (2011). The South African Pharmaceutical Sector Profile for the Consideration of Designation of Pharmaceutical Products in terms of the PPPFA.29 dti, (2013). Industrial Policy Action Plan: Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.30 dti, (2013). Industrial Policy Action Plan: Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.
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The Public Health Innovation Forum (PHIF), established by the NDoH, examines the relationship between IPRs, innovation and public health, and the gap in the innovation cycle. The PHIF is concerned that the commercial incentives provided by IPRs have neither resulted in sufficient improvements in public health in developing countries, nor has it increased access to the benefits of innovations that take place in the developed world. IPRs need to find a balance between fostering innovation and ensuring that innovative medication end up in the public domain. South Africa, unlike most other countries that compensate innovators, does not have a mechanism to add back patent life to a pharmaceutical product, due to delays in the registration process. Furthermore, one of the most important assets of a research-based pharmaceutical company is data submitted to a regulatory agency and in South Africa there is no form of data protection as it relates to the application of the Medicines and Related Substances Act in the process of medicine registration. By protecting data, the country would be in line with competitors and attract investments. Already incorporated into the SA legal framework and intended to increase access to medicines, are the Trade-Related Aspects of Intellectual Property Rights (TRIPS) flexibilities of parallel importation and the “Bolar” provision for early registration of generics whilst the medicine is still patent-protected.31
Legislation and regulations addressing IPRs include:32
o The Patent Act of 1978, amended in 2002, which covers and deals with all issues related to IPRs such as trademarks, patents, copyrights and was amended to include provisions for early working and the Bolar provision. The Bolar provision allows certain experiments to be conducted on a patented pharmaceutical during the lifetime of the patent, to enable generic manufacturers to demonstrate bioequivalence prior to the expiry of a patent.33
o The International Treaty on Plant Genetic Resources for Food and Agriculture assures international co-operation of genetic resources that is essential for food security.34
o TRIPS require the World Trade Organisation (WTO) member governments to give copyright and patent protection for 20 years to a wide range of new products, including pharmaceutical goods.
Indigenous knowledge.
The dti’s paper on IK indicates that the IPRs system, Customary Laws, as well as other laws may protect IK. The Food and Agriculture Organisation administers the International Treaty on Plant Genetic Resources for Food and Agriculture that has a bearing on the “protection of knowledge relevant to plant genetic resources for food and agriculture”. The United Nations Environment Programme administers the Convention on Biological Diversity and this has a bearing on IPR developed with the assistance of IK from local communities. IK, innovation and the country’s rich biodiversity can contribute to the country becoming an important emerging economy.35
Legislation and regulations addressing IK include:
o The Traditional Health Practitioners Act, 22 of 2007 ensures the efficacy, safety and quality of traditional health care services.
31 Ibid.32 http://www.acts.co.za. Accessed 28 June 2013.33 CMS, (2007). Bolar Provision and Regulatory Data Exclusivity in Europe. CMS London: CMS (The alliance of major European law firms). 34 http://www.wipo.int. Accessed 12 June 2013.35 DST, (2008). Innovation Towards a Knowledge-based Economy – A Ten Year Plan (2008-2018).
17
o The International Generics Pharmaceutical Alliance (IGPA) is an international network of generic associations, promoting access to affordable generic medicines.36
3.3.2 RESEARCH AND DEVELOPMENT
Globally the research-based pharmaceutical industry has invested in R&D even in times of economic turmoil. No other business sector has such high levels of R&D intensity and pharmaceutical innovations are behind some of the greatest achievements in modern medicine. The growth and development of the subsector is highly dependent on its R&D.
The R&D capacity of the pharmaceutical industry is located in the manufacturing firms themselves as well as in state-funded research institutions and universities. The R&D facilities employ highly skilled personnel and are generally dependent on high-level and specialised skills – some of which are in short supply in South Africa.
3.3.3 ACCESS TO MEDICINE
Unfortunately, not everyone has yet fully benefited from these medical advances and poverty and great wealth inequality means that many do not have access even to the simplest healthcare interventions. There are two elements pertaining to access to medicine in South Africa. The first is the lack of access of the general population to health services in general and the second is problems experienced with the registration process of medication.
The proposed NHI scheme is aimed at providing improved access to health services for all South Africans. The NHI scheme is set to procure services on behalf of the entire population and control financial resources. Membership of the NHI scheme will be mandatory for all South Africans, although membership of private medical schemes may continue as a supplementary measure, but without tax subsidies. All citizens will register through the Department of Home Affairs, while provision of healthcare will be by accredited public and private providers through a district management system. The proposed establishment of a NHI scheme will pose challenges to the private sector, as businesses will have to be reengineered to access the new landscape. National Treasury and the NDoH will refine the model and look at long-term fiscal implications and effects of the NHI contribution on households.37
Regulatory delays in South Africa have major implications for access to medicines and for businesses in the pharmaceutical industry. Although the standards of the MCC in South Africa are aligned with international norms, the prolonged period required for the registration process to be completed impacts on the access to medication. The time taken to approve products in the country is significantly longer than in globally benchmarked countries. In South Africa it takes 34 months for approval of generics and new entities and 38 months for outstanding applications, while the average registration timeline across benchmarked countries is only 13.5 months. For fast-track registrations in South Africa, submissions made in 2003-2006 are still outstanding. Innovative Medicines South Africa (IMSA), a pharmaceutical industry association, which represents research-based pharmaceutical companies that originate, develop and market medicines, proposes the following: a streamlined approval process that prevents costly, time-consuming and unnecessary duplication of dossier preparation and assessment; a binding timeline for regulatory processes; and adequate resources to increase efficiency and reduce regulatory timelines.
3.3.4 THE DEVELOPMENT OF EXPORT MARKETS
36 http://www.igpagenerics.com/. Accessed 12 June 2013.37 http://www.doh.gov.za/list.php?type=National%20Health%20Insurance. Accessed 12 June 2013.
18
The South African pharmaceutical industry has a relatively small domestic market. However, Sub-Saharan Africa offers significant opportunities for South Africa’s pharmaceutical manufacturing firms, as a growing middle class and an increasing burden of disease push up demand for medicines 38 Pharmaceutical sales in sub-Saharan Africa generated revenues of USD2.28bn in 2011 and were forecast to reach USD5.02bn in 2018.39
3.3.5 COUNTERFEIT MEDICINES
Although South Africa has a sophisticated regulatory authority that assesses all products for quality and safety, counterfeit medicines still occur as a result of global, illegal trade. Counterfeit medicines are fake products produced at low cost in the absence of deterrent legislation in many countries. As counterfeiting becomes more sophisticated, these products are increasingly present, even in better controlled markets.40 The United States Food and Drug Administration estimates that counterfeits make up more than 10% of the global medicines market and are present in both industrialised and developing countries. It is estimated that up to 25% of the medicines consumed in poor countries are counterfeit or substandard.41 Counterfeiting of medicines is not yet reported to be a major problem in South Africa,42 but it may become a factor that influences the subsector in future.
3.3.6 TRANSFER OF TECHNOLOGY
Transfer of advanced technology is essential for economic development. It is one of the means by which low and middle-income countries can accelerate the acquisition of knowledge, advanced equipment and innovative products and processes. Technology transfer has the potential to help improve health, increase the reliability of supply, decrease reliance on imports and raise the competence of the local workforce. In order for pharmaceutical technology transfer to take place, the following conditions are required: an available and accessible local market; political stability and good economic governance; clear development priorities; effective regulation; availability of skilled workers; adequate capital markets; strong IPRs with effective enforcement; and a quality relationship between industry and government.43 When technologies are transferred in BEE transactions or to manufacturers of generics, these transfers are usually accompanied by extensive skills and knowledge transfers.44
38 Kahn, T. (2013). Pharmaceutical firms eye Africa. Business Day, 17 January 2013. 39 Ibid. 40 http://www.who.int/medicines/services/counterfeit/impact/ImpactF_S/en/. Accessed 11 June 2013.41 http://www.who.int/mediacentre/factsheets/2003/fs275/en/. Accessed 11 June 2013.42 www.IMSA.org.za. Accessed 29 May 2013. 43 International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), (2011). The pharmaceutical industry and global health: Facts and figures. Geneva: IFPMA.44 www.IMSA.org.za. Accessed 29 May 2013.
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3.3.7 GLOBAL INTEGRATION
The South African Pharmaceutical Subsector is in various ways integrated in and influenced by international economic trends and markets. As indicated earlier in this chapter, many of the pharmaceutical companies as foreign owned and/or multi-national. The sector is also highly dependent on imports. In many respects the South African Pharmaceutical Subsector is bound to international quality, safety and environmental standards.
The fact that the sector is highly integrated in the global environment has many implications, some of which are listed below:
The sector is sensitive to fluctuations in exchange rates. Multi-national companies have to adhere to accounting and administrative practices that
satisfy the local legislative requirements, as well as those of their mother companies and the countries where they are located. This in turn has an impact on the skills needed by those companies.45
Staffing and human resources development are complex in the international environment. International companies have to ensure that their staff are adequately equipped to implement international business strategies. They also have to overcome shortages of skilled managers and professionals, particularly in emerging markets, and they need to train their staff to be sensitive to cultural differences in the workplace and marketplace.
South African operations of multi-nationals have to adhere to the training requirements and standards prescribed by their mother companies. In most instances these programmes are not accredited in South Africa and for this reason the companies cannot claim any grants for this training.46
The sector is dependent on advanced technological training that is not available locally. This training has to be procured at very high cost.
3.4 CONCLUSION
Indications are that the Pharmaceutical Subsector is in a positive growth phase. As domestic manufacturing will increase competitiveness and create more employment, Government has introduced a number of policies to improve domestic production of pharmaceuticals. Some of the key opportunities for development in this regard are the following:
The domestic production of active pharmaceutical ingredients for key antiretrovirals (ARVs). The domestic production of vaccines under licence, which will involve the restart of the
production of vaccines to supply the domestic market. The domestic production of biological medicines such as erythmpoietin, monoclonal
antibodies and vaccines.
Due to its nature, different factors have an impact on the subsector. Some of the most important factors relate to access to medicines, access to export markets, and research and development. The broader vision of the proposed NHI scheme in South Africa is to provide improved access to health services for all South Africans and to procure services on behalf of the entire population. The dti’s regional integration key action programmes target the Pharmaceutical Subsector, among other sectors, for adapting international and regional standards in order to grow the export market. To grow further, the subsector is highly dependent on R&D. Companies are mainly involved in R&D in order to keep their competitive advantage (by developing new or better products, processes and
45 Ibid.
46 Ibid.
20
technology) and to reduce their environmental impact. The subsector’s dependence on R&D means that it is also dependent on highly skilled professionals and scientists – some of which are often in short supply in South Africa.
21
4 THE DEMAND FOR SKILLS IN THE SUBSECTOR
This section looks at the demand for skills in the Pharmaceutical Subsector. It shows the trends in employment, as well as the occupational composition of demand in the subsector.
4.1 TRENDS IN EMPLOYMENT
The demand for labour in absolute numbers in the Chemical Sector has been declining steadily over the last two decades, with investments in capital equipment being largely used to replace labour. The reduction in employment has mainly impacted on low-skilled and semi-skilled workers, resulting in the skills mix tending towards the higher level skills. The exception to this rule is the glass industry, which also lost jobs overall, but has remained largely driven by semi-skilled and low-skilled labour with reductions in employment affecting all skills levels.
Employment in the Pharmaceutical more or less followed the same trajectory as total employment in the Chemical Sector. Employment grew steadily from 1970 to the early nineties. It then dropped steadily until 2000 but increased again until 2005, decreasing again in the 2005 to 2010 period. Table 4-1 shows a projected growth of 0.7% for the 2010 to 2015 and 1.1% for the 2015 to 2020 period.
19701975
19801985
19901995
20002005
20102012
,0
50,000
100,000
150,000
200,000
250,000
Other chemicals & man-made fibres Total petroleum, chemicals & glass
Figure 4-5 Employment in the Pharmaceutical Subsector compared to total employment in the Chemical Sector from 1970 to 2012
Source: Quantec , June 2013
22
Table 4-6 Average percentage change in employment, 1970-2020
Sector
Average % change
1970-1975
1975-1980
1980-1985
1985-1990
1990-1995
1995-2000
2000-2005
2005-2010
2010-2015
2015-2020
Other chemicals & man-made fibres 3.1% 3.0% 3.4% 2.3% -
3.4%-4.7% 6.4% -
0.7% 0.9% 1.1%
Total petroleum, chemicals & glass 3.2% 1.7% 2.3% 0.7% -
1.9%-6.9% 4.7% -
2.4%-0.6%
-0.7%
Source: Quantec, June 2013
4.2 THE OCCUPATIONAL COMPOSITION OF DEMAND
The largest occupational group in the Pharmaceutical Subsector is professionals, with 25.5% of employees. This is followed by the managerial group (14.9%) of which many are professionally qualified. The size of the elementary occupational group (14.6%); technician and associate professional group (14.5%); and plant and machine operator and assembler category (14.1%) are in the same range, in support of production processes. The sector does not employ many (2.2%) artisans. Although the service and sales workers component is small (1.4%), the Pharmaceutical Subsector employs many professionals as technical sales people.
Managers14.9% (3 263)
Professionals,25.5% (5 600)
Technicians and associate professionals14.5% (3 185)
Clerical support workers12.8% (2 822)
Service and sales workers1.4% (306)
Skilled agricultural, trade workers, etc.
2.2% (482)
Plant and machine operators and assemblers14.1% (3 097)
Elementary occupations14.6% (3 214)
Figure 4-6 Main occupations in the Pharmaceutical Subsector
Source: WSP submissions, June 2012.
Occupations in each of the eight main occupational groups in the Pharmaceutical Subsector with a count of 10 or higher are shown in subsequent tables (Tables 4-1 to 4-8). Specialisations are indicated in Annexure 2.
23
Selling of pharmaceutical products is a main activity in the pharmaceutical industry and therefore sales managers (510) comprised the largest part of the managerial component. Standards and quality products are paramount in this industry and quality systems managers thus made up a substantial number (390) of the managers. In some companies, more quality validation technicians or quality analysts (analytical chemists) are employed, instead of quality systems managers.47
Table 4-7 Managers in the Pharmaceutical Subsector
OFO Code Managers N122102 Sales Manager 510121908 Quality Systems Manager 390121101 Finance Manager 219132102 Production/Operations Manager (Manufacturing) 216112101 Director (Enterprise/Organisation) 210122101 Sales and Marketing Manager 210132402 Logistics Manager 183122103 Director of Marketing 163132401 Supply and Distribution Manager 116122301 Research and Development Manager 91121901 Corporate General Manager 89121905 Programme or Project Manager 83121201 Personnel/Human Resource Manager 81121202 Business Training Manager 80134201 Medical Superintendent 69134902 Laboratory Manager 56132101 Manufacturer 50132104 Engineering Manager 50132404 Warehouse Manager 50133105 Information Technology Manager 30133101 Chief Information Officer 23122105 Customer Service Manager 21122201 Advertising and Public Relations Manager 20121301 Policy and Planning Manager 19121902 Corporate Services Manager 19133104 Application Development Manager 17134903 Small Business Manager 14121206 Health and Safety Manager 11133103 Data Management Manager 11121102 Payroll Manager 10121103 Credit Manager 10121903 Physical Asset Manager 10134904 Office Manager 10Source: WSP submissions, June 2012.
With sales playing a central role in the Pharmaceutical Subsector, sales representatives of medical and pharmaceutical products were the majority (2 601) of professionals in this industry, as were marketing practitioners, industrial pharmacists and retail pharmacists. Most of these professionals
47 Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.
24
are qualified pharmacists.48 The professional category further also included many other health professionals, such as medical scientists, specialist physicians, microbiologists, chemists, hospital pharmacists and others. A medical scientist is actually a medical advisor in the pharmaceutical industry, but for a lack of a better title available in the OFO, this term was used in the WSP submissions.
Table 4-8 Professionals in the Pharmaceutical Subsector
OFO Code Professionals N243302 Sales Representative (Medical and Pharmaceutical Products) 2 601243103 Marketing Practitioner 453226202 Industrial Pharmacist 439226203 Retail Pharmacist 199243301 Sales Representative/Salesman (Industrial Products) 139213110 Medical Scientist 119242207 Compliance Officer 119243102 Market Research Analyst 107221210 Specialist Physician (General Medicine) 99213108 Microbiologist 91211301 Chemist 86242303 Human Resource Advisor 81242101 Management Consultant 74241101 Accountant (General) 73241102 Management Accountant 66252201 Systems Administrator 60241107 Financial Accountant 49214101 Industrial Engineer 47143901 Facilities Manager 33226302 Safety, Health, Environment and Quality (SHE&Q) Practitioner 33226201 Hospital Pharmacist 31252301 Computer Network and Systems Engineer 31243201 Communication Coordinator 29214401 Mechanical Engineer 26251202 Programmer Analyst 24242208 Organisational Risk Manager 23242401 Training and Development Professional 23251101 ICT Systems Analyst 23242102 Organisation and Methods Analyst 21252101 Database Designer and Administrator 21242402 Occupational Instructor/Trainer 19142101 Importer or Exporter 17241301 Financial Investment Advisor 17243203 Corporate Communication Manager 17214908 Materials Engineering Technologist 16214502 Chemical Engineering Technologist 14222104 Registered Nurse (Community Health) 14222114 Nurse Educator 14
48 Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.
25
OFO Code Professionals N242202 Policy Analyst 13251201 Software Developer 13261101 Attorney 13214402 Mechanical Engineering Technologist 11216601 Graphic Designer 11222109 Registered Nurse (Medical Practice) 11251401 Applications Programmer 11214102 Industrial Engineering Technologist 10214907 Materials Engineer 10222115 Nurse Researcher 10241104 External Auditor 10Source: WSP submissions, June 2012.
Chemistry technicians were the majority (723) of the technicians and associate professionals category. Many pharmaceutical technicians (176) were employed, because there is a shortage of pharmacists, assistants and technicians are employed instead.49 The high number (207) of credit loan officers can be attributed to the fact that the retail part of the pharmaceutical industry, to a large extent, sells on credit.
Table 4-9 Technicians and Associate Professionals in the Pharmaceutical Subsector
OFO Code Technicians and associate professionals N311101 Chemistry Technician 723312201 Production/Operations Supervisor (Manufacturing) 532334302 Personal Assistant 249331201 Credit or Loans Officer 207321301 Pharmaceutical Technician 176332302 Purchasing Officer 139311102 Physical Science Technician 127311302 Electric Substation Operations Manager 106313301 Chemical Plant Controller 69311401 Electronic Engineering Technician 67325201 Health Information Manager 67321201 Medical Laboratory Technician 50332203 Sales Representative (Personal and Household Goods) 49335402 Import-export Administrator 41333908 Marketing Coordinator 39331301 Bookkeeper 37314101 Life Science Technician 36334102 Office Administrator 34332301 Retail Buyer 33351201 ICT Communications Assistant 33314201 Agricultural Technician 29332207 Chemical Sales Representative 29325703 Agricultural/Horticultural Produce Inspector 26311501 Mechanical Engineering Technician 23312202 Maintenance Planner 2349 Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.
26
OFO Code Technicians and associate professionals N313907 Food and Beverage Manufacturing Process Controller 19313909 Miller 17313201 Water Plant Operator 16313901 Integrated Manufacturing Line Process Control Technician 16351301 Computer Network Technician 16324102 Veterinary Technician 13332208 Pharmacy Sales Assistant 13325601 Medical Assistant 10Source: WSP submissions, June 2012.
The Pharmaceutical Subsector predominantly employed general clerks (776), production coordinators (583), stock clerks/officers (379), accounts clerks (184), programme or project administrators (102), and various other clerical workers to cope with administrative responsibilities that accompany retail and sales in the industry.
Table 4-10 Clerical Support Workers in the Pharmaceutical Subsector
OFO Code Clerical support workers N411101 General Clerk 776432201 Production Coordinator 583432101 Stock Clerk/Officer 379431101 Accounts Clerk 184441903 Programme or Project Administrators 102422501 Enquiry Clerk 91432104 Warehouse Administrator/Clerk 89432102 Dispatching and Receiving Clerk/Officer 87422601 Receptionist (General) 86412101 Secretary (General) 80413201 Data Entry Operator 56432103 Order Clerk/Officer 50431301 Payroll Clerk 39441501 Filing or Registry Clerk 39441902 Contract Administrator 39441601 Human Resources Clerk 26431102 Cost Clerk 20422202 Outbound Contact Centre Consultant 17422201 Inbound Contact Centre Consultant 16441203 Mail Clerk 10441602 Skills Development Administrator 10Source: WSP submissions, June 2012.
The number of sales people tends to be small in the services and sales workers category, because most sales people are industrial or technical sales people that fall under the professional category. Highly technical knowledge is required in order to assist with the marketing and sales of pharmaceutical products. The term special force’s operator was used for a lack of a better term in the OFO.50
50 Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.
27
Table 4-11 Service and Sales Workers in the Pharmaceutical Subsector
OFO Code Service and sales workers N542203 Special Forces Operator 73515301 Caretaker 49522301 Sales Assistant (General) 41524903 Sales Clerk/Officer 34541401 Security Officer 34522201 Retail Supervisor 14513102 Cafe Worker 13524201 Sales Demonstrator 13523102 Office Cashier 11516401 Animal Attendant/Groomer 10Source: WSP submissions, June 2012.
Although the Pharmaceutical Subsector does not make use of many artisans, the industry did employ a substantial number of mechanical fitters (170). Only 71 electricians were employed, although stakeholders indicated that electricians were trained in-house to become regulators, which are in great demand in the pharmaceutical industry.51
Table 4-12 Skilled and Related Trades Workers in the Pharmaceutical Subsector
OFO Code Skilled agricultural, forestry, fishery, craft and related trades workers N653303 Mechanical Fitter 170671101 Electrician 71652301 Metal Machinist 46652302 Fitter and Turner 34671202 Millwright 33653301 Industrial Machinery Mechanic 21642607 Pipe Fitter 10Source: WSP submissions, June 2012.
Central to pharmaceutical production processes is chemical production machine operators, that was the single most (2 445) populated occupational category after sales representatives (2 601) in the pharmaceutical industry. The packaging and transport of pharmaceutical products are also key activities in this industry and there were 127 packaging machine operators, 127 packaging manufacturing machine minders and 117 delivery drivers employed in the sector.
Table 4-13 Plant and Machine Operators and Assemblers in the Pharmaceutical Subsector
OFO Code Plant and machine operators and assemblers N713101 Chemical Production Machine Operator 2 445718302 Packing Machine Operator 127718304 Packaging Manufacturing Machine Minder 127732101 Delivery Driver 117734402 Forklift Driver 83718906 Bulk Materials Handling Plant Operator 66718303 Filling Line Operator 46733201 Truck Driver (General) 27718907 Weighbridge Operator 19Source: WSP submissions, June 2012.
51 Ibid.
28
With strict regulations and standards required in the production of pharmaceutical products, especially sterile preparations, the industry employed as many as 1 168 commercial cleaners to assure that commercial premises and equipment are clean. The packaging and storage of products and maintenance of sites also require the employment of various elementary workers.
Table 4-14 Elementary Occupations in the Pharmaceutical Subsector
OFO Code Elementary occupations N811201 Commercial Cleaner 1 168832101 Packer (Non Perishable Products) 593833402 Store Person 439833401 Shelf Filler 329832907 Chemical Plant Worker 167831302 Drainage, Sewerage and Storm Water Worker 79811101 Domestic Cleaner 67832901 Metal Engineering Process Worker 37862915 Chemical Mixer 37862202 Handyperson 36831310 Surveyor's Assistant 33832904 Food and Beverage Factory Worker 30811203 Tea Attendant 27833301 Freight Handler (Rail or Road) 27862919 Mechanic's Assistant 24821104 Harvester/Picker 21821501 Forestry Worker 17831301 Builder's Worker 16862918 Electrical or Telecommunications Trades Assistant 13832902 Plastics, Composites and Rubber Factory Worker 10Source: WSP submissions, June 2012.
4.3 CONCLUSION
Employment in the Pharmaceutical Subsector more or less followed the same trajectory as total employment in the Chemical Sector. Employment grew steadily from 1970 to the early nineties, and then dropped steadily until 2000, increased again until 2005 only to decrease again in the 2005 to 2010 period. The projections until 2020 show a positive growth in employment again.
The professional nature of the sector and the high intensity of highly skilled and skilled labour are clear from the WSP information. It can be expected to remain this way. The sector will continue to need highly skilled pharmacists and pharmacist assistants. The service and sales workers component is small because the Pharmaceutical Subsector employs many professionals as technical sales people as highly technical knowledge is required in order to assist with the marketing and sales of pharmaceutical products.
29
5 THE SUPPLY OF SKILLS TO THE SUBSECTOR
The supply of skills is viewed from different perspectives in this section. The supply of skills refers in the first instance to new entrants to the labour market from basic education, FET colleges and HET institutions (new skills). However, it is also important to consider the skills needs of the current workforce and the training initiatives aimed at developing their skills levels.
The first part of this chapter deals with new entrants to the labour market. Key trends and supply-side constraints are highlighted. Initiatives undertaken by the subsector to increase the number of appropriately skilled new entrants are described.
The second part of the chapter describes the inputs of employers to train their current staff.
5.1 NEW ENTRANTS TO THE LABOUR MARKET
The formation of skills starts with general education and training (i.e. the school system). The output from this system remains a concern to the Chemical Sector, mainly because the the system seems to be unable to supply adequate numbers (and quality) of school leavers with mathematics and physical science passes that can pursue studies to become engineers, technologist, technicians and artisans. The general standard of education of school leavers who enter the labour market without any further training is also insufficient.
The supply of new skills from the FET colleges into the Chemical Sector has traditionally been very limited. However, Government’s recent focus on increasing both the quality and quantity of output from FET colleges holds the promise that these institutions can play a more significant role in skills supply to the Chemical Sector in future.
At HET level, three fields of study that are of particular importance to the Pharmaceutical Subsector: Engineering, Chemistry and Pharmaceutical Science and Life Science.
In respect of the supply of new skills to the subsector there has been substantial growth in the numbers of new graduates from universities and universities of technology in certain engineering fields. In terms of average annual output of national diplomas, growth is reported at 7.0% for diplomas in chemical engineering and technology and 6.0% for first degrees in the same field. Despite these positive growth trends, increases have not yet been sufficient to meet the needs of the national economy, the Chemical Sector, and the Pharmaceutical Subsector in particular. In order to ensure future growth it will be necessary to support higher education institutions through a variety of initiatives. These include: bridging programmes to promote access and success; increased physical and teaching resources to engineering departments; and programmes that promote workplace-training opportunities for students from the universities of technology.
The number of national diplomas and first degrees awarded in the field of Chemistry and Pharmaceutical Sciences can be seen in Table 5-1. The national diplomas in Chemistry increased steadily over the period 2001 to 2011 at an average annual growth rate of 5%. First three-year degrees increased until 2009. The drop in figures in 2010 could possibly be ascribed to the changes
30
in the SAPSE system52. First four-year degrees in Pharmaceutical Sciences increased at an average annual growth rate of 4% over the 2001 to 2011 period.
Information on qualifications awarded in Life Sciences is only available for the years 2010 and 2011. Output in the fields Botany/Plant Biology, Microbiological Sciences & Immunology, Pharmacology & Toxicology and Biotechnology are shown in Table 5-2. The time period is too short to discern any trends in these fields.
52 Information presented on HET achievements was obtained from the Department of Higher Education and Training’s database called the Higher Educations Management Information System (HEMIS). This database contains data required for quality assurance, national and institutional higher education planning, and the allocation of government funds to higher education institutions. After its inception in 2000, HEMIS used the subject matter classifications of the old South African Post-Secondary Education (SAPSE) system. The key skills needed in the Pharmaceutical Subsector relate to the following HEMIS categories: Life Science and Physical Science. In 2008, the system was revised and category changes were made. The revised categories were used to collect output data from 2010 onwards. The category “Life Science and Physical Science” was divided into two separate categories i.e. “Life Science” and “Physical Science” with more second-order categories than before. In the absence of official information about the correspondence between the two systems (mapping), HEMIS data from 2010 onwards cannot always be compared to the data of earlier years.
31
Table 5-15 Number of diplomas and first degrees awarded in Chemistry and Pharmaceutical Science: 2001-2011
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011AAG (%)
Chemistry: National diploma 266 272 268 85 337 339 339 535 394 450 422 5Chemistry: First 3-year degree 422 408 408 516 544 619 693 601 666 360 424 0.1Pharmaceutical science: First 4-year degree 359 380 380 491 367 308 385 394 386 466 508 4
Source: HEMIS (DHET), 2001-2011.
Table 5-16 Number of national diplomas and first degrees awarded in selected fields in Life Science: 2010 - 2011
Category Qualification 2010 2011AAG (%)
Botany/Plant BiologyNational diploma 5 0 -94Three-year degree 147 105 -29
Microbiological Sciences & Immunology
National diploma 42 46 9Three-year degree 212 226 7
Pharmacology & ToxicologyNational diploma 29 28 -1Three-year degree 33 37 13
BiotechnologyNational diploma 136 144 6Three-year degree 103 94 -9Three-year degree 212 226 7
Source: HEMIS (DHET), 2010-2011.
32
5.2 THE TRAINING AND DEVELOPMENT OF EMPLOYEES
Companies in the Chemical Sector are involved in a range of training and development initiatives that focus on developing the skills of their employees. Such initiatives not only supplement, but also build on the training that supplies new skills to the sector. This training and development of the current workforce forms a critical source of skills supply.
In 2011/2012 training opportunities were afforded to almost two thirds (64.5%) of employees in the Pharmaceutical Sector. A quarter of professionals received training (Figure 5-1). About 15% of managers, technicians and associated professionals; plant and machine operators and assemblers; and workers in elementary occupations, received training respectively. Stakeholders in the Pharmaceutical Subsector indicated that a lot of in-house training is being done in the subsector to address specific specialised shortages.53
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Perc
enta
ge
Figure 5-7 Proportion of employees who received training opportunities according to occupational category: March 2012
Source: WSP submissions, June 2012.
In total about 58 441 training opportunities were afforded to employees (one employee can have access to more than one training opportunity). The type of training opportunities is listed in the table below. Just more than a quarter (29.0%) were induction training, about another quarter (26.0%) were job specific development programmes, and almost another quarter (23.2%) short courses. Just more than a tenth (11.5%) of the opportunities related to skills programmes.
53 Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.
33
Table 5-5-17 Training opportunities in the Pharmaceutical Subsector
Qualification /learning type N %
Induction and other training 5 120 29.0
Job Specific Development Programme 4 591 26.0
Short Courses 4 092 23.2
Skills Programme 2 024 11.5
CHIETA Learning Programme 692 3.9
NQF Level 1 649 3.7
Work Placement 170 1.0
NQF Level 4 109 0.6
NQF Level 5 59 0.3
Learnership 53 0.3
Below NQF Level 1 37 0.2
NQF Level 7 29 0.2
NQF Level 6 29 0.2
NQF Level 9 10 0.1
NQF Level 8 4 0.0
Total 17 668 100
Source: WSP submissions, June 2012.
Training and education challenges54
During the workshop, stakeholders mentioned a range of training and education challenges faced by the industry. Some of these challenges are the following:
The difficulty to access discretionary grants. The lack of funding for in-house training. The fact that short courses are not always accredited. The lack of sufficient assessors. The poaching of skills. The lack of structured internships. The lack of sufficient partnerships regarding skills development. The need for a review of qualifications in the pharmaceutical environment. The expiring of the two-year training qualification for pharmacist assistants, while there is a
shortage of pharmacist assistants. The difference in standards and critical content regarding e-learning and classroom based
training. The lack of a formalised process for mentoring and coaching. The need to repackage the generic skills component of training. The need to investigate the role of Pivotal grants and programmes.
54 Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.
34
5.3 CONCLUSION
The output from the school system remains a concern in respect of the following: inadequate (in terms of quantity and quality) supply of school leavers with mathematics and physical science passes that can pursue studies to become chemists, pharmacists, technologist and technicians (at HET level) and artisans (at FET level); and inadequate education levels of the general workforce that enters the Chemical Sector without previous training. The supply of new skills from the FET sector into the Chemical Sector has traditionally been very limited. However, Government’s recent focus on increasing both the quality and quantity of output from FET colleges is an indication of the future role that these institutions can play in skills development in the Chemical Sector.
Changes to the HEMIS limits the analysis of trends in the graduation of the main professional skills used in the pharmaceutical sector.
Stakeholders indicated that there is a range of supply constraints that has an impact on the subsector. Some of the constraints are insufficient funding for training, the use of non-accredited short courses, the lack of a structured internship, the lack of partnerships with FET colleges and HEIs, and the lack of a formalised framework for mentoring and coaching.
35
6 SKILLS SHORTAGES IN THE SUBSECTOR
There are various ways of identifying and monitoring skills shortages in a particular labour market. One of these is to ask employers about their experiences when recruiting people for positions in their organisations. Another way is by monitoring vacancy rates in that sector because skills shortages are bound to lead to unusually high vacancy rates. Skills shortages will also drive up the costs of the skills that are in short supply and therefore the monitoring of remuneration trends can also shed light on trends in relation to skills shortages.
CHIETA attempts to glean an understanding of skills shortages in the Chemical Sector by asking employers to identify these shortages when they submit their mandatory grant applications to the SETA. This information was requested for the first time in June 2011 – i.e. in the WSPs submitted for the 2011/2012 financial year. The information submitted by employers in the Pharmaceutical Subsector is analysed in this chapter. In addition the feedback of stakeholders during the subsector workshops is also reported.
It has become customary in South Africa to use the term “scarce skills” to refer to quantitative shortages in the labour market – in other words there are not enough people with the necessary qualifications available to be appointed in positions that become available in the market. This term is also used in this chapter. Another aspect of skills shortages has to do with the qualitative components of the labour market – there may be people available to appoint, but they don’t have the right skills, abilities or other attributes that employers are looking for. Skills deficiencies can also develop among the workers that are already employed, because of the introduction of new technologies, new legislative requirements etc. These aspects are not discussed at this stage as they are generally taken care of by employers through in-service training.
6.1 SKILLS SHORTAGES IN THE SUBSECTOR
As mentioned above, the information on scarce skills was obtained by analysing the WSPs submitted in June 2012. This information reflects the situation as experienced by employers at the end of March 2012.
In the scarce-skills table that employers completed, they first had to name the occupation in which they experienced scarcity, and then had to select from two possible descriptions the one that best described the scarcity they experienced – i.e. “relative scarce skill” (referring to a situation where people are available in the labour market, but cannot easily be attracted to the sector); and “absolute scarce skill” (where people are generally in short supply in the labour market). For all the occupations in which scarcity was experienced, employers also had to indicate how many vacant positions were available at the time they completed the WSP. In addition, they were requested to identify what type of learning interventions they were planning to use to address the skills shortages.
Of the 64 pharmaceutical organisations who submitted WSPs to the CHIETA in 2012, 30 (46.9%) indicated that they experienced a scarcity of skills. The total number of people reported to be needed in occupations in which there were skills shortages is 506; this equates to 2.3% of total employment in the subsector. The data shows that the skills of pharmacist assistants and industrial pharmacists are highly in demand (this was confirmed by stakeholders at a workshop). There were 103 vacancies for pharmacist assistants and 70 vacancies for industrial pharmacists. These shortages were confirmed by participants in the stakeholder workshop.55 Stakeholders also confirmed the shortage in clinical research associates. Stakeholders further indicated a shortage in quality validation technicians, mechatronic skills, quality engineers (mechanical and electrical engineers are usually trained in-house to become quality engineers), clinical trial assistants and dieticians.
55 Stakeholder workshop for Pharmaceutical Subsector, 25 June 2013.
36
The Pharmaceutical Subsector operates in a technology-driven environment, which requires the skills of pack lab technologists. The main role of pack lab technologists is to ensure that packaging is compatible with modern technology and legislation. Due to the unavailability of a qualification, the subsector is at present offering learners with Matric a one-year in-house training course to prepare them to work as pack lab technologists.56
There is also a shortage of medical advisors holding a medical qualification (these advisors are usually involved in advice regarding industry-related regulations). The stakeholders mentioned that this occupation is not reflected by the WSP-ATR data due to challenges related to aligning it with the OFO.57
Table 6-6-18 Vacancies in the Pharmaceutical Subsector
OFO Code Occupation Number of vacancies
226203 Pharmacist Assistant 103226202 Industrial Pharmacist 70243302 Sales Representative (Medical and Pharmaceutical Products) 65422501 Customer Services Clerk/Officer/Reception Officer 39213110 Clinical Research Associate 24313301 Pharmaceutical Production Controller 14713101 Pharmaceutical Products Machine Operator 14862918 Artisan Aide Electrical 14121908 Quality Manager 11311101 Chemical Laboratory Technician/Analyst 11122105 Customer Care Manager/Representative 10523102 Cash Accounting Clerk 8213105 Bioprocess Engineer 7213105 Biotechnologist 7214501 Pharmaceutical Engineer 7134201 Medical Manager 7214101 Industrial Engineer 7311401 Electronic Engineering Technician 7652302 Fitter and Turner 7122301 Research and Development Manager 6243103 Marketing Specialist 6653303 Machine Fitter 6671101 Electrician (Engineering) 6651302 Boilermaker 4121101 Chief Financial Officer (CFO) 4132102 Operations Manager (Production) 3132401 Supply Chain Manager 3134903 Small Business Manager 3211301 Analytical Chemist 3213108 Microbiologist 3242102 Organisation and Methods Official 3263101 Health Economist 3311904 Plastician 3
56 Ibid.57 Ibid.
37
OFO Code Occupation Number of vacancies
321301 Pharmacist Technician 3671202 Millwright 3121901 Corporate General Manager 1132104 Engineering Manager 1132402 Logistics Manager 1133105 Information Technology Manager 1134902 Laboratory Manager 1134906 Accounting Practice Manager 1212103 Statistical Analyst 1221210 Clinical Immunologist 1243102 Market Research Analyst 1432201 Material and Production Planning Clerk 1432201 Production Planner/Officer 1311904 Glass, Clay and Stone Manufacturing Technician 1Total 0
% of employment in Subsector 2.3Source: WSP submissions, June 2012.
6.2 TRAINING EMPLOYEES
Employers were asked what type of learning interventions they planned on using to address the scarcity. Table 6-2 below provides a summary of the type of learning interventions employers plan to apply to address the scarcity of skills. Close to a third (31.8%) specifically mentioned that they were going to use formal training that would lead to certificates, diplomas and degrees. Just more than a quarter (28.0%) indicated that they were going to use job specific development programmes. Other learning interventions employers plan to apply are workplace experience, learnerships, mentorships, and skills programmes.
38
Table 6-19 Learning interventions to address scarce skills, 2011/2012
Learning intervention N %Certificate 5 3.8CHIETA Learning Programme 6 4.5Degree 24 18.2Diploma 13 9.8Job Specific Development Programme 37 28.0Learnership 11 8.3Mentorship 11 8.3Short Course 3 2.3Skills Programme 9 6.8Work Placement 13 9.8Total 132 100.0Source: WSP submissions, June 2012.
6.3 CONCLUSION
The demand for pharmacists remains high, as their knowledge and skills are used in a variety of units in companies. However, many qualified pharmacists prefer over-the-counter or sales-related jobs and that causes scarcity in other areas of the business. The CHIETA is currently engaged in a range of partnerships, agreements and plans to contribute to both the development of new skills for the subsector, as well as the development of skills within the existing workforce. These initiatives range from support for HET institutions and partnerships with Government and industry associations.
39
7 SKILLS PLAN FOR THE SUBSECTOR
The dti has conducted a study regarding the skills development of human capital in the Pharmaceutical Subsector. Some of the recommendations for skills planning, based on this research are the following:58
Financial benefits and personal growth opportunities are some of the incentives that need to be addressed in order to attract more life science skills to the country. Current laws and processes involving the importation of skills need the collaboration of industry and relevant government departments in establishing and promoting scarce resources.
Partnerships with organisations and universities abroad need to be formed. Increased collaboration is required between higher education, CHIETA, industry, trade
associations, the Pharmacy Council and research organisations. Pharmaceutical specialist training institutions need to be established. A sector strategy upon which all other strategies and initiatives can build, including skills
planning and development, is required.
A key structural constraint to sustainable industrialisation in South Africa has been the absence of demand-driven, sector specific skills strategies and programmes, aligned with investment, employment and technological imperatives. The Human Resource Development Council of South Africa (HRDC-SA) is in the process of developing improved sector skills alignment interventions that could address the problem of high and mid-level skills shortages and underpin demand-driven skills interventions. The aim is a shift away from the current oversupply of low-skill qualifications (e.g. NQF levels 1-3) towards an increased supply of mid and high-level qualifications (NQF levels 4 and higher). Furthermore, the National Skills Accord aims to strengthen more effective co-ordination and articulation across the entire education and skills development pipeline, with key commitments by Government, business and labour.
A major challenge is to increase lecturing capacity and improve curricula, equipment, machinery and training facilities to align with new production methods and technology in the Pharmaceutical Subsector. The aggregate size and quality of graduate supply across the education and skills development chain has not provided a sufficient base to support growth opportunities in the Manufacturing Sector in general and new and emerging sectors in particular. The establishment of the dti-driven industry working groups (metals, plastics and pharmaceuticals) will provide further impetus for alignment with IPAP priorities, while putting a stronger focus on the promotion of a medium to long-term perspective on training for employment. Furthermore, the IPAP Pharmaceuticals Skills Strategy envisages:59
Training for medicine control regulators and regulatory affairs personnel. Training to meet the needs for ARV APIs at Pelindaba for Project Ketlaphele, which includes
the training of 50 people abroad. A training programme for the Biovac Project (to reduce dependency on rotavirus and
streptococcal pneumonia vaccine imports), which also includes the training of 50 people abroad.
Other skills plans are:60
The use of RPL and in-house training to fast-track internal development of talent. The continuation of social investments and the capacitation of mathematics and science
teachers with the hope of improving the pass rate at matric level.58 dti, (2011). Human Capital Outlook Implications for Skills Development in the Pharmaceutical Sector.59 dti, (2013). Industrial Policy Action Plan: Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.60 Stakeholder workshop for Pharmaceutical Subsector, 25 June 2013.
40
The formalisation of the e-learning programmes of multi-nationals in the QCTO environment.
The skills plan for the Pharmaceutical Subsector will be developed by the Pharmaceutical and FMCG Chamber.
41
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CHIETA, Five Year Sector Skills Plan for the Chemical Sector. Annual Update, 2013 – 2018.
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Deloitte, (2007). The economic & socio-economic benefits of R&D-based multinational pharmaceuticals on the South African economy. Johannesburg: Studio of Deloitte.
DHET, (2012). Green Paper for Post-school Education and Training 2012. Pretoria: DHET.
dti, (2011). The South African Pharmaceutical Sector Profile for the Consideration of Designation of Pharmaceutical Products in terms of the PPPFA.
DST, (2008). Innovation Towards a Knowledge-based Economy – A Ten Year Plan (2008-2018).
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dti, (2011). The South African Pharmaceutical Sector Profile for the Consideration of Designation of Pharmaceutical Products in terms of the PPPFA.
dti, (2012). Government announces pharmaceutical sector for designation. http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=26647&tid=64480. Accessed 2 July 2013. Pretoria:dti.
dti, (2013). Industrial Policy Action Plan: Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.
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Independent Project Analysis, (2013). Speciality Chemicals. http://www.ipaglobal.com/Industries/Specialty-Chemicals. Accessed 12 June 2013.
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Innovative Pharmaceutical Industry Association of South Africa (IPASA), (2013). The pharmaceutical industry at a glance. http://www.health24.com/Medical/Meds-and-you/Inside-the-lab/The-pharmaceutical-industry-at-a-glance-20130521. Accessed 16 June 2013.
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International Generics Pharmaceutical Alliance (IGPA), http://www.igpagenerics.com/. Accessed 12 June 2013.
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Yurukoglu, A. (2012). Medicare Reimbursements and Shortages of Sterile Injectable Pharmaceuticals. Stanford: Graduate School of Business, Stanford University and NBER.
43
ANNEXURE 1 OCCUPATIONS BY RACE AND GENDER IN THE PHARMACEUTICAL SUBSECTOR
Equity Managers Professionals Technicians and associate
professionals
Clerical support workers
Service and sales
workers
Skilled and trade
workers
Plant and machine operators and
assemblers
Elementary occupations
Learners
African Female 289 746 752 626 93 17 610 1 322 66
% 8.9 13.3 23.6 22.2 30.4 3.6 19.7 41.1 50.5
African Male 402 500 826 726 83 173 1 430 976 43
% 12.3 8.9 25.9 25.7 27.1 35.9 46.2 30.4 33.0
Total African 691 1 247 1 578 1 352 176 190 2 040 2 299 109
% 21.2 22.3 49.6 47.9 57.5 39.5 65.9 71.5 83.5
Coloured Female 183 385 350 447 46 6 430 575 3
% 5.6 6.9 11.0 15.9 15.0 1.2 13.9 17.9 2.2
Coloured Male 153 209 224 236 10 110 443 266 4
% 4.7 3.7 7.0 8.4 3.3 22.8 14.3 8.3 3.3
Total Coloured 336 593 575 683 56 116 874 841 7
% 10.3 10.6 18.0 24.2 18.2 24.0 28.2 26.2 5.5
Indian Female 194 453 164 173 7 0 34 6 1
% 6.0 8.1 5.2 6.1 2.3 0.0 1.1 0.2 1.1
Indian Male 207 274 143 90 9 24 60 17 9
% 6.4 4.9 4.5 3.2 2.8 5.0 1.9 0.5 6.6
Total Indian 402 728 307 263 16 24 94 23 10
% 12.3 13.0 9.6 9.3 5.1 5.0 3.0 0.7 7.7
44
Equity Managers Professionals Technicians and associate
professionals
Clerical support workers
Service and sales workers
Skilled and trade
workers
Plant and machine operators and
assemblers
Elementary occupations
Learners Total
White Female
874 2 133 525 447 23 0 26 16 1
% 26.8 38.1 16.5 15.9 7.5 0.0 0.8 0.5 1.1
White Male
961 899 200 76 36 152 63 36 3
% 29.4 16.1 6.3 2.7 11.7 31.5 2.0 1.1 2.2
Total White
1 834 3 032 725 523 59 152 89 51 4
% 56.2 54.1 22.8 18.5 19.2 31.5 2.9 1.6 3.3
Total Female
1 540 3 717 1 791 1 694 169 23 1 101 1 919 71
% 47.2 66.4 56.2 60.0 55.1 4.7 35.5 59.7 54.9
Total Male
1 723 1 883 1 394 1 128 137 459 1 996 1 295 59
% 52.8 33.6 43.8 40.0 44.9 95.3 64.5 40.3 45.1
TOTAL 3 263 5 600 3 185 2 822 306 482 3 097 3 214 130 22 098
Occupation Not Specified 2
Subsector Total employment 22 100
Source: WSP submissions, June 2012.
45
ANNEXURE 2 OFO OCCUPATIONS AND SPECIALISATION NAMES USED IN THE PHARMACEUTICAL SUBSECTOR
OFO Code Occupation Specialisation name
111204 Senior Government Official Spokesperson
111207 Senior Government Manager Head of Department
112101 Director (Enterprise / Organisation) Managing Director
Senior / Lead Independent Non-executive Director
Managing Director (Enterprise / Organisation)
Executive Director
Company Director
Chief Executive Officer (CEO)
Alternative Director
Non-executive Director
121101 Finance Manager Chief Accountant
Financial Administration Manager
Foreign Exchange Manager
Financial Controller
Financial Administrator
Chief Financial Officer (CFO)
Account Systems Manager
Finance Director
121102 Payroll Manager Remuneration Manager
121103 Credit Manager Billing and Settlement Plan (BSP) Manager
121201 Personnel / Human Resource Manager Employee Relations Manager
121202 Business Training Manager Education Training and Skills Development Manager
Human Resources Development Manager
Learning and Development Manager
Technical Training Manager
Training & Development Manager
Training Manager
Assessments Manager
121206 Health and Safety Manager Safety, Health and Environmental (SHE) Manager
121301 Policy and Planning Manager Strategic Planning Manager
Corporate Planning Manager
Planning & Development Manager
121901 Corporate General Manager Business Operations Manager
Administrative Services Manager
Business Services Manager
Corporate Services Manager
121903 Physical Asset Manager Resources Manager
121905 Programme or Project Manager Project Director
121908 Quality Systems Manager ETQA Manager
Management System Auditor
Quality Assurance / Systems Auditor
Quality Auditor
Quality Certification Manager
Quality Control Manager
46
OFO Code Occupation Specialisation name
Quality Manager
Quality Systems Coordinator
122101 Sales and Marketing Manager Business Development Manager
Business Support Manager
Key Account Manager
122102 Sales Manager Sales Director
Sales Executive
122103 Director of Marketing Market Research Manager
Marketing Director
Marketing Manager
122105 Customer Service Manager Client Service Manager
Client Services Advisor
Customer Care Manager / Representative
122201 Advertising and Public Relations Manager Media Advisor / Manager
Public Relations Manager
Relationship Manager
Corporate Relations Manager
Advertising Manager
Media & Communications Manager
122301 Research and Development Manager Product Development Manager
Research Director
Research Manager
131103 Production / Operations Supervisor (Forestry) Forestry Production Foreman
132101 Manufacturer Factory Manager
132102Production / Operations Manager (Manufacturing) Operations Manager (Production)
Plant Manager (Manufacturing)
132104 Engineering Manager Engineering Maintenance Manager
132105Power Generation Production/Operations Manager Hydroelectric Production Manager
132302 Project Builder Building Site Manager / Agent
132401 Supply and Distribution Manager Supply Chain Executive
Depot Manager
Supply Lead Manager
Supply Chain Manger
Procurement Manager
Freight Manager
132402 Logistics Manager Dispatch Logistics Manager
132404 Warehouse Manager Storage and Warehousing Manager
133101 Chief Information Officer ICT / IT Director
ICT / IT Manager
133102 ICT Project Manager ICT Project Director
133103 Data Management Manager Data Operations Manager
Data Processing Manager
133104 Application Development Manager Technical Solutions Manager
133105 Information Technology Manager Information Systems Director
134201 Medical Superintendent Public Health Manager
47
OFO Code Occupation Specialisation name
Director of Clinical Services
Director of Medical Services
Medical Manager
134204 Secondary Health Services Manager Director of Pharmacy
134602 Credit Bureau Manager Credit Control Manager
134901 Environmental Manager Agriculture and Forestry Coordinator
134902 Laboratory Manager Laboratory Manager
134903 Small Business Manager Owner Manager
134904 Office Manager Office Manager
134906 Practice Manager Accounting Practice Manager
Veterinary Practice Manager
134915 Operations Manager (Non Manufacturing) Mill Manager
141103 Reception Manager Reception Manager
142101 Importer or Exporter Export Manager
142103 Retail Manager (General) Retail Store Manager
143104 Arts / Culture Manager Arts / Culture Manager
143901 Facilities Manager Facilities Supervisor
143904 Security Services Manager Security Services Manager
143905 Call or Contact Centre Manager Call or Contact Centre Supervisor
Telesales Manager
211301 Chemist Pharmacologist (Non-clinical)
Analytical Chemist
Laboratory Chemist
Manufacturing Chemist
212102 Mathematician Operations Research Analyst
212103 Statistician Reporting Analyst
213108 Microbiologist Clinical Evaluation Advisor
Microbiology Researcher
213110 Medical Scientist Microbiologist (Medical Research)
Pharmacologist (Clinical Research)
Medical Technologist
Medical Researcher
Medical Laboratory Scientist
Clinical Research Associate
Medical Scientific Officer
213302 Environmental Scientist Environmental Advisor
214101 Industrial Engineer Plant Engineer
214101 Industrial Engineer Quality Management Engineer
Process Engineer
Manufacturing Logistics Engineer
Production Engineer
214102 Industrial Engineering Technologist Quality Management Technologist
Operations Research Technologist
Process Design Technologist
Process Technologist
214401 Mechanical Engineer Maintenance Management Engineer
48
OFO Code Occupation Specialisation name
214402 Mechanical Engineering Technologist Maintenance Technologist
Mechatronics Engineering Technologist
214501 Chemical Engineer Pharmaceutical Engineer
214502 Chemical Engineering Technologist Pharmaceutical Technologist
214908 Materials Engineering Technologist Materials and Non Destructive Testing Technologist
215201 Electronics Engineer Instrumentation Engineer
216302 Industrial Designer Commercial Product Designer
216402 Transport Analyst Logistics Analyst
221101 General Medical Practitioner Medical Practitioner
Physician
221102 Resident Medical Officer Medical Intern
221210 Specialist Physician (General Medicine) Clinical Pharmacologist
Renal Medicine Specialist
222101 Clinical Nurse Practitioner Clinical Nurse Specialist
222104 Registered Nurse (Community Health) Health Education and Promotion Nurse
Occupational Health Nurse
Registered Nurse (Medical Practice)
222114 Nurse Educator Staff Development Nurse
Clinical Nurse Educator
226201 Hospital Pharmacist Clinical Pharmacist
Health Service Pharmacist
Hospital Chemist
226203 Retail Pharmacist Pharmacist Assistant
Dispensing Chemist
226302Safety, Health, Environment and Quality (SHE&Q) Practitioner Health and Safety Officer / Coordinator / Professional
Occupational Health and Safety Advisor
Occupational Hygienist
Occupational Safety Advisor
Occupational Safety Practitioner / Officer
Risk and Safety Manager
Safety Coordinator
226401 Physiotherapist Occupational Health Physiotherapist
226501 Dietician Nutritionist
Health Advisor (Nutrition)
235101 Education or Training Advisor Education / Training Consultant
Education / Training Specialist
241101 Accountant (General) Debtors Manager
241102 Management Accountant Budget Accountant
Cost Accountant
Project Accountant
241103 Tax Practitioner Tax Consultant
241104 External Auditor Auditor
241107 Financial Accountant Corporate Accountant
Company Accountant
241202 Investment Manager Portfolio Manager
241301 Financial Investment Advisor Financial Business Analyst
49
OFO Code Occupation Specialisation name
Financial Planner
242101 Management Consultant Corporate Planner
Financial Systems Advisor
Ecommerce Programme Manager
Business Support Project Manager
Business Analyst
Business Consultant
Technology Development Coordinator
Business Turnaround Management Consultant
242102 Organisation and Methods Analyst Change Management Facilitator
Efficiency Engineer
Organisational Performance Improvement Manager
Work Study Officer / Observer
242202 Policy Analyst Special Projects Analyst
Strategy Analyst
Commerce Projects Advisor
Systems Advisory Officer Evaluations
242204 Corporate Treasurer Financial Risk Manager
242208 Organisational Risk Manager Organisational Development Manager / Practitioner
Organisational Risk Coordinator
Organisational Risk Officer
Risk Compliance Manager
242303 Human Resource Advisor Hr Analyst
Hr Coordinator
Hr Officer
Human Resource Consultant
Personnel Consultant
Personnel Officer
Remuneration and Benefits Specialist
Hr Administrator
242401 Training and Development Professional Training Consultant
Training Officer
Training Coordinator
Training and Development Practitioner
Training Material Developer
242402 Occupational Instructor / Trainer Business Leadership / Executive Coach
Business Skills Trainer
Maintenance Instructor
On-the-job Trainer
Product Trainer
243101 Advertising Specialist Advertising Account Executive
Advertising Coordinator / Specialist
243102 Market Research Analyst Marketing AnalystMarketing Research Accounts Manager / Key Account Manager
Trade Marketing Analyst
Market Research Project Manager / Project Leader
50
OFO Code Occupation Specialisation name
Market Access Counsellor
243103 Marketing Practitioner Sales Account Manager
Brand Manager
Sales Coordinator
Product Manager
Marketing Specialist
Marketing Professional
Marketing Officer
Marketing Consultant
Category Manager
Business Strategy Manager
Sales Promotion Officer
243201 Communication Coordinator Company Promoter
Public Relations (PR) Coordinator / Practitioner
Media Liaison Officer
Customer Relations Officer
Coordinator External / Internal Communication
Communication Management Coordinator
Corporate Affairs Officer / Coordinator
243203 Corporate Communication Manager Manager Public Affairs / Relations
Manager External / Internal Communication)
Manager Corporate Communications
Account / Regional Director (Communications Consultancy)Director Public Relations / Corporate Communications (Public Service)
243204 Event Producer Conference and Event Organiser / Coordinator
Event Coordinator
243301Sales Representative / Salesman (Industrial Products) Technical Representative / Salesman
Technical Sales Consultant / Coordinator / ManagerSales Representative (Medical and Pharmaceutical Products)
Medical Detailer
Medical Representative
Pharmaceutical Territory Manager
243403 ICT Sales Representative Computer Systems Consultant
251101 ICT Systems Analyst ICT Systems Architect
ICT Systems Coordinator
ICT Systems Specialist
Internet Consultant / Specialist
Systems Programmer
ICT Business Systems Analyst
251201 Software Developer Information Architect Software
Software Architect
Software Engineer
251202 Programmer AnalystArchitect ( Applications / Call Centre / Computing / Desktop / Ecommerce)Engineer (Applications / Content / IT / Software / Systems / WAN)
51
OFO Code Occupation Specialisation name
Architect (Enterprise / Internet / IT / Network / Software / Unix / Web)
251301 Multimedia Specialist Graphical Programmer
251401 Applications Programmer Applications Integrator
Software and Applications Developer
251901 Quality Assurance Analyst (Computers) Software tester
252101 Database Designer and Administrator Data Administrator
Database Administrator
252201 Systems Administrator Network / Computer System Coordinator
Network Administrator
IT Information Systems Administrator
Advisor Systems Management
252301 Computer Network and Systems Engineer Computer Systems / Service Engineer
ICT Customer Support Officer
Network Support Engineer
Systems Engineer
Systems Integrator
252302 Network Analyst Network Architect
252901 ICT Security Specialist Information Technology Security Manager
261101 Attorney Solicitor
Commercial Rights Manager
261102 Administrative Lawyer Legal Researcher
262101 Archivist Document Restorer
262201 Librarian Collection Development Manager
Information Scientist / Officer
262202 Information Services Manager Information System Consultant
Records Administrator
263101 Economist Health Economist
Development Finance Project Analyst
311101 Chemistry Technician Chemical Laboratory Technician / Analyst
Chemical Manufacturing Technician
Chemical Process AnalystChemical Technician (Food, Fuel, Gas, Paint, Liquefied Petroleum Gas, Leather)
Chemistry Technical Officer
311102 Physical Science Technician Product Quality Laboratory Technician
311202 Surveying or Cartographic Technician Surveying Technician
311301 Electrical Engineering Technician Electrical Instrument Technician
311302 Electric Substation Operations Manager Electric Power Plant Operator
Distribution Control Operator
311401 Electronic Engineering Technician Computer-numeric Control (CNC) Technical Officer
Digital Controls Technical Officer
Clinical Engineering Technician
311501 Mechanical Engineering Technician Mechanical Instrument Technician
311704 Geophysical Technician Geological Laboratory Technician
311801 Draughtsperson Mechanical Engineering Draughtsperson
Tool Designer
52
OFO Code Occupation Specialisation name
311904 Manufacturing Technician Plastics Component Manufacturing Technician
Plastics Manufacturing Technician
312201Production / Operations Supervisor (Manufacturing) Manufacturing Foreman
Production Plant Supervisor
Shift Manager (Production)
Assembly Supervisor
312202 Maintenance Planner Maintenance Scheduler
313201 Water Plant Operator Liquid Waste Process Operator
313301 Chemical Plant Controller Pharmaceutical Plant Controller
Pharmaceutical Production Controller
Chemical Process Technician
313401 Gas or Petroleum Controller Petroleum Blending Plant Controller
313901Integrated Manufacturing Line Process Control Technician Automated Assembly Line Operator
313907Food and Beverage Manufacturing Process Controller Food and Beverage Process Technician / Artisan
313910 Juice Extraction Process Controller Formulations Controller
314101 Life Science Technician Life Sciences Laboratory Technologist
Microbiology Technician
Biomedical Technician
Biochemistry Technician
314201 Agricultural Technician Seed Production Technician
Agricultural Sampling Officer
321101 Medical Diagnostic Radiographer Radiographer
321201 Medical Laboratory Technician Medical Laboratory Assistant
Medical Research Officer
Medical Laboratory Technical Officer
321301 Pharmaceutical Technician Pharmacy Technician
Dispensary Technician
Pharmaceutical Assistant
Pharmacist Technician
325201 Health Information Manager Clinical Trial Data Manager
Health Information Strategy Advisor
Medical Records Administrator
Medical Records Analyst
Medical Records Clerk
325601 Medical Assistant Clinical Assistant
325703 Agricultural / Horticultural Produce Inspector Dairy Quality Assurance Officer
331201 Credit or Loans Officer Credit Analyst / Control Officer
Finance Clerk / Officer
Credit Clerk
Credit Controller
331301 Bookkeeper Ledger Keeper
331401 Statistical and Mathematical Assistant Data Quality Officer
331501 Valuer Asset Protection Manager
331502 Insurance Investigator Insurance Case Manager
332201 Commercial Sales Representative After-sales Service Adviser
53
OFO Code Occupation Specialisation name
332203Sales Representative (Personal and Household Goods) Sales Representative (Cosmetics and Skincare Products)
Beauty Sales Consultant
332205 Manufacturers Representative Manufacturers Sales Agent
332207 Chemical Sales Representative Veterinary Products Sales Representative
332208 Pharmacy Sales Assistant Pharmacy Salesperson
Retail Dispensary / Pharmacy Assistant
332301 Retail Buyer General / Company Buyer
332302 Purchasing Officer Purchasing and Logistics Officer
Purchasing Agent / Assistant / Buyer / Clerk / Controller
Procurement Officer (Consumer Sensitive Consumables)
Procurement Clerk
Procurement Administrator / Coordinator / Officer
Purchasing Stores Officer
333101 Clearing and Forwarding Agent Shipping Agent
Shipping Agent Coordinator
333301 Recruitment Consultant / Officer Recruitment Coordinator
Recruitment Officer
333905 Supply Chain Practitioner Supply Chain Administrator
333908 Marketing Coordinator Marketing Support Coordinator
334101 Office Supervisor Personnel Clerks Supervisor
Data Entry Supervisor
Clerical Supervisor
334102 Office Administrator Office Coordinator
334201 Legal Secretary Legal Practice Manager
334302 Personal Assistant Administrative Secretary
Executive Assistant
Private Secretary
335101 Customs Officer Valuation and Origin Industry Complaints Officers
335402 Import-export Administrator Export Documentation Officer
Export Agent / Clerk
Shipping Tally Clerk
335907 Weights and Measures Inspector Weights and Measures Inspector
341102 Legal Executive Legal Executive
341110 Associate Legal Professional Legal Advisor
Legal Coordinator
Legal Officer
343401 Chef Head Chef
351201 ICT Communications Assistant Programme Analyst Data Processing
Computer Engineering Assistant
Computer Help Desk Operator
ICT Systems Analysis Assistant
351301 Computer Network Technician Network Support Technician
351302 Geographic Information Systems Technicians Technical Support Specialist
411101 General Clerk Tender Evaluation Coordinator
Administration Clerk / Officer
Administrative Assistant
54
OFO Code Occupation Specialisation name
Clerical Assistant / Officer
Client Services Administrator
Lab Administrator
Office / Field Assistant
Operation Services / Support Officer
Recording Clerk
413101 Word Processing Operator Typist
413201 Data Entry Operator Data Capturer
Data Compiler / Enterer / Officer / Operator
Data Control / Input Clerk
Data Processing Operator
421101 Bank Teller Bank Clerk / Officer
422201 Inbound Contact Centre Consultant Inbound Call Centre Customer Service Representative
Inbound Contact Centre Team Leader
422202 Outbound Contact Centre Consultant Call Centre Customer Service Representative (Outbound)
Call or Contact Centre Sales Agent / Consultant
422501 Enquiry Clerk Information Clerk / Officer / Advisor / Assistant
Customer Services Clerk / Officer / Reception Officer
Complaints Clerk
Customer Centre Support Officer
Corporate / Front Office Receptionist
422601 Receptionist (General) Front Desk Coordinator
422602 Medical Receptionist Patient Information Officer
431101 Accounts Clerk Ledger Clerk
Account Coordinator / Controller
Accounting Clerk
Accounts Payable or Receivable Clerk
Creditors Clerk
Debtors Clerk
431102 Cost Clerk Pricing Clerk / Analyst / Estimator
Costing Estimator
Costing Clerk
431202 Securities Services Administrative Officer Cash Management Officer
431301 Payroll Clerk Payroll Officer / Administrator / Advisor / Analyst
Salaries Clerk / Officer / Administrator
Wage Clerk
432101 Stock Clerk / Officer Purchasing and Inventory Officer
Stores Maintenance Clerk
Stores Coordinator
Supply Clerk / Assistant / Officer / Scheduler
Stores Controller
Packaging Material Stores Clerk-Perishable Produce
Inventory Clerk / Controller / Administrator
Stock Control Clerk
Stores Clerk / Officer
432102 Dispatching and Receiving Clerk / Officer Shipping and Receiving Clerk
55
OFO Code Occupation Specialisation name
Workshop Clerk
Receiving Clerk
Goods Receiving Clerk
Distribution Officer
Dispatch Clerk / Officer / Operator / Assistant / Worker
432103 Order Clerk / Officer Customer Orders Clerk
432104 Warehouse Administrator / Clerk Ca / Ra Storage Manager / Controller (Perishable Produce)
432201 Production Coordinator Parts Warehouse Clerk
Production Recorder / Scheduler
Production Planning Officer
Production Planner / Officer
Production Leader
Production Foreman
Schedule Clerk
Material and Production Planning ClerkLogistics Clerk / Assistant / Controller / Coordinator / Planner / Officer
Fresh Produce Dispatch Controller
Distribution Controller
Delivery Clerk
Production Clerk
432301 Transport Clerk Fleet Contracts Manager / Controller / Coordinator
Fleet Maintainer / Supply Officer
Truck Dispatcher
441101 Library Assistant Documentation Officer
Document Services Coordinator
441202 Postal Delivery Officer Messenger
441203 Mail Clerk Mail Handler
Mailroom Assistant / Clerk
Mail Centre Coordinator
441501 Filing or Registry Clerk Document Control Officer
Documentation Clerk / Officer
Listing Clerk
441502 Office Machine Operator Office Assistant Photocopying
441601 Human Resources Clerk Human Resources Systems Administrator
441602 Skills Development Administrator Training Administrator
441603 Compensation and Benefits Clerk Compensation and Benefits Administrator
441902 Contract Administrator Contracts Officer
441903 Program or Project Administrators Administration Officer
Administrator
Programme / Project Coordinator
Project Coordinator
Project Planner
Project Programme Specialist
513102 Cafe Worker Canteen Attendant / Worker
Cafeteria Assistant / Worker
515301 Caretaker Maintenance Officer
56
OFO Code Occupation Specialisation name
522201 Retail Supervisor Checkout Supervisor
Sales Promotions Officer
522301 Sales Assistant (General) Sales Person / Consultant
Cosmetic Sales Assistant
Telephone Salesperson
523102 Office Cashier Cashier
524201 Sales Demonstrator Merchandiser
524401 Call Centre Salesperson Telephone Sales Person
524903 Sales Clerk / Officer Internal Salesperson
532904 Personal Care Assistant Personal Care Assistant
541401 Security Officer Security Services Coordinator
Security Guard
Security Safety and Emergency Services Manager
542203 Special Forces Operator Team Leader (Tm Ldr)
611302 Landscape Gardener Gardener
613101 Mixed Crop and Livestock Farmer Mixed Crop and Livestock Production Supervisor
641201 Bricklayer Retort Setter (Bricklaying)
641501 Carpenter and Joiner Building Maintenance Repairman
641502 Carpenter Carpenter Maintenance
642701 Air-conditioning and Refrigeration Mechanic Air Conditioning and Refrigeration Technician
Air Conditioning Technician
642702 Refrigeration Mechanic Hvac Control Technician / Fitter
643201 Industrial Spraypainter Powder Coater
652301 Metal Machinist Fitter-machinist
Lathe Operator / Setter / Tradesperson
Machine Setter
Machine Tool Fitter
Machine Tool Setter
Machinist and Fitter (Automotive)
652302 Fitter and Turner Industrial Mechanician
653301 Industrial Machinery Mechanic Plant Maintenance Mechanic
653303 Mechanical Fitter Maintenance Fitter
General Fitter
661502 Optical Mechanic Optical Laboratory Assistant
671101 Electrician Electrician (General)
Electrical Contractor
Electrical Fitter
Electrician (Engineering)
671202 Millwright Millwright (Electromechanician)
Machine Tool Millwright
672101 Avionics Mechanician Aircraft Maintenance Engineer (Instruments)
672103 Business Machine Mechanic Office Machinery Maintenance Tradesperson
672104 Electronic Equipment Mechanician Electronic Adjuster / Fitter / Serviceman
672107 Special Class Electrician Electrician (Power Electronics)
672203 Computer Engineering Mechanic Computer Engineering Serviceperson
684301 Crop Produce Analyst Seed Sampler
57
OFO Code Occupation Specialisation name
711201 Mineral Processing Machine Operator Crusher Operator
711203 Diamond Cutter Sorter
712201 Electroplater Metal Coating Machine Operator
Metal Plating Machine Operator
713101 Chemical Production Machine Operator Chemical Crusher / Grinder
Cleaning Materials Machine Operator
Cosmetics Machine Operator
Explosives Mixer Operator
Pharmaceutical Products Machine Operator
Tablet Making Machine Operator
Toiletry Products Machine Operators
714202Plastic Compounding and Reclamation Machine Operator Shredder / Granulator Operator
714301 Paper Products Machine Operator Cutting Machine Operator
718201 Boiler or Engine Operator Ship's Boiler Operator
718302 Packing Machine Operator Wrapping Machine Operator
718303 Filling Line Operator Bottle Filler
Container Filler
718304 Packaging Manufacturing Machine Minder Packaging Machine Operator
718906 Bulk Materials Handling Plant Operator Palletiser Operator
718907 Weighbridge Operator Licensed Weigher
732101 Delivery Driver Driver-messenger
Van Driver
733201 Truck Driver (General) Logging Truck Driver
734402 Forklift Driver Forklift Operator
811201 Commercial Cleaner Cleaner (Non-domestic)
Office Cleaner
Building Exterior / Interior Cleaner
Factory Cleaner / Sweeper
811202 Healthcare Cleaner Medium Risk Area Cleaner
811203 Tea Attendant Tea Lady
812201 Vehicle Detailer (Valet Servicer) Wash bay Attendant
821104 Harvester / Picker Picker Quality Controller
821301Mixed Crop and Livestock Farm Worker / Assistant General Farm Worker
821501 Forestry Worker Forest Labourer / Hand / Pruner
831101 Mining Support Worker Centrifuge Pump Operator/ Pump Attendant
831301 Builder's Worker Artisan Aide Building Trade
Maintenance Person / Coordinator
Road Construction / Maintenance Labourer
831302 Drainage, Sewerage and Storm Water Worker Hydro Contract Worker
831310 Surveyor's Assistant Sampler/ MRM Sampler/ MRT Grade Controller
832102 Meat Packer Shrinkwrap Operator
832901 Metal Engineering Process Worker Fitter's Assistant
832902Plastics, Composites and Rubber Factory Worker Plastics Packer
832904 Food and Beverage Factory Worker Line Attendant
832907 Chemical Plant Worker Chemical Tester (Physical/ Routine)
58
OFO Code Occupation Specialisation name
833301 Freight Handler (Rail or Road) Checker and Loader Transport Vehicle
Freight Loader
833401 Shelf Filler Storeperson Packer / Shelver
Warehouse Worker / Shelver
833402 Store Person Warehouse Assistant
Manufacturing Storeperson
Order Picker / Assembler
Stores Assistant
862102 Luggage Porter Baggage Checker
Doorperson
862202 Handyperson Handy Man
862918Electrical or Telecommunications Trades Assistant Artisan Aide Electrical
Instrument Artisan Assistant
862919 Mechanic's Assistant Stripper / Assembler
59