Report from FAPECA 2012

NECA recently represented the Australian electrical industry at an international level at the Federation of Asian and Pacific Electrical Contractors Associations (FAPECA) at its 26th annual meeting in Hong Kong.

The conferences and general council meetings of FAPECA move between member countries and it was decided that it will be Australia’s turn in 2014.

The Hong Kong conference discussed human resource issues in the electrical contracting industry and eight countries including Australia presented a paper. The major issue facing most of these countries – many of which have unemployment rates below that of even Australia - was skilled labour shortages.

Some views from other countries:

Hong Kong Electrical Contractors Association (HKECA)

• There is an expectation that power shortages will continue to be exacerbated by lack of effectiveness by industry and government.

• Between 2012 and 2014 some additional 28,100 workers will be required in the electrical and mechanical sectors covering public projects, private sector projects and railway projects. Whilst the value of these projects is large the cost of the labour component is significantly lower than Australia and wages are lower but with a 17% maximum personal tax rate the take home salaries are not incomparable to Australia’s.

• 25% of skilled workers are over 50 years old and retirement ages are relatively young in Hong Kong.

• HKECA believes that the promotion of careers in finance and other services which are encouraged by both the Hong Kong government and many parents have caused a drop in young people getting involved in the electrical industry. There is still a misconception that going into the electrical and mechanical industry narrows your career.

• Hong Kong government’s education policy discourages young people to join the labour force but rather going onto multiple degrees and higher education levels.

Korea Electrical Contractors Association (KECA)

• Between 2000 and 2010 the value of electrical construction works increased from US$90 billion to US$181 billion.

• Overseas projects have increased two-fold in value and four-fold in number since 2000. Korean companies are making entrances into various countries.

• Power companies in Korea rely on traditional thermal, hydraulic and nuclear generation. They are also adopting added gas combined cycle (IGCC), as well as wind power, photovoltaic and fuel cells.

• Part of the problem for the local shortage of electrical workers is the significant increase in project orders from overseas in particular the construction of nuclear power plants in United Arab Emirates.

• 62% of workers on electrical sites are over the age of 40 years.

• There is a significant demand as there are six additional nuclear power stations to be built by 2020 and four new overseas plants to be built by Korean labour. Focus on safety following the Japan nuclear accidents is a factor.

• The challenge for the Korean government and industry is to find 24,000 new workers who are specialised in electrical work on nuclear power stations. This needs to be achieved by 2020.

• Employment of foreign workers at electrical construction sites is restricted to those who undertake manual work. They are usually paid lower wages than Korean employees.

The Electrical and Electronics Association of Malaysia (TEEAM)

• Malaysia has a certification body for electrical workers and a licensing system for employers.

• The skills shortage in Malaysia is very apparent and the industry and the government has done much work on mutual recognition of qualifications from other Asian countries.

• They have been involved in the Association of South East Nations (ASEAN) to ensure mobility of workers between countries.

Singapore Electrical Contractors and Licensed Electrical Workers Association (SECA)

• The total employment market in Singapore increased by 3.9% in 2011 an increase of 123,000 jobs.

• Unemployment in Singapore was 2%, the lowest rate in 14 years.

• Productivity increased by 1% in 2011 after rising sharply by 11% in 2010. The metrics of these measurements are not known.

• Average monthly earnings rose by 4% in 2011.

Taiwan Electrical Contractors Association (TECA)

• Taiwan has strict eligibility rules for electrical contractors. The “top class” undertaking large external power line work requires a paid-up capital of some AU$320,000. A “normal” contractor requires paid-up capital of some AU$65,000. A small contractor who can only undertake lighting work for residential and office clients requires fully paid up capital of approximately AU$18,000.

• There is a government requirement for all workers to have regular retraining. Failure to undertake the retraining or lack of success means additional training and seminars.

• Shortage of manpower and ageing workers is an issue and exchange of international labour is being investigated.

Thai Electrical and Mechanical Contractors Association (TEMCA)

• Thailand has been experiencing a shortage in unskilled labour, semi-skilled labour and skilled labour.

• The unemployment rate in Thailand was less than 1% in 2010.

• Electrical contractors who require unskilled labour have to import these from Myanmar (previously Borneo) as there was no possibility of expanding the low skilled Thai workforce.

• Top issues for government and industry is the establishment of national standards for levels of labour to increase occupational skills training. A large number of testing centres are being established around Thailand to ensure competency and grading of workers.

• Whilst wages are still low, they are increasing in the range of 11 to 40 percent. The highest increase is going to skilled workers.

• The Thai government has a priority on skills development for electricians. The training programs for unskilled workers to upgrade to semi skilled workers is to be upgraded to produce skilled electrical workers.

Society of Philippine Electrotechnical Constructors and Suppliers (SPECS)

• SPECS partners with private corporations and government units to support education and training required by members’ workforces to develop electricians and engineers for the construction sector.

• There are different types of contractor licenses, one for Filipino proprietorship and the others for joint ventures or consortiums with foreign project owners.

• As at 15 May 2012 there was some 6,000 registered licensed contractors employing some 300,000 professional and skilled workers.

• The Philippine government recognises that in overseas countries Filipino workers are not automatically recognised as professional and the school education program has been extended for most young people to 12 years, kindergarten to year 12.

• The salaries being offered to Filipino workers overseas are often five to eight times higher than for local construction firms. This threat has been met by concentrating on training and skilling low skilled or semi skilled workers.

Representatives at the FAPECA 2012 Hong Kong conference

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