Engen Refinery Skills: briefing
Science and Technology
20 February 2007
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Meeting report
SCIENCE AND TECHNOLOGY PORTFOLIO COMMITTEE
20 February 2007
ENGEN REFINERY SKILLS: BRIEFING
Chairperson: Mr E Ngocobo (ANC)
Document handed out:
Engen Refinery
Skills: presentation
SUMMARY
The Committee received a briefing from the Engen Refinery regarding skills
development and the retention of skilled resources. The presentation
highlighted the challenges facing Engen as they attempted to recruit skilled workers
to South African projects. Members noted that strategies had to be put in place
to keep skilled workers in South Africa as well as facilitate learners
finishing secondary school. Members stated that was a disjuncture between the
advice given to learners at secondary school and learners entering tertiary
education.
Fluor, an American-based company, provided graphical information regarding
developments and future prospects in the construction industry. A number of
concerns were raised about future prospects. Members heard that more money had
to put into development and skills training.
MINUTES
Engen Refinery briefing
Mr Mike Stead, Manager: Clean Fuels Implementation, Cleaner Fuels
Phase Two project at Engen, briefed the Committee on the retention of skilled
resources. The presentation outlined Future Fuels Projects and the background
to Engen that included early expansion projects and the Clean Fuels One
Project. A particular emphasis was put on the retention of skilled resources
within South Africa. He noted that the loss of skills was a concern in all
construction industries. Engineers, planners, surveyors and inspectors were
urgently needed to design, construct and run new plants.
He noted that a number of factors were driving skilled workers out of South
Africa. These factors included high paying jobs in the Middle East, employment
equity and the perceptions of crime. He noted that Engen was busy with a number
of new projects and the need to retain skilled workers was paramount. A
significant investment by government and the private sector was needed to train
students and retain skilled workers.
He noted that efforts were being made to train much needed artisans in South
Africa such as the Shutdown Network Forum (SNF). Originally set up between South
African petroleum companies, the SNF has expanded to include paper, pulp, steel
and energy. The vision of the SNF was to create value by enabling effective
large shutdown execution through the sharing of real time information, best
practices and resource development. A number of solutions were proposed to deal
with training and co-ordination problems. Engen proposed a three-point plan
that included effective use of training resources, management of scarce skilled
resources and scheduling projects to reduce the skills shortfall.
Mr Thabang Tawarima, Deputy Managing Director at Fluor-Igoda Projects, provided
the Committee with a graphic representation of labour demand on capital
projects for the 2010 through 2012 period. These graphs were part of a study
conducted by Fluor SA to assess the likely future level of activity in certain
parts of the Southern African construction industry, review training
requirements within the industry and assess whether South African industry has
the required skilled labour force to undertake the projects that were planned.
He noted a number of concerns. These included convergence issues such as the
2010 World Cup deadlines, ESKOM’s scaled-up investments and the Clean Fuels
Programme Phase Two. The main concerns around resources were that skilled
people were emigrating, the current number of artisans being trained is
significantly lower than before, that there were not enough engineering
graduates and the impact of the HIV/Aids pandemic on human resources.
Discussion
Prof I Mohamed (ANC) noted that the loss of skilled workers in South
Africa was a serious problem. He stated that the loss was due to the State’s
decision to shut down the nuclear industry. South Africa was now in desperate
need of recovering skilled workers.
Members from Engen responded that Fluor was an American-based engineering and
construction company that was supporting South Africa with its construction
projects.
The Chairperson noted that experienced artisans made conditions unfavourable
for inexperienced artisans. He noted that inexperienced artisans were not
assigned to projects to develop their skills. He asked how Engen would address
these problems.
Mr Tawarima responded that the construction industry was tough for
inexperienced workers. There was a transformation process in the industry and
they were aware of problems faced by young engineers entering the industry.
There was however a limit to the number of learners that could be enrolled.
Mr P Maloyi (ANC) noted that the perception of crime was over-exaggerated. He
asked if the Further Education and Training (FET) colleges were experiencing
problems and whether they were producing adequate graduates. He noted that the
recruitment strategies of big companies were mainly focussed on the big cities
and not in the less-populated provinces. A concerted effort had to be made to
redirect graduates that were jobless to jobs.
Mr Tawarima responded that the Middle East construction companies paid a
significantly higher salary and that is why many skilled workers had left. The
perception of crime is a big issue and they were glad to see workers returning
to South Africa from abroad. The racial profile of workers leaving had changed
because black middle class workers were also leaving.
Mr Stead noted that FET colleges were conducting artisan training. The colleges
were used to their full capacity but more resources were needed to recruit
rural students.
Mr B Mnyandu (ANC) noted that there was a disjuncture in the education system
as it did not prepared students for tertiary education. He asked whether any
comparative studies had been done in other countries regarding skills loss.
Mr Stead noted that other academic disciplines could be converted into
engineering qualifications. He had concerns about co-ordination and felt that a
strategic plan had to be developed. He did not know of any comparative studies.
In addition, tertiary institutions were encouraging students to get degrees and
were therefore neglecting artisan training. There was a serious disjuncture
between schools and universities.
Mr E Mtshali (ANC) asked what the challenges were for the 2010 World Cup and
construction of the Gautrain.
Mr Tawarima noted that the major challenge for Engen in preparation for the
2010 World Cup and the Gautrain was to roll out the Clean Fuels Phase Two.
Members from Engen noted that the current situation should be seen in an
opportunity perspective. They noted that prestige should be brought to
artisinal job opportunities; however certain factors had to be put into place
first.
The meeting was adjourned.
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