shanghai electric labour issues

Leeds University Business School

Debates And Controversies

Author

Shanghai Electric

Leeds University Business School

Is shanghai Electric well positioned to addressthe global labour issues?

Leeds University Business School

Demographic in China

• One-Child Policy in 1979• Control population size• Result in drop in growth rate• Low population growth

• Total fertility rate has been decreased• 1950-1955: 6.11 per 1,000 female• 2005-2010: 1.64 per 1,000 female

• Increase in aging population• Population age > 65: 110 Millions

• 8.9% in 2010 to 9.5% in 2015• In 2030: 16.5% • In 2050: 25.6%

Leeds University Business School

Leeds University Business School

• Shanghai electric employees more than 30,000 employees globally. (Forbes, global 2000)

• Footprint covers Pakistan, India, Indonesia, Vietnam, Thailand, Tanzania, Iran, Bangladesh, Singapore, Kenya, Germany, Iraq etc.

Leeds University Business School

Leeds University Business School

Leeds University Business School

Shanghai Electric Strategy• Shanghai electric focuses on knowledge sharing by

getting contracts and buying stakes in companies worldwide.

• Most of the manufacturing of equipment is done in china. Thus maximum labour jobs are required in there.

• Majorly engineers from the company are sent overseas to handle the assembling part in various countries.

• The company hires contractors in host countries to get cheap labourers.

• This helps it avoid the cost of transfer of labour from china to host countries and helps it source cheap labour through contractors.

Leeds University Business School

Leeds University Business School

• Coutries where the company follows the EPG (Engineering, Procurement and Construction) strategy, a participation of the local companies is also usually involved.

• The partners with whom the joint venture is established, help the company with the labour force and SECPG mainly does the engineering part of high end technology

• Local participation helps to sort the labour issue and helps in a smooth functioning of the task force.

Leeds University Business School

Engineering, Procurement and construction

Leeds University Business School

• Looking at the strategies being followed by Shanghai Electric, it seems like it is well positioned to address the global labour issues and shouldn’t really face any problems in the near future.

Leeds University Business School

THANK YOU