INTERVIEW

t is an unfortunate generalisation that when a label is applied it can often stick rather I too firmly. In the case of the Engineering

Employers’ Federation (EEF), the sobriquet of ‘boss’s trade union’ became a glib sound bite that has adhered tenaciously. This large and extremely influcntial organisation certainly won its spurs in bloody industrial combat during the past 30 or more years, doing battle with employee unions in the turgid times of ‘them and us’. But in today’s competitive commercial environment, times and attitudes

ENGINEERING MANAGEMENT JOURNAL

Voicing concerns - raismg the game The largest sector employers’ organisation in the UKS the Engineeting Employers’ f .

- 1 . 1 r f( ederation is the representational voice of engineering and manufacturing. From its former principal role as a central negotiating body, the EEF has evolved continuously to become a combined vocal champion and advisory service for the industry in virtually every business arena

by Colin Ashmore

have changed radically- to the benefit of the engineering and manufacturing industry as a whole.

Through a process of continuous evolution, the EEF is today the largest employers’ organisation in any sector in the cntire United Kingdom, championing the interests of a grow- ing membership of closc to 6000 individual companies. Its members comprise individ- ual companies of all sizes and in every sector of engineering, manufacturing, engineering construction and technology-based industries which provide employment for nearly one million people throughout the UK. The Federation, which includes the Engineering Construction Industry Association, itself employs more than 500 full-time staff and comprises 13 regional Associations nationwide.

Providing a powerful, informed and highly respected voice in the most influential political circles, the organisation now has the oppor-

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INTER VIEW

‘Spin’ in its worst

manipulative sense

plays no part

in the Federation’s issues that concern them.’ These concerns cover a vast spectrum of both

campaigning, individual and collective industry-wide issues which necd to be addressed at the highest levels and through expert consultation. Although employment affairs and social legislation remain primary concerns, the EEF is also able to provide expert services covering health, safety and the environmental minefield in which today’s employers must operate, together with education

and training issues, European affairs and econoinics.

Such an eclectic range of available expertise must necessarily be supported by continuous research to enable the organisation to provide members with the high quality constructive debate they have come to expect. However, the D G also points out that as he and his staff are asked to work in close co-opcration with the EU as well as the UK Government to find the best solutions, they have had to become some of the best-researched of any in thcir field. The success of this approach is underlined not just in the provision of services to members, but in the EEF’s ability to operate effectively as an independent, fee-earning consultant to non- member companies and organisations. ‘We won’t dictate, but research avenues for success -without spin,’ says Martin Temple.

Some of these ‘avenues for success’ actually form part of the EEF’s long-term agenda for the future of the industry. Temple points out that despite much popular comment on the perceived rapid dcmise of the manufacturing base in the UK, this sector is still currently contributing some E l 50 billion to the economy and actually represents some 62% of our total export earnings. Although some recent reports are indicating a very much more positive trend, convincing our political masters both here and in Brussels of the literally vital importance of engineers and engineering remains a major concern for thc EEE

With regard to macro-economics, the Federation has warned that if manufacturing is allowed to decline at its current rate, the consequenccs for the UK economy will bc dire, so it is important that the issues must be addressed through ordered and directed debate. In particular, if manufacturing growth remains at the same annual levcl of 5% as it did through- out the 1990s, our trade gap will have grown to almost 580 billion by 2010. A deficit of this size would in turn leave the UK dangerously

ENGINEERING MANAGEMENT JOURNAL AUGUST 2002

or in its

advisory services

to its members

tunity to apply expert skills in today’s devolved bargaining arena. Nevertheless its Director-General, Martin Temple is keen to cmphasise that the focus is vcry much on the provision of a comprehensive range of services based on current employment legislation and social issues, together with unbiased advice on world best practice to ‘raisc the game’ of its members in terms of enterprise and global competitiveness.

Heading-up the EEF since 1999, Martin Temple is not simply an administrator well- acquainted with the membership’s boardrooms and Whitehall’s corridors of power, but can call on his own 30 years of hands-on experience in one of the toughest sectors of thc heavy engineering industry. Formerly a Director of Sales and Marketing for British Steel Stainless, he became Vicc President of Avesta-Sheffield AB, a major 21.5 billion producer of stainless steel, with responsibility for its sales and distribution division. A member of this steel- maker’s executive board, he not only chaired boards of the sales companies worldwide, but was also involved in both operational matters and long-term strategic planning. Temple’s responsibilities also involved working closely with UK Government departments including the Department of Trade and Industry, where he led a feasibility study into improving the international competitiveness of the UK steel industry.

Givcn the Director-General’s metal engi- neering background, it can be no coincidence that in its very latest evolutionary move the EEF has just announced that it is to merge with the UK Steel Association. The two representa- tional bodies have enjoyed a close relationship in the recent past, working together success- fully and consistently on a wide range of issues, but the merger is describcd as being designed to provide a powerful combined organisation with an even stronger voice for UK manu- facturing.

While this representational and promotional voice is most ccrtaiiily powerful, Martin Temple is careful to stress that ‘spin’ in its worst manipulative sense plays no part in the Federation’s campaigning, or indecd in its advisory services to its members. ‘We have absolutely no other interests than manufac- turing’, says Martin Temple. ‘Our people have regular, routine, day-to-day contact with member companies, so we stay close to the

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There is still an

ongoing and

increasingly urgent

exposed to fluctuations in investment requirement for

attract capital inflows. Thc Federation more and better

importance of the inanufacturing qualified young

fall of just 5%) in the level of

an expansion in the service sector of

income and dependent on its ability to

underlines the critical economic

engineering sector by indicating that a

manufacturing exports would require

almost 15% simply to hold thc trade deficit at its present level, as Martin Temple says, ‘That’s an awful lot of hairdressers.’

While current issues are difficult and debate is complex, companies continue to complain of being burdened by Government-imposed bureaucracy and ‘rcd tape’. In this area, the EEF believes that accurate, unbiased analysis is a prerequisite to working towards satisfactory solutions. It is also convinced that the cntirc issue has becn vastly over-simplified, it being fundamental to understand what arc in fact sceii as ‘bad’ or unfairly-imposed regulation. A major part of the problem, it says, is the fact that politicians as a breed do not appear to understand just why red tape is aproblem in the first place. Very few of them have ever had first- hand experience of working undcr wcarisome regulatory burdens while trying to make and sell high quality products against unprece- dented competition in the global marketplacc.

As an example of the EEF’s anti-bureaucracy campaigning, the Climate Change Levy has clearly raised temperatures on a very wide scale among mcmber companies. Martin Temple makes no secret of the fact that on this issue he believes regulatory legislation is ill-conceived. The impact of the Levy which was imposed in April last year to assist the reduction of greenhouse gases, has now begun to be felt throughout the industry. Although designed to assist with UK compliance with the Kyoto Agreement, it is seen as placing an additional burden directly on to manufacturing industries, which is not only unfair, but as a piece of legislation is also full of anomalies. In Temple’s words, ‘The Government has completely lost the plot!’ Intense lobbying of MEPs has also resultcd in a successful conclusion with regard to the EU Noise Directive, which threatened to adopt unrealistically stringent new limits, well in excess of those already accepted by the HSE. The compromise measures designed to protect employees’ hearing, will now take account of the protection provided by ear-plugs and ear- defenders.

people to enter the

profession

Ncvcrthclcss, in spite of all current fiscal and regulatory hurdles, our levels of manufactured exports continuc to be rclativcly healthy, but the EEF warns against any idea of complacency as conditions remain ditficult. Mr Temple insists that the industry in general must not only stay competitivc, but that rnorc coinpanics must become successful in overseas markets. This process should follow a strategy of reading the market, developing

products to meet the demand and then invest in plant, cquipmcnt and proccsscs - such as lean manufacturing-as well as in a skilled, informed and motivated workforce.

While companies are certainly seeking to raise their game by following the Federation’s formula for success, an increasing nuinber are improving productivity by moving manufac- turing capacity abroad. During thc last five years thcrc has becn a steady annual increase in imports of ‘intermediate products’-com- poncnts-at an annual rate of about 20%. Although the trend towards overseas inanu- facture and sourcing has proved an effective means of reducing labour costs and improving competitiveness, the EEF suggests that the same level of cost reduction can be achieved in many cases by investing in improved manu- facturing technology. In any event, moving all or part of the manufacturing process to an offshore location must be seen as a tcinporary measure, if for no other reason than that improved local skills and implicit tcchnology transfer will inevitably result in finished products being produced locally by others in dircct competition. This means that in addition to increased investment in people, plant and equipment, it is even more strategically important to retain research and development activities and othcr core arcas of competence within the UK manufacturing basc.

The steady decline in the number of people in thc inanufacturing engineering and construc- tion industries is likely to sce the present figure of around 1.8 million reduce to some 1.4 million by 2010, although the general level of skills and qualifications of thc workforce will be far higher than at present. Nevertheless, there is still an ongoing and increasingly urgent requirement for more and better qualified young people to enter the profession. The Federation is working activcly alongside other organisations and in conjunction with national initiatives to raise the profile of engineering as a

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INTER VIEW

rewarding and fulfilling career. At the same time, it also underlines the real need to encourage graduates in engineering disciplines to continue to undertake industrial manufac- turing-based research and development. It is, says Martin Temple, vitally important that some of the most talented people are provided with the incentive to stay on at universities in order to support industry through top-level R&D programmes.

However, the engineering and manufac- turing sectors are currently facing significant shortages of skilled people, whilst the trend towards higher value and higher technology products is creating a demand for even greater skills and technical competence from the workforce of the future. In a more direct and strictly practical approach towards bridging the skills gap, a consortium of engineering bodies led by the EEF recently announced a major sponsorship of three secondary schools which hope to achieve ‘specialist school’ status from September this year. The EEF’s fellow travellers include such luminaries as the National Training Organisation for Engineering and Manufacture, the Machine Tool Technologies Association, the Engineering Council, the Engineering Development Trust and the Royal Academy of Engineering. The consortium has announced its intention to support the Government in its drive to build diversity in education and raise standards in schools, backing its commitment with sponsorship to the tune of E150 000.

This initiative will back the D of E’s plans to boost skills-based education which includes an eventual target of 1500 secondary schools with specialist status by 2005. These specialist schools which will teach the full curriculum but use additional resources to concentrate on their specialist subject -such as engineering, which was launched this year-and will receive extra funding. The Government’s financial support amounts to EIOO 000 for each school, with an annual sum of E123 per pupil for four years.

The three schools which are each receiving an additional E50 000 of sponsorship through the EEF-led initiative are Eckington School in Sheffield, Devonport High School for Boys in Plymouth and Woodchurch High School, Merseyside. The schools were chosen from areas where the shortage of engineering skills has become especially acute. As part of the demanding selection criteria to gain their specialist status, the schools must be able to show that they share resources and good

practice with other local schools. In addition, they must also focus on the development of appropriate skills required by industry and employers, while also establishing links with local companies by providing work place- ments, for teachers as well as for the students themselves.

The intention is for these and other engineering specialist schools to provide an introduction and some background to the vocational education required for a career in engineering, as well as in terms of careers support. It is also hoped that the schools will offer the GCSE in engineering as a basis for studying towards a vocational A level certificate in engineering for students going on to further education. For students following the general academic route, the schools should be able to provide a full range of both academic and vocational A level courses in science and engineering for entry to higher education.

At the same time, the EEF is keen to point out that it recognises that not all pupils will wish to become engineers of one sort or another. For those who opt for careers outside the engineering profession, the Federation would intend that the specialist schools have the wider aim of developing a positive attitude towards engineering and technology as well as an awareness of their value in everyday life and the economy as a whole.

‘In addition to our efforts in raising the profile of the industry, we have achieved significant success over the last decade in the number and breadth of the services we offer,’ says Martin Temple. ‘We have moved with the times in researching some of the most complex issues of vital importance to engineering and manufacturing and fully intend to exploit our expertise over the next few years.’ Asked to comment on his own role as Director-General, he said that he believed he had been able to play an important part in raising a range of key issues. However, he also thinks that despite the best efforts of the organisation that he heads, he and other movers and shakers have still failed to change the perception of engineering to either the City or the Government, who remain largely unaware of the vital and innovative part it plays in the UK economy. Clearly, there is still a major hill for the EEF to climb for its members in years to come.

0 IEE: 2002 Colin Ashmore is a freelance writer. H e can be contacted at MediaSrvs@aol.com.

150 ENGINEERING MANAGEMENT JOURNAL AUGUST 2002