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CSTEC Steel Industry Human Resources Study

Peter Warrian PhD University of Toronto. CSTEC Steel Industry Human Resources Study. Summary. Steel Employment Trends: Sector Definition Globalization and NAFTA Steel Market Demographic Bubble New Steel Workforce Production Workers Knowledge Transfer New International Steel Management

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CSTEC Steel Industry Human Resources Study

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  1. Peter Warrian PhD University of Toronto CSTEC Steel Industry Human Resources Study

  2. Summary • Steel Employment Trends: Sector Definition • Globalization and NAFTA Steel Market • Demographic Bubble • New Steel Workforce • Production Workers Knowledge Transfer • New International Steel Management • Themes • Continuous Improvement • Maintenance • Steelworker of the Future

  3. Steel Sector Employment Trends

  4. Steel Definitions • Broader Steel Industry • Independent Pipe Mills • Rolling Mills and Drawing Mills • Foundries • Construction Fabricators • Metals Service Centres

  5. Differential Sector Impacts

  6. Steel Trade & NAFTA

  7. Canada Steel Shipments

  8. Impacts of Globalization • Ownership Changes • Changes to Competitive Environment • Single NAFTA Steel Market • Restructured Supply Chains: Value Added Migration • Steel HR profile shift • More skill-intensive • Higher value-added production processes

  9. Demographics

  10. New Steel Workforce Challenges • Broader Steel Sector will need to recall or hire between 19,000 and 29,000 workers over the next five years. • The Sector will need to hire or recall a minimum of 5,000 skilled tradespersons between 2011 and 2015

  11. Knowledge Transfer • The transfer of undocumented skills from older workers to younger workers. Knowledge Transfer has emerged as a new human resources planning challenge

  12. Technology Factors • Automation of production processes, changing skill needs of both production workers and skilled tradespersons • Increase the importance of technicians and technologists • Gaps in essential skills will exact a greater cost on both workers and employers • Nature of essential skills will also change

  13. New International Steel Management • Internationalization of ownership structures. This is most evident in Primary Steel • Adoption of international managerial norms and the international flows of talent • Productivity benchmarking, new approaches to work organization • Distinct strategies related to training and human resources development

  14. Impacts on Canadian Steel • Dramatic rationalization of production underpinned the increased integration of international markets. • In Canada, this rationalization of capacity drove a step-function increase in productivity • Reduced overall employment • Reshaping the skill needs of the steelworker of the future

  15. Primary Steel Productivity

  16. Types of Training

  17. Theme: 1 No Big Technology Change • No Step Function change in Technology • Incremental Improvement on Shop Floor • the philosophy of ‘kaizen’ – which achieves results through the cumulative impact of small changes – has become central to management strategy in the primary steel industry. • Implications for upgrading the skill requirements and responsibilities of equipment operators and for introducing flexible work structures

  18. Theme 2: Total Productivity Maintenance • Historical importance of Maintenance in the Primary Steel industry • TPM • To achieve and maintain optimal utilization of machinery and equipment • Premise of TPM is that machine operators develop tacit knowledge through active management of the machinery

  19. Steelworker of the Future • Minimum 2 year Community College degree • Long-term strategy to ensure an adequate and appropriate supply of technicians and technologists with the requisite industry experience • Mismatch between the supply and demand for persons with technology skills pertains to internationally trained professionals

  20. Production Workers • Impact of Continuous Improvement • Change in attitude that is required, on the part of both managers and shop-floor workers, for implementation to be successful. • Flattening of job hierarchies and an expansion of scope within jobs • Increased reliance on sensors and computer control systems will make basic computer literacy an essential skill for the majority of production workers

  21. Skilled Trades • Impact of Information Technologies • The line between the technology skills of technicians and technologists and the trade skills of a skilled tradespersons will become blurred • The normal trades school curriculum and training standards for apprentices will fall short of meeting the Primary Steel industry’s needs.

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