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May, 2010 Impacts of the Professional Qualification on the Steel Industry in Brazil VANDERLEI RAFFI SCHILLER Vice President HR ArcelorMittal Brasil DELMAR.

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Presentation on theme: "May, 2010 Impacts of the Professional Qualification on the Steel Industry in Brazil VANDERLEI RAFFI SCHILLER Vice President HR ArcelorMittal Brasil DELMAR."— Presentation transcript:

1 May, 2010 Impacts of the Professional Qualification on the Steel Industry in Brazil VANDERLEI RAFFI SCHILLER Vice President HR ArcelorMittal Brasil DELMAR BARROS RIBEIRO CEO ArcelorMittal Piracicaba

2 1 Balance of labor in Brazil post-crisis Annual GDP growth of 5%: creation of 2 million jobs each year A cycle of sustainable increased demand for labor began in February 2009

3 Jan/Mar/2010: 657,259 Thousands Balance of labor in Brazil post-crisis Source: CAGED

4 3 Source: IPEA – Paper – Escassez de engenheiros: realmente um risco? Balance of labor in Brazil post-crisis Forecast for technical requirement of engineers + 5% GDP

5 4 Source: IPEA – Paper – Escassez de engenheiros: realmente um risco? Balance of labor in Brazil post-crisis Forecast for technical requirement of engineers Actual data

6 5 Source: IPEA – Paper – Escassez de engenheiros: realmente um risco? Balance of labor in Brazil post-crisis Forecast for technical requirement of engineers Actual data

7 6 Source: IPEA – Paper – Escassez de engenheiros: realmente um risco? Balance of labor in Brazil post-crisis Forecast for technical requirement of engineers

8 7 Source: IPEA – Paper – Escassez de engenheiros: realmente um risco? Balance of labor in Brazil post-crisis Remarks / Conclusions The number of engineers will not be enough for the demand in 2015 (deficit of 249,000, considering an increasing scenario of 5% GDP). Brazil presents a low ratio of engineers/ inhabitants USA or Japan: 26 engineers/1000 inhabitants Brazil: 6 engineers/1000 inhabitants In fact, the projection of the figures shows that from 2011 on, there will be a deficit of qualified labor in Brazil. The situation will get worse in the following years, with the inventory of qualified labor being exhausted.

9 8 Source: IABr Steel Segment – Evolution of employment Workforce 2008 (Feb) 2009 (Nov) (%) Own62,14361,761(0,6) Contractors: Production 59,325 36,322 (17,3) Contractors: Expansion12,722 Total121,468119,641(1,5) February 2008 vs. November 2009 After a period of 8 months of reduction the steel industry restarted hiring in August 2009. The greatest impact was on contractors Hirings – Leaves = 900

10 9 Steel Sector – Expansion of capacity If the announced plans are carried out, by 2015, the Brazilian steel industry will increase its installed capacity by 75%. Projects in installation, finalization or study phase Usiminas ArcelorMittal Long Steel Gerdau Açominas CSN VMB CSA Alpa Pecem 23.7 million tons Announced Projects Wisco/MMX or AM/Vale Ternium 8.0 million tons Expansion of installed capacity: 31.7 million tons Source: IABr The expansion of installed capacity will generate between 30,000 to 40,000 new vacancies in the steel industry, including both permanent employees and contractors, until 2015.

11 10 Steel Sector Impacts of the professional qualification Continuous improvement Innovation Competitiveness

12 11 Steel Sector Impacts of the professional qualification Japan: 1960s-1970s Asian Tigers: 1980s-1990s China: 2000s Korea Based on: Infrastructure + Education and Job Qualification

13 12 Steel Sector Impacts of the professional qualification ProjectTime (years) Hydroelectric power plant3 ~ 4 Road2 ~ 4 Port3 ~ 5 Steel Plant3 ~ 5 Increment Education System6 ~ 10

14 13 Steel Sector Impacts of the professional qualification Improvement of the productivity of the Educational Sector Improvement of the productivity of the Educational Sector Capacity increase of the E.S. Capacity increase of the E.S. Development of innovative courses Development of innovative courses Incentive to the formation of virtual universities (consortiums) Incentive to the formation of virtual universities (consortiums) To increase the educational qualification through organizations of the 3 rd Sector To increase the educational qualification through organizations of the 3 rd Sector Source: ABM – Projeto Talentos para a Siderurgia

15 14 ArcelorMittal Brasil main action plans ABM Partnership – Talents for the steel industry ABM Partnership – Metallurgical Engineer: a career in ascension Mining-metallurgical Consortium Training of professionals to fulfill the future necessities of the steel industry chain (critical professions). Articulation of actions together with ABM, INMETRO/MEC/Federal Government/Steel companies To stimulate the interest of students in the phase of defining their career, to opt for the profession of metallurgical engineer Training for qualifying people for the Mining-Metallurgical sector in all levels of the chain. Internships programs Recruitment Fairs and events Exchange programs Periodic lectures to promote the employer brand Academic Agreements To provide complementary training to academic qualification by means of practical experience.

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