Temporary Employment Service Providers Underpin IPP Economic Development GoalsPreference will be given to Independent Power Producer projects valued at R56 billion that possess a plant technology and location that contributes to local economic development.

"Independent Power Producer (IPP) projects will provide 61 600 full-time jobs," stated Energy Minister, Jeff Radebe, while announcing the plan for 27 new renewable energy plant projects to be rolled out under the IPP programme.

This is an excellent and beneficial initiative. However, the fact that many of the skills will be required only on a temporary or project basis during the construction and setting up of each facility, may pose a challenge for IPPs looking to get started.

Skills sourcing

Sean Momberg, Managing Director of Workforce Staffing, says that IPP projects stand to benefit from consulting experienced Temporary Employment Service (TES) providers. "IPP projects require a significant investment in human capital, which becomes more complex and time-consuming by having to source local staff," he explains.

"Once the main contractor is appointed, they are responsible for sourcing skilled staff and suppliers for the duration of the construction and commissioning phases. A TES provider can significantly reduce the workload, by managing all human resources and industrial relations for them."

Building an alternative power plant is a lengthy process. The 27 projects mentioned have spent approximately two years in this sign-off period and, now that they have been approved, IPPs need to work quickly to get the ball rolling. From civil work and environmental impact assessments, to mechanical, engineering, electrical and physical site building — each project requires a varied and vast number of skills.

Running interference

"TES providers go beyond providing temporary and project-based staff," says Tebogo Moalusi, National IR Director at Workforce Staffing. With unions such as NUMSA protesting against IPP projects, even though job losses due to coal mine closures were unrelated to the introduction of IPPs, TES providers' expertise in managing union relationships can prove a valuable aid to IPPs.

"IPP projects commonly face hinderances like demarcation disputes," adds Tebogo. "A reputable TES provider understands local economic development as well as relationship management and works with both local employment providers, the community and unions to mitigate concerns."

IPP projects often involve investment from international players and communication between international and local parties. Sean says that TES providers assist in breaking down these communication barriers, focusing on the importance of local job creation, while ensuring that international standards are maintained.

"TES providers assess local catchment areas keeping fair processes in mind. This takes procurement into account, and sourcing of local equipment, accommodation, transport and catering is all considered," he says.

Frequently with international parties, payment terms are set at 90 days from invoice. Sean stresses that this is not sustainable in local environments, where suppliers and staff don't have the financial capacity to work within those terms. A reputable TES provider has the financial capacity to ensure that payment demands are met weekly or monthly, based on local requirements.

A focused approach

"A TES provider's focus remains employment. Although the IPP's goal is to complete their project on time and within budget, TES providers have the experience and knowledge to provide employment and procurement solutions that underpin the IPP's objectives, ensuring a smooth and hassle-free project roll out," Sean concludes.

Temporary Employment Services' part in minimising IPP job losses:

1. Onsite training and skills courses upskill temporary project workers.
2. Skills transfer helps ensure future employability.
3. Entrepreneurial skills development fostered for post-project maintenance contract work.

Workers obtain marketable skills they can add to their CV.