NEWS
Why is Energy Efficiency so Difficult in Europe? (May 2012)
The Relation between China and the US (May 2012)
New European Industrial Federation Established (May 2012)
Enhanced Relations with Chinese Engineers (May 2012)
Employment Package from the European Commission (April 2012)
Informal Meeting of Ministers for Energy and Environment (April 2012)
Multiannual Financial Framework 2014-2020 (April 2012)
Nordic Engineers on the Job (April 2012)
General Affairs Council (April 2012)
Chinese Engineers – Threats or Opportunities? (April 2012)
Updated list on EU-proposals of interest to ANE (March 2012)
New Proposals from the European Commission on the right to strike (March 2012)
Stefan Löfven new leader of the Swedish social democrats (March 2012)
Tobin tax or not in Europe? (March 2012)
Horizon 2020 – the Frame work Program for Research and Innovation (March 2012)
ACTA and copyright (March 2012)
The Danish Presidency facing difficulties (March 2012)
Priorities for UNI Europa P&M (March 2012)
Re-launch of UNI Global P&M (March 2012)
Why is Energy Efficiency so Difficult in Europe?
Apparently everybody agrees that energy efficiency is one of the most important priorities for Europe. Everybody is more or less convinced that It will provide growth, jobs and environmental benefits. Why is it then so difficult for the Council of Ministers to adopt the directive on energy efficiency proposed by the European-Commission? The present Danish presidency has made the adoption a key priority. The European-Parliament is backing the proposal whole-heartedly, but the 27 Member States seem far away from a common position. One of the crucial requirements in the proposal is an obligation for energy retailers to save 1.5 % per year from their customers. Other important elements are building renovation and public procurement requirements and a push for combining heat and power.
The proposed directive has the intention to ensure that the EU meets its non-binding 20 % energy efficiency target for 2020. The EU is far away from reaching this goal. The European-Parliament has proposed to make the target binding but many Member States are fiercely against. Instead the Commission’s proposed directive is focusing on different measures to be implemented like the ones mentioned above. The Commission has estimated that the directive can produce 400.000 new jobs by 2020.
But Member States are far from convinced. One reason is of course the economic crisis. For the moment they find austerity measures and limiting expenditure more important than midterm savings and job creation. Renovation would inter alia require investments in buildings.
Another reason is that some Member States would like to keep the decisions on energy efficiency at the national level due to the very different energy systems. A third reason may be that certain Member States fear that energy efficiency could undermine the benefits of the EU Emission Trading System (ETS). Fewer emissions following from energy efficiency could lower the carbon price and thus pave the way for increased use of carbon fuel. Politicians seem to see a direct link between energy consumption and growth.
The Danish presidency is still determined to adopt a common position in Council by June 2012. The big question is whether such common position is possible without seriously watering down the proposed directive. ANE has the view that the way forward is to make energy efficiency an effective part of the European 2020 strategy for sustainable growth and new jobs.
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The Relation between China and the US
The celebrity, professor Joseph S. Nye from Harvard University, gave a lecture at DIIS (Danish Institute for International Studies) in Copenhagen 21 May 2012. He described the 21st century as a transition of power from west to east. US is not necessarily declining creating instability and fear. A relative decline is something completely different. China will pass US in purchasing power before long, but it will take several decades before China becomes bigger measured in GDP per capita, said professor Nye.
China is also growing militarily and will get its first carrier this year, but China is most of all increasing its soft power based on its economic growth. But China needs US and Europe which are its biggest export markets. Soft power is a good strategy, said professor Nye, so you do not scare your neighbors. China is establishing Kungfutse institutes in many countries to spread the knowledge on Chinese culture and language.
The role of US in Asia is still strong! Asia is much more than China, said the professor. Japan, India, South Korea and Vietnam want US to be present to balance the growing power of China. It is amazing how quickly Vietnam seems to have forgiven US the tragic Vietnam war. The US will continue to be a superpower and in the midterm even Europe may be able to pull itself together as the largest economy in the world.
The Roman empire was a total decline to barbarians, but the US is not in such situation, argued professor Nye. The fall of Germany and the UK after the second world war can also be described as a total decline, but the US has the time to adapt to the changes. I am an optimist, said the professor. China is no longer governed by marxism/leninism but by what could with a joke be described as market/leninism. There is a degree of pluralism in China because no member of the central bureau would like to transfer power to the other members.
There are future challenges which no country can manage alone and which cannot be solved by military power: Terrorism, financial flows, climate change just to mention a few. More international cooperation and dialogue must be developed. More exchange of students is necessary.
- We must give China incentives to react more responsible in global affairs
- China must be much more involved in international relations
- China must realize that a green economy is at its own best interest. The same goes for US when it comes to accepting global obligations on emissions of greenhouse gasses. Europe has a commendable role but that is not enough. The Kyoto protocol should be given up as long as the most polluting countries are not comprised
- Social security and healthcare systems are top priorities in China due to the demographic development following the one child policy. If you ask, who is going to pay the future pensions in China, nobody knows the answer, said professor Nye finishing his presentation
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New European Industrial Federation Established
For a long time ANE has worked to establish a new European federation of industrial workers by merging three existing federations in the metal-, chemical- and textile sectors. Wednesday 16 May 2012 the vision came true. The founding conference in Brussels named the new federation: IndustriAll – European Trade Union. You can read more about the new federation on http://www.industriall-europe.eu.
The new federation represents more than 7 million employees including many engineers in the metal, chemical, energy, mining, textile, clothing and leather industries in Europe. Michael Vassiliades was elected as the first President of IndustriAll. Vassilidiades is also the President of the German IGBCE union (chemical industries).
ANE has the intention to use IndustriAll as an important platform for strengthening the common influence on European institutions and promoting a sustainable industrial growth creating new jobs building on a highly educated workforce such as engineers.
IndistriAll is governed by an Executive Committee where all 200 affiliates have a seat. Anders Ferbe (President of the Swedish IF Metall) was elected as one of the vice presidents. ANE is indirectly represented in the important Steering Committee where its vice president Marit Stykket occupies one of the Nordic seats.
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Enhanced Relations with Chinese Engineers
The Executive Committee of ANE signed a Memorandum of Understanding with the Shanghai Association for Science and Technology (SAST) 26 April 2012. The Memorandum was signed on behalf of SAST by the Executive President Cao Zhenguan. On behalf of ANE Ulf Bengtsson (President), Frida Frost and Marit Stykket signed the paper.
The objective of the Memorandum is to promote and enlarge the mutual exchange of technical, scientific and professional knowledge, to promote mobility of engineers and to develop stronger contacts between engineers in China and in the Nordic countries. SAST is the largest non-governmental scientific institution in the field of natural sciences, technology and engineering in Shanghai. It has 186 affiliated institutions covering all technologies.
The signing ceremony was followed by a delicious Chinese dinner hosted by SAST. The Executive Committee of ANE really enjoyed the meeting and the dinner. A very useful contact has been established with a highly professional and distinguished Chinese association. It is now up to the parties to identify particular areas of common interest for further cooperation.
At the end of the meeting the President of ANE Ulf Bengtsson expressed his gratitude to the Chinese hosts and his best wishes for the future cooperation between the associations involved. If you want to see the English version of the Memorandum of Understanding press here. Do you prefer the Chinese version press here. A photo from the signing ceremony can be found by pressing here.
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Employment Package from the European Commission
18 April 2012 the European Commission presented an “Employment Package: Towards a job-rich recovery”. The intention is to launch concrete proposals to create employment and growth. The package covers three main areas:
- Policy efforts on the demand-side of job creation
- Making the European labour market more dynamic
- Reinforcing the coordination and monitoring of employment policies at EU level
The first area contains proposals such as introducing hiring subsidies for newly created jobs. Shifting taxes from labour to consumption and pollution. Detailed action to develop employment in the green economy, ICT and health services. According to the Commission the green economy alone can generate 20 million jobs before 2020.
The second area is about promoting quality jobs through investing in competences and tackling existing skills shortages and mismatches. Improving labour mobility within Europe and transforming the current EURES tool to match job seekers across borders.
The third area is about reinforcing the current EU 2020 strategy. The Commission intends to ask Member States to prepare National Job Plans and the Commission will issue an annual scoreboard on how Member States are actually implementing their employment policy commitments. The social partners at European level shall be more involved in setting priorities and shaping the employment policies.
On 6-7 September 2012 commissioner László Andor plans to host a high level employment conference attended by both the Commission’s President Baroso and the President of the European Council Rompuy.
As a preliminary view ANE notes that the new package is building on good old ideas that have not yet led to the desired results. It is still more than doubtful whether there is sufficiently political will to transform the Commission’s ideas into practice. However, it is positive that the package focuses on the potential job-creation in the green economy, ICT and health care. Shifting the taxes from labour to consumption may be a good idea, but it will have repercussions on the redistribution due to the fact that income taxes are normally progressive. The employment package must be accompanied by the overall financial framework setting new priorities for research, innovation and development combined with investments in cross border infrastructure.
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Informal Meeting of Ministers for Energy and Environment
The European ministers for energy and environment hold an informal meeting in Denmark 18-20 April 2012. On the agenda is
- 7th Environmental Action Program
- Energy Efficiency
- Rio +20 Summit in June 2012
The 7th Environmental Action program should be a roadmap setting specific EU 2020-targets for the decoupling of resource consumption and growth.
ANE expects the ministers to discuss how resource efficiency can be promoted internationally. A global level playing field is required. Hopefully the Rio +20 Summit will be able to adopt specific goals, actions and a timeframe for a transition towards a green growth economy.
At European level the ministers are expected to spend a great part of their time trying to find a compromise on the proposed Energy Efficiency Directive.
What must be made clear is that industry and engineers have a crucial role to play to achieve a competitive resource-efficient and low carbon economy.
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Multiannual Financial Framework 2014-2020
The general Affairs Council will discuss the Cohesion Policy and the Agricultural Policy during a meeting 24 April 2012. ANE reiterates that the future European budget must in practice support the growth objectives in the EU 2020 strategy. More focus is needed on research, development, and innovation supplemented by investments in cross border infrastructure in transport, energy and telecommunication. Due to the crisis and the public deficits in Member States there is not much room for increased spending. Further investments require a clear prioritization in growth producing areas. Reforming the Common Agricultural Policy and the Cohesion Policy must contribute to stimulating growth and new jobs.
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Nordic Engineers on the Job
During its meeting in the Executive Committee ANE discussed the employment situation among Nordic Engineers.
According to Ulf Bengtsson – the president of the Swedish Association of Graduate Engineers (Sveriges Ingenjörer) - there is a significant demand for Swedish Engineers in the three biggest regions (Stockholm, Göteborg and Malmö). The demand is particularly high in the Stockholm area. 20 % of the Swedish population live around Stockholm and 30 % of all engineers are based here. The rate of increase for wages is around 3 % in both the private and public sectors. The unemployment among engineers in Sweden is 0.7 %.
Frida Frost - the president of the Danish Society of Engineers (IDA) – estimated the unemployment among engineers in Denmark to 2.8 %. For young graduates however it is up to 15-20 %. The rate of increase for wages is between 0-1 %. Several engineers have seen a decrease of wages.
Marit Stykket – the president of the Norwegian Society for Engineers and Technologists (NITO) – said that Norway for the moment is short of 16,000 engineers. In particular the public sector has difficulties finding candidates for job vacancies. The unemployment among Norwegian engineers is estimated to 1 %. The negotiations of collective agreements have just started in Norway and experts are expecting wage increases around 4 %.
If you are looking for a job as an engineer in one of the Scandinavian countries you can find guidance on this website.
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General Affairs Council
The General Affairs Council partly focused on the multiannual financial framework during its meeting 26 March 2012. An essential part is the Horizon 2020 program for research, development and innovation. All Member States agreed that excellence should be the main focus when it comes to financing research and development.
The Executive Committee of ANE firmly supports that investments in research, development and innovation are crucial for promoting growth, jobs and competitiveness in Europe. The EU budget should reflect these priorities and should be used as an investment tool for long-term growth. The negotiations on reducing the EU budget makes this prioritization ever so more necessary.
Europa has not yet as such reached its EU 2020 target of 3 % of GDP for research. According to a communication from 2011 the European Commission estimates that 35 % of all jobs in 2020 will require higher educations. Only 6 out of 100 in the work force are researchers in Europe - compared to 9 in the US and 11 in Japan. Europe is still a long way from becoming a knowledge-based economy.
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Chinese Engineers – Threats or Opportunities?
What do we know about Chinese engineers and their educations? ANE (Association of Nordic Engineers) has initiated a brief study carried out by two researchers - Vibeke Andersen and Anders Buch - from the Danish Technical University (DTU). They recently presented a preliminary report on the Chinese system for educating engineers to the Executive Committee of ANE. The focus is on the competences obtained by Chinese engineers seen from a Scandinavian perspective.
The preliminary report starts off describing certain cultural differences based on a scientific paper from a Dutch professor. In general hierarchies are more accepted and respected in China though the overall goal is more collective and less individualistic. On the other hand the individual Chinese engineer emphasizes individual status and prestige much more than cooperation and teamwork.
The educational system in China is a mixture of influence from France, Germany and the UK. Since 1949 the system has been closely linked to the traditions in the former Soviet Union. To enter a university in China you have to pass a difficult test called “Gaokao”. It is estimated that about 6.6 million academic candidates graduate every year. Approximately 36 % are engineers. Among the engineers are 43 % engaged in information and electrical engineering. 18 % are mechanical engineers. One third of all academic candidates including the engineers face unemployment when they have graduated. If you ask Chinese students what kind of job they want, 52 % prefer to join the Government. In the US only 5 % would give such answer.
The differences between Chinese universities are enormous. Some are world leading others have problems with the quality. The public universities are the most prestigious. The private ones give those who cannot make it to a public university a second chance if they are prepared and able to pay the fees. The philosophy for the educational policy has so far been to promote growth increasing the amount of candidates. But the Chinese Government is aware of the problem. In 2010 it adopted a national plan to improve the quality of all high educations and to enhance the pedagogical methods before 2020.
The preliminary report draws our attention to the facts that Chinese universities have very little contact with companies. They mainly focus on technical issues. They do not prioritize cooperative teamwork and problem solving solutions. The quality is very variable. The unemployment for candidates is huge. The new generation picks up the English language very quickly whereas the older generation only speaks Chinese. Female engineers in China seem more open to teamwork and more loyal to the companies. But the potential possibilities in China are enormous and the development is moving very fast.
The preliminary report from the two researchers from DTU finally raises the interesting question whether our focus on the education of engineers in China is the right one. Should our alertness pay more attention to global engineering? World ranking universities in the US and elsewhere are establishing global universities around the world in cooperation with the local authorities. It happens in Abu Dhabi. Another one is planned in Shanghai. The new global universities will intensify the demand for the best and most talented teachers and students.
If you want to see the preliminary report from the two researcher press here. The final report is expected in May 2012 and will be made available on this website.
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Updated list on EU-proposals of interest to ANE
The Executive Committee discussed during its meeting 28 March 2012 the pending EU-proposals of interest to the Association of Nordic Engineers. If you can read Danish you can find an updated list of pending proposals and cases if you press here.
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New Proposals from the European Commission on the right to strike
The Commission launched 21 March 2012 two interesting proposals:
- A regulation on the right to take collective action within the context of the freedom to provide services
- A Directive on the enforcement of the posting Directive 96/71
Both proposals have been expected with great interest by the social partners in the Nordic countries, not least since the proposals have been pending a long time inside the Commission’s inter service consultations because of disagreements between the DG Employment and the DG Internal market and competitiveness.
The immediate reaction of ANE is that the new proposals do not change anything essentially. The verdicts of the European Court of Justice (ECJ) in the Laval- and Viking-cases still holds. The economic freedoms and the right to take collective action are all fundamental and must respect each other. In cases of dispute between the different fundamental rights the ECJ will still have to find a balanced solution.
The proposed new Directive on implementation of 96/71 has a lot of interesting details helping Member States and social partners to control posted workers and their employers. Another good ideas is the possibility to make contractors responsible if their subcontractors do not respect their obligations as employers to ensure their posted workers’ rights. But Directive 96/71 on posted workers are still interpreted by the ECJ as setting limits to the right to strike in order to force en employer to sign a collective agreements for posted workers. The new Directive does not change anything here.
If you want to know more about the new proposal see the attached ANE-note.
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Stefan Löfven new leader of the Swedish social democrats
During a meeting in the Nordic-IN (Industrial workers in the Nordic countries) the new leader of the Swedish social democratic party Stefan Löfven gave a short presentation on his vision for trade unions in a global future. Stefan was the chairman of Nordic-IN until recently.
Jobs are crucial. No job, no freedom, Stefan said. The public finances must be geared to create new jobs. We need more investments, strategic goals for employment and growth.
The industrial policy in Sweden must create more demand for workers by developing new and innovative products and services, said Stefan. Venture capital, export aid, co-operation between companies and researchers and a highly skilled workforce are other important challenges.
Let us look at the many potential opportunities in the Nordic countries, argued Stefan. Stabile economies. Open economies depending on a bigger market. A high level of education, fair distribution and equal opportunities for all. We have recently initiated a research project on the future of Nordic welfare, said Stefan.
We must create to share and share to create. The Nordic labor market model is the best guarantee for decent work.
Stefan finished his presentation by underlining the huge importance of the global development and the efforts to influence the European Union. But he also raised some concerns on the European debate at the moment. He had met the leaders of the SPD in Germany and the French candidate for the socialist party monsieur Hollande. Their position is more federalist than ours, said Stefan.
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Tobin tax or not in Europe?
The Executive Committee of the Nordic-IN had an interesting discussion 20 March 2012 on the proposal from the European-Commission on a tax on financial transactions. The Commission proposes a 0.01 % tax on financial institutions involved in cross border transactions of shares and bonds where one of the institutions is established inside the EU. If the transaction concerns derivats the tax is raised to 0.1 %. The Commission estimates that the income will be around 57 billion euros each year.
In general the idea was welcomed but there are so many details that must be explored before the Executive Committee of Nordic-IN is ready to adopt a common position.
The Executive Committee agreed on the principle that the financial sector should contribute to society in line with other sectors. The tax should be targeted towards short term speculation and not hit the real economy, investments and development. Another agreement was that the Tobin tax must become global as soon as possible.
The discussion in the Executive Committee showed that it is unclear what the tax yield shall be used for. Especially in the light that some countries like UK, Sweden and Denmark are against the Commission’s proposal. How can wage earners benefit from the new tax? Should the yield be set aside as a buffer for future economic downturns? How do you assure that the new tax does not lead to financial transactions moving outside the EU? What will be the impact on employment? We are still waiting for an impact analysis promised by the European-Commission.
The Executive Committee of Nordic-IN decided to ask its Committee on Industrial Policy to take a close look at all these questions and bring the subject back for discussion at the next Executive meeting.
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Horizon 2020 – the Framework Program for Research and Innovation
Horizon 2020 is a packet of six legislative proposals launching the European program for supporting research and innovation. The packet was discussed during a public hearing 20 March 2012 organized by the Industry, Research and Energy Committee of the European-Parliament. EU’s future depends on science and innovation one MEP said.
Four panels looked at excellent science, societal challenges, industrial leadership and participation priorities respectively.BR>Some of the opinions expressed during the hearing were:
- The budget for Marie Curie fellowships must be increased
- More funding for Horizon 2020 is necessary
- The Horizon 2020 must tackle societal challenges such as health, food security and sustainable agriculture, green transport and climate change
- The participation of SMEs must be developed
- Structural funds should play a leading role
- A simplification of procedures for application is necessary
It is a pleasure to note that the outcome of the hearing is very much in line with the contributions that ANE has forwarded to the European Commission and Parliament. Scientific research is crucial for the competitiveness of EU industry.
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ACTA and copyright
The multinational agreement ACTA has been much debated. On one hand it is crucial to secure the copyrights of companies, inventors, engineers and other stakeholders who need to protect their product development and trademarks. On the other hand the providers of the internet and their users find it very difficult to respect and to be made actively responsible for such protection. The general development of new technologies will continue to make such international agreements still more complex. The EU has not yet reached a common position but the ACTA agreement has been signed by both Sweden and Denmark.
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The Danish Presidency facing difficulties
The Danish Presidency is half way through its term. In this second phase a Presidency normally runs into different kinds of opposition from the member States and other stakeholders. In general the economic crisis produces barriers to promote the green ambitions of the Danish Presidency. The two pack proposal aiming at strengthening the financial surveillance mechanisms in the euro-countries has been adopted by the Council but an agreement with the European-Parliament is still missing.
Nevertheless it is still the intention of the Presidency to promote the adoption of a European patent. It will probably depend on an agreement where the center of administration can be split in two and placed in both Munich and Paris. Another problem is whether such agreement can be made before the presidential election in France.
The negotiations on the investment agreement between EU and China have just been initiated. The aim is to strengthen the legal certainty of investors. The Presidency is also working to finish the negotiations on a free trade agreements with Canada and India and to launch trade negotiations with Japan. The commissioners Barnier and De Gucht have recently launched a proposed regulation on the access of third country companies to public procurement.
The Danish priority to secure energy efficiency is facing hard opposition from certain Member States. Even the German position is unclear due to the upcoming regional elections.
The Council was close to reach a conclusion on the low carbon roadmap 2050 but Poland sticked to its guns and blocked the decision despite the deletion of a reference raising the targets for reduction of greenhouse gas emissions.
Some parts of the multiannual budget framework have been presented to and discussed by coreper (the EU’s committee of ambassadors). Difficult issues such as agricultural policies and the regional funds will not be introduced before the French election which means during the following Presidency of Cyprus.
The Danish Presidency still has a long way to go to reach its own targets though it is normal to run into difficulties at this time of the process. ANE has constantly supported the Danish Government’s ambition to redirect the budget in favor of research and development and to adopt clear targets for a sustainable future which will make business prepared to promote the necessary investments.
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Priorities for UNI Europa P&M
UNI Europa P&M (Professionals and Managers such as engineers) held its congress in Paris 1-2 March 2012. The regional secretary Olliver Roethig adressed the participants underlining the economic crisis and the serious situation in Greece. The Greek government and the EU seem ready to undermine trade union rights. Greece needs a new Marshall plan, said Olliver.
Martin Jefflén from the Swedish trade union “Unionen” was elected as new president for UNI Europa P&M.
Part of the congress was used to discuss possible priorities for the next two years. The participants from ANE including Trond Markussen, vicepresident in the Norwegian Society for Engineers and Technologists (NITO), were pleased to note that many of their proposals were taken on board. Among these are
- Exchanging best practice on recruiting P&Ms
- Developing work life management strategies for P&Ms
- Protection of whistleblowers
- Innovation
- Strengthening the contacts with EU institutions and lobbying on P&M issues
- Keeping an eye on healthcare, digital economy and greentech
- Identifying contributions of interest to P&Ms for global agreements with multinational companies
- Establishing alliances across the different UNI sectors
- Supporting the free movement of P&Ms and students by developing the UNI Passport and the internship
It is now up to the Steering Committee to transform the debate into an action plan for UNI Europa P&M. ANE is strongly represented in the Steering Committee by the president of UNI Global P&M Ulf Bengtsson and the ANE-secretary appointed as representative by the Nordic region.
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Re-launch of UNI Global P&MThe president Ulf Bengtsson used the UNI Europa P&M congress mentioned above to organize an informal meeting re-launching the activities of UNI Global P&M. One of the most important priorities is to help weak regions to organize more P&Ms not least focusing on engineers.
According to recent international reports Europe has lost a lot of jobs during the crisis and must establish almost 25 million new ones to get back to the level of 2008. Two thirds of these jobs will require a higher education such as engineering. In other words the future belongs to white collar workers including professionals and managers.
Another priority is making P&Ms visible in global agreements with multinational companies. 220 such global agreements have been identified. UNI Global is part in 44.
If you want to know more about the re-launching of UNI Global P&M press
here to find a short summary from ANE.
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