by Joseph Kalasky, IEEE-USA Workforce Committee
Deregulation of the electric utility appears to have thrust a state of havoc on the careers and personal lives of engineers who work in the industry. Is this really a case of decadence, or will engineers experience healthier careers and personal lives as a result?
Let's view the professional environment of the past in this industry (oh, for the good old days!). Since each transmission and distribution system is unique and complex, not even top engineers could master a system in less than a few years, and even then go on to perfect it in less than a lifetime.
Engineers felt more secure as time passed and utilities were gaining exponential efficiency with linear increases in compensation. All parties were content. Only a few folks moved on to other companies or careers. The super intelligent and highly ambitious EEs would sooner or later test the waters and jump ship.
The same applied to extreme underperformers who were eventually advised that an amicable separation would be mutually beneficial. Very few engineers actually kept any semblance of an updated resume on file. Engineers, especially electricals, could expect lifetime careers with the same utility. These EEs were highly recognized within the firm and in professional organizations such as the IEEE. Utility engineers had a solid loyalty to their industry and to their "home" utility within the industry.
On the personal side, with above-average compensation, utility engineers were stable and successful members of the community. Utility engineers would donate time, expertise and money to educational, civic and religious entities. Stable employment and professional compensation also lead to stable and exemplary family lives.
This efficiently productive tranquility came to a rather abrupt halt in the mid-'90s. In my analysis, the electric utility industry was hit by a trilogy of cataclysmic disturbances: downsizing, mergers and competition. Each issue approached the scene independently and only simultaneously by coincidence. Each of these issues affected the other only because the other was there. That is, in my view, one movement did not bring the other into existence but was modified from its expected path by the other. In fact, downsizing may have been on the scene a year or two earlier.
The term deregulation is synonymous only with competition. Deregulation in itself may have had detrimental effects on EE careers at electric utilities, but the other factors of downsizing and merger activity also had profound effects. However, deregulation receives the blame for all the chaos in the electric utility career path. Another term that can cause confusion is restructuring. It has two uses here: (1) a change as a result of downsizing in a firm's organizational structure, i.e. "teams," and (2) the new competitive rate structure including such hot items as "stranded costs" that are associated with a competitive arena. Thus, deregulation alone may have been a difficult but marginally acceptable change for EEs.
Let's first examine the effects of downsizing. The process of restructuring under the team's philosophy is not by any means associated only with utility reorganization, but has also affected most large industries, government agencies, and educational institutions for about the last 10 years. Electric utilities were among the last to jump on board. Management consulting firms zealously push this restructuring process to companies as instrumental to unparalleled cost savings.
There have been many published reports that only a few firms have achieved anything near anticipated levels of increased productivity, let alone more favorable revenue. Management consultants prospered - and continue to prosper - by selling and executing downsizing packages to electric utilities. Both sides present credible arguments. But I leave that judgement to others - I venture to say that the initial onslaught of utility downsizing had nothing to do with competition, since it began well before the concept of competition was a topic of debate in state legislatures.
Literally overnight, downsizing extracted EEs from the secure but productive setting to an arena where jobs were on the line. Engineers were up against engineers. Company loyalty fell to all-time lows. Engineers were now preparing resumes and seeking references. The EE either was let go with some reasonably generous separation package, or at least saw friends, family, or associates depart.
Those on the street were either making use of outplacement firms or aggressively dealing with independent placement firms. Many resorted to networking, which reputably has been the most successful path. Both the survivors and the separated employees had a learning experience. Most now have resumes at hand. Most test the market frequently. Keep in mind that engineers can be a resilient group. I claim that both present and former utility engineers are now professionally healthier as result of downsizing.
At least initially, mergers do not seem to have as a traumatic effect as downsizing. In fact, mergers may even enhance the professional environment of the utility engineer. The published layoffs of anticipated utility mergers are, for the most part, minimal and even then are accomplished by attrition. The act of merging electric utility systems is an exciting engineering challenge. The operating efficiencies involved are a win for the customers and the employees. Plus, there is the thrill of working with or in new geographic areas. So far, mergers of electric utilities are enhancing the status and invigorating the careers of affected EEs.
Lastly, let's look at competition. Competition is deregulation. Electric utilities must restructure their rates and methods for selling electricity. Customers can now choose their low cost "energy" provider. Note the quotes. Each host utility still has its delivery charge (in the range of one-third to two-thirds of the electric rate). Thus customers can only shop for a relatively small portion of the electric bill. Basically all energy charges are in the same price range, so customers are likely to switch even if they now enjoy the lowest cost power in a state. Power brokers are on the scene to buy and sell power as competition for utilities.
These conditions call for major corporate changes to stay in the game for energy selling. Although salaries are less than 10 percent of utility costs, they are subject to further squeezing to reduce costs. Since there is not really much marginal effect with salary reduction (downsizing and frozen pay grades), other dynamic actions are necessary, such as mergers and a new term: the spin-off of generation.
Suddenly, engineers in the generation end of the business are working for new companies -- either brokers or other utilities. Most of the plant and support staff engineers are still valuable due to their familiarity with the plant. However, they will no longer experience the cordial or family atmosphere of the former owners. Also, those in management can expect to be replaced or downgraded. On the other side the engineers in the "buying firm" can expect to see increased opportunities.
In my opinion, utility engineers have a chance at rejuvenation by the upheavals in the industry. I expect much turmoil in the change. EEs may be in greater demand just to keep the systems going, i.e., keeping the lights on. Electric utilities are subject to as much victimism as the engineers are to the changes politicians have brought on. Who knows - even the utilities may be healthier when all the dust settles. Moreover, today's utility engineer is more vibrant and mobile than the complacent image of the past. Go for it!
LOCAL IEEE ACTIVITY SUBJECT OF FOX 4 TV BROADCAST - The IEEE Region 5 robotics contest held during TechCon was the subject of a 2-minute evening news report on Friday, April 17, 1998. The feature story explained the contest's objective and showed scenes from the event, including a robot deftly moving through a maze and blowing out a small fire. The same report was rebroadcast during the morning news on 18 April.
TEXAS NO. 1 IN HIGH-TECH GROWTH - Texas, once known for its oil and agriculture industries, now leads the nation in high-tech growth. The American Electronics Association said in its second annual Cyberstates report that 69,000 high-tech jobs were added to the state's economy between 1990 and 1996, and high-tech workers in Texas make 76% more than the average private sector wage of $28,000 a year. Texas employs 343,000 high-tech workers, making it the nation's second ranked cyberstate behind California, and the state ranked number one in data/information service with 34, 000 workers and second in computer and semiconducter manufacturing with 80,000 workers. Texas now has more than twice as many high-tech employees than the oil and gas industry.
GOVERNOR BUSH'S SCIENCE & TECHNOLOGY PLAN - On April 7, Texas Governor George W. Bush unveiled a strategic plan designed to make Texas the nation's leader in science and technology in the 21st century. The technology action plan, developed by the Science and Technology Council Gov. Bush appointed in September 1996, makes a series of recommendations to make Texas home to the future in technology, including:
The report also recommends:
For more information, contact Jimmy Glotfelty in the Governor's Policy Office at 512-463-2198 or see the report at www.governor.state.tx.us.
IEEE-USA ASKS FOR WORKER SAFEGUARDS TO PREVENT H-1B ABUSES - In a May 29 letter to the US House of Representatives, IEEE-USA President John Reinert urged the House to retain worker safeguard provisions in the Workforce Improvement and Protection Act (H.R. 3736), when that bill comes up for a vote in the House. Although H.R. 3736 increases the caps on H-1B visas to allow entry of more foreign high tech guest workers into the United States, it also contains a number of provisions designed to prevent abuse of the H-1B mechanism at the same time. When the measure is brought to the House floor, amendments will be offered to strip out the anti-H-1B abuse provisions, which industry lobbyists have argued are unnecessary and burdensome. Specially targeted are provisions that would require industry to attest that they have not laid off qualified US workers and that they have attempted to recruit qualified US workers for vacant high positions before resorting to foreign guestworkers under the H-1B process. According to Reinert, these and related provisions "will help to prevent displacement of US professionals by temporary foreign workers and deter abuse of foreign nationals who may accept less than competitive wages in order to enter or remain in the United States." IEEE-USA also urged the House to adopt an amendment to be offered by Reps. Zoe Lofgren (D-Cal.) and Edward Pease (R-Ind.) that would place a special $250 fee on industry H-1B visa applications, with accumulated funds to be used for workforce initiatives such as retraining of US workers.
IEEE-USA THIS WEEK - IEEE-USA has launched a new biweekly Web supplement to its print newsletter, Perspectives. IEEE-USA THIS WEEK will serve as a timely source of career and public-policy news and information for US professionals in the electrotechnology and informationtechnology communities. "Like a good pizza delivery service, we'll bring you the tastiest news fast, hot and fresh" said editor Lee Stogner. "And we'll use the capabilities of the Web to create an open forum on the vital issues of interest to technical professionals." Readers can check out the current issue at www.ieeeusathisweek.org. Those wishing to contribute articles or serve as field editors may contact Lee Stogner at l.stogner@ieee.org or Assistant Editor Ray Dora at Raymond_P_Dora@res.raytheon.com.
TODAY'S ENGINEER RECEIVES 'AWARD OF DISTINCTION - Today's Engineer, the new quarterly magazine published by IEEE-USA, has received the Communicator Awards "Award of Distinction" in the magazine/industry category. The Communicator Awards recognize nationally outstanding work in the communications field. Entries are judged by a panel of professionals that looks for companies, individuals or organizations whose talent exceeds a high standard of excellence and whose work serves as a benchmark for the industry. See www.todaysengineer.org.
GOVERNMENT ROLE IN GLOBAL WIRELESS STANDARDS SCRUTINIZED - On June 4, the House Science Subcommittee on Technology held the second in a series of hearings to assess current issues with respect to technology and standards. This hearing focused on how the international standards system has been working with respect to US users and manufacturers of electronics. Specific emphasis was given to specific case of the ongoing debate surrounding efforts to create a single global wireless telecommunications standard, commonly referred to as the Third Generation Wireless Standard (3G). Among the issues for the committee, what role should the US government be playing (or not playing) in support of industry's standards interests. The full text of the witnesses prepared statements are available on-line at www.house.gov/science/hearing.htm#Technology.
US' DOMINANT POSITION IN MATHEMATICS THREATENED - A panel commissioned by the National Science Foundation's Division of Mathematical Sciences reports that several adverse trends threaten to undermine the United States' dominant position in world mathematics. The "Report of the Senior Assessment Panel for the International Assessment of the US Mathematical Sciences" is NSF's first such international benchmarking of any scientific field. The panel recommends that the US work to retain world leadership in "critical subfields" of mathematics. Federal support for mathematics - except for that provided by NSF - is falling rapidly. The panel suggests that NSF work to broaden education in undergraduate and graduate mathematics, increase support for graduate and postdoctoral study in mathematics, strengthen interaction between creators and users of mathematics, and generally work to sustain current US world leadership. For a copy of the report (NSF 98-95) call 703-306-1134 or visit www.nsf.gov/cgi- bin/getpub?nsf9895.
NEW JOURNAL FROM EDS, ELECTROCHEMICAL SOCIETY - The IEEE Electron Devices Society and the Electrochemical Society are jointly publishing a monthly, rapid-publication journal, the "Electrochemical and Solid-State Letters," covering the latest research and development in the fields of electrochemical and solid-state sciences. The first issue of Letters is available free on the Web at www.electrochem.org/letters.html. Free Web access to Letters will continue for all six 1998 issues. For the 1999 issues of Letters, only EDS members will be given free electronic access. For more information, contact Bill Van Der Vort, EDS executive director, 732-562-, w.vandervort@ieee.org.
ENGINEERS SOUGHT FOR TECHNICAL LITERACY WORKSHOP - Educational Activities is seeking volunteers to attend the IEEE workshop "Technological Literacy Counts," set for 9-10 Oct. in Baltimore, MD. The goal of the workshop is to open communication lines between the engineering and the academic communities in order to foster technological literacy for K-12 students. The workshop planning committee is scheduling plenaries, panel sessions, and breakouts for engineers and educators. The committee will select 150 engineers and educators interested to take part in the activities. Volunteers interested in attending should send their biographies and a statement of why they are interested in attending the workshop to Barbara Coburn, Educational Activities, b.coburn@ieee.org, 732-562-5498.
IEEE-SA GROWS - Membership in the IEEE Standards Association (IEEE-SA) continues to grow. In addition to the over 1400 individual members, IEEE-SA corporate members include such companies at Hewlett-Packard, IBM, Themon Mfg, Advanced Hardware Architecture, Inc. For the first time in IEEE's history direct corporate membership is accepted in an IEEE organization. Corporate members can expect such benefits as voting privileges in the governance of the standards program; opportunities to join special industry advisory and liaison groups to make visible their industry's directions, standards priorities, and business needs; participation in the establishment of consortia-type programs within the framework of the IEEE-SA; and a platform in IEEE to publish needed industry-specific technical information in addition to standards. For more information, contact Karen McCabe, 732-562-3824, k.mccabe@ieee.org.
Recognizing our Section members for their long-time commitment to the profession on the anniversary of their joining IEEE.
45 yrs
40 yrs
25 yrs
20 yrs
Jean Eason, Editor