60% wage increase announcement rate in comprehensive evaluation, variation depending on work type and order results/Ministry of Land, Infrastructure, Transport and Tourism survey
The Ministry of Land, Infrastructure, Transport and Tourism has summarized the operational status of measures to add points to companies that raise wages using a comprehensive evaluation method. During the five months from the start of operation until the end of August, 2,503 construction projects under the direct control of the Ministry of Land, Infrastructure, Transport and Tourism (including the Okinawa General Secretariat of the Cabinet Office, but excluding agriculture and ports and airports) were targeted, and 63% of the participants in the competition announced wage increases. 70% of bids were won by bidders who announced wage increases. There is a tendency for the declaration rate to be higher for construction types with high public demand, such as general civil engineering, and for companies that have more opportunities to receive orders for directly controlled construction. The Ministry of Land, Infrastructure, Transport and Tourism plans to listen to the voices of the construction industry in order to operate and improve the system appropriately.
We also analyzed the operational status based on interviews with construction companies. The rate of wage raise announcements among competitors has been gradually rising from 50% at the end of April. It took time for internal consideration and coordination, but some companies are planning to announce it in the future.
75% of the companies that have received an average of one or more orders per year for construction under the direct control of the Ministry of Land, Infrastructure, Transport and Tourism have announced wage increases. The percentage of companies that receive less than one order per year, on average, did not declare their intentions, and some companies decided that they did not need to declare their intentions when they received orders mainly for prefectural orders.
Looking at the rate of declaration by type of work, the level of public demand is high, such as general civil engineering (76%) and asphalt pavement (85%), while private demand such as construction (50%) and electrical equipment (41%) is high. In many cases, the types of work were less than half (see table). Maintenance and repair (61%, 42% if limited to companies that only receive orders for maintenance and repair) are at a low level, even for public civil engineering projects. I am analyzing it.
Looking at the declaration rate by grade only for general civil engineering work ordered by the Regional Development Bureau, it was 100% for A grade, 87% for B grade, 75% for C grade, and 44% for D grade. Of the volume zone C class companies, which account for 94% of the number of competition participants, the declaration rate of companies that have received an average of one or more orders for directly controlled construction in the past three years is 81%, and the number of orders is less than one per year. 57% of the companies in
Regarding this system, as requests and opinions from the construction industry, ▽Introduction of a flexible performance confirmation method according to the actual business situation ▽Relaxation of demerit measures in consideration of soaring prices ▽Change to a method of evaluating after wage increases- etc. have been sent. There are also voices of concern about the expansion of the target to public works by prefectures and municipalities. In light of these issues, the Ministry of Land, Infrastructure, Transport and Tourism will indicate a course of action to further improve the rate of declarations and promote wage increases for a wide range of companies.
