Mr. Henry D. Antonio, Director / President & CEO of EEI Corporation at a Business Luncheon by the Philippine Infrastructure and Construction Club (PICC) [Photo by the author]
---
More than a construction company, EEI Corporation offers strategies to break the poverty cycle of their workers. Let us know more about their fascinating story and business philosophies that are rooted on humanitarian goals.
It is not often that one can engage in an enriching lecture and open forum with a top executive of a highly successful 93-year-old construction company in the Philippines.
This is one of the rare opportunities that Philippine Infrastructure and Construction Club (PICC) offers their members and attendees. One of PICC's noteworthy guest speaker for 2024 was Mr. Henry D. Antonio, Director / President & CEO of EEI Corporation (EEI). In this business luncheon meeting, attendees had the chance to learn from the company's wisdom behind their sustaining power in the industry.
For the past two years, Mr. Antonio has been the President & CEO of EEI Corporation. Prior to this, he was the company's COO in 2022. For five years, he was the Advisor to the Chairperson at RCBC. He was also the Vice Chairman and Head of Advisory of KPMG R.G. Manabat & Co.
Mr. Antonio's presentation during the PICC luncheon is titled “Challenges of Doing Mega Infrastructure Projects for Philippine Contractors”.
The Company’s Rich History
On April 17, 1931, EEI Corporation (EEI) was incorporated as a machinery and mills supply house for the mining industry. EEI later expanded into construction services, supply of manpower in the Philippines and overseas, and distribution of a range of industrial machinery and systems.
EEI is a member of the Yuchengco Group of Companies, a conglomerate with interests in banking, education, financial services, property development, and renewable energy.
Known as one of the leading construction companies in the Philippines, EEI has expertise in the construction of infrastructure, buildings, and industrial and electromechanical facilities.
Their wide range of services include the installation, construction and erection of power generating facilities; oil refineries; chemical production plants; cement plants; food and beverage manufacturing facilities; semiconductor assembly plants; roads, bridges, rails, ports, airports, elevated expressways, metro rail transit system and other infrastructure; high rise residential and office towers, and hotel buildings.
Investing in human resources as key to growth
To highlight some of the important points of his discussion, Mr. Antonio talked about the social responsibility of companies in the Philippines. This entails improving the lives of their workers, which in effect will help bring national economic progress.
However, he mentioned that the industry’s dependency on cheap labor suppresses technical expertise.
"You cannot demand from a laborer to work doubly hard with the salaries that we are paying them, when they cannot afford to have a proper house, they can't even afford to pay for a proper meal, and they can't send their children to school. So why would they invest more time in you?”
Since low-wage laborers are living in poverty, they are at high risk of resorting to criminal activities for additional income. And Mr. Antonio noted that they experience this situation in their construction projects.
“I think this is one of the things that sometimes, as a society in the Philippines, we don't take care, because we believe we are so poor, we cannot take care of our people. And unless we change that, we will continue to be a meager industry,” he pointed out.
“I believe that when we invest in people, they will invest in you. That is why in EEI, since I joined, we've embarked on a couple of social infrastructure projects."
Here are some examples on how they addressed the issues of low-wage laborers:
-- Salary and Compensation Strategies (implementing above-market salary rates and to motivate workers through fair compensation)
-- Worker Welfare Programs – (100% subsidized meals for all laborers | Rationale: Dignity and integrity in labor requires basic needs met)
-- Financial Exploitation Prevention -- (Banned "sangla ATM" practices and high-interest lending, terminated employees engaging in usurious lending, established cooperative with 1% interest loans)
-- Worker Accommodation Improvements – Since their company is known for creating high-quality residential buildings, homes, and the like, it is only proper to also consider providing a decent living condition for their employees. EEI provides standardized temporary housing facilities for their workers, with proper beds and linens, and more. The company stresses the importance of discipline, facility maintenance, and equipment care.
-- Long-term Social Development Initiatives – The company has a housing program on 67-hectare property in Tanza which is an affordable housing option for workers. Additionally, there is also a scholarship program for project workers' children, with 100 initial scholars, and mentorship by professionals.
Economic Philosophy
Mr. Antonio mentioned an important core belief, that in order to break the poverty cycle, it will require an increase in consumer’s spending power. This, in turn, will make workers more productive, and will create opportunities for economic mobility.
"The biggest difficulty in the Philippines is that we don't grow our middle [class]... a significant component of our population remains poor and that is ... short sighted. A person that does not have money cannot consume. A person that does not consume will not support the economy. The economy will continue to be small until we realize that these people need to spend. Therefore, we need to give them money. We need to make them productive so that they can move from their level to the next level and that will change the Philippines.”
He emphasized that investment in human resources is a key to national economic growth.
Infrastructure Development Challenges
Mr. Antonio mentioned that mega infrastructure projects usually exceed typical government terms. Thus, the company needs to address long-term planning complexities. For example, Manila subway project might take 10-15 years to complete. For this kind of massive projects, it is good to consider international infrastructure development strategies, and other innovative urban planning approaches.
[Photo by the author]
Key Takeaways
-- Invest in people to drive economic growth
-- Break cycle of cheap labor
-- Create systemic opportunities for social mobility
-- Long-term vision over short-term profits
Recommended Action for Companies
-- Prioritize worker welfare
-- Implement comprehensive social support programs
-- Focus on skill development and education
-- Create pathways out of poverty
EEI’s Awards and Citations
EEI Corporation has gained world-caliber project management expertise through their projects and collaborations with global contractors in the Middle East, Africa, and Asia Pacific countries.
In terms of having an excellent track record, EEI Corporation has a quadruple-A rating as a General Engineering Contractor. This is the highest rating for contractors issued by the Philippine Contractors Accreditation Board (PCAB) under the Department of Trade and Industry.
Additionally, EEI Corporation has ISO Certifications; namely ISO 9001, ISO 14001, and ISO 45001 certifications for quality, environment management, and occupational health and safety standards.
Subsidiaries and Projects
EEI’s subsidiaries include the EEI Business Solutions Inc., EEI Power, EEI Realty, EEI Construction & Marine, and Gulf Asia International Corporation (GAIC). Other subsidiaries are EEI Corporation (Guam), Inc.; EEI Subic Corporation; Bagumbayan Equipment & Industrial Plant, Inc.; Philrock Construction and Services, Inc.; Philmark, Inc.; EEI Energy Solutions Corporation; EEI Carga; JP System Asia, Inc.; and LearnJP Corp.
They have various projects in Luzon, Visayas, and Mindaano. In Metro Manila, their projects include:
-- MRT-7 Project involves the design, construction and commissioning of the 23-km railway line that will connect Quezon City and Bulacan. The system will have 14 stations.
-- SM Four E-Commerce Center of SM Prime Holdings, Mall of Asia Complex, Pasay City -- It is a LEED – Gold Version 3 Certified structure.
-- Metro Manila Skyway Stage 3 Project -- This is a design and build contract between EEI Corporation and Citra Express Corporation (CCEC).
-- Fame Residences Phase 1 of SMDC, Bayshore Residential Resort, The Air Residences Project, The Finance Center Project (owned by Daichi Properties, Inc.), Beacon 3 (or the Amorsolo Tower), and more.
About Philippine Infrastructure and Construction Club (PICC)
Regular events of PICC are organized by Second Chance Events & Consultancy Inc. PICC is a forum for discussion that aims to lift the profile of the Philippine construction industry and to highlight its contribution to growth in the Philippine economy.
If you want to expand your business network and meet key personalities in the construction industry here and abroad, then come and join the bandwagon of regular attendees of the PICC luncheon meetings.
To know more about the upcoming events of Philippine Infrastructure and Construction Club, please visit https://picc.com.ph/.
---
Reference:
[1] Source: SEC Form 17-A (2023) - https://edge.pse.com.ph/companyInformation/
[2] EEI Company Website - https://www.eei.com.ph/
Additional reference for EEI at the PICC event, including videos and photos from the luncheon:
https://picc.com.ph/coming-events/past-events/2024-04-26-eei-corporation-luncheon-mr-henry-d-antonio/
