A call has been made for the newly-formed National Productivity Council to encourage a closer relationship between labour, the Government and the private sector for the country to realise the tangible benefits of increasing productivity. President of the National Trade Union Centre (Natuc), Michael Annisette, made this call last week at the launch of the National Productivity Council which took place at the Hyatt Regency Hotel, Port-of-Spain. "The Government, management and labour must understand that there is a link between productivity, competitiveness and economic development. We must place at the centre of our activities the goal of social cohesion and human solidarity."
He pointed out that there is a close relationship between productivity and free trade. "The role of the Productivity Council must be seen in the context of how T&T can compete within the context of free trade, globalisation and therefore if we let down the concept of productivity in the workplace we do this at our own peril." He added that productivity is critical to the survival of organisations. "Productivity is a fundamental core of corporate survival because, unlike people in other places, we believe that labour, business and the Government are critical to the very existence and survival of T&T," he said. He said given the demands of globalisation all stakeholders must work together.
"Because of globalisation and the forces driving it has created the conditions for the Government, labour and management to work together and to avoid the historical confrontational approach in resolving issues." He described productivity as defining competitiveness. "Productivity is about human capital and also physical capital and productivity determines a country's business and defines competitiveness. It can improve the quality of life and creates wealth," he said. Several key speakers addressed the audience at the official launch of the Productivity Council including Prime Minister Patrick Manning and Ruben Mc Sween, chairman of the Employers Consultative Association (ECA).
Links to better life
Prime Minister Patrick Manning in his address provided empirical evidence showing that improvements in productivity impacts on economic growth and lead to a better quality of life for citizens. "Increased productivity attracts investment, creates jobs, improves earnings and stabilises the currency. The workforce gains better wages and rewards, attractive working conditions, new opportunities for personal development," he said. Manning added that the national productivity movement that the Government is stimulating with the installation of the National Productivity Council subscribes to a new school of approach to productivity known as the "high road" where countries compete on good quality jobs and products.
He added that productivity is not just about developing the economic capital but also the human and social capital of the country. He continued by saying that the State is also important in leading the way in raising productivity levels. "The Government continues to be the largest employer, the largest investor and the principal agent of economic and social development in the country. The level of productivity in the public sector is therefore a major determinant in the quality of life of the citizenry and the level of competitiveness as a nation."
He said the Government is playing its part in strengthening the foundations for increased productivity and referred to an index produced by the Central Statistical Office (CSO) that showed that there has been an upward trend in productivity for the last decade. Manning said that national productivity improvement depends upon the involvement of all stakeholders, employers, trade unions and NGOs. "It is crucial that for progress to be made and productivity improved that all players understand that it is a shared responsibility," he said.
Urgent need
Ruben Mc Sween, chairman of the Employers Consultative Association (ECA), called for the Government to ensure that the Productivity Council is provided with all the required resources to ensure that it works. According to the National Productivity Council, some of its aims are:
�2 To prepare an operational budget for the National Productivity Centre and include an immediate and long-term funding mechanism
�2 To advise the Government on the formulation of national policies and strategies on all aspects of productivity, quality and competitiveness
�2 To identify constraints to the improvement of productivity, quality and competitiveness and propose remedial measures to be taken
�2 To develop and adopt a set of key productivity indicators for T&T
Mc Sween said there is a greater need now for National Productivity Council given the contemporary environment the country exists in.
"The need for this council became more and more imperative, given the complexities of doing business and the individual abilities which demand more effective instruments of measurement to combine with the vagaries of relationships, politics and global competitiveness and indeed the rude persuasiveness of the pressures of climate change," he said. He added that all stakeholders need to use every opportunity at their disposal to recognise and publicly praise those situations where productivity is high and equally criticise those situations where productivity is low. "As a people we need to become intolerant of low productivity if we are to achieve the 20/20 vision of T&T."
Higher standard of living
Labour Minister Rennie Dumas in February 2008 said that the Productivity Council would be set up to enable the country to face international competition and to lead to improvements in productivity. Cabinet then approved the setting up of a productivity council at the start of the third quarter in 2008. In his address he said that improved productivity is not only linked to the performance of firms and industries but it is fundamental to the living standards of citizens.
Admitting that the work of the council "seems insurmountable," he said the need for a productivity mindset is now more important than anytime in the recent economic history of the country. He noted that one of the challenges facing the council would be to find an appropriate yardstick or productivity gauge to measure productivity levels among the various sectors that make up the economy. "The most common measure of productivity is through labour productivity which relates output to employment or labour hours," he said.
First-world status
Roslyn Khan-Cummings, permanent secretary, Ministry of Labour, described the launch of the National Productivity Council as being of "extraordinary national significance." She said the establishment of the council is a step into the world of international best practice as T&T moves full steam ahead into developed world status. She pointed to other countries that have set up productivity centres with great success. "Countries such a Japan and the United States, and Barbados in our region have established productivity councils and have been able to achieve greater competitiveness and accelerate their national development," she said.
She added that sustained productivity–which is an indicator of economic growth–can only occur in an environment where equal attention is paid to getting optimal value out of time, resources, innovativeness, sound management, good industrial relations, strong institutions while eradicating obstacles to productivity such as unproductive practices and attitudes. "To change the cultural DNA will require a mental metamorphosis, a refertilisation of the cognitive landscape of workers in T&T, imploring workers across our country to change their mindset, the way we do business and harness a passion, hone new skills and evolve into a cohesive competitive team ready for business."