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| Sunday, 17 March 2002 |
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National Productivity Policy in the offing A National Productivity Policy (NPP) will be formulated in the near future to promote economic growth, improve living standards, social stability, labour management relations as well as improve the legal and regulatory framework. A workshop was held recently to develop a Terms of Reference (TOR) to formulate the NPP. The Ministry of Employment and Labour organised the workshop together with USAID's The Competitiveness Initiative. Minister of Employment and Labour Mahinda Samarasinghe told the gathering that productivity has been identified as a key element to increasing investment and employment by the UNF government under the leadership of Prime Minister Ranil Wickremesinghe. To infuse momentum and vigour to the productivity drive, year 2002 has been declared as the Year of Productivity. A tri-partite advisory committee has also been appointed by the Minister to look into issues related to productivity. The Minister requested the participants to look at the draft TOR in the broadest possible way and advice him on the measures to be taken to improve efficiency and productivity. In most instances, we address only the issue of labour productivity and forget everything else. Labour productivity alone cannot be blamed for low productivity as labour policy reforms and enhanced worker conditions play a major role in improving labour productivity. USA Ambassador in Sri Lanka Ashley Wills said that labour productivity is not the only factor to be considered when addressing productivity but it is one of the key factors needed to achieve competitiveness. Speaking on the peace initiative by the UNF government, he said: "We will support the peace initiative as prosperity will follow peace." Adviser to the US Senate on Labour Legislation and Former Director US Competitiveness Policy Council Howard Rosen said that it is necessary to have simultaneous growth in productivity and the economy for long-term sustainable improvements in living standards. He said that all countries have to face the challenges of globalisation and competitiveness is a key to face the challenges. To achieve competitiveness, productivity should increase. "We have to make it happen since it will not happen on its own," he added. Mr Rosen said that back in the USA, productivity growth and competitiveness work in tandem. In Sri Lanka gathering data on productivity is a problem and this should change, he added. General Secretary of the Nidahas Sevaka Sangamaya Leslie Devendra said that the productivity drive is not integrated while there is no cohesion due to several ministries handling it. He said that productivity cannot be improved in a workplace where there is no proper labour management as productivity enhancements and good labour management are inter-related. He said that another crucial factor to enhancing productivity is social dialogue. Although World Trade Organisation (WTO) standards on labour are on paper, they are yet to be implemented. This is vital to compete with other countries as buyers will not like to make purchases from countries who do not adhere to WTO standards. Mr Devendra said that lack of transparency in managing affairs of companies also leads to mutual mistrust between the employer and the employee. He said that a good work culture is more important than labour reforms as this is not a solution to all the problems in a workplace. "Even though the workers do not understand the concept of productivity, if there is gain sharing, it would be easy to market it among workers," noted Devendra. He said that a national integrated productivity policy should be formulated and implemented, encompassing all aspects of labour. At present trade unions are moving from a traditional role of opposing to coming into a consensus as it is vital for the well-being of all stock holders. Director General of Employers Federation of Ceylon Gotabaya Dassanayake said that wages should be linked to productivity while it is important to have training courses for upgrading of skills of workers. He also noted that flexibility and mobility of labour is an important issue in increasing productivity. (SG) |
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