Transcript Government’s views on productivity

What constitutes productivity?
Government’s perspective
 Economic development:
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Human development
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increase in GDP per capita
exports
Employment rate (According to the Prime Minister, the government
is the largest employer in the country)
Skilled labour force (increase in higher education enrolment;
training programmes)
Social development – gov’t has provided housing for middle
and low income families; improved the infrastructure in the
health sector; made , etc.
Productivity (cont’d)
Government’s perspective
 Use of information and communication technology (e.g.
establishment of electronic government – government
portal – website, online government information and
services)
 Innovation and creativity (in the workplace and in the
population in general)
 Good management
 Good industrial relations
 Strong institutions
Productivity
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According to the Central Statistical Office,
productivity is measured by an Index of Domestic
Production divided by the Index of Man Hours
Worked (these figures show an increase in
productivity over the period 2004 to 2008)
Productivity
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On 25th August 2009, the National Productivity Council was
launched in Trinidad. The Council will comprise 15 members
from the private sector, trade unions, civil society, academia
and government. Its aims include:
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To prepare an operational budget for the National Productivity
Centre and include an immediate and long-term funding
mechanism
To advise the Government on the formulation of national policies
and strategies on all aspects of productivity, quality and
competitiveness
To identify constraints to the improvement of productivity, quality
and competitiveness and propose remedial measures to be taken
To develop and adopt a set of key productivity indicators for T&T
Productivity
Private sector’s perspective
 The T&T Chamber of Industry & Commerce made
several recommendations for improving national
productivity in its Recommendations for the T&T
National Budget 2008/2009. These include:
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The establishment of a National Productivity Centre
Public sector reform (in bodies such as: the Central
Statistical Office, Customs and Excise, Revenue
Authority)
Productivity
Private sector’s perspective
 In response to the Prime Minister’s call for persons to
work harder to increase the nation’s productivity the
San Juan Business Association and the Downtown
Owners and Merchants Association (DOMA) have
said that there needs to be greater consideration of
the factors affecting the workforce and their mental
state when they arrive at work e.g. unreliable
public transport system, traffic pile ups, flash
flooding
Productivity
Private sector’s perspective
 In March 2009, TTMA members Lake Asphalt of
Trinidad and Tobago (1978) Limited and Trinidad
Cement Limited (TCL) signed an MOU, sealing their
commitment to participating in the “Improving Labour
Productivity Through Internal Corporate Social
Responsibility Interventions” project.
 The project, which is being financed by the Multilateral
Investment Fund (MIF) of the IDB, aims to demonstrate
the gains and advantages of implementing internal CSR
practices as evidenced by correspondent increases in
labour productivity within the participating companies.
Productivity
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Have you ever heard someone say “I wasn’t very
productive today?”
Productivity has a common meaning and also an
official definition.
The World Bank (2006) defines productivity as
gross output or a value added concept.
Labour productivity is a single factor concept and
total factor productivity can encompass multiple
factors such as gross domestic product (GDP),
workers’ wage earnings etc.
Productivity and Non-governmental
Organisations (NGOs)
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It has been established
that the Caribbean
Region and Latin
America suffer from
productivity problems.
The World Bank (2006)
Productivity and Non-governmental
Organisations (NGOs)
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NGOs such as the International Labour
Organisation (ILO), the International Monetary
Fund (IMF) and the World Bank provide the
following reasons for the productivity problems in the
region:
 Failure
to adopt new technology
 Slow skill upgrading
 Weaknesses in basic education systems
 Poor physical infrastructure
 Macroeconomic policies
Productivity and Non-governmental
Organisations
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The issue of
productivity is of such
great concern that the
government of Trinidad
& Tobago as well as
the private sector has
teamed up with nongovernmental
organisations to find
solutions.
The Inter American Development Bank
(IADB) and Productivity
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The IADB has identified labour
related challenges affecting the
future sustainability &
competitiveness of the manufacturing
sector in Trinidad & Tobago:
Low levels of labour productivity
 High absenteeism and turnovers
 Shortage of skilled local employees
 Difficulty retaining best employees
 Low levels of technological innovation
 Low knowledge transfer
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The Inter American Development Bank
(IADB) and Productivity
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To help solve the problem the Trinidad & Tobago
Manufacturer’s Association has partnered with the
United Nations Development Programme (UNDP).
The solution involves improving local productivity
through the use of corporate social responsibility
(CSR).
One element of the plan is to create healthier and
safer work environments to improve employee
motivation, reduce some of the problems mentioned
as well as increase productivity and efficiency.
Productivity in Trinidad & Tobago
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The National Training
Agency of T&T works closely
with industry experts,
employers, training providers
and professional bodies to
develop national occupational
standards.
Productivity in Trinidad & Tobago
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A number of organisations in Trinidad & Tobago are
trying to improve the competitiveness and productivity
globally by partnering with other institutions.
The Tourism Development Company Ltd. (TDC) and the
Trinidad and Tobago Bureau of Standards signed an
agreement in March 2009 to work together to
improve the quality of Trinidad & Tobago’s tourism.
QUESTION
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How do you think
setting standards and
partnering with different
organisations can help
Trinidad and Tobago’s
productivity improve?
Productivity in Trinidad & Tobago
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Dr. Charles Douglas of the Jamaica Productivity
Centre noted Trinidad & Tobago’s improvement in
productivity within the food and beverage sector.
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(The Jamaica Gleaner, Sunday July 1, 2007)
According to Dr. Douglas T&T was able to do this by
using new technology to produce a higher quality and
quantity of goods.
Factors that contribute to low
productivity
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Failure to adopt new technology
Slow skill upgrading
Weaknesses in basic education systems
Poor physical infrastructure
Macroeconomic policies
Work ethic of the labour force