What constitutes productivity? Government’s perspective Economic development: increase in GDP per capita exports Human development 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 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 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: 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: 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 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) 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) 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 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 non- governmental organisations to find solutions.
The Inter American Development Bank (IADB) and Productivity 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
The Inter American Development Bank (IADB) and Productivity 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 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 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 How do you think setting standards and partnering with different organisations can help Trinidad and Tobago’s productivity improve?
Productivity in Trinidad & Tobago Dr. Charles Douglas of the Jamaica Productivity Centre noted Trinidad & Tobago’s improvement in productivity within the food and beverage sector. (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 Failure to adopt new technology Slow skill upgrading Weaknesses in basic education systems Poor physical infrastructure Macroeconomic policies Work ethic of the labour force