Boosting Workplace Productivity - Working Smarter
Hon Paul Swain
5 March 2004
The Labour Minister Paul Swain has announced the establishment of a Workplace Productivity Working Group (WPWG) to advise the government.
"I am keen for this new group to find ways for individuals and companies to work smarter," says Mr Swain.
The group aims to raise awareness and debate on workplace productivity. It will look at successful methods already developed by businesses, and find ways to promote the issue to government and the community.
Mr Swain says, "In essence, labour productivity means the value of what employees produce for each hour worked.
"Improving labour productivity comes from smarter ways of working, selling higher value products, more investment and technology (e.g. computers) per worker, reorganising work and firms, and gaining more skills.
"A highly skilled workforce will enable New Zealand to be more productive and competitive in the global economy, and contribute to economic growth.
"The Growth and Innovation Framework recognises that innovation is a key driver of growth, and that the government has a role to play by promoting innovation and productivity improvements. This can be through support for firms to develop a highly skilled workforce, an efficient infrastructure, assistance with research and development, and a competitive business environment," says Mr Swain.
"While economic growth rates have improved over the past 15 years, this has largely been driven by stronger employment growth rather than improved productivity. Current economic conditions, such as skill shortages and relatively high labour participation rates, suggest that improvements in productivity will be the key to lifting economic growth even further.
"In the past, productivity growth has mainly been achieved by cutting costs and shedding workers. However a number of New Zealand firms are now achieving productivity gains with business practices that improve timeliness and quality, minimise costs and waste, and enable employee participation in setting and reviewing company goals.
"There is not one single best workplace practice, but the initiatives of successful local and international companies will be considered by the WPWG as it looks at possible future policy options.
"International benchmarking of our productivity growth will also help us measure our success.
"The size and skills of the workforce will increase if we can improve the skills of individuals and attract skilled migrants to meet skill gaps. The bringing together of the Labour and Immigration portfolios recognises the opportunities for improving the skills and talent of the workforce."
The members of the group have a wide range of backgrounds, and will bring diverse and practical perspectives. They will work closely with the Small Business Advisory Group.
Dr James Buwalda, Chief Executive of the Department of Labour, will sponsor the working group. The members are:
- a representative from Business New Zealand
- Peter Conway, NZ Council of Trade Unions
- Owen Harvey, Director, Innovation and Systems Limited
- George Lafferty, Professor of Human Resource Management and Industrial Relations, Victoria University
- Jan Mottram, HR Director, Vodafone
- Katherine Percy, Chief Executive, Workbase
- Craig Ellison, Deputy Chair, Treaty of Waitangi Fisheries Commission
- Greg Miller, Chief Executive, TranzLink.
Officials from the Department of Labour, Treasury, Ministry of Economic Development, and NZ Trade and Enterprise will also be included.
The Workplace Productivity Working Group will report to a Ministerial Reference
Group of the Ministers of Labour, Finance and Economic Development by the
end of July 2004.