The Prosperity of Europe

• Sustainable economic growth and a high employment rate by increasing productivity growth.

• Ensures sound public finances and sustainable provision of social and health care services for an ageing population.

• Promotes innovativeness and creates more quality jobs.

Traditional economic growth drivers

• labour force growth,

• investment in means of production,

• rising education levels.

The creation of new elements capable of generating sustainable growth.

Key question :

• How companies' productivity growth can be boosted in a way which supports employees' individual and collective resources whilst at the same time helping them to maintain their working ability and stay motivated to work in the

face of changing conditions.

Ways of pursue productivity growth

• The "quick profits" approach

- poses a danger to Europe's global competitiveness

• Traditional

- this is not enough, however, if employees are not motivated to work or

there are shortcomings in the working environment which impair work

performance

• Deeper reforms

- key factors: speed, innovativeness, ability to change and involvement of

staff in the process

- basic elements in sustainable productivity.

Sustainable productivity

• wider concept than simply measuring productivity or only analysing labour productivity

• at company level productivity is an indicator of how successfully a company is able to combine various production factors to achieve the largest possible profit

• covers not only the physical working environment but also the psycho-social working environment efficiency, creativity and innovativeness.

Innovativeness

• is reflected in the ability to develop and renew product or service concepts so that they create added value for customers

• the ability to continually improve operational and distribution processes together with staff and partners

An innovation: a tool, a piece of equipment, a machine, a combination of these, a service model, a new way of performing an old task, or a

different solution to problems.

Capability to prepare for future risks

– commitments to the ongoing development of know-how,

– the well-being of staff is taking care of

– employees take an active part in decision-making affecting the work they do

– management is based on mutual recognition and cooperation

– work quality is improved

– efforts are made to boost productivity without lengthening working time or

large increases in capital inputs

– management is able to work in partnership with customers, the business

network in the company's sector and research centres.

Anticipating changes and adapting quickly and flexibly to these changes.

Productivity growth achieved in this way is sustainable.

It influences economic growth:– by improving the long-term productivity of

workplaces/companies– by boosting labour supply, as employees' opportunities and

desire to stay longer in work increase.

Quality of work– is not only a matter of well being at workplace– is an economical component and factor of profitability,

productivity and innovativeness– is an important asset in competition from skilled workforce.

Shortage of skilled labour• could limit the scope for productivity growth• a need to examine more closely what skills and knowledge

will be required in tomorrow's workplace and plan lifelong learning tools accordingly

• highly important are the skills of management and leadershipCould act as a new kind of stimulus to economic growth.

Resource inputs to research and technology development• are important but research results, technology and ICT does not

simply change to new businesses or productivity.

It has to be put to good use in the workplaces.Requires investments in organisation, people and product

development. Changes in operational models. Organisations need new kind of smart incentives, including

workers in the decision making.Corporate culture that motivate people to play together.

Conclusions

• Traditional economic growth drivers need to be supplemented by the creation of new elements capable of generating sustainable growth.

• Sustainable productivity growth can best be fostered by promoting company and workplace practices and procedures which support and enhance workers' individual resources, workplace resources and innovation skills, and the advantages of new technology.

• It is the European Union's task to actively support all Member States and companies in their efforts to increase sustainable productivity.

* A European index describing the quality of working life should be examined, created

and implemented.

• Commission should start further studies on the relationship between the quality of

working life and productivity. A more in-depth analysis is needed of the factors which

contribute to sustainable productivity.

• It would be useful to give emphasis to workplace innovation and new kinds of

professional skills and management practices in EU innovation and training initiatives.

• Member States should implement programmes promoting the quality and productivity

of work as part of their employment programmes and innovation policy.

The EESC’s Labour Market Observatory LMO• meetings on 12th of June and 9th of September• the concept of productivity and the quality of work, best

practices and index matters• a report will be published in the end of this year.

• http://www.eesc.europa.eu/sections/soc/index_en.asp• http://www.eesc.europa.eu/sections/lmo/index_en.asp• http://www.eesc.europa.eu/index_en.asp

Leila Kurki

Member of European Economic and Social Committee EESC

President of the Employment, Social Affairs and Citizenship section SOC (22.10.2008-2010)

gsm +358 400 798959

leila.kurki@sttk.fi

Toimihenkilökeskusjärjestö STTK ry, Mikonkatu 8 PL 421 00101 Helsinki Finland