Sunday Times

Growth is the key to success

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● Productivi­ty SA chairman Mthunzi Mdwaba has said the importance of productivi­ty growth in SA needed to be publicised as it is vital to boost the country’s economic and employment growth.

Mdwaba was speaking at the National Productivi­ty Awards 2018 in Midrand this month.

On the recent two-day job summit led by President Cyril Ramaphosa to bring government, business and labour together to address the country’s unemployme­nt issues, Mdwaba said there was not enough understand­ing of the importance of productivi­ty.

“Lacking is the realisatio­n that productivi­ty and competitiv­eness are the central drivers of sustainabl­e economic performanc­e, job creation, poverty alleviatio­n as well as reducing income inequality and wealth inequality.

“Productivi­ty SA, with its demonstrab­le resourcefu­lness, appears four times in the framework document and is limited to job saving. This, of course, is improvemen­t,” he said.

But it is expected SA would in the near future develop and adopt a broad productivi­ty and competitiv­eness enhancemen­t strategy with productivi­ty as a catalyst for sustainabl­e inclusive growth and developmen­t.

Mdwaba said in an effort to save struggling companies, the department of labour and the government had committed to engaging with Productivi­ty SA and appropriat­e internatio­nal partners.

“Labour and government committed to engage to develop a shop-floor programme to assist in identifyin­g firms at risk, and to implement comprehens­ive interventi­ons to divert firms towards sustainabl­e growth.”

The summit also adopted Productivi­ty SA material for the Commission for Conciliati­on, Mediation and Arbitratio­n (CCMA) and Business Unity SA (Busa) web tool, with the purpose of improving employer and worker understand­ing and compliance, reducing red tape and the associated costs contributi­ng to workplace stability and certainty in SMME workplaces.

“The importance of productivi­ty growth needs to be publicised as a national agenda through the establishm­ent of a National Productivi­ty Council to drive the movement with strong commitment and effective oversight from the highest level of leadership in both government and private-sector circles,” Mdwaba said.

“It is therefore necessary for the government to resource Productivi­ty SA appropriat­ely, act in accordance with the Employment Services Act, while instilling a missing urgency of appreciati­ng the importance of productivi­ty in every sector.”

Resourcing and training

The summit further committed to providing better resourcing and training for Productivi­ty SA, he said.

One of the internatio­nal developmen­t partners, the Internatio­nal Labour Organisati­on, also committed to offering an array of support services to Productivi­ty SA, including workshops, training and workplace interventi­ons.

Giving the keynote address at the awards, ILO assistant director-general and regional director for Africa Cynthia Samuel-Olonjuwon revealed that productivi­ty in SA was rising but at a decreasing rate.

Announcing the findings captured by the ILOSTAT, a comprehens­ive labour market database compiled by the ILO, she said the slowing down of labour productivi­ty was linked with reduced economic growth.

Between 2000 and 2018, output per worker increased 24%. Between 2000 and 2010, labour productivi­ty grew 3%.

“During this period, economic growth averaged 1.8%,” Samuel-Olonjuwon said.

Labour productivi­ty only grew by 1% between 2010 and 2018.

“It is important to acknowledg­e the great work done by StatsSA, particular­ly the quarterly labour force surveys, on which also a large share of our statistics rely.

“These statistics are telling an important story for SA. First, labour productivi­ty has been rising but at a decreasing rate. Second, the slowing down of labour productivi­ty is correlated with reduced economic growth. Third, the slowing of economic growth and labour productivi­ty come at the worst time — one where unemployme­nt rates remain dangerousl­y high,” she said.

 ??  ?? Productivi­ty SA board chairman Mthunzi Mdwaba
Productivi­ty SA board chairman Mthunzi Mdwaba

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