National Productivity and Competitiveness Improvement Programme implemented

In 2002, a National Productivity and Competitiveness Improvement Programme was approved by the Slovak government. Its implementation is seen as crucial, particularly given Slovakia’s impending EU accession in 2004. The Slovak Productivity Centre has played a significant role in Programme's preparation and implementation, as have the social partners. In 2003, the first results indicate that improving productivity will not be easy, and there has been discussion over the government's participation in the programme.

In May 2004, the Slovak Republic will join the European Union, but it still has much to do to ensure long-term competitiveness. In particular need of development are the economy and human resources. Productivity is regarded as a key factor in human resource development and improving economic growth in a competitive environment. Improving productivity is seen as requiring both an adequate conceptual approach and positive incentives to inculcate the right attitude in employees and employers regarding new working practices. To this end, a number of initiatives have been launched to identify methods and instruments to improve Slovak competitiveness. The Slovak Productivity Centre (Slovenské centrum produktivity, SLCP), established at Zilina Technical University in 1997, has initiated and coordinates these activities.

National Programme drawn up

SLCP has defined a new approach to productivity as follows: 'the secret of improving productivity and the competitiveness of the Slovak economy is the development of a national drive, based on social partnership and cooperation.' The strategic aims of such a programme to improve productivity are described as follows:

• a universal approach towards improving living standards;

• a broad framework for solving economic problems;

• a concept for developing competitiveness in Slovak society as a whole;

• a 'cultural' approach emphasising to citizens their own interest in improving productivity; and

• an integrated approach incorporating labour, capital, materials, science and technology, management and policy-making.

The following measures are regarded by SLCP as essential if Slovakia is to thrive in the EU, not to mention the global economy:

• analysis, follow-up, assessment and improvement of productivity at all levels - local, sectoral, regional and national;

• emphasis on the long-term improvement of productivity and competitiveness;

• organisation of a productivity drive in terms of a cooperative network of individuals, enterprises, organisations and institutions;

• support for research and development, mainly in industrial companies;

• support for training and education directed towards productivity, quality, innovation, creativity, enterprise and competitiveness;

• creation of a database of the best domestic and foreign approaches to improving productivity; and

• encouraging the best businesspeople and academic specialists to cooperate with SLCP.

This approach has provided the framework for a National Productivity and Competitiveness Improvement Programme. Representatives of different economic sectors and the social partners participated in elaborating this National Programme, while the Brussels-based European Association of National Productivity Centres (EANPC) - a European body that facilitates the exchange of information and cooperation among national productivity organisations - also provided assistance. The EANPC president and general secretary have regularly taken part in the annual National Productivity Forums organised by SLCP.

A seminar on the importance of productivity and social partnership, organised in February 2002 at the Slovak Ministry of Labour, Social Affairs and the Family (MPSVR) in Bratislava, was of considerable interest for productivity specialists, while the Minister, the chief of the International Labour Organisation (ILO) management development department and the head of the European Commission delegation in Bratislava also participated. The seminar focused on improving productivity in Slovakia through innovation, as well as a number of other factors, including social partnership (well-functioning social dialogue is one of the key criteria for EU accession). Social partnership is regarded as important not only for productivity and competitiveness, but also for education, occupational health and safety and so on.

On the basis of this work, the Minister of Labour, Social Affairs and the Family submitted the National Productivity and Competitiveness Improvement Programme to the government, which approved it on 4 September 2002. The National Programme was officially announced at the fifth National Productivity Forum held in Zilina, where it was well received, and a declaration concerning active participation in its implementation was issued by employers’ organisations, trade unions, state administrative bodies, regional authorities and the Slovak Chamber of Commerce and Industry (Slovenská obchodná a priemyselná komora). The aim of the National Programme is to create a positive environment for long-term productivity and competitiveness in Slovakia.

Goals and tasks

The National Programme covers all sectors of the economy. Its main goal is to facilitate reform of productivity management at company level. The National Programme is to be supported by the state administration and local government executive and monitoring bodies, as well as by company managements, trade union organisations and employees. Successful implementation of such an ambitious programme is seen as possible only if all economic actors pull together. Improving productivity and competitiveness is set as a strategic goal for the Slovak economy and society as a whole. Productivity improvements should facilitate the selection of strategic sectors to play a key role in increasing competitiveness, so strengthening the Slovak economy. Implementation of the National Programme is crucial, and the government is expected to do the following:

• create appropriate economic conditions for improving enterprise productivity and competitiveness;

• start an awareness-raising campaign concerning the importance of improving productivity and competitiveness among companies;

• establish priorities, including short- and long-term objectives;

• promote implementation of the National Programme through the tripartite Economic and Social Concertation Council (Rada hospodárskej a sociálnej dohody, RHSD) and regional tripartite bodies;

• support the national productivity and competitiveness campaign through various media, including audio-visual tools and publications; and

• obtain foreign assistance in the implementation of the National Programme and related enterprise-level programmes.

In accordance with the National Programme, and in collaboration with both public and business institutions, the government is to support the development of all components of productivity in order to secure sustainable economic growth. The programme means of the following nine main measures, listed under six 'pillars':

National economic growth

• 1. Increased productivity and competitiveness. The aim is to create appropriate organisational, technical and financial conditions for the adoption of productivity tools which have been successful in other countries.

Quality and innovation

• 1. Higher-quality products and services. The goal is systematic coordination of a National Quality Programme with the National Productivity and Competitiveness Improvement Programme.

• 1. Innovation and technological development. The goal is the coordination of productivity and competitiveness programmes with other research programmes aimed at research and technological development and innovation transfer.

Employment growth and human resource development

• 1. Employment growth. The aim is to create new jobs via productivity improvements.

• 1. Effective management and development of human resources. The main objective is to improve labour force qualifications and skills through lifelong learning. The key focus will be dissemination of an understanding of productivity in line with the Further Education Act 1997 (No. 386), as well as an EANPC Memorandum on productivity, innovation, quality of working life and employment. Special attention will be paid to disadvantaged groups and regions.

Labour and environmental protection

• 1. Higher levels of 'labour organisation' and occupational health and safety. The goal is to harmonise the National Programme with company programmes aiming to improve productivity in management, occupational health and safety, and workforce motivation.

• 1. 'Green productivity' as a tool for environmental protection. The objective is to harmonise both the National Programme and enterprise programmes within the framework of environmentally-friendly and sustainable development, and also with the government's Ecological Academy. The National Programme will implement ecological principles in all sectors and an 'ecolabel' scheme will help to increase ecological awareness in society as a whole.

Social partnership

• 1. Well-functioning social partnership as a precondition for productivity improvements. The creation of appropriate conditions and tools for the implementation of both government and company productivity programmes will be based on social partnership.

Further education and increased productivity awareness

• 1. Consolidated thinking. The National Programme seeks to raise the awareness of the whole nation, via education, concerning the importance of productivity and the need to improve it.

Implementation of the National Programme

A Coordination Council for the National Productivity and Competitiveness Improvement Programme (Koordinacná rada národného programu pre zvysovanie produktivity a sútazeschopnosti) is responsible for programme implementation. The Minister of the Economy has approved the Council’s members, and a statute and standing orders stipulate its activities. The membership of the Coordination Council comprises representatives of the Ministry of Construction and Regional Development, the Ministry of Transport, Posts and Telecommunications, the Ministry of Agriculture, the Ministry of Education, the Confederation of Trade Unions of the Slovak Republic (Konfederácia odborových zvazov Slovenskej Republiky, KOZ SR), the Confederation of Industry Associations of the Slovak Republic (Zdruzenie priemyselných zvazov SR, ZPZ SR) and SLCP. The Coordination Council can also ask other institutions to cooperate, according to need. The Council acts as an advisory body to the Minister of Labour, Social Affairs and the Family, who chairs its sessions.

Documents and materials are available to support the economic and social goals of the National Programme. Handbooks on improving productivity and competitiveness are in the process of development and will be used within the framework of projects in the following areas:

• innovation and economic growth;

• improving cooperation between government, employers and trade unions;

• involvement of all state institutions in the productivity drive and productivity awareness-raising;

• human resource development and reducing unemployment; and

• improving working conditions and living standards.

During 2002, best practices in improving productivity and competitiveness were recorded, mainly at enterprise level. The resulting documentation will be disseminated via specialist publications, national seminars and consulting in the area of regional and company programme development. Wide-ranging and intensive cooperation with similar foreign institutions, such as EANPC, is being developed. Long-term cooperation continues with the Japan Productivity Centre (JPC) within the framework of which a Japanese expert, Isao Matsuda, was attached to SLCP for two years. Other Japanese experts have visited SLCP during the last three years. The Japanese side also assists the further training of Slovak experts by providing them with scholarship opportunities in Japan. The EU’s national productivity centres are also willing to provide help, including financial resources. These centres have experience in cooperating with the countries which will become EU Member States in May 2004.

In its efforts to promote productivity development, the National Programme takes full cognisance of both environmental protection and occupational health and safety. International experience indicates that productivity improvement can take place only as a result of dialogue with the social partners and other relevant institutions, and that it should be an integral part of agreements and other documents concluded at central, regional or company level. This was fully taken into account in the course of preparations for National Programme implementation. Among recent SLCP activities, the following are of particular interest:

• making contact with national productivity centres in Europe, as well as in the USA, Asia and Africa;

• EANPC membership, participation in meetings of the EANPC steering committee and organisation of a first EANPC steering committee meeting in Bratislava, as well as publication of the EANPC productivity memorandum in the Slovak language;

• an ILO cooperation project and organisation of a visit by ILO productivity experts;

• organisation of National Productivity Forums;

• organisation of training for specialists on new methods and tools for improving productivity and competitiveness in organisations, including participation in a trilateral pilot project in collaboration with the Hungarian Productivity Centre in Budapest and with the Vienna Institute of Business Promotion (Wirtschaftsförderungsinstitut, WIFI) and

• projects aimed at improving productivity and competitiveness in Slovak industry, including productivity audits of industrial companies.

Commentary

Despite the importance of the National Productivity and Competitiveness Improvement Programme, after a strong start its implementation has been difficult. Following the announcement of the National Programme in September 2002, the Coordination Council was established in November 2002, chaired by the Minister of Labour, Social Affairs and the Family. The Coordination Council subsequently met to adopt the principal documents governing its operations. Later on, however, the new Minister of Labour, Social Affairs and the Family chose not to continue with the Ministry's role in the Programme. In February 2003, after a meeting of the relevant State Secretary with SLCP representatives, both sides agreed that the Ministry of the Economy would be a more suitable body to take responsibility for the National Programme. In May 2003, based on a government Resolution, the Deputy Prime Minister and the Minister of the Economy took over responsibility for National Programme implementation. However, too much time has been lost and negotiations held in the middle of the financial year have caused funding problems. All competent bodies seem to support the National Programme, but apart from SLCP and the Ministry of the Economy, no one seems interested in taking responsibility. The positive message is that the Ministry of the Economy is starting to devote serious attention to the National Programme in the face of upcoming Slovak membership of the EU single market. (Miroslav Danihel, Bratislava Centre for Work and Family Studies)