ILO - GB341 - EU Statement: Decent Work and Productivity

1. Chair, I speak on behalf of the European Union and its Member States.

The Candidate Countries the Republic of North Macedonia*[1][2], Montenegro*, Serbia* and Albania*, and the EFTA countries Iceland and Norway, members of the European Economic Area, align themselves with this statement.

We support the IMEC Statement.

1. We welcome the document presented by the Office. This document is a good basis to discuss productivity and its implications on inclusive growth and accurately depicts the different ecosystem levels in which decent work deficits may be tackled.
2. The COVID-19 pandemic has increased the gap in productivity between large firms and micro and medium-sized enterprises, with informal enterprises lagging further behind. In this regard, it is of paramount importance to continue temporary and targeted support for sustainable and productive companies in order to safeguard quality jobs and employment during the crisis. It is also of paramount importance following the European Green Deal and the Just Transitions Mechanism, to embed socially and environmental sustainability considerations into corporate governance and management practice.
3. The EU 2021 Annual Sustainable Growth Strategy states that productivity, jointly with environmental sustainability, fairness and macroeconomic stability, should serve as guiding principles underpinning Member States’ recovery and resilience plans. In this regard, the European Pillar of Social Rights and the recently adopted Action Plan recognises the untapped potential of the labour market.
4. As the document shows, there is a linkage between the quality of the employment, in terms of skills development, collective representation of workers, safe and healthy working conditions and social dialogue, and productivity growth. As increasing decent work-conditions contributes to the creation of productivity growth, constituents can find a common agenda here to build on.
5. Productivity is strongly linked to robust social protection systems and safe and healthy working conditions. The Pillar Action Plan notes that keeping workers healthy has a direct and measurable positive impact on productivity and contributes to improving the sustainability of social protection systems. Equally, public and private investments are key to kindling productivity and mitigating the effects of the COVID-19 pandemic.
6. Investment in lifelong learning and skills development is crucial for long-term and sustainable economic and productivity growth.  The European Skills Agenda supports this aim and emphasises the importance of appropriate skills in the labour market in tandem with lifelong learning.
7. The ILO Better Work and Sustaining Competitive and Responsible Enterprises (SCORE) programmes show that a conducive business environment and efficient management, strong workers´ representation and social dialogue also favour the increase in productivity. Trade openness, business and taxation, better regulation, access to market, transportation costs, fair competition and participation of SME in global supply chains are also examples of macro policies that foster productivity.
8. Productivity also relies on new technologies and innovation. The EU 2021 Annual Sustainable Growth Strategy states that research and development in artificial intelligence and electronics represent a unique opportunity to increase productivity over the long term.
9. We continue to support the call of the Centenary Declaration to develop appropriate policies that generate full and productive employment and decent work for all, to support measures that help workers to work in healthy and productive conditions, and to support the Member States in promoting full and productive employment. It is important that harnessing the full potential of technological progress and productivity growth, including through social dialogue, should be done with an aim to achieving decent work and sustainable development, ensuring dignity, self-fulfilment and a just sharing of the benefits for all.
10. The EU and its Member States believe that the ILO needs to take a leading role in promoting global, balanced and convergent productivity growth. To this end, the ILO should promote productivity by encouraging social dialogue that contributes to an equitable distribution of productivity, better working conditions and wages and reduction of the gap between low-wage and high-wage jobs.
11. Finally, we trust that the Office will work within the framework of the P&B 2022-2023 to support the capacity of governments and employers’ and workers’ organizations to improve productivity and promote investments in education and lifelong learning, while bearing in mind that shared gains from productivity strengthen a human-centred approach to the future of work. We therefore welcome the analysis in this document, but look forward to the Office taking further steps to strengthen and renew its approaches in exploring and measuring the relationship between decent work and productivity as well as any subsequent actions and initiatives that could be taken by the Office and the constituents. We believe this should be done in tandem with the implementation of the Centenary Declaration and the Decent Work Agenda, with a view to stimulating productivity growth.

With these comments, we support the decision point as proposed by the Office

[1] *The Republic of North Macedonia, Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process.