Annual Report 2009 - Asian Productivity Organization

Socioeconomic Progress
Fair Distribution of Productivity Gains among
Stakeholders
A study meeting on the Fair Distribution of Productivity
Gains among Stakeholders was held in Japan,
19–23 January. The objectives of the meeting were
to examine the latest trends and developments in
productivity gain-sharing globally based on the Japanese
experience and to share them to promote fair
distribution of productivity gains among the different
stakeholders in APO member countries. A total of 18
participants from 14 member countries comprising
employers’ federations and executives, management
consultants, academics, and representatives of government
and unions attended. The meeting was hosted by
the JPC.
The meeting recognized the importance of different
stages of economic development and existence of
different market systems including different wage
determination mechanisms in participating member
countries. In all member countries, unionized and
nonunionized sectors coexist, and hence different
labor relations practices and gain-sharing mechanisms
are in place. It was apparent that in a number of countries
productivity is a joint responsibility of the key
stakeholders, and they have well-established tripartite
structures in place, including national frameworks
for wage determination, which are clearly stipulated
and followed by all parties. Discussions revealed that
where labor-management cooperation is strong, there
is also strong recognition that productivity is a prerequisite
for economic growth; therefore, unions strongly
support productivity as it brings their members better
benefits and standards of living and through industrial
harmony they can help grow a bigger pie and then ask
for more in terms of wages and benefits. If such cooperation
is lacking, then often hostile labor relations are
seen.
A key challenge is how to link performance to productivity
and how to diffuse productivity gains in companies.
There are many forms of productivity gainsharing,
and it is necessary to consider both monetary
and nonmonetary rewards (work and family initiatives,
work-life balance, employee security, work sharing,
job sharing, etc.) in wage discussions. Other keys to
successful gain-sharing plans are simplicity, clear
links between pay and targets, information sharing,
strong leadership, involvement of top management
and union leaders, managing change, and training and
development. Policy instruments at the national level
are helpful, and training in developing sustainable
schemes is vital.
Participation of Women and Retirees in the
Workforce
Since 2005, the Japanese population has been
declining, which will cause a decline in the working
population. Those born in the years 1947–49 have
been retiring en masse, with the first group of 6.7 million
reaching the retirement age of 60 in 2007. Given
that the population is declining, it is predicted that
the labor force will decline by 10% (to 55.8 million) in
the next 25 years. Under such circumstances, a severe
shortage of workers in the market is predicted, making
it imperative to bring women and retirees back into
the labor market. This is a predicament facing several
aging societies in the APO membership. In Japan, one
response has been the hiring of nonregular, temporary,
and part-time workers. Other measures are increased
productivity and innovation. Due to advances
in healthcare and lifestyle changes, many workers
retiring at age 60 could easily contribute to economic
activities for several more years. Research shows that
about 80% of those retiring wish to continue working
to earn money and have a purpose in life. About half
of retirees are women who are also keen to continue
working beyond retirement.
Summing up the outcomes of group discussion
Under such circumstances, the APO organized a
study meeting on the Participation of Women and
Retirees in the Workforce in the Republic of Korea,
7–10 December. It was attended by 12 participants
and implemented by the KPC. The meeting discussed
the issues and challenges faced by member countries
in increasing the participation of women and retirees
in meaningful economic activities and examined the
policies and practices adopted in other countries to
facilitate that. The main objectives were to share
experiences and practices of aging societies that have
embarked upon a return-to-the-workforce drive for
women and retirees due to changing demographic,
social, cultural, or other factors; assist member
countries to respond to labor market challenges by
understanding emerging work practices like flextime,
telecommuting, nontraditional career paths, familyfriendly
programs, and balancing work-family needs;
and identify best practices in policy and other inter-
APO ANNUAL REPORT 2009 15
INDUSTRY AND SERVICE SECTORS