Report: Promoting Sustainable Economic Growth through Fair Distribution of Productivity Gains Workshop, November 10-14, 2014, Indonesia

APO WSP on Gain Sharing, 2014

BACKGROUND OF THE PROJECT

The project intends to capture the strength and weakness among the Asian and Pacific countries on their current state of implementing productivity gains shared to workers and how it would impact to the growth of businesses.  Successful case studies were presented to highlight the journey needed for it to be adoptable in the respective countries.

OBJECTIVES FOR PARTICIPATION

To learn and share my own experiences of having instituted the Productivity Gain Sharing scheme in our company, initiated in the last 10 years with the assistance of the Department of Labor and Employment in Region 7.

PROFILE OF PARTICIPANTS

Majority of those participating comes from National Productivity Offices (NPO) or attached agencies in government related to trade and labor sector.  Only two, including me, comes from the private sector, with the other one not yet familiar with the concept of the program.

SCOPE, CONTENT, METHODOLOGY

Day 1 –    Presentation of course outline and introduction of each participant; Country presentation on Productivity Gain Sharing;
Day 2 –    Concepts of Productivity and Gain Sharing (Resource Persons: Prof. Peter Gahan,  Mr. Inoue of Japan and Mr. George Wong of Singapore);
Day 3 –    Plant Visit to an Indonesian company – PT Sermani Steel (Whole day);
Day 4 –    Plant Visit to an Indonesian company – PT Tesena Inovendo (half-day); Action planning based on SWOT analysis based on Company or country.
Day 5 –    Presentation of each participant on Actions to be taken in the next 6 months; Closing ceremony and distribution of Certificate of Participation.

Except for my presentation wherein I was able to share our journey and impact of Productivity Gain Sharing, the discussion were more focused on the short comings or negative acceptability by owners to this scheme due to the requisite of transparency of data (financial and output).

It was also noted that labor/trade unions may not necessary accept this due to the possibility that they may not be able to bargain with management and become irrelevant.

OUTCOMES AND EVALUATION

From a view point of an owner who have successfully implemented the Productivity Gain Sharing Scheme, I was able to appreciate the need to further improve our KAIZEN program, with the impact and benefits of continuous improvement, be integrated in our Gain sharing scheme.

Coming from a perspective of a management representative in the Regional Tripartite Wages and Productivity Board – Region 7, which is currently mandated to encourage the TWO-TIERED WAGE benefit as an option to mandated wage increase, we can use the concept and framework presented by the resource speakers in the approach and deployment of the program.

RECOMMENDATIONS AND ACTION STEPS

It is highly recommended that the Development Academy of the Philippines, being the APO Liaison Office, should initiate discussion of coming up with a program of Productivity Gain Sharing (PGS) scheme in alignment of the TWO-TIERED WAGE system of the Department of Labor and Employment, through the National Wages and Productivity Commission.

Having been trained and at the same time a practitioner of PGS in more than 10 years, would be able to impart the proper APPROACH, DEPLOYMENT, LEARNING, and finally INTEGRATING such program to the benefit both to labor and management.

SUBMITTED BY:

PHILIP TAN
President & CEO
Wellmade Motors and Develoment Corporation

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