The role of trade unions in improving productivity

Key points

The EESC:

• strongly recommends productive investment in capital, technology and human capital which in turn would help boost labour productivity. It recognises that most businesses across the EU are SMEs with limited trade union representation. The EESC advocates government support such as strategic advisory and capacity-building support to boost productivity in SMEs;
• believes that collective bargaining and social dialogue could extend to the design of new work models that boost innovation, such as collaborative team structures, working time flexibility and shared leadership initiatives;
• is of the view that trade unions could be involved in setting sector-specific productivity benchmarks and performance indicators. Their input ensures that metrics reflect quality work, innovation and sustainable business practices, rather than short-term cost-cutting;
• encourages a stronger workers’ voice at the workplace based on information sharing and effective consultation with workers in line with national legislation and practices, while not affecting companies’ ability to take decisions. While co-management or participation of employee representatives in the governing structures of businesses is effective in some EU countries and could serve as a model for others, the responsible management of companies’ management, including SMEs should be preserved;
• highlights the role of works councils which have the potential to help achieving higher job satisfaction and higher salaries and greater job stability compared to companies without works councils;
• stresses that trade unions could also be part of the equation to reduce any existing high levels of absenteeism, since high absenteeism rates represent a significant cost to businesses and public finances;
• is of the view that collective bargaining can contribute to productivity by promoting a positive and supportive working environment, recognising employee value, and encouraging collaboration and innovation including the application of worker-centric digital methods;
• also recommends stronger collaboration between trade unions and businesses in co-designing and implementing continuous training and upskilling programmes, particularly in sectors undergoing technological transformation;
• believes that trade unions could also play a supportive role in schemes that encourage voluntary mobility of unemployed workers to regions with labour shortages, including through mobility agreements, housing support and recognition of qualifications, while ensuring fair working conditions;
• reaffirms that social dialogue and collective bargaining can help increase productivity and raise wages through the participation and involvement of trade unions, according to national rules and practices;
• finally, highlights that the Adequate Minimum Wage Directive aims to improve living and working conditions the Union and to promote collective bargaining in wage setting.