I was delighted to accept the invitation from the National Centre for Partnership and Performance to address this National Workplace Strategy Masterclass – the third in the series – on the theme "Ireland’s Workplaces: Innovative Futures".
Through this and previous Masterclasses, and through the extremely innovative format of today’s conference, the NCPP is spotlighting the National Workplace Strategy in a very effective way. As we know, the Strategy aims to replicate, at enterprise level, the successful partnership approach to planning and problem-solving that has served us so well for two decades at national level. The Strategy therefore promotes highly participative and inclusive work practices and openness to innovative ways of organising work.
The NCPP’S work is not theoretical or ideological – it is based on its own research and international experience that show clear benefits to employers and employees from workplace innovation.
The Government is committed to fostering a dynamic, inclusive and knowledge-based economy that is capable of sustaining competitiveness and maintaining social cohesion. There are two broad aspects to that challenge:
• first - at the “macro level” we must do everything possible to ensure the right conditions to sustain economic growth and social progress; and
• second - at the “micro” level - we must transform our workplaces into high-performance, high added-value centres of productivity.
Conditions for economic and social progress
For our part, the Government will continue to do everything we can to ensure that the best possible economic conditions prevail and that, in turn, economic success and social progress are achieved in tandem. Naturally, some things are beyond our direct control in a highly globalised world economy, including the price of oil and the value of the dollar. However, whatever we can do, we must do in order to maintain competitiveness. Whether it is ensuring that small and medium enterprises are not snowed under with unnecessary regulation or that the right supports are in place for research and innovation - we must redouble our efforts.
Our economy is in a period of transition. The upcoming Budget will be framed against the backdrop of less dramatic growth rates and a tapering of activity in key sectors such as construction. This is not a surprise. We all knew that unprecedented growth rates would not be maintained indefinitely.
The challenge now is: how do we handle the transition to more sustainable levels of growth? One of the things we must do is to continue to invest prudently but confidently in strategic infrastructure and productive assets that will take us into the next phase of our development. This means seeing through the key elements of the National Development Plan, Transport 21 and other Government strategies - but doing so in ways that deliver projects on time and on budget. The same criteria and urgency apply in relation to to our social infrastructure and, in particular, the health service which is attracting record levels of Government spending. We must be relentless in pursuing value for money and high standards of service delivery. We need to gear our public service agencies to pursue these quality and efficiency objectives.
Recognising this, I have taken a number of steps to ensure that our public service steps up to the mark. For example, a major systems level review of the Public Service is being finalised by the OECD for presentation to the Government and publication early next year. This will benchmark our Public Service against other OECD countries and I hope it will contain a number of recommendations as to the direction and pace of further modernisation and reform.
Another measure that is now under way is a series of Organisational Reviews of Government Departments. Three Departments have signed up for the first batch of reviews: Transport, Agriculture, Fisheries and Food, and Enterprise Trade and Employment. They will be reviewed under a broad range of criteria in key areas such as strategy, delivery and evaluation of performance. I hope in time that this system of organisational ‘health checks’ can be applied to all major public service agencies.
Creating dynamic workplaces
I see these organisational reviews as a process that is consistent with our ambitions for establishing workplaces that are innovative, dynamic and capable of adapting to change. These are not just buzz words, they are very real goals and essential components of our national workplace strategy.
We need workplaces that are marked by the creative commitment of employers and employees alike. Nowhere is this more evident than in the delivery of healthcare services. That is why the new Forum on the Health Sector is such a significant development. We have long needed a ‘safe space’ for engagement on practical workplace issues in the health sector and I am delighted that this is now under way.
Coordinated by senior officials from my Department, I hope the Forum will help to facilitate a frank and constructive dialogue between the management and unions which will help us to make progress on some of the most important and complex challenges facing us in a workplace context. I hope also that the Forum can offer a new and inclusive process towards the design and realisation on the ground of the Health Service that our citizens desire.
I genuinely believe that everyone connected with healthcare wants to improve the service, albeit with different perspectives on how this should be done. We can all agree on one thing: a health service which can demonstrate it is delivering effective and high quality health and personal social care would be in a better position to make a case for sustained additional investment in the coming years.
For our part, the Government recognises that achieving a high-quality, cost-effective and sustainable healthcare system requires significant change. Such change is required to reflect the evolving needs of patients; the impact of new technology and drugs; and best practice in the deployment of skilled and valuable healthcare personnel. I detect a growing desire among all parties to achieve more in the health sector through partnership than is presently the case. Of course, existing industrial relations problems and the implications arising from any organisational change will need to be addressed. However, I strongly believe that a renewal of commitment on all sides to the principles of partnership can give us the kind of “win-win” outcomes needed to bring our health services up to the standards that we all want and that we all have a right to expect.
Workplace partnership is a central part of the workplace strategy nationally - not just in the health sector or in the public service. I am sure you will all be familiar with the public awareness campaign launched by the NCPP during the Summer, aimed at encouraging employers, managers, employees and trade unions to be more open to the benefits of partnership and innovation in the workplace, regardless of size or sector.
Not only is the Government, through the NCPP, communicating the vision of the workplace of the future – we are also taking concrete action to make that vision a reality. In January of this year, I announced the establishment of the Workplace Innovation Fund with available funding totalling €9 million over a three-year period. The fund comprises three elements:
1. Support for workplace innovation initiatives in the private sector;
2. Support for Social Partner initiatives in pursuit of the National Workplace Strategy; and
3. The funding of the NCPP’s public awareness campaign.
I am delighted that the NCPP are actively encouraging individual employers and employees to consider how they can make their own places of work more innovative and creative through greater levels of employee involvement and engagement, for the benefit of all concerned. Because, as I have indicated already, there are real benefits to be gained - including improvements to the bottom line. All the evidence strongly points to close links between progressive HRM policies and profitability.
Partnership at national level
Everyone here today will be in no doubt of my commitment to the social partnership process. I am convinced now more than ever of the continued relevance and effectiveness of our social partnership process. Those of us who remember the bleak times in the mid-1980’s remain keenly aware that Social Partnership has played its part in transforming this country.
Not only has it helped to move the economy up several gears, Social Partnership has completely transformed the way we handle industrial relations and pay determination. In providing a stable industrial relations climate, we have been able to minimise risks and offer greater predictability to our indigenous business sector and to inward investors.
Of course, not only are we “open to partnership”, we are open at all times to improving the processes and keeping the operational aspects of Social Partnership under review. For example, the environmental agenda is critically important and I have no doubt that the Social Partnership framework will be able to reflect this and other emerging national priorities.
Future partnership dialogue
The next round of pay negotiations will commence early in the New Year. We have learned from experience that these talks can be onerous in terms of time and effort. However, I think all parties agree that the benefits of reaching an agreement, in terms of certainty and industrial peace, far out-weigh the burden on those who are involved in the talks.
In preparing for any forthcoming negotiations, it is important that expectations are kept in line with the economic realities we face. The more recent national partnership agreements - the Programme for Prosperity and Fairness, Sustaining Progressand now Towards 2016 - have put in place a better framework through Benchmarking for dealing with public service pay. As I have said on many occasions, Government policy on public service pay is that the public service should be in a position to attract its fair share of good quality staff at all levels. It should neither lead the market nor trail it.
The other key feature of the framework which the agreements have put in place in relation to Public Service pay is the conditionality and performance verification provisions associated with pay increases. Payment of increases under the agreement is subject to verification of co-operation with flexibility and on-going change. The mechanism for verification of progress allows us to ensure that the required changes actually become a reality.
Conclusion
The National Workplace Strategy sets out a roadmap for our workplaces as we face into the rapidly changing environment of the 21st Century. It contains a comprehensive set of recommendations to make this vision a reality. Policy and supports alone, however, will not be enough. To succeed in delivering our vision, a change of mindsets, of attitudes and of behaviours regarding our places of work will also be necessary.
I hope that, through the innovative and participative format of today’s masterclass, you have gained some new insights. While everyone will take away their own individual learning points from today’s event, I expect that some key messages are clear, for example:
• Traditional ways of organising work and traditional approaches to management are inadequate in the new global context.
• New forms of work organisation offer a viable route to greater levels of innovation.
• But workplace innovation is still an under-utilised resource. If we can really tap into it, it will give us tangible gains in the areas of:
- Productivity and competitiveness;
- More and better jobs;
- Employee engagement;
- Healthy working;
- Active ageing; and
- Social inclusion.
The quality, proactivity and productivity of our workplaces will be absolutely critical in securing our shared future. I have no doubt that today's Masterclass will make a very important contribution to the task of releasing the knowledge and creativity of our workforce nationwide and will help us face the future with confidence.
I would like to wish you well with your panel and group discussions and, in closing, to thank Peter and Lucy and the staff of the National Centre for Partnership and Performance for all their hard work in promoting workplace innovation through partnership.
Thank you for your attention.
ENDS