Human resources

The perspectives that can be gleaned from the industrial dispute between the government and the General Workers' Union are not limited to surplus labour and remuneration. A closer look should reveal other aspects about the labour market. Human resources development and deployment are certainly affected by the union's claim that the Interprint redundant workers should be provided with alternative employment by the government.

Apparently, the union considers workers to be just an input in the production process as is held in the old approach to labour as a factor of production.

William Petty, the early actuary and national income accountant, is generally credited with the first serious application of the concept of human capital. However, it was Adam Smith who identified the improvement of workers' skills as a fundamental source of economic progress and increasing economic welfare. Alfred Marshall stressed the long-term nature of human capital investment and the role of the family in undertaking it.

After the last world war, data sources revealed systematic regularities between human resources development and economic growth. Schultz and Denison were the pioneers in this area of investigation. Gary Becker provided the conceptual framework on which subsequent work was based. Now we are relying on work provided by Lucas and Romer.

All those countries that are concerned with economic development and growth are fully aware of the contributions that human resources development and deployment render to the national economy. Industrialised countries have perceived that the way to achieve better economic results is through having a healthy and literate workforce.

Successful small states too have understood that these two underlying factors have to be taken in tandem to ensure economic progress.

Going through the history of these small states' economic success stories, one realises with what seriousness they took up the challenge and what long term plans they drew up to ensure that results are achieved. One example should suffice. When Botswana obtained political independence, none of the local people, except for two simple clerks, had had any experience in administration, management and planning. Through sheer foresight and determination they substituted the culture of dependence to one based on a healthy and literate workforce capable of obtaining consistent economic results.

Success stories, both from the technologically advanced countries and small states, should provide the lesson that human resources are not a toy or a tool to be used at random or at will or according to convenience. Human resources should be deployed according to talents and skills provided to ensure the best returns on their employment. The returns should include personal income gains and contributions to economic development and growth. There is also the added advantage that workers are psychologically rewarded with the quality and quantity of their output.

That is the reason for which the union's claims are a bit surprising. It simply does not make any sense to demand alternative employment for the redundant workers in any government department irrespective of talents and skills. It looks more illogical when one considers that the government is already inundated with workers (surplus labour) whose remuneration is having telling adverse effects on taxpayers already overburdened with taxation, thereby influencing the level of saving and investment. Thus, the union's claim, ultimately negatively affects national economic growth.

The union will render a better service to the workers, to itself and to the country if it succeeds in guiding its members into alternative employment in the private sector. They have the experience, the skills and the determination to make headway in their area of specialisation even though they have been engaged in a government company.

The Maltese worker is a determined person, does not shirk responsibility and accepts challenges. Let us provide him with the means to show off his skills!