By
7 January 2014
Members may not have seen CBI Director-General John Cridland's new year messageto the British business community, as published in The Telegraph, but his words resonate beyond the United Kingdom.
John is right to express concern over the risks associated with people being trapped in low- paying jobs, and the impact that has on future economic and social development. Too often however, the debate focuses simply on the issue of minimum wages, and by how much they should increase. With respect, that is to take the discussion down the wrong path if we are to consider the wider context of job and income growth. There always have been, and always will be, low-paying jobs. What we need to address is how to help move people out of low-paying work and into higher-paid and fulfilling opportunities. As John Cridland says, the answer lies in enhancing productivity and skills.
Employers, workers and governments together need to tackle the two-fold problem of those who enter the job market without skills, as well as providing a way forward for those whose skills no longer meet the needs and expectations of the labour market. Vocational skills need to be respected, valued and recognized as equal to those acquired by completing the university degrees many parents aspire to for their children, and for which the education systems in certain countries resolutely prepare young people.
In the IOE, with the creation and promotion of a global network of companies to exchange best practices around apprenticeships through our GANinitiative, in conjunction with BIAC and with the support of the ILO, we are scaling up our contribution to ensuring future skills for business and jobs for young people, and working to convince policymakers and employers of the need for a strong and robust approach to apprenticeship programmes with clear benefits for all stakeholders - employers, workers and societies as a whole.
If we are going to achieve our often-stated goal of creating highly-skilled, highly-productive and highly-paid societies, then we as employers must lead with initiatives like the GAN, and other practical measures, as highlighted by John Cridland.
The CBI's message is one for all who speak for and on behalf of business as this new year gets underway - let's address the global skills gap in a determined effort, and let society acknowledge the positive contribution business makes to job and wealth creation.
Brent H. Wilton, Secretary-General, International Organisation of Employers, wilton@ioe- emp.org
The IOE is the largest network of the private sector in the world. With 150 business and employer federation members in 143 countries, it is the global voice of business.
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