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Industry 4.0: an evolving social contract for economies under rapid change

 KEY CONCLUSIONS:

  • Automation changes the quality of labour and the labour market

“People that enter the labour market have more requirements with regard to the quality of their employment contracts and workplaces,” said Olga Golodets, Deputy Prime Minister of Russia.

“The 20th century was the century of an 8-hour working day. Perhaps, the standard in the 21st century will be four hours,” said Maxim Topilin, Minister of Labour and Social Protection of Russia.

“It is flexibility when it comes to how much you decide to work, <…> it is flexibility when it comes to working hours. <…> We live in a world where technology is going to continue to have a bigger and bigger share,” said Pierre-Dimitri Gore-Coty, Head of Europe, Middle East and Africa, Uber Technologies Inc.

“New skills will be required from man. I am positive that the time of one profession per person is already over,” said Sergey Kogogin, Director General, KAMAZ.

  • Russia is ready for challenges in the labour market

“We have a safety cushion; demography is on our side here. Even in the most difficult periods, the number of job openings in our market did not drop below 900,000,” said Olga Golodets.

“The education system will provide a certain level, but to assess the skills and work experience, and the ability to perform certain operations will be the task of independent bodies, qualification assessment centres. Based on the needs of the business community, we will be able to quickly transform education and skills, motivating workers to become part of the process,” said Maxim Topilin.

CHALLENGES:

  • Uneven employment across Russian regions

“A number of unemployment issues emerging in Russia today are of a territorial nature. We have territories with a high unemployment rate, but there are also labour-deficit territories,” said Olga Golodets.

  • Low wages, ineffective incentive model

“Wages in Russia are not that high for the time being...In all the progressing countries, labour is expensive,” said Maxim Topilin.

  • Obsolete qualifications system

“Over the last two decades, the old Soviet qualification assessment system has stuck in place. Neither the employers, nor the government have addressed this issue,” said Maxim Topilin.

SOLUTIONS:

  • To improve the quality of general education, to focus on intelligence and personal development

“We need to focus on early development of our children. Their ability to learn, adapt and respond appropriately to emerging challenges is the most important thing we can get them ready for,” said Olga Golodets.

“We have to start from school. Kids need to embrace new requirements, a new paradigm of life; they must change their psychological patterns and be ready to learn in a new way,” said Sergey Kogogin.

  • To make vocational education system more high-tech in order to meet the market demand promptly

“Today, the training period can be minimised thanks to technologies,” said Olga Golodets.

“Digitalisation is very fast. We have to keep the same pace also in training and educating people,” said Roland Busch, Member of the Management Board, Siemens.

“<…> We will observe technology playing a very significant role in helping people to learn. But I also want to make a case for blended approaches to learning <…> apprenticeship, <…> people learning a new trade or skill on the job,” said Jean-Franсois Manzoni, President, Institute for Management Development (IMD), Nestlé.

  • To develop an effective and attractive compensation scheme

“Only those countries that will opt for the model most attractive in the employee's view, will be able to contest for the key competitive advantage, which is human capital,” said Olga Golodets.