Manufacturers' Association of Israel president Zvi Oren has adopted recent research by the Bank of Israel and Taub Institute which found that the low productivity in the Israeli economy stems from low salaries and lack of investment in technological education. He said at a meeting in the presence of President Shimon Peres. "In order to continue developing Israeli industry, we must double salaries in industry and increase the importance of productivity."
What prevents industrialists from already doubling salaries today for their employees? Talking to "Globes" Oren explained that 80% of industrial plants already suffer from a lack of professional manpower and that for industrialists to pay more, there should first be more suitable employees available.
What does this depend on? According to Oren first and foremost the government. He said, "God not only created smart minds but also good hands, and it's clear that I'll prefer a qualified welder with a salary of NIS 13,000 a month compared with a frustrated worker earning NIS 5,000 a month. We are in favor. The productivity of Israeli employees is about 40-60% of the productivity of their counterparts in Europe and the US, and in order to reach at least 80%, the State of Israel must do what is done in those other countries invest in technological education and professional training. If the government will do this, as it has done by the way in the past, we can double salaries and still maintain our competitive edge. It's worthwhile for me."
Why cannot industrialists train employees by themselves? Oren said, "When I train myself, out of 20 people that come to me, perhaps one will still be there at the end, so it's costing me a mint."
He added, "You don't have to be a big economist to understand that if training and investment are centralized, then it will also cost less than investment by an individual factory."
Oren says that the government fully understands the need that he is talking about but decision making on the matter is slow. "In every country in Europe that has a strong economy, you will find a network for serious professional training."
Published by Globes [online], Israel business news - www.globes-online.com - on September 12, 2013
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