"There is a directly proportional relationship between productivity and welfare, because (when there is) an increase in welfare (for employees) without productivity, the business will later go bankrupt," he said here on Wednesday.
However, on the contrary, he believes that a company cannot improve its performance without thinking about labor welfare.
"These two indeed must complement each other," he stressed.
According to Azam, International Labor Day, or May Day, which is commemorated every May 1, can be a momentum for companies in the country to continue to hone the skills of their workers so that it can directly impact the companies' productivity.
Referring to data from the International Labour Organization (ILO), he highlighted that labor productivity in Indonesia is ranked fifth in the Southeast Asian region.
Hence, he underscored the need to improve the skills of Indonesian workers.
"We are only at the fifth position in the ASEAN, this is no joke, because it also concerns the competitiveness of the next generation. We have to allocate a lot of time, energy, and costs to improve their skills, so that at least we can be competitive in ASEAN," he stated.
Furthermore, he remarked that the increase in competitiveness and productivity of workers can become a reference for policies to increase wages.
"The (worker's) salary can go up if their skills also increase," he noted.
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Translator: Ahmad F, Kenzu
Editor: Aditya Eko Sigit Wicaksono
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