Providing Decent Work Indicators In The Agricultural Sector Of The Economy

Abstract

A systematic approach to improving the life quality of the country's population, the quality of working life, the backbone of which is decent work, has been substantiated. The relationship between the main socio-economic issues of the country's development has been schematically determined. The modern importance of the decent work indicator is described (decent wages in improving the life quality of the population), and it is proved that ensuring the standard of decent wages is implemented in many respects at the primary level of labor activity - the business entity and depends on the remuneration policy of its personnel, the formed effective payment mechanism labor. It is proposed to strengthen the significance and role of decent work standards, including decent wages and normative indicators of their achievement in the programs and projects being implemented, partially financed both from the federal budget and regional ones, and to establish in the agreements concluded on the regulation of social and labor relations the norms for the development mechanism of remuneration of economic entities.

Keywords: Labour economics, population income, wages, agricultural sector, decent work

Introduction

The vector of development of the Russian Federation for this period and for the near future has a fairly definite, justified and stable socio-economic orientation to improve the life quality of the population. Not only regulatory documents and implemented state programs in all sectors of the economy, including agriculture, are aimed at achieving this most important national problem, but economic science should also play an active role here.

In recent years, there has been a tendency to limit the conduct of fundamental scientific research on these problems in the agrarian economy. This is largely due to the specific features of their implementation in the agro-industrial complex, the limited information and statistical base, and scientific publications. All this in combination has led to a decrease in scientific interest in the study of various aspects of problems that take into account the current trends in socio-economic development (Proka et al., 2021).

Problem Statement

Taking into account the prevailing conditions, factors and trends in the development of the national and world economy, the efforts of scientists should be aimed at rethinking:

  • modern concepts of the life quality;
  • a system of indicators, indicators and methods of its assessment.
  • development of models of the quality of working life and a system of social standards and regulatory guidelines for assessment and regulation;
  • concepts of decent work.

The indicated areas of scientific research of topical socio-economic issues are closely interrelated with each other, but at the same time they do not take into account the sectoral features of their practical implementation. That is why it is precisely this circumstance enhancing the importance of agrarian economic science in developing effective solutions.

Research Questions

The concept of the research carried out by the authors is based on a systematic approach to solving the most important socio-economic issues of the agricultural sector to improve the life quality of the population, which, first of all, provides for an increase in real incomes of the population due to ensuring decent work for personnel in the framework of the implementation of an effective wage policy, as in a sectoral level and level of each business entity.

Purpose of the Study

Is a modern assessment and substantiation of scientific and practical proposals for providing indicators of decent work in the agricultural sector of the economy through the development and implementation of an effective mechanism of remuneration in business entities.

Research Methods

The systemic approach of the country's leadership to improving the life quality is most fully reflected in the Message of the President of Russia to the Federal Assembly: “The main thing now is to ensure the growth of real incomes of citizens, restore it and ensure further growth, achieve tangible changes in the fight against poverty, and restore the labor market” (President Message to the Federal Assembly, 2021). The indicators approved in February 2021 for assessing the performance of the heads of regions and executive bodies of the constituent entities of the Russian Federation, taking into account the national development goals for the period up to 2030 (poverty level, growth rates of real average monthly wages and real per capita money income of the population, educational level, conditions for the upbringing of a harmoniously developed and socially responsible personality, etc.) are, in fact, a kind of version of the system of evaluative indicators of the life quality (“On the assessment of the effectiveness of the activities of senior officials (heads of the supreme executive bodies of state power) of the constituent entities of the Russian Federation and the activities of the executive bodies of the constituent entities of the Russian Federation”, 2021; “On the national development goals of the Russian Federation for the period up to 2030”, 2020).

In turn, one of the components of the life quality is the quality of working life, the backbone of which is decent work. The strategic goal in achieving sustainable economic growth should be the implementation of “The decent work standards as the basis for human well-being and the development of the country” (Sokolov, 2021, par.1). Therefore, in recent years, special attention has been paid to it, so, in particular, decent work is defined, along with labor efficiency, as one of the national development goals of Russia (“On the national development goals of the Russian Federation for the period up to 2030”, 2020).

According to the concept of “Decent work”, adopted by the ILO in 1999, Decent work can be defined as work that is free, fairly paid, safe, socially protected, does not degrade the dignity of a person, opens up equal starting opportunities for all, guarantees participation in managerial decision-making and self-development of personality. Decent work is work that allows an employee doing what they love in conditions of freedom, justice, security and human dignity. The structure of the decent work standard includes: a standard; mechanisms through which the established standard is achieved; indicators by which compliance with the established standard is assessed (Sokolov, 2021). Decent work standards approved in Russia in 2012 are reflected as recommendations for their implementation for a given period in the system of concluded social and labor agreements (general, sectoral and regional). The fundamental standard of decent work is the standard of decent wages. This is a wage that ensures expanded reproduction of human and labor potential, economic freedom for a working person and his family (Resolution of the Executive Committee of the Federation of Independent Trade Unions of the Russian Federation of August 22, 2012 N 5-1 “On holding the action of trade unions in October 2012 within the framework of the World Day of Action “For Decent Work!”, 2021).

Thus, the methodology and research methods are based on system analysis using: synthesis, abstraction, economic and statistical methods that have developed a modern understanding of the topic under study.

Findings

If we consider schematically the relationship of the main socio-economic tasks solved in the country, then Table 1 presents its author's version.

It is a decent wage that determines and ultimately ensures the solution of socio-economic issues. This largely determines the relevance of the problem under study, both from theoretical, methodological and practical positions.

Table 1 - Relationship of the main socio-economic tasks of the country's development
See Full Size >

To increase the wages and, accordingly, the income of the rural population, it is necessary to improve the process of formation and implementation of the mechanism of remuneration, strengthening its motivation (Proka, 2020). The current importance of the indicator of decent work - decent wages in improving the life quality of the population is clearly illustrated by the data in Table 2. For 2015-2020 in the structure of monetary incomes of the population of the country, there is a stable growth in the share of wages of employees and social payments from the state.

Table 2 - Structure of monetary incomes of the population of the Russian Federation by sources of income
See Full Size >

Table 1 clearly shows that the implementing and ensuring a decent wage standard is largely carried out at the primary level of labour activity (the business entity) and depends on the remuneration policy of its personnel, the effective remuneration mechanism formed and implemented. It is here that the role of employers in achieving the standard of decent wages in practice is particularly important.

The Labor Code of the Russian Federation in article 130 defines the main state guarantees for the remuneration of workers (Labor Code of the Russian Federation dated 30.12.2001 No. 197-FZ, 2021). The provisions of the General Agreement between all-Russian associations of trade unions, all-Russian associations of employers and the Government of the Russian Federation for 2021 - 2023 in section “II. Wages, incomes and living standards of the population” are generally only advisory for employers. “The parties consider it necessary in the coming period to develop and implement measures to ensure the right of the employee to decent work, the implementation of state guarantees for wages, an increase in the level of real wages, including by ensuring an increase in labour productivity, improving the state policy in the field of wages and improving the living standards of employees” (General Agreement between all-Russian associations of trade unions, All-Russian Associations of employers and the Government of the Russian Federation for 2021 – 2023, 2021).

In addition, some important provisions relate only to the field of work to improve the systems of remuneration of workers in the sectors of the public sector and practically do not affect the mechanism for the implementation of remuneration in organizations of the non-state sector of the economy. This approach should be adjusted as it will be difficult to meet the criteria for decent wages.

Generally speaking, the following conclusion should be drawn: with such ratios of the wage fund with production costs and earnings, it is practically impossible to ensure a decent level of wages in agriculture. The authors' point of view boils down to the need to establish normative benchmarks in these indicators, which ultimately determine a decent level of wages.

The main indicator of decent work and decent wages remains its average monthly level. The data in Table 3 clearly indicate the positive dynamics of the growth of indicators of decent wages in the Russian Federation for 2015-2019. At the same time, given the fact that the share of people employed in agriculture has a stable tendency to decrease to 5.8%, the importance of the indicator of the level of average monthly wages of agricultural workers increases.

Table 3 - Dynamics of indicators of decent wages in the Russian Federation
See Full Size >

At the same time, it should be noted that the growth of wages of workers in the agricultural sector is largely due to the implementation of the State Program for the Development of Agriculture and Regulation of Agricultural Products, Raw Materials and Food Markets, its subprograms and the amount of state support funds, both at the federal and regional levels.

Conclusion

Despite the relevance of the decent work standard and its indicators - programs and projects implemented in the industry, it is practically not considered as a set benchmarks for achievement. This approach cannot contribute to the formation of highly professional human resources in agriculture in the short and long term.

The ILO concept of decent work, according to which a person and his decent work are at the core of social, economic and environmental development to ensure balance and social justice, and the implementation of its basic principles should be based on social dialogue, combining economic growth and decent employment with social development and improvement of living standards (Parushina et al., 2020a, 2020b; Sevastyanova & Verna, 2019).

The results of the research carried out allowed the authors to develop and substantiate the following proposals:

  • to strengthen the importance of standards of decent work, including decent wages and normative indicators of their achievement in programs and projects being implemented, partially financed both from the federal and regional budgets;
  • to establish in the agreements being concluded on the regulation of social and labour relations the standards for the development of a mechanism for remuneration of economic entities;
  • in the “Strategy for the development of the agro-industrial and fishery complexes of the Russian Federation for the period up to 2030” to amend the national goal No. 3 “ensuring sustainable growth of real incomes of citizens, as well as the growth of the level of pension provision above the inflation rate” and to achieve by 2030 the ratio of the average monthly disposable resources of rural and urban households of 90% and the level of employment of the rural population of working age up to 88.9% by the indicators of decent wages for workers of the agro-industrial complex (Development strategy of the agro-industrial and fishery complexes of the Russian Federation for the period up to 2030, 2021).

References

  • Decent Work Indicators. Federal State Statistics Service. (2021). https://rosstat.gov.ru/storage/mediabank/fwJuIbK4/ind-dtr07_2021.xlsx

  • Development strategy of the agro-industrial and fishery complexes of the Russian Federation for the period up to 2030. (2021). Access mode: https://docs.cntd.ru/document/564654448

  • General Agreement between all-Russian associations of trade unions, All-Russian Associations of employers and the Government of the Russian Federation for 2021 - 2023. (2021). https://www.garant.ru/products/ipo/prime/doc/400435873

  • Labor Code of the Russian Federation dated 30.12.2001 No. 197-FZ, (as amended on 05.04.2021). (2021). Access mode: http://www.consultant.ru/document/cons_doc_LAW_34683/ (accessed: 31.03.2021).

  • Labor market, employment and wages. (2021). https://rosstat.gov.ru/labor_market_employment_salaries?print=1

  • On the assessment of the effectiveness of the activities of senior officials (heads of the supreme executive bodies of state power) of the constituent entities of the Russian Federation and the activities of the executive bodies of the constituent entities of the Russian Federation. (2021). Decree of the President of Russia dated February 4, 2021. http://kremlin.ru/acts/news/64970

  • On the national development goals of the Russian Federation for the period up to 2030. (2020). Decree of the Russian President dated July 21, 2020 http://www.kremlin.ru/events/president/news/63728

  • Parushina, N. V., Lozovoy, M. V., Lytneva, N. A., Shaporova, O. A., & Bobrova, E. A. (2020a). State support for agribusiness and organization of control over spending. IOP Conference Series: Earth and Environmental Science, 421(3), 032021.

  • Parushina, N. V., Lytneva, N. A., Khanenko, M. E., Starostin, M. G., & Klimoshenko, M. I. (2020b). Budget risks in the management of small businesses in rural areas. IOP Conference Series: Earth and Environmental Science, 548(2), 022088.

  • President Message to the Federal Assembly. (2021). http://www.kremlin.ru/events/president/news/65418

  • Proka, N. I. (2020). Income level as an indicator of the socio-economic orientation of the agrarian economy. Agrarian Science Bulletin, 4(85), 146-152. DOI:

  • Proka, N. I., Gulyaeva, T. I., Savkin, V. I., Kalinicheva, E. Y., & Buraeva, E. V. (2021). Assessment of labor incentive policy in the agro-industrial complex. IOP Conference Series: Earth and Environmental Science. Krasnoyarsk Science and Technology City Hall, 22020.

  • Resolution of the Executive Committee of the Federation of Independent Trade Unions of the Russian Federation of August 22, 2012 N 5-1 “On holding the action of trade unions in October 2012 within the framework of the World Day of Action “For Decent Work!”. (2021). https://www.garant.ru/products/ipo/prime/doc/70131302/

  • Sevastyanova, O. V., & Verna, V. V. (2019). Issues of implementing the concept of decent work in Russia. Human Progress, 5(6). http://progresshuman. com/images/2019/Tom5_6/Sevastyanova.pdf

  • Sokolov, O. V. (2021). Decent work as a foundation of human well-being and country development. https://www.hse.ru/data/2014/06/18/1310050218/20140617-Sokolov.pdf

  • The volume and structure of monetary incomes of the population of the Russian Federation by sources of income. (2021). https://rosstat.gov.ru/folder/13397

Copyright information

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

About this article

Publication Date

25 September 2021

eBook ISBN

978-1-80296-115-7

Publisher

European Publisher

Volume

116

Print ISBN (optional)

-

Edition Number

1st Edition

Pages

1-2895

Subjects

Economics, social trends, sustainability, modern society, behavioural sciences, education

Cite this article as:

Proka, N. I., & Savkin, V. I. (2021). Providing Decent Work Indicators In The Agricultural Sector Of The Economy. In I. V. Kovalev, A. A. Voroshilova, & A. S. Budagov (Eds.), Economic and Social Trends for Sustainability of Modern Society (ICEST-II 2021), vol 116. European Proceedings of Social and Behavioural Sciences (pp. 2335-2341). European Publisher. https://doi.org/10.15405/epsbs.2021.09.02.260