Factor Model of Labor Productivity in the Coal Industry

Abstract

The article introduces the problem of increasing the labor efficiency at Russian coal enterprises. Using the case of Kuzbass, the authors examined factors that affect labor efficiency in coal industry, e.g. new equipment and mining technologies, qualified personnel, robotics, new quality management and information technologies, etc. They used a multiplicative model to estimate the key factors and made forecast of its dynamics up to 2035 for open and underground mining. The authors believe that effective models of mining enterprise management are impossible without a radical increase in labor efficiency, since it indicates labor costs in the production of the final product per unit of time. Labor efficiency in the open-pit mining is higher, as it has lower labor costs and offers a simple and safe way of organizing labor processes. However, new equipment can increase the efficiency of underground mining. Underground mines also demonstrate a faster growth of labor efficiency than open pits. The authors justified the need to assess labor efficiency using a system analysis and a multiplicative model. As global coal market continues to deteriorate, mining labor efficiency can still maintain positive long-term rates of growth if it manages to optimize deliveries and increase the labor efficiency at the federal level. The research possesses considerable theoretical and practical significance as it offers a solution for of the most relevant challenges.