Decent work as a factor of industrial competitiveness: human-centric management in the Industry 5.0 paradigm

Abstract

The article explores the conceptual foundations for implementing the principles of decent work as a driver of industrial competitiveness amid the transition to the Industry 5.0 paradigm. The relevance of the study is determined by the simultaneous impact of digitalisation, the spread of innovative technologies, the implementation of artificial intelligence systems, the transition to a green economy, and the prolonged socio-economic challenges associated with the consequences of military aggression, which necessitate the adaptation of human capital management mechanisms to conditions of instability while preserving the resilience of the industrial sector. The paper substantiates that the competitiveness of industrial enterprises is increasingly determined not by technological potential but by the ability to attract, retain, and develop skilled personnel on the principles of decent work. Human-centric management, which is becoming a key principle of Industry 5.0, involves returning the individual to the centre of the production system, where their needs, safety, and development are not a social supplement but a strategic priority directly impacting productivity and innovation activity. A comprehensive analysis of the current state of implementation of decent work principles in Ukrainian industry is conducted, covering four main pillars: employment, rights at work, social protection, and social dialogue. It is shown that the transition from Industry 4.0 to Industry 5.0 requires a qualitative rethinking of the traditional four pillars of decent work in the context of digital transformation and wartime challenges. It is revealed that national legislation does not regulate the use of AI in personnel evaluation, workload determination, or the implementation of video surveillance systems, creating threats to the right to privacy and dignity. Traditional social dialogue, focused on formal protection of basic rights, must transform into inclusive, digital, and European integration-oriented partnerships aimed at post-war recovery and labour market modernisation. The conclusions substantiate the need to develop a comprehensive new legal framework that combines the protection of traditional rights with the management of technological, economic, labour, social, and digital risks, ensuring the priority of humans over algorithms in all spheres of the economy and production.