Productivity gains either allow to produce more with constant inputs, or to produce the same amount as before with fewer inputs. It is to individuals and firms to decide what to do do with productivity gains. In a market economy, the price and wage
adjustments induced by productivity changes help individuals to decide whether to work less or more, to invest and hire more employees, etc.
Usually productivity gains do not fall from heaven, firms and individuals have to pay for it (R&D, organizational change, etc) so it is not necessarily good, it is however welfare
improving if the price paid to achieve productivity gains does not increase the benefits (private or public). How costs and benefits from productivity changes are shared
in order to promote both equity and further productivity gains is a challenging societal and political issue.
Contrary to the claim of your citation, productivity gains do not systematically increase wages, it depends on the technology and the structure of the commodity and labour market.