Schemes of Workers’ Participation

 SCHEMES OF WORKERS’ PARTICIPATION IN MANAGEMENT

HISTORY

Participation of workers in the management of industrial enterprises has been considered for

many decades by the Indian government to be an effective means of ensuring industrial peace

and promoting increased productivity. To this end, the Government of India has taken several

steps to promote participation in management. In 1947, the Industrial Disputes Act required the

formation of bipartite Works Committees. 1 In India the idea of workers' participation was

actually supported and encouraged by legislation, by incorporating it in the Industrial Disputes

Act, 1947, which provided for establishment of Statutory Committees called Works Committees.

SCHEMES

Since then, there have been some significant developments in the matter of implementation of

this concept. There are five distinct stages of participative management in India:

i. Works Committee (Chapter II, Section 3 of the Industrial Disputes Act, 1947):

The Industrial Disputes Act, 1947 provides for the setting up of bipartite works committees in

industrial establishments employing 100 or more workmen to promote measures for securing and

preserving amity and good relations between the employers and workmen. The workers'

representatives on these committees are elected by the workmen of an establishment directly for

a period of two years. The works committees have not, however, functioned very effectively.

ii. Joint Management Councils:

Following from the Industrial Policy Resolution of 1956 and the Second Plan recommendations,

a Scheme of Joint Management Councils (JMC) was introduced in 1958. The representation of

JMCs was based on the nomination by recognised union. Regarding the functions of JMCs, it

was emphasized that management should consult the council in the matters like retrenchment,

rationalization, closure, reduction in or cessation of operations. All matters like wage, bonus, etc.

which are subjects for collective bargaining is excluded from the scope of the council. JMCs

1 Leberman, Susan M., & Robert L. Leberman, “Two Case Studies on Workers’ Participation in Management”,

Indian Journal of Industrial Relations, vol. 13, no. 4, Shri Ram Centre for Industrial Relations and Human

Resources, 1978, pp. 467–510, http://www.jstor.org/stable/27765684.

represent a higher form of workers' participation in management. They have been assigned

higher social goals than those of the Works Committees. They aim at changing the social

structure of enterprises from inside. JMC can be set up in an undertaking which meets the

following conditions:

(a) it must have 500 or more employees;

(b) it should have cordial industrial relations;

(c) it should have strong and well-organized trade union;

(d) the employers, workers and trade unions should be ready to establish JMC;

(e) private employers ought to be members of the leading employers' organizations;

and

(f) The union should be affiliated with one of the central federations.

iii. Workers' Director:

A scheme of inducting representatives of workers as directors on the boards of management of

public enterprises was introduced in 1971. The scheme was intended to be implemented, on an

experimental basis, in a few selected public enterprises where there was a duly recognised union

and the labour-management relations were cordial with a tradition of mutual settlement of

disputes. This was also a failure.

iv. Shop Councils and Joint Councils:

In October 1975, the Ministry of Labour announced a scheme for workers' participation in

industry at shop floor and plant levels to cover the industrial and mining sectors. The scheme

was made available to units in these industries employing 500 workers or more. The scheme

outlines the functions of Shop Councils and Joint Councils. A Shop Council is intended, among

other things, to assist the management in achieving monthly/yearly production targets, promote

production, productivity and efficiency, safety, health and welfare measures and to ensure proper

flow of and equate two-way communication. A Joint Council is to deal with matters relating to

optimum production, efficiency and fixation of productivity norms, development of skills of

workmen and adequate facilities for training, awarding of rewards for valuable and creative

suggestions.

v. Workers' Participation, in Management in Commercial and Service Organizations:

On January 4, 1977, another scheme for workers' participation in management in commercial

and service organizations having large scale public dealings was introduced. The scheme is

applicable to organizations like hospitals, posts and telegraphs offices, railway stations/booking

offices, banks, etc and which employ 100 persons. The basic objectives of this scheme are to

create conditions for achieving optimum efficiency, better customer service in areas where there

is direct and immediate contact between the workers at the operational level and the consumer.

All these were implemented but failed to achieve their objectives and were a failure.

Schemes of Workers’ Participation by Velanati Jyothirmai @ Lex Cliq