Comparative View of State Towards Worker's Participation in Decision Making

7/31/2019 Comparative View of State Towards Worker's Participation in Decision Making

1/21

Vishruti Nandel

Comparative View of State Towards WorkersParticipation in Decision Making


2/21

Workers Participation in

Germany

France

U.K.

Italy

U.S.A.

Yugoslavia

U.S.S.R.


3/21

Co-Determination (Germany) Gives equal rights to employees representatives in all matters concerning

the undertaking

Implicit sharing of power philosophy

Co-determination Act 1951

Applies to all undertakings employing >1000 workers in

Coal mining

Iron and steel industries

Industrial undertakings in Germany are governed by

Supervisory boards which, in turn, appoint Managing Boards


4/21

Supervisory Boards

Usually consist of 11, 15 or 21 members

11 members

5 elected by

shareholders5 - representatives of

employees

2: employees working in undertaking

2: appointed by unions operating in the

undertaking

1: appointed by the union from outside the

union and outside the undertaking

11th member is elected by

shareholders after being proposed

by Supervisory board


5/21

Managing Boards

Appointed by Supervisory boards

Must include a labour director

Appointed by supervisory boards ( approval of majority of

members representing employees)


6/21

Works Constitution Act, 1952

Industries other than coal mining and iron and steel

One third of members of supervisory boards

In joint stock companies

In companies employing >500 workers Elected by secret ballot by workers employed in undertaking

concerned

Among workers representatives at least 2 must be employed in the

undertaking


7/21

Works Councils

All units employing 5 workers

Operates at plant level : close to workers

Consist only of workers representatives ( elected every 3 years)

Have right to seek information provided trade secrets are not endangered

Co-determination rights in matters like

Hours of work

Vocational training

Administration of welfare services

Fixation of job and piece rates

Conduct and behaviour of employees Discuss following issues with management but ultimate authority rests

with management

Re-grouping or transfer of employees

Recruitment

Retrenchment Dismissal etc.


8/21

Studies have shown most employees concerned had limited perception of co-determination.

In response to insistent demands of German trade unions for extension of full co-

determination to all industries

Govt. appointed a committee in 1968

To look into past experience and suggest bases for further thinking

Report

Agreed to principal of extension of worker participation in decision making but not

in form of full co-determination

Favour of Supervisory Boards

12 members

6: represent shareholders

4: elected by workers

These 10 co-opting for 2 more members

Not in favour of Managing Boards


9/21

France: Works Committees

Trade unions : weaker and divided

Initiatives towards greater worker participation have come from Govt.

Syndicalism: extreme doctrine of workers self government

After WWII: Production Ecommittees or Management Committees set up

Took over running factories which had been abandoned by owners

Since 1946, all undertakings employing 50 workers are required by law to

set up Works Committees Although public sector is exempted, works committees exist in most

public undertakings


10/21

Number of elected members may be increased by mutual agreement

Elections are held every 2 years

If, in an election, number of voters is less than half of total number of eligible voters, asecond election is held

Anyone may stand for election irrespective of trade union support

Trade union

Sponsor candidates for election

Send observer to meetings of works committees

Works Committees

Consultative bodies excepting welfare activities which are administered under their

supervision

Canteens

Libraries

Medical and safety services

Housing societies etc.

Chairman of Works Committee ( Head of Undertaking)

3-11 selected members (acc. to no. of workers employed in

undertaking)


11/21

Have right to receive information

Be consulted on economic matters concerning undertaking

In joint stock companies: right to send 2 representatives to attend meetings of BOD

Issues related to terms and conditions of employment and individual or collecitve

grievance are excluded from their purview

Assessment

Disappointment is a dominant feeling

activities in social field have given positive results

Developed a sense of responsibility and readiness among staff

Results in economic field are generally failures

In majority of cases Works Committees have been a formality


12/21

U.K.: Joint Consultation U.K. has relied on varying degrees to advance worker participation on

Joint Consultation

Collective Bargaining

Joint Consultation

Traced back to Whitley Commission of 1916

Recommended establishment of

Joint industrial councils in well organized industries

Works committees representatives of the management and workers in individual

establishments

Joint Committes at

Plant level

District level

Regional level

National level


13/21

Arrangements for consultation are flexible and vary from industry to industry

Joint committees consist of

Representatives

Management

Appointed by chief executive

Employees

Appointed by secret ballot

Engineering and Iron and Steel Industries

Chosen from shop stewards

Coal mining

Nominated by National Union of Mineworkers Number of representatives from both sides are not always equal

No. of management representatives is often less

Primary objective : promote Co-operation

Advisory in character


14/21

Joint Consultation has not succeeded to the extent expected

Joint committees are bypassed in favour of direct talks with trade union leaders

Indifferent and suspicious attitudes of both employers and trade unions to joint

consultative bodies

Employees Shareholding and Profit sharing schemes

John Lewis Partnership : successful for 5 decades

Number of firms adopting such schemes are small

Collective Bargaining

Much stronger and older institution in Britain Plant level bargaining has become more prominent in recent past


15/21

ITALY: Commissions(Management Committees)

Like German works councils but without the strength of unified trade

union

Elected by both organized and unorganized workers on basis of

competitive union slates

In theory they possess important consultative functions

Rarely exercised

In 1950s management frequently manipulated these bodies as spurious

bargaining agents so that they could refuse recognition to union

organizations in plants


16/21

BENELUX Countries

Unions are strong

Netherlands

Made Works council obligatory in all plants employing over 100

workers

Belgium

Belgium General Confederation of Labour, January 1971

Made decisions to increase employees control

In both countries, Joint decision making has tended to be at national levelrather than plant level


17/21

U.S.A. : Collective Bargaining

Collective bargaining is seen as a road to industrial democracy

Workers acting through the union can influence terms and conditions of employment and

other matters

A typical trade union is associated with

Grievance procedures

Settlement of disputes through arbitration

Continuous Bargaining

Creation of joint union- management bodies to study and report complex issues

Fast pace of negotiation during collective bargaining does not permit a through

examination of all important problems

Joint study groups examine such matters and recommend mutually acceptable solutions Already exist in steel, automobile, meat-packing, glass and electrical equipment

industries

Profit sharing schemes have evolved

Scanlon Plan

Help management in solving problems

Reward: share in savings effected


18/21

Yugoslavia: Self-Management Law of 1950

Works council should be constituted in every firm

If total number of employees in a firm


19/21

U.S.S.R.: Workers as Partners inManagement

Realistic management device intended to achieve double objectives of

Uninterrupted production and continuously increasing productivity

Industrial democracy

Production will not be allowed to suffer

To humour the fanciful demands of trade unions

Management will not be allowed to dictate whatever they like to

Industrial relations have evolved as a realistic system in light of needs of

the nation and development of the economy


20/21

Trade unions got greater share in the administration after WWII

Statues of 1958 & 1971

Principal economic task of nation

Not merely production

Increase effectiveness of social production

E.g. planning of plants & construction projects

Jointly by management and trade union

Standing Production Conferences

Function under the guidance of trade unions

Make recommendations on all questions of organisation of work and

production


21/21

All matters of major importance for the operation of enterprise are decided only with

participation of trade union

Profits

A part goes to state

Rest remains with enterprise

Development fund

Incentive fund for industrial and office workers

Fund for social and cultural advancement

Dispensed by management and trade union committee jointly

Trade unions

Have right to conclude collective agreements (embodied in Labour Code)

Right to request progress reports

File report against managers who fail to fulfill their duties

Results of fulfillment of collective bargaining are periodically reviewd jointly

Documents

Comparative View of State Towards Worker's Participation in Decision Making