Forms and Level of Workers Participation

Employee engagement in management may manifest in two ways: declining or growing. The workers are given the chance to take part in decision-making at a higher level via rising participation.

There are several ways in which employees may participate in management.

I Committee on Works;

Joint Management Councils (II);

III) Cooperative Councils

Councils for Shops (IV); and

The Unit Councils (V).

Work Committees (I):

As a means of allowing workers to participate in management, the Industrial Disputes Act of 1949 allows for the formation of work committees made up of both company and employee representatives. Every project that employs 100 or more workers must include these bodies, according to the Act.

The establishment of these committees aims to resolve disagreements on issues of mutual interest to employers and workers, as well as to advance policies for preserving happy working relationships. These organisations are also permitted under the Bombay Industrial Relations Act, 1946; but, under its rules, joint committees—which are established only in units that possess a recognised union—may only be established. In the absence of a union, employees individually choose their representatives.

Functions:

These joint or working committees function as consultative entities. Talking about things like lighting, ventilation, temperature, and sanitation at work, as well as providing amenities like drinking water, canteens, medical services, safe working conditions, welfare fund administration, recreational and educational opportunities, and promoting frugal living are some of their duties.

The works committee will have the responsibility of advocating for policies that will ensure and maintain goodwill and harmony between employers and employees. It will also be responsible for making comments on issues that are of mutual interest or concern and working to resolve any significant differences in viewpoint on these issues.

Structure:

The offices of the works committees are held by a President, a Vice-President, a Secretary, and a Joint Secretary. The employer chooses the President, while the Workers’ representative is the Vice President. These bodies have two-year terms of office. These bodies should not be stronger than twenty overall. The workers are the ones who have to choose their representatives.

Several companies, like Hindustan Lever, Indian Aluminium Works at Belur, and Tata Iron and Steel Company, had these committees operating on a regular basis. Independent of the legal obligations, the managements in each of them have established joint committees.

Joint Management Councils, or JMCs (II):

The establishment of joint councils of management, made up of members from management and labour, was advised by the Second Five Year Plan. In order to research worker engagement in management programmes in nations including the United Kingdom, France, Belgium, and Yugoslavia, the Government of India sent a study delegation in 1957.

The Indian Labour Conference (ILC) evaluated the research group’s findings during its fifteenth session in 1957, and the group recommended the following:

(1) Employees’ involvement in management plans need to be optional and established in certain projects.

A subcommittee of representatives from the government, labour unions, and companies need to be established to deliberate on the specifics of employees’ involvement in management initiatives. This Committee should choose the projects for which employee engagement in management schemes will be first implemented on an experimental basis.

Objectives:

The following are the goals of Joint Management Councils:

I To foster friendly workplace relations by strengthening the bond between employers and employees;

(ii) Enhancing the workers’ operating efficiency;

(iii) To supply them with welfare amenities;

(iv) Training employees to ensure they are prepared to take part in these programmes; and

(v) To meet the psychological requirements of employees.

The Indian Labour Conference’s suggestions, which included specific standards for choosing which businesses would allow the introduction of JMCs, led to the formation of a tripartite subcommittee.

These are:

I The division has to employ 500 people or more;

(ii) It ought to possess an equitable history of labour relations;

(iii) A well-functioning trade union should exist there;

(iv) The establishment of JMCs should have the support of both management and employees.

(v) Private sector employers need to be members of the top employers’ association; and

(vi) Trade unions need to be a part of a Central federation.

The subcommittee noted that even if these requirements are not satisfied, JMCs may be established if employers and employees jointly agree to do so.

The subcommittee also offered suggestions on their makeup, the process for designating labour union representatives, JMC membership, etc. It is up to the parties to negotiate the specifics of these matters. Regarding the creation of JMCs, a draught model was created. Subsequently, the subcommittee was reorganised as the “Committee on Labour-Management Co-operation” to provide guidance on all issues related to the Scheme.

Selection Criteria for Units in the Establishment of JMCS:

The fifteenth Indian Labour Conference subcommittee established the following criteria for choosing the 48 units that will be introduced under the joint management council scheme:

Cotton and jute textiles, engineering, chemicals, tobacco, paper, cement, mining, and plantations were the private sector businesses that were chosen.

Industries in the public sector included mining, printing, electrical work, ports, shipyards, railroad workshops and yards, mails and telegraphs, and transportation workshops.

I A robust, well-established trade union should operate inside the project.

(ii) The parties involved—employers and workers’ union—should be willing to experiment in a spirit of cooperative experimentation.

(iii) The project should need a minimum of 500 personnel.

(iv) In a private enterprise, the employer ought to be affiliated with a top employers’ organisation, and the trade union should have ties to one of the major federations.

(v) The business need to have a decent history of handling labour relations.

Functions:

Among JMCs’ crucial roles are the following ones:

I To be consulted on issues such as reductions in operations, rationalisation, retrenchment, closure, and standing orders.

(ii) To learn, to talk, and to make recommendations.

(iii) Taking on administrative duties such as funding incentives, working hours, training programmes, welfare and safety measures, and training plans.

Workers’ Engagement in the 1975 Management Scheme:

The Indian government, in keeping with its 20-point economic agenda, unveiled on October 30, 1975, a system for workers’ engagement in management that included the formation of Shop Councils and Joint Councils. In the industrial and mining sectors, when 500 or more people are employed by public, private, or cooperative sectors, the plan calls for the formation of joint councils and shop councils.

In terms of output, productivity, absenteeism, safety protocols, general discipline, working conditions and welfare, and overall departmental efficiency, the plan called for worker involvement in decision-making.

The following are key components of this new scheme:

(1) All Joint Council and Shop Council decisions must be made by “consensus and not by process of voting.”

(2) Like JMCs, it is non-statutory and has a distinct purpose for these councils.

(3) “Time-bound implementation and consensus” are the instruments used to make judgments. The plan therefore attempts to reduce the likelihood of direct intervention by other parties. The choices must be put into action within a month.

(4) The plan allows employees to participate at the shop floor level; apart from that, the structure is essentially the same as WCs. as well as JMCs.

(5) It enables information sharing and two-way contact between the workers and management.

(6) The scheme’s name has changed from “participation of workers in management” to “participation of workers in industry,” which has helped employees accept it more readily since the latter term is more likely to allay some of their concerns and worries about the former.

(7) The plan addresses the three main goals of the reform of industrial democracy, which are the restoration of individual human rights at work, the strengthening of social and political freedom (including the ability to join a union of one’s choosing without coercion), and the development of a new industrial structure that is economically viable for the nation.

Joint Councils (III):

The joint councils represent the whole unit, and only individuals who are actively involved in the organisation are eligible to serve on them. The combined councils are in office for a period of two years. The unit’s Chairman is the Chief Executive. The Vice Chairman is nominated by the council members who are workers. The Secretary is chosen by the joint council. The Secretary is in charge of carrying out the council’s duties.

The joint councils will convene once every four months, while the exact frequency of meetings varies throughout units; they might occur once a month, once every quarter, etc. Decisions made during joint council sessions are made by consensus, and management has one month to put the decisions into effect. The main branches of the federal and state governments carried out the plan. In 1976, the government expanded the councils’ authority.

Every industrial facility with 500 or more employees is required to establish a Joint Council that represents the whole facility.

The following might be the primary components of the Joint Council scheme:

I The joint council’s membership will only consist of those who are really involved in the unit.

(ii) The council will be in operation for a full year.

(iii) The joint council’s chairman will be the unit’s chief executive, and a vice-chairman will be chosen by the council’s worker members.

(iv) One of the council members will be chosen by the combined council to serve as its secretary. The premises of the business or organisation should offer the necessary facilities for the Secretary to carry out his or her duties in an effective manner.

(v) A council member selected to replace a casual vacancy during the midterm of the council will stay in office for the remainder of the council term. Otherwise, the council member’s tenure will be for two years beginning after it is constituted.

(vi) There must be a minimum of one quarterly meeting of the joint council.

(vii) Unless otherwise specified in the decision itself, all decisions made by the joint council must be implemented within a month and must be based on consensus rather than a vote procedure. They also have binding effect on employers and employees.

The Joint Council’s duties include:

The following topics should be addressed by the joint council:

I Maximum output, effectiveness, and fixation of machine and human productivity standards for the unit as a whole.

(ii) Shop council responsibilities that affect other shops or the unit as a whole.

(iii) Unresolved issues originating from shop councils.

(iv) The joint council will take up issues pertaining to the unit or the plant as a whole, including the respect of production objectives. More precisely, tasks allocated to a shop council at the shop/department levels that are pertinent to the unit as a whole will be addressed.

(v) The improvement of workers’ abilities and the provision of suitable training facilities.

(vi) Giving out prizes for insightful and original proposals that employees submit.

(vii) The creation of holiday and working law schedules.

(viii) The best possible utilisation of raw resources and the calibre of final goods.

(ix) General safety, welfare, and health precautions for the plant unit.

Shop Councils (IV):

Every department or shop within a unit is represented by the shop council. There will be an equal number of employer and worker representatives on each shop council. The management will designate the employers’ representatives, who have to be members of the relevant unit.

The employee representative will come from inside the department or store in question. The employers may choose, after consulting with the recognised union, how many representatives each council will have. But in general, there shouldn’t be more than twelve members.

Consensus should be used rather than voting when making decisions in the shop council. The choices must be implemented by management within a month. The shop council is in office for a two-year term. Shop council members get together at least once a month. The Chairman is nominated by management at least once per month. The vice-chairman of the shop council is chosen by the members of the council, while management appoints the chairman.

The employer of an organisation decides how many shop councils to form after consulting with the organization’s recognised trade unions and employees. A shop council’s actions that affect another shop will be brought to joint council for review and approval.

Principal attributes:

The plan of Participative Management via Shop Councils has the following primary features:

I The employer must form a Shop Council for each department or shop, or one council for several departments or shops, depending on the number of workers employed in various departments or shops, in any industrial unit with 500 or more workers.

(ii) (a) The number of employers’ and employees’ representatives in each council should be equal.

(a) The management must designate the employer’s representatives, who must be members of the relevant unit.

(c) Every worker representative must come from among the employees who are really employed in the relevant department of the shop.

(iii) The number of shop councils and departments to be attached to each council of the undertaking or establishment shall be determined by the employer in consultation with the recognised union, the various registered trade unions, or the workers, as the case may be, in a manner best suited to local conditions.

(iv) The employer may, in cooperation with the recognised union, registered unions, or employees, select the number of members of each council in a way that best suits the local circumstances existing in the unit; in general, the total number of members may not exceed

(v) A shop council may send unresolved issues to the joint council for consideration, but all decisions must be made by agreement rather than via a vote procedure.

(vi) Unless otherwise specified in the decision itself, all shop council decisions must be carried out by the relevant parties within a month, and the council must receive a compliance report from the parties.

(vii) A shop council’s decision that affects another shop or the business as a whole will be brought before the joint council for review and approval.

(viii) A shop council has a two-year term of operation when it is established. Any member who is nominated or elected to the council in the middle of the term to cover a casual vacancy will remain on the council for the remaining part of the council’s tenure.

(ix) The council will convene as often as needed, but no less than once a month.

(x) The management will choose the shop council’s chairman, and the council’s worker members will choose a vice-chairman from among themselves.

The Shop Councils’ duties:

The following issues should be addressed by the shop councils in order to boost output, productivity, and general departmental efficiency:

I Support management in meeting production goals on a monthly or annual basis.

(ii) Increasing output, productivity, and efficiency, including getting rid of waste and making the best use of both labour and machine capacity.

(iii) Pay close attention to poor productivity regions and implement the appropriate shop-level remedial action to get rid of any relevant contributing elements.

(iv) Research absenteeism in the department and shop and provide recommendations for actions to reduce it.

(v) Safety precautions.

(vi) Help keep the shop or department generally disciplined.

(vii) Workplace physical circumstances, including lessening of tiredness and illumination, ventilation, noise, dust, etc.

(viii) Welfare measures that should be implemented to ensure the department or store runs well.

(ix) Ensure that there is appropriate, two-way communication between the workers and management, especially about production schedules and the status of reaching goals.

Unit Councils (V):

A new programme of workers’ involvement in management in commercial and service organisations in the public sector, with large-scale public transactions, was introduced on January 5, 1977, inspired by the success of the programme in manufacturing and mining units. Unit Councils were to be established in units with at least 100 employees, according to the scheme.

Hotels, restaurants, hospitals, air, sea, train, and road transport services, ports and docks, ration shops, schools, research institutes, trust companies, municipal and milk distribution services, banks, insurance companies, post offices, telegraph offices, Food Corporation, State Electricity Boards, Central Warehousing, State Warehousing Corporations, State Trading Corporation, Mines and Minerals Trading Corporation, irrigation systems, tourist organisations, establishments for public amusement, and Central and State Government training organisations are among the organisations.

Unit level councils are provided for under the plan. These councils are tasked with improving operational procedures and getting rid of things that complicate things.

The councils’ primary responsibilities include setting up the framework for optimal efficiency, improving customer service in situations where employees at the operational level have direct and instantaneous contact with customers, increasing productivity, getting rid of corruption and theft, and establishing rewards for individuals who have demonstrated their ability in these areas.

Principal Elements of the New Plan:

The following would be the primary characteristics of the plan for employee engagement via unit level councils:

I In order to discuss daily issues and find solutions, a unit-level council made up of the organization’s employees and management may be formed generally in each unit that employs 100 or more people. However, when necessary, a composite council may be formed to serve multiple units, or a department-specific council may be formed to meet the specific needs of an organisation or service.

(ii) An equal number of management and employee representatives must sit on each unit council. Though their overall number may not exceed, the management should decide the actual number of members after consulting with the recognised union, registered unions, or the workers in a way that best suits the local circumstances existing in a unit or organisation.

Nominees should be qualified and seasoned employees from a range of departments, regardless of their rank, affiliation, or status; trade union officials who may not be employed by the unit should not be considered.

(iii) Members of the relevant unit shall be nominated by the management to serve as its representatives.

(iv) The management will make the decision in the way that best suits the circumstances in the area after consulting with the recognised union, the registered unions, or the workers, as the case may be.

The quantity of unit councils and departments that will be affiliated with every council inside the organisation or service.

(v) A unit council may send unresolved issues to the joint council for consideration, but all decisions must be made by agreement rather than via a vote procedure.

(vi) Unless otherwise specified in the decision itself, all decisions made by a unit council must be carried out by the relevant parties within a month.

(vii) The management will set up a proper system for taking minutes of the meetings and keeping them up to date. One of its representatives will be designated as the secretary for this reason, and they will also report back on the decisions made at the next council meeting.

(viii) The joint council will be consulted before making any decisions about unit council decisions that impact the organisation or service as a whole.

(ix) A unit council has a two-year term of operation when it is created. Any member who is nominated or elected to the council in the middle of the term to cover a casual vacancy will remain on the council for the remaining part of the council’s tenure.

(x) The council will convene as often as needed, but no less than once a month.

(xi) The management will appoint the chairman of the council. The council’s working members will choose a vice chairman from among themselves.

Principal Tasks:

The Unit Councils’ primary responsibilities might be:

I To establish the conditions necessary to achieve maximum efficiency, improved customer service in situations where operational staff members and consumers interact directly and immediately, increased productivity and output, including the removal of waste and idle time, and optimal manpower utilisation through collaborative efforts to improve the work system.

(ii) To pinpoint areas where services are consistently poor, insufficient, or subpar and to implement the required corrective actions to get rid of the contributing reasons in order to develop better operating procedures.

(iii) Research absenteeism and provide suggestions for mitigating it.

(iv) To put an end to corruption in all its manifestations, including theft, and to establish a rewards system to that end.

(v) The recommendations for enhancing the physical workspace, including lighting, ventilation, noise levels, dust, and cleanliness; interior design; and the arrangement of customer service areas, among other things.

(vi) To guarantee that there is a sufficient flow of two-way communication between the management and employees, especially about issues pertaining to the services to be provided, the establishment of output objectives, and the status of reaching these targets.

(vii) To suggest and enhance welfare, health, and safety measures for the effective operation of the unit.

(viii) To talk about any additional issues that could affect how well the device performs in order to provide better customer care.

Participation at the Board Level:

Employee engagement on boards of directors is offered by a number of organisations. Workers choose a representative to serve on the boards. The Indian government unveiled a plan to appoint employee representatives as board directors.

As a result, some public sector organisations nominated representatives of their workers to serve on their boards. While management expressed worries about the scheme’s viability, employees applauded the move.

The idea of employee engagement at the board level was also implemented by a number of international corporations. When the employee representatives get management and board function training, this system will have served its goal.

Causes of the Slow Growth:

Numerous explanations have been offered for the scheme’s poor performance and delayed advancement.

Among them are:

I The indifference and even animosity between employers and employees; the former saw joint management committees (JMCs) and works committees as a replacement for trade unions, while the latter saw them as competitors.

(ii) A failure on the part of employers and workers to fully comprehend the idea, goals, and advantages of the programme

(iii) Forward-thinking employers, who have a history of fostering a positive dialogue and consultation process with their staff, believe the bodies are unnecessary.

(iv) Through their representatives, employees take part in management in an indirect way. As a result, their innate skills and talents have not been fully used;

(v) The creation of many joint groups, such as safety committees, canteen committees, joint management councils, works committees, and proposal committees, has resulted in time and energy waste, confusion, and duplication of effort;

(vi) The scheme’s operation has been slightly complicated by the lack of a strong trade union or the presence of many trade unions and inter-union competition;

(vii) The workers’ representatives on these organisations do not possess the necessary education or training in human relations, cooperation, or participation;

(viii) Despite their support for the national conference and committee meetings, the representatives of the central organisations have not shown enough enthusiasm to enthuse their affiliates about the plan. Joint management councils cannot be expected to perform well in an enterprise where employee-employer relations are not amicable and where there are no provisions for works committees, a grievance redressal system, or a procedure for the recognition of a trade union;

(ix) When the recommendations and ideas made by these bodies are not implemented promptly, workers’ interest in them tends to wane;

(x) The establishment of the joint management councils occurred without first fostering an environment that would guarantee mutual trust and respect for each party’s rights.

Level

(1) Educational Engagement:

In the early stages, members often engage in informational and associative involvement, which gives them the ability to learn about and express their opinions on issues of broad economic significance.

(2) Consultative Engagement:

The next stage is consultative involvement, when participants discuss issues impacting their well-being with management. There is more viewpoint exchange involved. However, the management is free to decide whether or not to take the opinions and recommendations of the staff members.

(3) Involvement of the Administration:

Administrative involvement is the next step up, offering a larger degree of power and responsibility in the management activities.

(4) Involvement in Decision Making:

When employees are allowed to participate in decision-making processes, it reaches the pinnacle of involvement. As the name implies, there is maximum delegation of authority and full decision-making power at this level.

It is crucial to remember that involvement in management is often understood to include broad consultation on issues pertaining to employee welfare, safety, etc. and nothing more. The management has the last say on matters.

Individual complaints are thus excluded from the purview of the workers’ participation programmes worldwide, since all other concerns like as pay, bonuses, and so forth are the topic of collective bargaining..