Concept n It crystallizes the concept of industrial

Concept n It crystallizes the concept of industrial democracy. n n A system of communication & consultation by which employees contribute to Mgt decisions. Enhances employees’ ability to influence decision making process at different tiers of organizational hierarchy.

LEVELS OF PARTICIPATION n INFORMATIVE PARTICIPATION n CONSULTATIVE PARTICIPATION n ASSOCIATIVE PARTICIPATION n ADMINISTRATIVE PARTICIPATION n DECISIVE PARTICIPATION

Model form of Workers Participation 1. Apex Council a. Chief Executive of organization shall be Chairman. Vice Chairman shall be chosen by worker members of council. b. All decisions by consensus & not by voting. c. Main function to work for higher productivity & elimination of wastages, and improve customer service. d. Each organization to decide no. of councils in consultation with recognized Unions.

2. Plant Councils One plant Council for whole Unit. a. Plant/Unit Head shall be Chairman & Vice Chairman from among the workers. b. Every decision by consensus & not by voting & binding on both parties. c. Important Functions: i. Operational areas of plant ii. Economic & Financial areas iii. Personnel, Welfare, HR matters iv. Environmental Areas

3. Shop Councils a. Decisions on consensus & not on majority. b. Equal no. of representatives from both sides with total number confined to 12. c. Main Functions. i. Assist Mgt in achieving monthly targets ii. To improve production, productivity iii. Absenteeism, safety, general discipline, physical conditions & welfare measures

4. Workers’ representation on board of Mgt a. Representation of workers on board should be those actually working in the enterprise b. Limited to Company’s employing more than 1000 persons. c. Major function to review working of shop/ plant council & participate in all functions of the board.

Benefits of WPM n n n An instrument for improving efficiency & good IR A means of attaining industrial peace & harmony leading to higher productivity. A way to develop self management in industry.

Conditions for effective Working of Scheme n n n Work environment must be congenial to motivate workers to give whole hearted support. There must be total identity of approach by both parties Participation should be real & related to major strategies. There must be free flow of information between labour & Mgt. It must be complementary to collective bargaining process & based on trust & faith. ***

Indian Scene A. Sachar Committee Report (1977) Ø Ø Ø Limited to Companies which employ 1000 or more workers Participation at Board level to be introduced Workers Director must be from amongst the workers employed by Company. B. Varma Committee Report (1979) Ø Ø 3 tier system of participation viz shopfloor/ plant/ board level to be adopted. Law on coverage of all undertaking employing 500 or more workers including private sector

Indian Scene (contd. . ) C. Govt’s comprehensive scheme (1983) – for Central PSUs Ø To cover all PSUs Ø To operate at shopfloor & plant level Ø Employees & Employers shall have equal representation