PARTICIPATION OF WORKERS IN MANAGEMENT BILL,1990

Introduced in Rajya Sabha on 30 May 1990 First comprehensive legislative effort towards the promotion of workers participation in management in the country The bill could not be passed yet

REASONS OF THE BILL

Absence of central law on the subject The non-statutory schemes have not provided an effective framework for a meaningful participation of workers at all levels

OBJECTIVES OF THE BILL

The Bill, inter alia, intends to:

Provide for specific and meaningful participation of workers in management at 3 levels in industrial establishments: Shop floor Establishment Board of management Provide for the principle of secret ballot for determining the representation of workers on the shop floor and establishment councils and conducting their business

Provide for formulation of one or more schemes to specify detailed criteria

Manner of representation of workers on the board of management Nomination of representativeness of employees on the shop floor and establishment level councils Procedure to be followed in the discharge of the functions by a council The manner of filling the vacancies amongst the chairpersons and members in respect of shop floor and industrial establishment councils and conducting their business

Provide for rules to specify

the power an Inspector may exercise the number of members on the Monitoring Committee and the manner in which they shall be chosen

MAIN PROVISIONS OF THE BILL

THREE TIER SYSTEM

Shop floor council

Establishment Council

Representation on the Board of Management

SHOP FLOOR COUNCIL

The Bill provides for the constitution of Shop-floor Council in every establishment in accordance with the rules made by the Central Government

COMPOSITION

Equal number of representativeness of employers and workmen Determination of number of members by the government after taking into account : 1. Total number of workmen in the shop floor 2. Total number of employers representativeness in the shop floor 3. The number of levels of authority in the shop floor

ESTABLISHMENT COUNCIL

To be set up in every industrial undertaking at the establishment level

The provisions of the Bill relating to the composition, tenure, method of selection of members, etc are similar to those applicable to the Shop-floor councils

REPRESENTATION ON THE BOARD OF MANAGEMENT

The Bill provides for the representation of workmen and other workers on the board of management of every corporate body owning an industrial establishment

Workmen Representatives on the board of management Election 13% Secret Ballot or Nomination by registered trade unions

Other workers 12% Secret Ballot or Manner laid down in the scheme

Term of office of these representatives on the board= 3 years

The Board of Management is empowered to review the functioning of the Shop-floor and Establishment Councils

OTHER PROVISIONS

Constitution of Monitoring Committee

Purpose- reviewing and advising upon matters arising out of the administration of the Act and rules Nature of the committee Tripartite Representatives of government, employers and employees

Seeks to delete Section 3 of the Industrial Disputes Act,1947 which deals with the Works Committee The detailed schemes of participation to be framed by the central government but the rules can be made by both the central and state governments, in respect of establishments in their respective jurisdictions.

Provides for the appointment of Inspectors and specific penalties for violating the provisions of the Act

RECOMMENDATION OF THE SECOND NCL(2002) Recommended coverage of workers participation in management under labour relations legislation

HURDLES TO WOKRERS PARTICIPATION IN MANAGEMENT IN INDIA

Difficulty in the concept itself- The conflict of interests and goals bedevils the working of schemes Multiplicity of trade unions and factionalism Multiplicity of joint bodies leading to confusion and duplication of functions In spite of the general acceptance of the importance of these participative forums, schemes are considered an imposition from outside by the employers and trade union The idea does not appear to be the result of inner urge on the part of employers and workers. Lack of education and training wit regard to the content process, utility and other relevant aspects of participants are impediments

WAY FORWARD

Serious attention needs to be given to the removal of hurdles for the successful implementation of the institutions of workers participation in management
Efforts should be made to enthuse the management and worker at the local or enterprise level to understand the schemes and to derive concrete benefits from them The government efforts should be confined to giving guidelines and to remove the impediments in the way.