INDUSTRIAL DEMOCRACY

It is said that, in democracy, the Government is by the people, of the people and
for the people. Similarly, industrial democracy means that management in industrial
units is by the people ,of the people and for the people. The objectives of industrial
democracy are:

(1) To create a sense of belongingness of workers to the organisation;

(2) To improve a sense of commitment to the organisational objectives; plans and
activities among employees;
(3) To satisfy the psychological needs of the employees and
(4) To respect the human dignity of employees.

The requirements of industrial democracy include:

a. All employees should be treated as human beings and as equal partners. There
should not be any discrimination based on caste, colour, sex, religious, ethnic
groups etc.
b. Freedom should be provided to all employees in their daily life and in their
contributions.
c. The members should have the freedom to select their leader.
d. All employees should be treated as human beings and as equal partners. There should
not be any discrimination based on caste, colour, sex, religious, ethnic groups etc.
e. Freedom should be provided to all employees in their daily life and in their
contributions.
f. The members should have the freedom to select their leader.
The advantages of industrial democracy are:
(i) There would be full co-operation of employees for the implementation of decisions
as they participate n decision-making;
(ii) Industrial harmony can be maintained as the employees feel the sense of
belongingness and
(iii) Productivity can be increased.
WORKER’S PARTICIPATION IN MANAGEMENT (WPM)
Participate management is also referred to as workers’ participation in management.
The concept of workers participation in management (WPM) is the mechanism where workers
have a role in the decision-making process of an enterprise formally. The concept of quality
circles (QC) provides informal involvement of employees in the decision-making and
implementation process.
The concept of workers’ participation in management indicates an attempt on the part
of an employer to bring his employees into their team which work towards the realisation of a
common objective. It is the practical application of industrial democracy.
According to Davis, “It is a mental and emotional involvement of a person in a group
situation which encourages him to contribute to goals and share responsibilities in them.”
Objectives of Worker’s Participation in Management
The main objectives of Workers’ Participation in management include:
(i) To promote increased productivity for the advantage of the organisation, workers and
society at large;
(ii) To provide a better understanding to employees about their role and place in the process
of attainment of organisational goals;
(iii) To satisfy the workers’ social and esteem needs;
(iv) To strengthen labour-management co-operation and thus maintaining industrial peace
and harmony;
(v) To develop social education for effective co-operation between the working
community and for making use of the latent human resources;
(vi) An instrument for improving efficiency of the company and establishing harmonious
industrial relations;
(vii) To build the most dynamic human resources and
(viii) To build the nation through entrepreneurship and economic development.
Forms of WPM
Forms of Worker’s Participation in Management are:
(i) Works Committee;
(ii) Joint Management Councils;
(iii) Joint Councils and
(iv) Shop Councils.

(i) Work Committees: The Industrial Disputes Act, 1949, provides for the setting
up of work committees as a scheme of workers’ participation in management which
consists of representatives of employers and employees. The aim of setting up of these
bodies is to promote measures for maintaining harmonious relations in the workplace and
is sort out differences of opinion in respect of matters of common interest to employers and
employees
(ii) Joint Management Councils (JMCs): The Second Five Year Plan
recommended the setting up of joint councils of management consisting of representatives
of workers and the management. The objectives of Joint Management Councils are as
follows:
(i) To increase the association of employers and employee there by promoting cordial
industrial relations;
(ii) To improve the operational efficiency of the workers;
(iii) To provide welfare facilities to them;
(iv) To educate workers so that they are well equipped to participate in these schemes
and
(v) To satisfy the psychological needs of workers.

(iii) Joint Councils: The joint councils are for the whole unit and its membership
remains confined to those who are actually engaged in the organisation. The tenure of the
joint councils is for two years. The Chief Executive of the unit becomes its Chairman.
Workers’ members of the council nominate the Vice-Chairman. The joint council appoints
the Secretary who is responsible for discharging the functions of the council.

(iv) Shop Councils: The shop council represents each department or a shop in a unit.
Each shop council will consist of an equal number of representatives of employers and
workers. The employers’ representatives will be nominated by the management and must
consist of persons from within the unit concerned.
Reasons for the Limited Success of Workers’ Participation in Management
(i) The inherent conflicts between employees and management;
(ii) The general belief that the workers are inferior to management;
(iii) The fact that the system is management dominated and
(iv) The view that managers do not like to share responsibility.
Suggestions for the Success of Workers’ Participation in Management
1. There should be mutual trust and faith among all the parties concerned.
2. There should be progressive management in the enterprise and should recognise its
obligations and responsibilities towards workers and trade unions.
3. There should be strong, democratic and representative unions which should represent
the cause of workers without neglecting the management’s interest.
4. There should be closely and mutually formulated objectives for participation by trade
unions and the management.
5. All parties concerned towards participative management should feel that they should
participate at all levels.
6. There should be effective communication between workers and management and
effective consultation of the workers by the management.
7. Both the parties should develop a favourable attitude towards the schemes of
participative management.
8. Management and Government should provide training to all the parties concerned to
prepare them for participative management.
9. Both the parties of anticipative management should be conscious of the benefits of the
schemes.
COLLECTIVE BARGAINNING
Collective bargaining is a method by which trade unions protect and improve the
conditions of their member’s working lives. It is a process of discussion and negotiation
between two parties one or both of whom is a group of persons acting in consent. The result
will be an understanding as to the terms and conditions under which a continuing service is to
be performed. More specifically, collective bargaining is a process of resolving the differences
between union and the management, through mutual discussions and negotiations.
CHARACTERISTICS OF COLLECTIVE BARGAINING
The main characteristics of collective bargaining are:

• It is a group action and is initiated through the representatives of workers

• It is flexible and mobile, and not fixed or static
• It is a two – party process
• It is a continuous process
• It is dynamic and not static
• It is industrial democracy at work.
• It is essentially a complementary process, i.e.: Each party needs something that the
other party has, namely, labour can make a greater productive effort and management
has the capacity to pay for that effort and to organize and guide it for achieving its
objectives
• It is an art, an advanced form of human relations
IMPORTANCE OF COLLECTIVE BARGAINING
➢ Establish uniform conditions of employment with a view to avoiding industrial disputes
and maintaining stable peace in the industry;
 ➢ Secure a prompt and fair redressal of grievances;
➢ Avoid interruptions in work which follow strikes, go – slow tactics and similar coercive
activities
➢ Lay down fair rates of wages and norms of working conditions
➢ Promote the stability and prosperity of the industry;
➢ It provides a method for the regulation of the conditions of employment of those who
are directly concerned about them;
➢ It provides a solution to the problem of sickness in the industry, and ensure old age
pension benefits and other fringe benefits.
CONDITIONS FOR THE SUCCESS OF COLLECTIVE BARGAINNING
✓ The willing acceptance by the management to recognize representative union for
collective bargaining.
✓ Both the parties must have mutual confidence, good faith and a desire to make
collective bargaining machinery a success.
✓ Management should not await the union to raise problems but should make every
reasonable effort to prevent them from arising and to remove them promptly when they
arise.
✓ An emphasis upon a problem – solving approach.
✓ Solve the issues in the same meeting.
✓ Desire of the management to settle the issues to the satisfaction of employees..
✓ The process of bargaining should be free from unfair practices.
✓ The attitude of the parties involved should be positive. Both the parties should reach
the negotiating table with an intention to find better solutions.
✓ The parties involved in collective bargaining should be prepared to give away
something in order to gain something.
✓ Both the parties to collective bargaining should observe and follow the terms and
conditions of previous agreements that are reached.
✓ Unions must understand the economic implications of collective bargaining and realise
that union demands must be met from the income and resources of the organization.
✓ Both the parties should represent the rights and responsibilities of each other
FUNCTIONS OF COLLECTIVE BARGAINING
(i) Increase the economic strength of employees and management.
(ii) Establish uniform conditions of employment.
(iii) Secure a prompt and fair redressal of grievances.
(iv) Lay down fair rates of wages and other norms of working conditions.
(v) Achieve an efficient functioning of the organization.
(vi) Promote the stability and prosperity of the company.
(vii) It provides a method of the regulation of the conditions of employment of those
who are directly concerned about them.
(viii ) It is a vehicle of industrial peace, and it extends the democratic principle from the
political field to the industrial field.
POCESS OF COLLECTIVE BARGAINING
1. Preparing for negotiation
2. Identifying the bargaining issue
3. Negotiating
4. Settlement and contract agreement
5. Administration of the agreement or contract administration