2. Meaning:-
The term “labour
management cooperation”
refers to the joint effort of
labour and capital to find
out solutions and remedies
of problems, common to
both.
3. Goals
As a mean of increasing
productivity.
As a mean of promoting
industrial democracy.
As a mean of avoiding conflict
and friction.
4. Argument for the owners’
absolute right to manage:
Risk and control go together
provides the most important
justification.
The maintenance and development
of industrial efficiency demands
that the manager should be able to
take quick decision in the ever
changing market condition.
5. (Cont…..)
It is said that management of
industrial enterprises today has
become a highly skilled and
techincal.
6. Argument against the owners’
absolute right to manage:
Workers & unions have argued that the
success & failure of a business
enterprise is too closely linked with their
own fate, to be left under the absolute
control of the owners. In the event of its
failure, the owner may lose his capital
only, which may or may not mean his
starvation, but the workers lose their
jobs, livelihood, experience & skill.
7. (Cont…..)
The right to manage an
industrial enterprise does not
imply the right to manage the
men also, whose cooperation is
essential for the success of an
enterprise.
8. Different Degrees and Forms of
Labour Management
Cooperation:
I. Information sharing
II. Problem sharing
III. Joint consultation
IV. Workers’ participation in
management
9. Schemes of workers’
participation in management
The main schemes are:-
• Works committee (1947).
• Joint management councils (1958)
• Board level participation (1970)
• Shop council and joint council under old
20- point programme (1975)
• Unit and joint councils in commercial
and service organizations in the public
10. (Cont…..)
Sector (1977).
• Joint Councils in government
services.
• Institution in some enterprises in
the private sector.
11. Works Committees(1947)
Section 3 of the Industrial Disputes
Act, 1947, states that, a Work
Committee is to consists of
representatives of the employer &
workmen engaged in the
establishment, so that the number
of workers’ representatives is not
less than the number of employer’s
representatives.
12. Composition:
The number of workers’
representatives is not less than
the number of employer’s
representatives.
13. Functions:
The list of items which the Work
Committees will normally deal with
include:
i. Conditions of work such as
ventilation, temperature, lighting etc.
ii. Amenities such as drinking
water, canteens, crèches, medical &
health services.
iii. Safety & accident
prevention, occupational disease &
protective equipment.
iv. Adjustment of festivals& national
14. (Cont…..)
v. Educational & Recreational activities
such as libraries, reading
rooms, sports, games, community
welfare & celebrations.
vi. Administration of welfare & fine funds.
vii. Promotion of thrift & savings.
viii. Implementation & review of decisions
arrived at meetings of work
committees.
15. The list of items which the Work
Committees will not normally deal with
include:
i. Wages & Allowances.
ii. Bonus & profit sharing schemes.
iii. Rationalization & matters connected with the
fixation of work load.
iv. Matters connected with retrenchment & lay-
off .
v. Matters connected with fixation of standard
labour force.
vi. Incentive schemes, housing & transport.
vii. Provident fund, gratuity schemes & retiral
benefits.
viii. Victimization of trade union activities.
ix. Quantum of leave & national festival holidays.
16. Working & Assessment:
According to the Ministry of
Labour, in 1999 the number of
Works Committees formed in
establishments under the central
sphere was 881 of 1287 required to
be setup under the act. The number
of workers covered was 8.7 lakhs
as against 13.5 lakhs required to be
covered. Even where setup, they
did not come up to the
expectations.
17. Joint Management
Council(1958)
While efforts were in progress to
activise the fading Works
Committees, the government started
looking for another non-statutory
forum where the employers & workers
could usefully deliberate on matters
of common interest. From the
deliberations of the seminars also
emerged a draft model agreement
relating to the establishment of JOINT
MANAGEMENT COUNCILS.
18. Objectives:
Promoting cordial relations between
management & workers.
Developing understanding & trust
between them.
Augmenting productivity
substantially.
Securing better welfare & other
facilities for workers.
Training them to understand & share
responsibilities of management.
19. Composition:
They are to consist of equal
number of representatives
of management &
employees not exceeding 12
in all, but not less than 6 in
small undertakings.
21. Working:
The 3rd 5 year plan expected a good
deal from these Councils &
considered workers’ participation in
management essential for “the
peaceful evolution of the economic
system on a democratic basis.” The
plan further hoped that such
participation would throw up, in
course of time, “management cadres
out of the working class itself”, &
would help “to promote social
mobility which is an important
ingredient of a socialist system.”
22. Broad level
Participation(1970)
The GOI introduced a scheme of
workers’ representatives on the
Board of Directors of selected
public sector enterprises, &
nationalized banks. It was soon
realized that participation only at
top level was not enough for an
effective system of participative
management.
23. Workers Participation under
old 20-point programme
(1975)
GOI framed a scheme of “workers’
participation in industry at shop-floor
& plant levels”. It was stated “it is
only by providing for such
arrangements for workers’
participation particularly at the shop
floor & the unit level that the
involvement of the workers in the
effective functioning of the unit & in
improving production & productivity
can be ensured.”
24. The scheme provides for the establishment of shop
councils at the shop level & joint councils at the
enterprise level.
SHOP COUNCILS: The employer of every
industrial unit employing 500 or more workmen
is required to constitute a shop council for each
department, or one shop council for more than
one department keeping in view the number of
workers employed in different departments or
shops.
JOINT COUNCILS: It is to operate for the
industrial unit as a whole. Its
composition, period of operation & decision
making process are similar to those applicable
to a shop council. The chairman is to be the
chief executive of the unit. One member is to
be appointed as a secretary. It is to meet at
25. Unit councils & joint councils in
commercial & service organization in
public sector(1977)
The basic objective of the scheme
was to devise “a system whereby
mutual trust & confidence are created
between the workers & the
management which would help
promote active involvement of the
workers in the work process. The
scheme was applied to the lowest
units of commercial organizations in
the public sector, employing 100 or
more persons.
26. Unit Councils:
It was to be setup in each unit of the organization
employing 100 or more persons to discuss day to
day problems & find solutions.
Functions:
To create conditions for achieving optimum
efficiency, better customer services in areas where
there is direct & immediate contact between the
workers at operational level’ & output including
elimination of wastage & idle time & optimum
utilization of manpower by joint involvement in
improving work system.
To study absenteeism & recommended steps to
reduce it.
To maintain discipline in the unit.
To eliminate pilferage & all forms of corruption & to
institute a system of rewards for this purpose.
27. Joint Councils
It was to be formed at every regional zonal level or
in a particular branch of an organization if
considered necessary.
Functions:
Settlement of matters which remained
unresolved by the unit councils & arranging
joint meetings of two or more unit
councils, for resolving inter-council problems.
Improvement in the general work conditions.
Preparation of schedule of working hours &
holidays.
Development of skills of workmen & adequate
facilities of training.
Unit level matters which have a bearing on the
other branches or on the enterprise as a whole.
