Mg204 WR Industrial Democracy

  1. Industrial Democracy? What?
    • An arrangement which involves workers;
    •  making decisions,
    •  sharing responsibilities and
    •  authority in the workplace
    • ID includes decision making structures
    •  Formation of committees and consultative bodies to facilitate communication between management, unions, and staff
  2. Continuation.. WD
    • WD is the application of democracy in all its forms (including voting systems, debates, democratic structuring, due process, adversarial process, systems of appeal, and so on) to the workplaces.
    •  Involves or requires more use of lateral methods like arbitration or tribunal or court when workplace disputes arise etc.
  3. Industrial democracy.. workers?
    Workers are involved (in some way) with decision-making in organizations.
  4. What is Employee Involvement - Model?
    • Creating an environment where workers have an impact on decisions & actions that affect their jobs
    • Methods such as;
    •  Suggestion systems,
    •  Work teams,
    •  Continuous improvement meetings and or events,
    •  Corrective action processes, and
    •  Periodic discussions with the supervisor… etc…
  5. What is Trade union - Model?
    • An organization of workers banded together to achieve common goals
    • The immediate objectives and activities of trade unions vary & may include:
    •  Provision of benefits to members
    •  Collective bargaining (centralize/decentralize)
    •  Industrial action
    •  Political activity… etc…
  6. what is Quasi-Employee-Managed Firm Model (Japanese)?
    • Implies a type of participatory management  Productive enterprise whose ultimate decision making rights held by member-workers on equal basis, regardless of;
    •  jobs
    •  Skill grades
    •  Capital contribution
    •  Directors promoted from Snr. Mngrs frm ‘rank-and-file employees’ (promoted within due to ‘life-longemployment)
  7. What is Co-determination – Model (German)
    A practice where employees have a role in management of a company

     In large companies usually form special bodies - works councils and in smaller companies elect worker reps.

     These act as intermediaries in exercising the workers rights of being informed or consulted on decisions concerning employee status and rights.

     They also elect or select worker reps in managerial and supervisory organs of companies.
  8. What is L-MCC?
    The new arrangement of relationship in an organization where a committee comprising of employer and worker members in unison (bipartite) to create an enabling environment for the achievement of goals and the nurturing of future relationships through the concept of ‘good faith’ and the promotion of productivity.
  9. Legislative Base
     ‘ERP’ Section 9(1)(d) – ERAB to advise the Minister on the process of LMCC

     ‘ERP’ Section 9(3) – ERAB “To facilitate and implement the process under subsection (1)(d), any employer employing more than 20 workers must establish a LMCC to practice the principles set out in Schedule 1 and any other principles as prescribed,

    provided that if any such committee is in existence such committee may continue to practice such principles and perform such functions”

     ‘ERP’ Section 9(4) - ERAB to appoint a Sub-committee (tripartite) to oversee and monitor work of LMCC
  10. what are the ways of LMCC to work towards achieving these objectives:
    To exchange views and make decisions on matters of mutualinterest such as productivity improvement, training andeducation;

     To design and mutually agree on goals, responsibilities,organizational structures, training, communication systemsand sharing of productivity gains;

     To consider the development of awareness, induction andorientation programs to enable workers to understand thecorporate objectives;

    To explore different structures of labor managementconsultation mechanisms to meet the need of workers andemployers;

     To facilitate continuous exchange of information, includingbudget and financial data where appropriate;

     To create and maintain an enabling environment to foster thepromotion of good faith at all levels of the
  11. Purpose (Reg. 2)
     To create a bi-partite forum for meaningful consultation and cooperation between employer’s and workers’ representatives, at the enterprise or organization level.

     A forum where information can be exchanged and where views and advice on workplace issues obtained, with the dual aim to promote good faith employment relations and improve productivity
  12. Process to be based on..
    •  Honest & Open Commitment (both parties)
    •  Sharing of Information
    •  Listen to each others opinions
    •  Respect each others differences, observations, recommendations prior to decisions

    • LMCC – nurture good faith in ER at enterprise level & stabilize relations of social partners at all levels (industry, sectoral & national)
Card Set
Mg204 WR Industrial Democracy