Industrial democracy

Last updated

Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. While in participative management organizational designs workers are listened to and take part in the decision-making process, in organizations employing industrial democracy they also have the final decisive power, including in matters of organizational design and hierarchy. [1]

Contents

In company law, the term generally used is co-determination, following the German word Mitbestimmung. In Germany, companies with more than 2000 employees (or more than 1000 employees in the coal and steel industries) have half of their supervisory boards of directors (which elect management) elected by the shareholders and half by the workers.

Although industrial democracy generally refers to the organization model in which workplaces are run directly by the people who work in them in place of private or state ownership of the means of production, there are also representative forms of industrial democracy. Representative industrial democracy includes decision-making structures such as the formation of committees and consultative bodies to facilitate communication between management, unions, and staff.

Rationale

Advocates often point out that industrial democracy increases productivity and service delivery from a more fully engaged and happier workforce [ citation needed ]. Other benefits include less industrial dispute resulting from better communication in the workplace; improved and inclusive decision-making processes resulting in qualitatively better workplace decisions, decreased stress and increased well-being, an increase in job satisfaction, a reduction in absenteeism and an improved sense of fulfillment[ citation needed ]. Other authors regard industrial democracy as a consequence of citizenship rights[ citation needed ].

Works councils and workers' participation

At the point of production, the introduction of mandatory works councils and voluntary schemes of workers' participation (e.g. semi-autonomous groups) have a long tradition in European countries. [2]

Co-determination

In a number of European countries, employees of a business take part in election of company directors. In Germany, the law is known as the Mitbestimmungsgesetz of 1976. In Britain a 1977 proposal for a similar system was named the Bullock Report.

History

The anarchist thinker Pierre-Joseph Proudhon used the term "industrial democracy" in the 1850s to describe the vision of workplace democracy he had first raised in the 1840s with What is Property? Or, an Inquiry into the Principle of Right and of Government , (management "must be chosen from the workers by the workers themselves, and must fulfil the conditions of eligibility.") He repeated this call in later works like General Idea of the Revolution. [3]

In late nineteenth century, and at the beginning of the twentieth century, industrial democracy, along with anarcho-syndicalism and new unionism, represented one of the dominant themes in revolutionary socialism and played a prominent role in international labour movements. The term industrial democracy was also used by British socialist reformers Sidney and Beatrice Webb in their 1897 book Industrial Democracy . The Webbs used the term to refer to trade unions and the process of collective bargaining. [4]

While the influence of the movements promoting industrial democracy declined after the defeat of the anarchists in the Spanish Revolution in 1939, several unions and organizations advocating the arrangement continue to exist and are again on the rise internationally.[ citation needed ]

The Industrial Workers of the World advance an industrial unionism which would organize all the workers, regardless of skill, gender or race, into one big union divided into a series of departments corresponding to different industries. The industrial unions would be the embryonic form of future post-capitalist production. Once sufficiently organized, the industrial unions would overthrow capitalism by means of a general strike, and carry on production through worker run enterprises without bosses or the wage system. Anarcho-syndicalist unions, like the Confederación Nacional del Trabajo , are similar in their means and ends but organize workers into geographically based and federated syndicates rather than industrial unions.

The New Unionism Network also promotes workplace democracy as a means to linking production and economic democracy.

Representative industrial democracy

Modern industrial economies have adopted several aspects of industrial democracy to improve productivity and as reformist measures against industrial disputes. Often referred to as "teamworking", this form of industrial democracy has been practiced in Scandinavia, Germany, the Netherlands and the UK as well as in several Japanese companies such as Toyota, as an effective alternative to Taylorism [ citation needed ].

The term is often used synonymously with workplace democracy, in which the traditional master-servant model of employment gives way to a participative, power-sharing model.

See also

Notes

  1. ↑ Rayton, D. (1972). Shop Floor Democracy in Action. Nottingham: Russell Press.
  2. ↑ Joel Rogers/Wolfgang Streeck (eds.): Works Councils. Consultation, Representation, and Cooperation in Industrial Relations, The University of Chicago Press, Chicago-London 1995. - Thomas Sandberg; 'Work Organization and Autonomous Groups, LiberFörlag, Uppsala 1982.
  3. ↑ Property is Theft! A Pierre-Joseph Proudhon Anthology . Edinburgh/Oakland: AK Press. p. 610, p. 119, pp. 586-7
  4. ↑ Müller-Jentsch, Walther (December 16, 2007). "Industrial Democracy: Historical Development and Current Challenges". Management Revue. 19 (4): 260–273. doi: 10.5771/0935-9915-2008-4-260 . hdl: 10419/79001 .

Related Research Articles

A trade union or labor union, often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages and benefits, improving working conditions, improving safety standards, establishing complaint procedures, developing rules governing status of employees and protecting and increasing the bargaining power of workers.

<span class="mw-page-title-main">Syndicalism</span> Form of revolutionary organisation

Syndicalism is a revolutionary current within the labour movement that, through industrial unionism, seeks to unionize workers according to industry and advance their demands through strikes and other forms of direct action, with the eventual goal of gaining control over the means of production and the economy at large through social ownership.

Anarcho-syndicalism is an anarchist organisational model that centres trade unions as a vehicle for class conflict. Drawing from the theory of libertarian socialism and the practice of syndicalism, anarcho-syndicalism sees trade unions as both a means to achieve immediate improvements to working conditions and to build towards a social revolution in the form of a general strike, with the ultimate aim of abolishing the state and capitalism. Anarcho-syndicalists consider trade unions to be the prefiguration of a post-capitalist society and seek to use them in order to establish workers' control of production and distribution. An anti-political ideology, anarcho-syndicalism rejects political parties and participation in parliamentary politics, considering them to be a corrupting influence on the labour movement. In order to achieve their material and economic goals, anarcho-syndicalists instead practice direct action in the form of strike actions, boycotts and sabotage. Anarcho-syndicalists also attempt to build solidarity among the working class, in order to unite workers against the exploitation of labour and build workers' self-management.

Industrial relations or employment relations is the multidisciplinary academic field that studies the employment relationship; that is, the complex interrelations between employers and employees, labor/trade unions, employer organizations, and the state.

Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. A collective agreement reached by these negotiations functions as a labour contract between an employer and one or more unions, and typically establishes terms regarding wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. Such agreements can also include 'productivity bargaining' in which workers agree to changes to working practices in return for higher pay or greater job security.

A works council is a shop-floor organization representing workers that functions as a local/firm-level complement to trade unions but is independent of these at least in some countries. Works councils exist with different names in a variety of related forms in a number of European countries, including Great Britain ; Germany and Austria (Betriebsrat); Luxembourg ; the Netherlands and Flanders in Belgium (ondernemingsraad); Italy ; France ; Wallonia in Belgium, Spain and Denmark.

New unionism is a term used to describe moves to broaden the trade union agenda. It has been used twice in the history of the labor movement. Ben Tillett was a prominent leader of the London Dock strike of 1889. He formed the Dock, Wharf, Riverside and General Laborers' Union in 1889, which had support from skilled workers. Its 30,000 members won an advance in wages and working conditions.

Community unionism, also known as reciprocal unionism, refers to the formation of alliances between unions and non-labour groups in order to achieve common goals. These unions seek to organize the employed, unemployed, and underemployed. They press for change in the workplace and beyond, organizing around issues such as welfare reform, health care, jobs, housing, and immigration. Individual issues at work are seen as being a part of broader societal problems which they seek to address. Unlike trade unions, community union membership is not based on the workplace- it is based on common identities and issues. Alliances forged between unions and other groups may have a primary identity based on affiliations of religion, ethnic group, gender, disability, environmentalism, neighborhood residence, or sexuality.

Solidarity unionism is a model of labor organizing in which the workers themselves formulate strategy and take action against the company directly without mediation from government or paid union representatives. The term originated in a 1978 book Labor Law for the Rank and Filer by Staughton Lynd who described a model of organizing promoted in the early 20th century by the Industrial Workers of the World which eschews the formality and bureaucracy of government-recognized unions, which Lynd and co-author Daniel Gross refer to as "business unions."

A collective agreement, collective labour agreement (CLA) or collective bargaining agreement (CBA) is a written contract negotiated through collective bargaining for employees by one or more trade unions with the management of a company that regulates the terms and conditions of employees at work. This includes regulating the wages, benefits, and duties of the employees and the duties and responsibilities of the employer or employers and often includes rules for a dispute resolution process.

The Report of the committee of inquiry on industrial democracy (1977) Cmnd 6706, also the Bullock Report for short, was a report proposing for a form of worker participation or workers' control, chaired by Alan Bullock. The idea was seen by some as a way to solve the chronic industrial disputes and to enhance participation of employees in their workplace.

Industrial Democracy is a book written by British socialist reformers Sidney Webb and Beatrice Webb, concerning the organisation of trade unions and collective bargaining. The book introduced the term industrial democracy to the social sciences, which has since gained a different meaning in modern industrial relations.

<span class="mw-page-title-main">Workplace participation in the United Kingdom</span>

Workplace participation in the United Kingdom refers to the structures that people at work have to participate in the way their organisation is managed. UK labour and company law generally leaves this up to the management of the company, appointed by shareholders and banks, to determine, and in contrast to most European jurisdictions requires only a minimum participation practices. Workers have the right to,

<span class="mw-page-title-main">De Leonism</span> Marxist ideology

De Leonism, also known as Marxism-De Leonism, is a Marxist tendency developed by Curaçaoan-American trade union organizer and Marxist theoretician Daniel De Leon. De Leon was an early leader of the first American socialist political party, the Socialist Labor Party of America (SLP). De Leon introduced the concept of socialist industrial unionism.

Workers' control is participation in the management of factories and other commercial enterprises by the people who work there. It has been variously advocated by anarchists, socialists, communists, social democrats, distributists and Christian democrats, and has been combined with various socialist and mixed economy systems.

Workers' self-management, also referred to as labor management and organizational self-management, is a form of organizational management based on self-directed work processes on the part of an organization's workforce. Self-management is a defining characteristic of socialism, with proposals for self-management having appeared many times throughout the history of the socialist movement, advocated variously by democratic, libertarian and market socialists as well as anarchists and communists.

Socialist economics comprises the economic theories, practices and norms of hypothetical and existing socialist economic systems. A socialist economic system is characterized by social ownership and operation of the means of production that may take the form of autonomous cooperatives or direct public ownership wherein production is carried out directly for use rather than for profit. Socialist systems that utilize markets for allocating capital goods and factors of production among economic units are designated market socialism. When planning is utilized, the economic system is designated as a socialist planned economy. Non-market forms of socialism usually include a system of accounting based on calculation-in-kind to value resources and goods.

Workplace democracy is the application of democracy in various forms to the workplace, such as voting systems, debates, democratic structuring, due process, adversarial process, and systems of appeal. It can be implemented in a variety of ways, depending on the size, culture, and other variables of an organization.

The following outline is provided as an overview of and topical guide to socialism:

Worker representation on corporate boards of directors, also known as board-level employee representation (BLER), refers to the right of workers to vote for representatives on a board of directors in corporate law. In 2018, a majority of Organisation for Economic Co-operation and Development, and a majority of countries in the European Union, had some form of law guaranteeing the right of workers to vote for board representation. Together with a right to elect work councils, this is often called codetermination.

References

Articles
Books
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.