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7/29/2019 Participation of Workers in Management Bill,1990- Manvi
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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
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REASONS OF THE BILL
Absence of central law on the subject
The non-statutory schemes have not provided an effectiveframework for a meaningful participation of workers at all levels
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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
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Provide forformulation of one or more schemes to specifydetailed criteria
Manner of representation of workers on the board ofmanagement
Nomination of representativeness of employees on the shopfloor 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 andindustrial establishment councils and conducting theirbusiness
Provide forrules to specify
the power an Inspector may exercise
the number of members on the Monitoring Committee andthe manner in which they shall be chosen
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MAIN PROVISIONS OF THE BILL
THREETIERSYSTEM
EstablishmentCouncil
Representation on theBoard of Management
Shop floorcouncil
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SHOP FLOOR COUNCIL
The Bill provides for the constitution of Shop-floor Council in everyestablishment in accordance with the rules made by theCentral Government
COMPOSITION
Equal number of representativeness of employers and workmen
Determination of number of members by the government aftertaking into account :
1.Total number of workmen in the shop floor
2. Total number of employers representativeness in the shopfloor
3. The number of levels of authority in the shop floor
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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
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REPRESENTATIONONTHE BOARDOF
MANAGEMENT
The Bill provides for the representation of workmen and other
workers on the board of management ofevery corporate body
owning an industrial establishment
Workmen Other workers
Representatives on the
board of management 13% 12%
Election
Secret Ballot
or
Nomination by
registered trade unions
Secret Ballot
or
Manner laid down in
the scheme
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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
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OTHER PROVISIONS
Constitution ofMonitoring 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
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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 underlabour relations legislation
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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
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WAYFORWARD-
Serious attention needs to be given to the removal of hurdles
for the successful implementation of the institutions ofworkers
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.