Advantages of δ 18 O-CO

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Unit 16 Industrial Democracy

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they are part of the organization. The need for industrial democracy arises from the feelings of the workers that non-participation in organization decision making was contributory to their marginalization, exploitation and deprivation in the work place.

The efforts of trade union made it possible for employers to accept the idea that workers be allowed to take part in decision making in organizations.(see Anugwom, 2007).

3.2 Mechanism for Achieving Industrial Democracy Joint Consultation Mechanism

This according to Clegg (1979) is a half house between joint regulation and employer or managerial regulation. It involve managers discussing issues with the representative of workers, setting out their problems and proposals and listening to what the representatives have to say, but then retaining the final responsibility for making decision on the issue. This mechanism is just consultative and so does not give workers enough room and power for influencing issues.

Collective Bargaining Mechanism

According to Uchendu (1998), Collective bargaining is a mechanism whereby union and management are brought together in an interactive process and each is given an opportunity to contribute to the determination of matters which are mutually important to the parties and for the survival of the enterprise.

It gives both management and workers the opportunity to discuss issues and take joint decisions. This is a higher level of workers participation than the join consultative mechanism.

Work Council Mechanism

This is a committee made up of management and workers representatives that have certain functions in the governance of a workplace. It gives chance for cooperation between workers and management on matter affecting the organization. This mechanism exists in Germany as a unique characteristic of its industrial relations system. It is a higher level of industrial democracy than collective bargaining. It bestows on the parties some powers such as:

a. The right to be informed on certain issues b. The right to be consulted on some other issues.

c. The right to investigate matters on its own initiative.

Co-determination Mechanism

It involves the appointment of workers representative to the board of directors of companies. It is also a unique feature of industrial relation system in Germany. Here, worker’s representatives are appointed into supervisory boards and also management boards that make or take the day- to- day decision in the organization. This is one of the highest levels in the practice of industrial relations.

3.3 Methods of Rule Making in Industrial Relations:

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It will be recalled that one of the common definition of industrial relations from the pluralist perspective is that it is concerned with rules governing employment together with the ways to which the rules are made and changed, interpreted and administered.

This definition, underscores the importance of rules in the work place. Rules may take the form of contract or agreement between labour and management. There are two major types of rules namely:

a. Substantive rules and (b) procedural rules:

Substantive rule is concerned with the terms and conditions of employment i.e issues of direct and major importance in labour management relations. It covers issues relating to

a. Wages and salaries, including incentive schemes.

b. Hours of work, over time with its rate of pay, shift work with its rate of pay.

c. Annual leave and allowance and d. Sick leave and pay

It also covers issues like Job security, improvement of physical conditions of work, promotion, discipline, transfers etc.

Procedural rule is primarily concerned with the principles which regulate the relationship between management and union. They are those rules that settle the ways in which the substantive rules are made, applied, challenged, changed and interpreted.

They include membership in negotiation, quorum, duration of agreement, effective date, etc.

Rules generally can be made jointly by labour and management. It can also be made together with the government as well as unilaterally by any of these three. The most commonly recognized method is through the joint process. Whichever way is used, the following are among the different ways of rule making as identified by Clegg (1979)

a. Collective Bargaining Method: This involves a joint process in which two or all the three actors take part in making the rules. It is perhaps the most generally accepted method of rule making.

b. Statutory Method: This refers to rules made by the relevant state government agencies in industrial relations. It could be through labour policies, industrial arbitration panel, etc. Statutory rules may be through a joint process or by unilateral process.

c. Employer Regulation Method: This is a situation where rules are made unilaterally by the employer. Such rules are handed down through circulars and guidelines. They usually emanate from issues regarded as managerial functions or matters of managerial prerogative.

d. Trade Union Regulation Method: These are rules made by trade unions to regulate the conduct and jobs of their members but which they can persuade management to accept and implement.

e. Rules through Customs and Practice: A regularized and accepted way of doing things may over a long time acquire the force of rule.

Self Assessment Test