industrial democracy

the participation of employees in the decision-making of a work organization. The participation may be total or shared with owner and managerial interests. Moreover, the decision-making may concern the organization as a whole, or only sub-groups within it. The main types are workers’ self-management (e.g. the former Yugoslavia), producer cooperatives (e.g. Mondragon in the Basque province of Spain), and codetermination (e.g. Germany). At the shop-floor (i.e. sub-group) level, the creation of autonomous work groups and quality of working life programmes are examples of industrial democracy of a partial kind (Poole, 1986).

The general concept of industrial democracy has been much criticized by both pluralist and Marxist writers. The pluralist argument is that participation in management dilutes trade unions’ ability to represent their members effectively in collective bargaining (Clegg, 1960). The pluralist critique amounts to an alternative definition of industrial democracy based upon opposition (through collective bargaining) rather than participation (see also COUNTERVAILING POWER, PLURALISM).

The Marxist criticism is that it is not possible within a capitalist society to incrementally gain workers’ control through employee participation in business enterprises (Hyman, 1984).

Historically, industrial democracy has its roots in French syndicalism which influenced early socialist thinking and trade unionism in the US and UK in the early decades of the 20th century. In the UK, the movement transmuted into guild socialism in the inter-war years (Pribicevic, 1959) and reappeared as a force in the 1960s largely as a consequence of the agitation of the Institute of Workers’ Control (Coates and Topham, 1972). This group was active in supporting the establishment of cooperatives and worker directors on the boards of nationalized industries. In the UK, however, the biggest impetus towards implementing industrial democracy on a wide scale came in the 1970s, with the publication of the draft Fifth Directive of the EEC Commission in 1972. The British government's response was to set up the Bullock Committee of Inquiry on Industrial Democracy. This committee's principal recommendation was that workers should be represented, via trade union channels, on all companies employing over 2,000 workers. The proposals, however, were almost wholly ignored as none of the interested parties (government, employers, trade unions) found the recommendations palatable to them. In the 1980s there was (managerial) interest in participation on management's terms (i.e. quality circles) and in some extension of ownership through share schemes.

the participation of the workforce in the government of organizations. Various approaches to industrial democracy provide employees or their representatives with varying degrees of power to influence decision-making processes in their organization. All, however, involve the creation of institutions and mechanisms to permit transmission of employee interests and objectives into these processes.

Industrial democracy can take a number of forms:

workers' control, where the workforce is the sole source of authority within the organization, even though the organization might be actually owned by another (i.e. the state), and managers are required to operate to policy determined by the collectivity. This can be said to be direct form of democracy in that potentially all workers are deeply involved in the formulation of policy;
workers' cooperative, where the organization is actually owned by the employees, and where the management (selected by and possibly from the workforce) acts in accordance with policies formulated by or sanctioned by the workforce. See WORKERS' COOPERATIVE;
worker directors, who are representatives of the workforce who sit on the BOARD OF DIRECTORS and are involved in determining broad company policy. In contrast to other forms of industrial democracy it is not anticipated that worker representatives will have a close involvement in operational decisions. However, in the CO-DETERMINATION system in Germany, worker directors operate in tandem with works councils, which have a more substantial involvement in these areas of management. See WORKER DIRECTOR;
collective bargaining which is a form of industrial democracy in that it involves management formally relinquishing the right to take all decisions in the organization. See COLLECTIVE BARGAINING.

These various forms of industrial democracy can be contrasted with EMPLOYEE PARTICIPATION and EMPLOYEE INVOLVEMENT, where employee involvement is often confined to immediate job issues and where employees or their representatives have few formal rights in decision-making. See BULLOCK REPORT, SOCIAL CHAPTER.

industrial democracy

the participation of the workforce in the corporate decision- making process alongside management. See WORKER PARTICIPATION, TRADE UNION, EMPLOYEE SHARE OWNERSHIP PLAN.

单词	industrial democracy
释义	industrial democracy industrial democracy n (Industrial Relations & HR Terms) control of an organization by the people who work for it, esp by workers holding positions on its board of directors industrial democracy industrial democracy the participation of employees in the decision-making of a work organization. The participation may be total or shared with owner and managerial interests. Moreover, the decision-making may concern the organization as a whole, or only sub-groups within it. The main types are workers’ self-management (e.g. the former Yugoslavia), producer cooperatives (e.g. Mondragon in the Basque province of Spain), and codetermination (e.g. Germany). At the shop-floor (i.e. sub-group) level, the creation of autonomous work groups and quality of working life programmes are examples of industrial democracy of a partial kind (Poole, 1986). The general concept of industrial democracy has been much criticized by both pluralist and Marxist writers. The pluralist argument is that participation in management dilutes trade unions’ ability to represent their members effectively in collective bargaining (Clegg, 1960). The pluralist critique amounts to an alternative definition of industrial democracy based upon opposition (through collective bargaining) rather than participation (see also COUNTERVAILING POWER, PLURALISM). The Marxist criticism is that it is not possible within a capitalist society to incrementally gain workers’ control through employee participation in business enterprises (Hyman, 1984). Historically, industrial democracy has its roots in French syndicalism which influenced early socialist thinking and trade unionism in the US and UK in the early decades of the 20th century. In the UK, the movement transmuted into guild socialism in the inter-war years (Pribicevic, 1959) and reappeared as a force in the 1960s largely as a consequence of the agitation of the Institute of Workers’ Control (Coates and Topham, 1972). This group was active in supporting the establishment of cooperatives and worker directors on the boards of nationalized industries. In the UK, however, the biggest impetus towards implementing industrial democracy on a wide scale came in the 1970s, with the publication of the draft Fifth Directive of the EEC Commission in 1972. The British government's response was to set up the Bullock Committee of Inquiry on Industrial Democracy. This committee's principal recommendation was that workers should be represented, via trade union channels, on all companies employing over 2,000 workers. The proposals, however, were almost wholly ignored as none of the interested parties (government, employers, trade unions) found the recommendations palatable to them. In the 1980s there was (managerial) interest in participation on management's terms (i.e. quality circles) and in some extension of ownership through share schemes. industrial democracy industrial democracy the participation of the workforce in the government of organizations. Various approaches to industrial democracy provide employees or their representatives with varying degrees of power to influence decision-making processes in their organization. All, however, involve the creation of institutions and mechanisms to permit transmission of employee interests and objectives into these processes. Industrial democracy can take a number of forms: workers' control, where the workforce is the sole source of authority within the organization, even though the organization might be actually owned by another (i.e. the state), and managers are required to operate to policy determined by the collectivity. This can be said to be direct form of democracy in that potentially all workers are deeply involved in the formulation of policy; workers' cooperative, where the organization is actually owned by the employees, and where the management (selected by and possibly from the workforce) acts in accordance with policies formulated by or sanctioned by the workforce. See WORKERS' COOPERATIVE; worker directors, who are representatives of the workforce who sit on the BOARD OF DIRECTORS and are involved in determining broad company policy. In contrast to other forms of industrial democracy it is not anticipated that worker representatives will have a close involvement in operational decisions. However, in the CO-DETERMINATION system in Germany, worker directors operate in tandem with works councils, which have a more substantial involvement in these areas of management. See WORKER DIRECTOR; collective bargaining which is a form of industrial democracy in that it involves management formally relinquishing the right to take all decisions in the organization. See COLLECTIVE BARGAINING. These various forms of industrial democracy can be contrasted with EMPLOYEE PARTICIPATION and EMPLOYEE INVOLVEMENT, where employee involvement is often confined to immediate job issues and where employees or their representatives have few formal rights in decision-making. See BULLOCK REPORT, SOCIAL CHAPTER. industrial democracy the participation of the workforce in the corporate decision- making process alongside management. See WORKER PARTICIPATION, TRADE UNION, EMPLOYEE SHARE OWNERSHIP PLAN.
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