Workers' Participation in · PDF fileWorkers' Participation in Management S D Punekar THE...
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THE ECONOMIC WEEKLY June 15, 1957 government service and thus become enemies who are trying to change the peasants' life. Village communities unlike countries, can thus never become independent. And a clever government tries to give pea- sants as much power as is possible within the framework of their world. In this respect in this part of Teochiuland, the Peoples' government has signa- lly failed. These Malayan Chinese far- mers in southern Teochiuland are a dull hindering factor in the enormous plans o f t h e new China. So far the Peoples' Republic has not realised that real progress can only be made by allowing the villages of China to really govern themselves. Each government outsider and each attempt to force the pea- sant to conform only further hinders the eventual r e f o r m o f Chinese agriculture. Persua- sion within a real democratic village organisation is the only path which will create the re- sults that new China wants. Workers' Participation in Management S D Punekar THE concept of workers' par- ticipation has not so far been clearly de\fined. The systems, organs and methods of partici- pation profoundly differ from one country to another, both in the form and degree of partici- pation. In its mildest form, workers' participation may mean only the willingness of the employer to negotiate with the representatives of the employees on matters of routine factory interest. In its extreme form, the participation may lead to workers' full control o f t h e un- dertaking. Gandhiji recommend- ed such a radical step, when, in 1946, he advised certain employ- ers, who were faced with a strike o f t h e workers, to withdraw, leaving the factory and mana- gement altogether in the hands of the workers themselves. In between these two limits, work- ers' participation may take the f o r m o f joint committees for such functions as safety mea- sures, social and cultural activi- ties, production and productivity personnel counselling, control of working conditions, auditing, profit sharing, recruitment and dismissals, and management of the enterprise. Earlier in 1937, Gandhiji had pleaded for a mild- e r f o r m of workers' participa- t i o n , w h e n h e s a i d , " I t i s v i t a l to the well-being of the industry that the workmen should be re- garded as equals with sharehold- ers and that they have, there- fore, every r i g h t t o possess an accurate knowledge of the tran- sactions of the mills. If labour- ers are co-equal owners, their organizations should have the same access to the transactions of the mills as the shareholders. " Workers' participation can be distinguished also on the basis o f i t s advisory or mandatory nature, and its voluntary or sta- tutory character. Participation in the U. K. and Sweden is prac- tised through joint committees, having an advisory status and set up by agreement between employers' and employees' orga- nisations, without any legal com- pulsion. On the other hand, legal machinery for participa- tion is set up in Belgium, France and Germany. Yugoslavia fur- nishes the radical model, where undertakings are run b y t h e employees themselves, through an elected council and a manage- ment board. A Form of Co-operation Workers' participation in ma- nagement can be considered as an advanced form of labour- management co-operation. There has recently been a happy trend in emphasis from class-conflict to class-collaboration and the necessity of labour-management co-operation is being increasing- ly realised for industrial peace and for higher productivity. This co-operation takes various forms and is organised at vari- ous levels. At the lowest level, i e, the level of the undertaking, co-operation, which is only be- tween the employer and his workers, takes the form of col- lective bargaining, creation of a personnel department or ap- pointment of a labour officer and establishment o f a j o i n t com- mittee (or works committee) to discuss the problems of common interest in the undertaking. At a higher level, co-operation may be organised for the industry as a whole through industrial com- mittees, working parties and wage boards. Then there may be co-operation at the regional level (State Labour Advisory Boards), at the national level 745 (Indian tripartite labour ma- chinery), and also at the inter- national level (I.L.O., I.C.F.T.U. and W.F.T.U.). Co-operatioin at these higher levels has been or- ganised fairly well. However, co-operation at the lowest level, which in fact forms the base of t h e p y r a m i d o f industrial rela- tions, has not been adequately or properly organised, with the re- sult that workers' participation in its true sense cannot be achieved. To elicit such co- operation, various steps may be taken. These include supply of adequate information to workers and their representatives about the firm and especially about any changes that the manage- ment proposes to introduce, en- couragement to workers to sug- gest schemes, opportunity to workers' representatives to par- ticipate i n t h e technical pro- cesses of time and motion study and rate-fixing, and establish- m e n t o f j o i n t consultative ma- chinery. In India, though some progress has been made, mainly through statutory means, to- wards labour-management co- operation, and development so f a r i s n o t sufficient to bring about the acceptance of work- ers' participation. Pre-requisites In addition to labour-manage- ment co-operation, the pre- requisites to workers' participa- tion are a strong and responsi- ble trade unionism and pro- gressive employers' associations. Indian trade unions suffer from such defects as political influ- ence, dominance of outsiders, rivalry and multiplicity, weak finances, poor membership and heavy reliance on Government machinery. A programme of workers 1 education imparting
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Transcript of Workers' Participation in · PDF fileWorkers' Participation in Management S D Punekar THE...
T H E E C O N O M I C W E E K L Y June 15, 1957
g o v e r n m e n t s e r v i c e a n d t h u s b e c o m e e n e m i e s w h o a r e t r y i n g t o c h a n g e t h e p e a s a n t s ' l i f e . V i l l a g e c o m m u n i t i e s u n l i k e c o u n t r i e s , c a n t h u s n e v e r b e c o m e i n d e p e n d e n t . A n d a c l e v e r g o v e r n m e n t t r i e s t o g i v e p e a s a n t s a s m u c h p o w e r a s i s p o s s i b l e w i t h i n t h e f r a m e w o r k o f t h e i r w o r l d . I n t h i s r e s p e c t i n t h i s p a r t o f T e o c h i u l a n d , t h e
P e o p l e s ' g o v e r n m e n t h a s s i g n a l l y f a i l e d .
T h e s e M a l a y a n C h i n e s e f a r m e r s i n s o u t h e r n T e o c h i u l a n d a r e a d u l l h i n d e r i n g f a c t o r i n t h e e n o r m o u s p l a n s o f t h e n e w C h i n a . S o f a r t h e P e o p l e s ' R e p u b l i c h a s n o t r e a l i s e d t h a t r e a l p r o g r e s s c a n o n l y b e m a d e b y a l l o w i n g t h e v i l l a g e s o f C h i n a t o r e a l l y g o v e r n t h e m s e l v e s .
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Workers' Participation in Management S D Punekar
T H E c o n c e p t o f w o r k e r s ' p a r t i c i p a t i o n h a s n o t s o f a r b e e n
c l e a r l y de\fined. T h e s y s t e m s , o r g a n s a n d m e t h o d s o f p a r t i c i p a t i o n p r o f o u n d l y d i f f e r f r o m o n e c o u n t r y t o a n o t h e r , b o t h i n t h e f o r m a n d d e g r e e o f p a r t i c i p a t i o n . I n i t s m i l d e s t f o r m , w o r k e r s ' p a r t i c i p a t i o n m a y m e a n o n l y t h e w i l l i n g n e s s o f t h e e m p l o y e r t o n e g o t i a t e w i t h t h e r e p r e s e n t a t i v e s o f t h e e m p l o y e e s o n m a t t e r s o f r o u t i n e f a c t o r y i n t e r e s t . I n i t s e x t r e m e f o r m , t h e p a r t i c i p a t i o n m a y l e a d t o w o r k e r s ' f u l l c o n t r o l o f t h e u n d e r t a k i n g . G a n d h i j i r e c o m m e n d e d s u c h a r a d i c a l s t e p , w h e n , i n 1 9 4 6 , h e a d v i s e d c e r t a i n e m p l o y e r s , w h o w e r e f a c e d w i t h a s t r i k e o f t h e w o r k e r s , t o w i t h d r a w , l e a v i n g t h e f a c t o r y a n d m a n a g e m e n t a l t o g e t h e r i n t h e h a n d s o f t h e w o r k e r s t h e m s e l v e s . I n b e t w e e n t h e s e t w o l i m i t s , w o r k e r s ' p a r t i c i p a t i o n m a y t a k e t h e f o r m o f j o i n t c o m m i t t e e s f o r s u c h f u n c t i o n s a s s a f e t y m e a s u r e s , s o c i a l a n d c u l t u r a l a c t i v i t i e s , p r o d u c t i o n a n d p r o d u c t i v i t y p e r s o n n e l c o u n s e l l i n g , c o n t r o l o f w o r k i n g c o n d i t i o n s , a u d i t i n g , p r o f i t s h a r i n g , r e c r u i t m e n t a n d d i s m i s s a l s , a n d m a n a g e m e n t o f t h e e n t e r p r i s e . E a r l i e r i n 1 9 3 7 , G a n d h i j i h a d p l e a d e d f o r a m i l d e r f o r m o f w o r k e r s ' p a r t i c i p a t i o n , w h e n h e s a i d , " I t i s v i t a l t o t h e w e l l - b e i n g o f t h e i n d u s t r y t h a t t h e w o r k m e n s h o u l d b e r e g a r d e d a s e q u a l s w i t h s h a r e h o l d e r s a n d t h a t t h e y h a v e , t h e r e f o r e , e v e r y r i g h t t o possess a n a c c u r a t e k n o w l e d g e o f t h e t r a n s a c t i o n s o f t h e m i l l s . I f l a b o u r e r s a r e c o - e q u a l o w n e r s , t h e i r o r g a n i z a t i o n s s h o u l d h a v e t h e s a m e access t o t h e t r a n s a c t i o n s o f t h e m i l l s a s t h e s h a r e h o l d e r s . "
W o r k e r s ' p a r t i c i p a t i o n c a n b e d i s t i n g u i s h e d a l s o o n t h e b a s i s o f i t s a d v i s o r y o r m a n d a t o r y
n a t u r e , a n d i t s v o l u n t a r y o r s t a t u t o r y c h a r a c t e r . P a r t i c i p a t i o n i n t h e U . K . a n d S w e d e n i s p r a c t i s e d t h r o u g h j o i n t c o m m i t t e e s , h a v i n g a n a d v i s o r y s t a t u s a n d se t u p b y a g r e e m e n t b e t w e e n e m p l o y e r s ' a n d e m p l o y e e s ' o r g a n i s a t i o n s , w i t h o u t a n y l e g a l c o m p u l s i o n . O n t h e o t h e r h a n d , l e g a l m a c h i n e r y f o r p a r t i c i p a t i o n i s s e t u p i n B e l g i u m , F r a n c e a n d G e r m a n y . Y u g o s l a v i a f u r n i s h e s t h e r a d i c a l m o d e l , w h e r e u n d e r t a k i n g s a r e r u n b y t h e e m p l o y e e s t h e m s e l v e s , t h r o u g h a n e l e c t e d c o u n c i l a n d a m a n a g e m e n t b o a r d .
A F o r m of Co-operation
W o r k e r s ' p a r t i c i p a t i o n i n m a n a g e m e n t c a n b e c o n s i d e r e d a s a n a d v a n c e d f o r m o f l a b o u r -
m a n a g e m e n t c o - o p e r a t i o n . T h e r e h a s r e c e n t l y b e e n a h a p p y t r e n d i n e m p h a s i s f r o m c l a s s - c o n f l i c t t o c l a s s - c o l l a b o r a t i o n a n d t h e n e c e s s i t y o f l a b o u r - m a n a g e m e n t c o - o p e r a t i o n i s b e i n g i n c r e a s i n g l y r e a l i s e d f o r i n d u s t r i a l peace a n d f o r h i g h e r p r o d u c t i v i t y . T h i s c o - o p e r a t i o n t a k e s v a r i o u s f o r m s a n d i s o r g a n i s e d a t v a r i o u s l e v e l s . A t t h e l o w e s t l e v e l , i e , t h e l e v e l o f t h e u n d e r t a k i n g , c o - o p e r a t i o n , w h i c h i s o n l y be t w e e n t h e e m p l o y e r a n d h i s w o r k e r s , t a k e s t h e f o r m o f c o l l e c t i v e b a r g a i n i n g , c r e a t i o n o f a p e r s o n n e l d e p a r t m e n t o r a p p o i n t m e n t o f a l a b o u r o f f ice r a n d e s t a b l i s h m e n t o f a j o i n t c o m m i t t e e ( o r w o r k s c o m m i t t e e ) t o d i s c u s s t h e p r o b l e m s o f c o m m o n i n t e r e s t i n t h e u n d e r t a k i n g . A t a h i g h e r l e v e l , c o - o p e r a t i o n m a y b e o r g a n i s e d f o r t h e i n d u s t r y a s a w h o l e t h r o u g h i n d u s t r i a l c o m m i t t e e s , w o r k i n g p a r t i e s a n d w a g e b o a r d s . T h e n t h e r e m a y b e c o - o p e r a t i o n a t t h e r e g i o n a l l e v e l ( S t a t e L a b o u r A d v i s o r y B o a r d s ) , a t t h e n a t i o n a l l e v e l
745
( I n d i a n t r i p a r t i t e l a b o u r m a c h i n e r y ) , a n d a l s o a t t h e i n t e r n a t i o n a l l e v e l ( I . L . O . , I . C . F . T . U . a n d W . F . T . U . ) . C o - o p e r a t i o i n a t t h e s e h i g h e r l e v e l s h a s b e e n o r g a n i s e d f a i r l y w e l l . H o w e v e r , c o - o p e r a t i o n a t t h e l o w e s t l e v e l , w h i c h i n f a c t f o r m s t h e base o f t h e p y r a m i d o f i n d u s t r i a l r e l a t i o n s , h a s n o t b e e n a d e q u a t e l y o r p r o p e r l y o r g a n i s e d , w i t h t h e r e s u l t t h a t w o r k e r s ' p a r t i c i p a t i o n i n i t s t r u e sense c a n n o t b e a c h i e v e d . T o e l i c i t s u c h c o o p e r a t i o n , v a r i o u s s t e p s m a y b e t a k e n . T h e s e i n c l u d e s u p p l y o f a d e q u a t e i n f o r m a t i o n t o w o r k e r s a n d t h e i r r e p r e s e n t a t i v e s a b o u t t h e f i r m a n d e s p e c i a l l y a b o u t a n y c h a n g e s t h a t t h e m a n a g e m e n t p r o p o s e s t o i n t r o d u c e , e n c o u r a g e m e n t t o w o r k e r s t o s u g g e s t s chemes , o p p o r t u n i t y t o w o r k e r s ' r e p r e s e n t a t i v e s t o p a r t i c i p a t e i n t h e t e c h n i c a l p r o cesses o f t i m e a n d m o t i o n s t u d y a n d r a t e - f i x i n g , a n d e s t a b l i s h m e n t o f j o i n t c o n s u l t a t i v e m a c h i n e r y . I n I n d i a , t h o u g h s o m e p r o g r e s s h a s b e e n m a d e , m a i n l y t h r o u g h s t a t u t o r y m e a n s , t o w a r d s l a b o u r - m a n a g e m e n t c o o p e r a t i o n , a n d d e v e l o p m e n t s o f a r i s n o t s u f f i c i e n t t o b r i n g a b o u t t h e a c c e p t a n c e o f w o r k e r s ' p a r t i c i p a t i o n .
Pre-requisites I n a d d i t i o n t o l a b o u r - m a n a g e
m e n t c o - o p e r a t i o n , t h e p r e r e q u i s i t e s t o w o r k e r s ' p a r t i c i p a t i o n a r e a s t r o n g a n d r e s p o n s i b l e t r a d e u n i o n i s m a n d p r o g r e s s i v e e m p l o y e r s ' a s s o c i a t i o n s . I n d i a n t r a d e u n i o n s s u f f e r f r o m s u c h d e f e c t s a s p o l i t i c a l i n f l u ence, d o m i n a n c e o f o u t s i d e r s , r i v a l r y a n d m u l t i p l i c i t y , w e a k f i n a n c e s , p o o r m e m b e r s h i p a n d h e a v y r e l i a n c e o n G o v e r n m e n t m a c h i n e r y . A p r o g r a m m e o f w o r k e r s 1 e d u c a t i o n i m p a r t i n g
June 15, 1957 T H E E C O N O M I C W E E K L Y
7 4 '
T H E E C O N O M I C W E E K L Y June 15, 1957
t r a i n i n g i n t h e w o r k i n g o f t r a d e u n i o n s a n d i n t a c k l i n g p r o b l e m s o f l a b o u r a n d m a n a g e m e n t m a y g o a l o n g w a y t o w a r d s e q u i p p i n g t h e w o r k e r s t o p l a y t h e i r l e g i t i m a t e r o l e i n m a n a g e m e n t .
S i d e b y s i d e w i t h a r e s p o n s i b l e l a b o u r l e a d e r s h i p , i t i s essent i a l t o h a v e p r o g r e s s i v e a n d e n l i g h t e n e d e m p l o y e r s ' r e p r e s e n t a t i v e s , p a r t i c u l a r l y t h e s u p e r v i s o r y s t a f f , i n o r d e r t o m a k e t h e w o r k e r s ' p a r t i c i p a t i o n a success. T h e e m p l o y e r s ' m e n s h o u l d t h e r e f o r e b e a d e q u a t e l y t r a i n e d i n b u s i n e s s m a n a g e m e n t , i n c l u d i n g p e r s o n n e l a d m i n i s t r a t i o n .
T w o g r e a t e v i l s o f m o d e r n l a r g e - s c a l e i n d u s t r i a l i s a t i o n a r e ( a ) t h e l o s s o f p e r s o n a l a n d c o r d i a l r e l a t i o n s b e t w e e n t h e m a n a g e m e n t a n d t h e m a n a g e d a n d ( b ) t h e t r e a t m e n t o f l a b o u r a s a n i n a n i m a t e o b j e c t , e i t h e r a s a c o m m o d i t y o r a s a t o o l o f p r o d u c t i o n . W h e n a w o r k e r h a s t o w o r k u n d e r p r e s c r i b e d r e g u l a t i o n s a n d i n a n i m p e r s o n a l a t m o s p h e r e , h e n a t u r a l l y fee l s t h a t h e i s b e i n g t r e a t e d , n o t a s a h u m a n b e i n g , b u t m e r e l y a s a p a r t o f a m a c h i n e . S u c h a r e a c t i o n i s h a r m f u l b o t h f o r l a b o u r a n d i n d u s t r y , b o t h f o r w o r k a n d p r o d u c t i o n . W o r k e r s p a r t i c i p a t i o n r e s t o r e s t h e i n d i v i d u a l w o r k e r ' s s e l f - r e s p e c t a n d s t a t u s a n d a l s o i n c r e a s e s p r o d u c t i v i t y a n d p r o d u c t i o n . I t m a y a l s o b e a p r a c t i c a l l e s s o n i n i n d u s t r i a l d e m o c r a c y .
In the Second Plan T h e S e c o n d F i v e Y e a r P l a n
r e c o g n i z e s t h e n e c e s s i t y o f i n c r e a s e d a s s o c i a t i o n o f l a b o u r w i t h m a n a g e m e n t . I t o b s e r v e s : " S u c h a m e a s u r e w o u l d h e l p i n ( a ) p r o m o t i n g i n c r e a s e d p r o d u c t i v i t y f o r t h e g e n e r a l b e n e f i t o f t h e ' e n t e r p r i s e , t h e e m p l o y e e s a n d t h e c o m m u n i t y , ( b ) g i v i n g e m p l o y e e s a b e t t e r u n d e r s t a n d i n g o f t h e i r r o l e i n t h e w o r k i n g o f i n d u s t r y a n d t h e p r o c e s s o f p r o d u c t i o n , a n d ( c ) s a t i s f y i n g t h e w o r k e r s ' u r g e f o r s e l f - e x p r e -s i o n , t h u s l e a d i n g t o i n d u s t r i a l peace , b e t t e r r e l a t i o n s a n d i n c r e a s e d c o - o p e r a t i o n , " T h i s , a c c o r d i n g t o t h e P l a n , c o u l d b e a c h i e v e d b y p r o v i d i n g f o r c o u n c i l s o f m a n a g e m e n t c o n s i s t i n g o f r e p r e s e n t a t i v e s o f m a n a g e m e n t , t e c h n i c i a n s a n d w o r k e r s . T h e m a n a g e m e n t s h o u l d s u p p l y s u c h a c o u n c i l o f m a n a g e m e n t w i t h f a i r a n d c o r r e c t s t a t e m e n t o f a l l r e l e v a n t i n f o r m a t i o n w h i c h
w o u l d e n a b l e t h e c o u n c i l t o f u n c t i o n e f f e c t i v e l y . S u c h a c o u n c i l o f m a n a g e m e n t s h o u l d b e e n t i t l e d t o d i s c u s s v a r i o u s m a t t e r s p e r t a i n i n g t o t h e e s t a b l i s h m e n t a n d t o r e c o m m e n d s t e p s f o r i t s b e t t e r w o r k i n g . M a t t e r s w h i c h f a l l w i t h i n t h e p u r v i e w o f c o l l e c t i v e b a r g a i n i n g s h o u l d , h o w e v e r , b e e x c l u d e d f r o m t h e scope o f d i s c u s s i o n i n t h e c o u n c i l . T o b e g i n w i t h , t h e p r o p o s a l s h o u l d , i t i s r e c o m m e n d e d , b e t r i e d o u t i n l a r g e e s t a b l i s h m e n t s i n o r g a n i s ed i n d u s t r i e s , a n d a n y e x t e n s i o n s h o u l d b e m a d e i n t h e l i g h t o f t h e e x p e r i e n c e g a i n e d .
Study Group
T h e G o v e r n m e n t o f I n d i a a p p o i n t e d a t r i p a r t i t e g r o u p o f 1 0 m e m b e r s ( t h r e e l a b o u r l e a d e r s , t w o i n d u s t r i a l i s t s a n d f i v e C e n t r a l G o v e r n m e n t o f f i c i a l s ) f o r a f i r s t - h a n d s t u d y o f t h e a c h i e v e m e n t s i n E u r o p e i n s e c u r i n g w o r k e r s ' p a r t i c i p a t i o n i n m a n a g e m e n t . U n f o r t u n a t e l y , b o t h t h e e m p l o y e r s ' r e p r e s e n t a t i v e s a n d o n e o f t h e w o r k e r s ' r e p r e s e n t a t i v e s c o u l d n o t g o a n d hence t h e G r o u p b e c o m e b i p a r t i t e i n c h a r a c t e r , w i t h a p r e p o n -d e r e n c e o f G o v e r n m e n t o f f i c i a l s . T h e s e v e n m e m b e r s o f t h e G r o u p v i s i t e d e i g h t c e n t r e s — P a r i s , B r u s s e l s , L o n d o n , S t o c k h o l m , D u s s e l d o r f , F r a n k f u r t , B o n n , B e l g r a d e a n d G e n e v a — d i s c u s s e d t h e p r o b l e m s o f w o r k e r s ' p a r t i c i p a t i o n w i t h r e p r e s e n t a t i v e s o f l a b o u r , m a n a g e m e n t a n d G o v e r n m e n t s a n d s u b m i t t e d a r e p o r t , w h i c h h a s r e c e n t l y b e e n p u b l i s h e d . *
B e s i d e s t h e i n t r o d u c t i o n a n d t h e a p p e n d i c e s , t h e r e p o r t i s b r o a d l y d i v i d e d i n t o t h r e e p a r t s : ( a ) a b r i e f d e s c r i p t i o n o f t h e s y s t e m s o f w o r k e r s ' p a r t i c i p a t i o n i n m a n a g e m e n t i n t h e s i x c o u n t r i e s v i s i t e d ; ( b ) a n a l y s i s , e v a l u a t i o n a n d a p p r a i s a l o f t h e s e s y s t e m s ; a n d (c). r e c o m m e n d a t i o n s . T h e p r a c t i c a l v a l u e o f t h e r e p o r t m a y b e s a i d t o b e e m b o d i e d i n t h e s e c t i o n o n " C o n c l u s i o n s " , c o n s i s t i n g o f e i g h t pages . I t m a y b e i n t e r e s t i n g t o k n o w w h e t h e r t h e G r o u p h a s s o m e t h i n g n e w t o s a y i n t h e s e pages .
' R e p o r t o f t h e S t u d y G r o u p o n W o r k e r P a r t i c i p a t i o n i n M a n a g e m e n t , " D e l h i : M a n a g e r o f P u b l i c a t i o n s , G o v e r n m e n t o f I n d i a . P p . 117 . 1957 .
Recommendations A c c o r d i n g t o t h e G r o u p , t h e
p r i m a r y p r e - r e q u i s i t e f o r c o n s u l t a t i o n i s t h e " r i g h t a t t i t u d e s " , w h i c h c a n b e c u l t i v a t e d b y sus t a i n e d e d u c a t i o n a l c a m p a i g n s n o t o n l y a m o n g l a b o u r b u t a l s o a m o n g m i d d l e a n d l o w e r l e v e l s o f m a n a g e m e n t . T h e m e t h o d s o f e d u c a t i o n i n c l u d e g r o u p d i s c u s s i o n a n d i n t e n s i f i c a t i o n o f t r a i n i n g w i t h i n i n d u s t r y . J o i n t c o n s u l t a t i o n s h o u l d b e i n - b u i l t a n d t h e S t a t e s h o u l d r e s t r i c t i t s r o l e o n l y t o t h e p r o v i s i o n o f a n a d v i s o r y s e r v i c e o n p e r s o n n e l m a n a g e m e n t . A d e q u a t e p r e p a r a t i o n f o r t h e success o f w o r k e r s ' p a r t i c i p a t i o n s h o u l d b e m a d e b y s t a r t i n g w o r k e r s ' c o l leges a n d s c h o o l s , s e m i n a r s , p u b l i c a t i o n o f l i t e r a t u r e , e t c .
G o o d p a r t i c i p a t i o n m a c h i n e r y c o n t r i b u t e s t o g o o d i n d u s t r i a l r e l a t i o n s a n d a t t h e s a m e t i m e s u c c e s s f u l p a r t i c i p a t i o n i t s e l f i s d e p e n d e n t o n g o o d i n d u s t r i a l r e l a t i o n s . H e n c e t h e n e c e s s i t y o f h a v i n g g o o d r e l a t i o n s . T h e f u n c t i o n s o f j o i n t c o u n c i l s o f m a n a g e m e n t s h o u l d b e s e p a r a t e f r o m t h o s e o f t r a d e u n i o n s , a n d c o l l e c t i v e b a r g a i n i n g m a t t e r s l i k e w a g e s , b o n u s a n d i n d i v i d u a l g r i e v a n c e s s h o u l d b e ass i g n e d t o t h e l a t t e r . T h e r e s h o u l d b e a t w o - w a y c o m m u n i c a t i o n b e t w e e n t h e m a n a g e m e n t a n d t h e w o r k e r s . F o r m a l m a c h i n e r y f o r p a r t i c i p a t i o n m a y b e s e t u p b y p e r m i s s i v e l e g i s l a t i o n b u t i n f o r m a l c o n s u l t a t i o n a t t h e s h o p -f l o o r i s b e t t e r . N o r m a l l y t h e r e m a y b e a s i n g l e c o u n c i l f o r a n u n d e r t a k i n g a s a w h o l e , b u t f o r u n d e r t a k i n g s s p r e a d o v e r sever a l p l aces , t h e r e m a y b e s e p a r a t e c o u n c i l s a t t h e l o c a l , r e g i o n a l o r n a t i o n a l l e v e l s .
T h e j o i n t c o u n c i l s o f m a n a g e m e n t , t h e G r o u p r e c o m m e n d s , m a y b e c o n s u l t e d o v e r m a t t e r s l i k e ( i ) a l t e r a t i o n s i n s t a n d i n g o r d e r s ; ( i i ) r e t r e n c h m e n t ; ( i i i ) p r o p o s a l s f o r r a t i o n a l i s a t i o n ; ( i v ) c l o s u r e , r e d u c t i o n i n o r cess a t i o n o f o p e r a t i o n s ; ( v ) i n t r o d u c t i o n o f n e w m e t h o d s ; ( v i ) p r o c e d u r e s f o r e n g a g e m e n t a n d p u n i s h m e n t ; ( v i i ) t h e g e n e r a l e c o n o m i c s i t u a t i o n o f t h e c o n c e r n , t h e s t a t e o f t h e m a r k e t , p r o d u c t i o n a n d sa les p r o g r a m m e s ; ( v i i i ) o r g a n i s a t i o n a n d g e n e r a l r u n n i n g o f t h e u n d e r t a k i n g ; ( i x ) c i r c u m s t a n c e s a f f e c t i n g t h e e c o n o m i c p o s i t i o n
747
June 15, 1957 T H E E C O N O M I C W E E K L Y
748
T H E E C O N O M I C W E E K L Y June 15, 1957
Appraisal T h e r e p o r t i s d i s a p p o i n t i n g
f r o m a n u m b e r o f v i e w p o i n t s . F i r s t l y , a l a r g e p a r t ( a b o u t 9 0 p e r c e n t ) d e s c r i b e s w h a t i s h a p p e n i n g a b r o a d a n d t h e r e f o r e i s n o t u s e f u l f o r i m m e d i a t e a c t i o n . S e c o n d l y , n o c o n c r e t e s u g g e s t i o n s h a v e b e e n p u t f o r w a r d , t h e G r o u p has d r a w n u p n o m o d e l s c h e m e o f a j o i n t m a n a g e m e n t c o u n c i l , i n d i c a t i n g w h a t i t s c o n s t i t u t i o n , o b j e c t s a n d m a i n f u n c t i o n s s h o u l d b e . P e r h a p s s o m e s o m e w o u l d e x p e c t t h e G r o u p t o h a v e d i s c u s s e d a l s o t h e f a c t o r s c o n t r i b u t i n g t o o r h a m p e r i n g t h e g r o w t h o f s u c h i n s t i t u t i o n s i n I n d i a a n d m a d e d e f i n i t e s u g g e s t i o n s t o r e m o v e t h e o b s t a c les t o t h e i r p r o g r e s s . T h i r d l y , t h e r e c o m m e n d a t i o n s m a y b e s a i d t o s u f f e r f r o m m a s t e r l y v a g u e n e s s . T h e G r o u p h a s n o t f o r m u l a t e d d e f i n i t e v i e w s a b o u t s u c h e s s e n t i a l m a t t e r s a s c o n t e n t o f e d u c a t i o n a l c a m p a i g n , l e v e l o f p a r t i c i p a t i o n , s e l e c t i o n o f w o r k e r s ' a n d o f e m p l o y e r s ' r e p r e s e n t a t i v e s a n d n e c e s s i t y o f s t a t u t o r y m a c h i n e r y . O n i t s
o w n a d m i s s i o n i t h a s " l a b o u r e d t h e o b v i o u s " ( p 7 5 ) , r e p e a t e d t h e c o n c l u s i o n s f r e q u e n t l y u r g e d b y o t h e r s ( p 7 8 ) , a n d l e f t o u t o f c o n s i d e r a t i o n i n n u m e r a b l e det a i l s ( p 8 0 ) . F i n a l l y , t h e n u m b e r o f p r i n t i n g m i s t a k e s c o u l d h a v e b e e n k e p t w i t h i n r e a s o n a b l e b o u n d s a n d t h e e x p o s i t i o n n o t m a d e u n n e c e s s a r i l y p e r p l e x i n g b y g r a m m a t i c a l e r r o r s .
B u t a r e w e j u s t i f i e d i n e x p e c t i n g a l l t h i s f r o m a s t u d y - g r o u p ? T h e m a i n p u r p o s e i n a p p o i n t i n g t h i s p a r t i c u l a r G r o u p w a s t h a t i t s h o u l d s t u d y t h e w o r k i n g o f t h e w o r k e r s ' p a r t i c i p a t i o n schem e s i n t h e W e s t e r n w o r l d a n d i f i t h a s d o n e t h i s l i m i t e d j o b p r o p e r l y , t h e p u r p o s e c a n b e s a i d t o h a v e b e e n s e r v e d . I t w o u l d s e r v e t o e d u c a t e t h e l a b o u r , t h e m a n a g e m e n t a n d t h e G o v e r n m e n t — t h e t h r e e p a r t i e s w h o s e e f f e c t i v e c o o p e r a t i o n i s n e c e s s a r y t o m a k e w o r k e r s ' p a r t i c i p a t i o n a success .
S t i l l , i t m i g h t b e a s k e d w h e t h e r i t i s w o r t h w h i l e s e n d i n g s u c h g r o u p s a b r o a d . T h e r e p o r t
does n o t s a y h o w m u c h i t c o s t t h e c o u n t r y t o g e t t h i s f i r s t h a n d v i e w o f w o r k e r s ' p a r t i c i p a t i o n a b r o a d . I t m u s t , h o w e v e r , b e a s i z a b l e a m o u n t , w h e n seven p e r sons i n c l u d i n g f i v e h i g h G o v e r n m e n t o f f i c i a l s t o u r e d t h e p r i n c i p a l c i t i e s o f t h e C o n t i n e n t t o c o l l e c t i n f o r m a t i o n , m o s t o f w h i c h w o u l d b e a v a i l a b l e i n p u b l i s h e d s o u r c e s . O n e w o n d e r s i f s i m i l a r i n f o r m a t i o n c o u l d n o t b e c o l l e c t e d b y s e c u r i n g t h e serv i c e s o f a c o m p e t e n t r e s e a r c h s t u d e n t o f l a b o u r p r o b l e m s a t a m u c h s m a l l e r cos t .
o f t h e u n d e r t a k i n g ; ( x ) m e t h o d s o f m a n u f a c t u r e a n d w o r k ; a n d ( x i ) t h e a n n u a l b a l a n c e s h e e t a n d p r o f i t a n d loss s t a t e m e n t . T o r e d u c e t h e d a n g e r o f a p a t h y , t h e c o u n c i l s m a y b e g i v e n s o m e a d m i n i s t r a t i v e r e s p o n s i b i l i t y i n t h e f i e l d s o f w e l f a r e s c h e m e s , s a f e t y m e a s u r e s , v o c a t i o n a l t r a i n i n g a n d a p p r e n t i c e s h i p s chemes , s c h e d u l e s o f w o r k i n g h o u r s a n d b r e a k s , h o l i d a y s c h e d u l e s a n d p a y m e n t o f r e w a r d s f o r v a l u a b l e s u g g e s t i o n s .
Around Bombay Markets
I l l Wind from Kerala
T H E K e r a l a B u d g e t w h i c h c a m e m i d - w a y t h r o u g h t h e
w e e k , h a s i n t e r r u p t e d t h e r e c o v e r y o f D a l a i S t r e e t , w h i c h i s n o w m o u r n i n g i n s y m p a t h y w i t h M a d r a s a n d C a l c u t t a . T h e r e a r e f e a r s t h a t o t h e r S t a t e s m a y f o l l o w t h e K e r a l a l e a d i n i m p o s i n g a n a g r i c u l t u r a l w e a l t h t a x a n d a h i g h e r t a x o n a g r i c u l t u r a l i n c o m e s . T h i s h a s d e p r e s s e d p l a n t a t i o n a n d s u g a r e s t a t e s h a r e s , a n d l a i d o t h e r s c r i p s l o w a s w e l l . S u c h t e c h n i c a l f a c t o r s a s r u m o u r s o f p a y m e n t d i f f i c u l t i e s i n M a d r a s a n d C a l c u t t a a n d t h e t e r m i n a t i o n o f t h e c u r r e n t f o r t n i g h t ' s t r a d i n g d u e t o m o r r o w h a v e a l so m a d e t h e i r c o n t r i b u t i o n t o t h e s l u m p i n v a l u e s . T h e s u p p o r t l e n t b y t h e L i f e I n s u r a n c e C o r p o r a t i o n h a s , h o w e v e r , d i s c o u r a g e d s h o r t s e l l i n g o n a l a r g e sca le . L o n g b u y i n g , a s i d e f r o m t h e L I C ' s o p e r a t i o n s , ha s , h o w e v e r , p r a c t i c a l l y d i s a p p e a r e d a n d c a n r e v i v e o n l y i f a n d w h e n t h e c u r r e n t s t a t e o f u n c e r t a i n t y subs ide s . F o r t h e p r e s e n t , s e n t i m e n t i s i n f a v o u r
o f l i m i t e d l i q u i d a t i o n a t e v e r y b u l g e .
T h e C l e a r i n g L i s t f o r t h e se t t l e m e n t o n J u n e 7 c o n t a i n e d 4 , 9 0 , 4 7 1 s h a r e s , o n l y s l i g h t l y less t h a n t h e l a s t o n e d i d . T h e L i s t e x p a n d e d i n r e s p e c t o f A p o l l o , C e n t u r y , I n d i a U n i t e d O r d y , C e n t u r y , I n d i a U n i t e d O r d y , N e w G r e a t , S w a d e s h i , T a t a M i l l s , S c i n d i a , H i n d u s t a n M o t o r , B o m b a y B u r m a h ( O l d ) a n d I n d i a n C o p p e r , r e f l e c t i n g s o m e d e g r e e o f s e l l i n g p r e s s u r e . T h e t u r n o v e r i n B o m b a y D y e i n g , T a t a S t ee l , A C C , T a t a C h e m i c a l a n d T a t a L o c o , h o w e v e r , r e c o r d e d a s i g n i f i c a n t d e c l i n e d u e t o t h e L I C ' s r e a d i n e s s t o p u r chase t h e m a t a l m o s t e v e r y d i p . W h i l e , b y a n d l a r g e , t h e L I C ' s o p e r a t i o n s c o m m a n d a p p r o v a l i n t h e m a r k e t , s o m e o f t h e p u r chases i m p u t e d t o i t h a v e e v o k e d c r i t i c i s m . A p p a r e n t l y , t h e c r i t e r i a o f s e l e c t i n g s h a r e s f o r i n -v e s t m e n t - c u m - s u p p o r t h a v e n o t b e e n s e t t l e d y e t . T h e s e t t i n g u p o f a s e p a r a t e b o d y f o r t h i s p u r p o s e i s n o w e a g e r l y a w a i t e d .
T h u r s d a y , M o r n i n g
T h e b u s y season j u s t e n d e d h a s been u n i q u e n o t s o m u c h because i t w a s t h e f i r s t o f t h e s e r i e s i n t h e S e c o n d P l a n a s o n a c c o u n t o f t h e u n p r e c e d e n t e d l y h i g h c r e d i t r a t i o o n w h i c h t h e b a n k s h a v e o p e r a t e d . D u r i n g t h i s season , n e t d e m a n d l i a b i l i t i e s r o s e b y R s 7 5 c r o r e s a s a g a i n s t o n l y R s 3 4 c r o r e s l a s t season, a n d t h e r i s e c o u l d b e o b s e r v e d i n e a c h m o n t h f r o m O c t o b e r t o A p r i l a s a g a i n s t t h e d e c l i n e t h a t o c c u r r e d i n s o m e m o n t h s d u r i n g t h e l a s t season . B a n k c r e d i t e x p a n d e d b y R s 178 c r o r e s c o m p a r e d t o R s 165 c r o r e s l a s t season , b u t w h i l e t h e l a t t e r h a d a base o f R s 604 c r o r e s , t h e f o r m e r s t a r t e d m o v i n g u p f r o m R s 756 c r o r e s . S ince c r e d i t c o n t r a c t i o n i n t h e s l a c k s e a s o n o f 1956 h a d b e e n o f t h e o r d e r o f o n l y R s 1 9 c r o r e s , b a n k s h a d t o r e p l e n i s h t h e i r r e s o u r c e s b y b o r r o w i n g f r o m t h e R e s e r v e B a n k . L o a n s u n d e r t h e B i l l M a r k e t S c h e m e , h o w e v e r , e x p a n d e d m u c h less c o m p a r e d t o t h e l a s t season . T h i s p a t t e r n i s
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