Monday, November 29, 1999

Workers may still get 25% quota in co boards

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Almost two decades after it was first introduced in Rajya Sabha, the Participation of Workers in Management Bill is again on the agenda of the labour ministry and efforts are being made to develop a consensus on it. The Bill, if enacted, will give workers 25 per cent representation in the board of directors of a company.In order to gather views of all stakeholders involved, the ministry of labour has called for a meeting on Monday to discuss the nitty-gritties of the bill and find ways for its smooth passage. The meeting is likely to be attended by chiefs of senior official of the ministry and chiefs of central PSUs. The ministry is keen that central PSUs take the lead in ensuring participation of workers in the management. "Private sector can follow," an official said.Participation of workers in management level decisions has been a contentious issue for long. "While the management of various companies are fine with the involvement of workers at the shop-floor level, they do not want intrusion of workers at the board level. Whereas, workers on the other hand, demand complete involvement," said a government official.The Bill was first introduced in Rajya Sabha in 1990. However, due to divergent views on the subject, it has not seen the light of the day yet. After introduction in the Upper House, it was referred to the standing committee on Labour and employment for comments.The committee, too, favoured the Bill and suggestions were made to pass it in Parliament. It aims to allow participation of workers at three critical junctures in a company: at the shop -floor, establishment and board of management level in industrial establishment. The Bill also has details on how to represent the workers at these three levels.However, industry lobbies had opposed this Bill earlier, saying that it would cause serious impediment in expanding the industrial base. A lot of them argued that in a globalised market, this Bill had no relevance and needed to be scrapped.Under the proposed law, the board of management shall constitute 13 per cent of workmen, and other workers shall be 12 per cent of the total strength. The Bill also proposes to penalise the company or person by imposing a fine of up to Rs 20,000 or imprisonment up to 2 years.

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