industrial democracy

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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:

  1. 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;
  2. 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;
  3. 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;
  4. 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.
References in periodicals archive ?
And the industrial democracy voice is key within that, as is the question of regulation, as for example can be seen in Ed Miliband's proposals in the energy sector green paper.
Blending the philosophy of the Americans Commons and Perlmann and the French Maritain and Mounier (Michelagnoli, 2010, 2011; Totaro, 1996), but adapting these ideas to the particular Italian situation (Formigoni, 1991), the CISL read differently the Italian reality, designing a new labor strategy (Saba, 2000), calling itself 'new union' (Zaninelli, 1981) and it even distanced itself from his own catholic tradition: many of CISL's opponents called it the 'American trade union' and accused it of imitating the American system of industrial relations: free bargaining, productivity, industrial democracy, vertical organization, complete autonomy from the State, from the DC Party and from the Catholic Church.
1974) Working Power: Policies for Industrial Democracy, London, Fabian Society.
Studies of this broad spectrum of organizational types and topics over the past 40 years have examined, for example, participation (Pateman 1970; Stern 1988); industrial democracy (Mansbridge, 1983; Bowles & Gintis; 1986; Gustavson, 1983; Johnson, 2006); and the worker owned firm (Perry & Davis, 1985).
15) There was no coincidence in this, for the ideal of industrial democracy worked effectively as a simple, potent, and broadly uniting concept that accomplished some things for labour that the present-day workers' rights formulation does not.
First, mechanisms designed to protect these entitlements; second, the linkage between entitlements and corporate governance; and, third, the case we contend that accrued entitlements provide for enhanced industrial democracy.
Second, government contracting and procurement processes can be tied to a requirement that tenderers have in place a collective agreement, forms of industrial democracy and union recognition protocols.
Placed in chronological order, Levi's fragments read like a nostalgic travelogue, hoping that the glimpses and vestiges of its ancient, medieval, and baroque cultures could survive Italy's fitful emergence as an industrial democracy.
They see Du Bois' interest in Reconstruction as "not simply a battle between black and white races, or between master and ex-slave; it was also a vast labor movement galvanized by the promise of industrial democracy, which was to eventually betray itself on the alter of racial apartheid at home and imperialism abroad" (174).
Congress could have gone even further to allow the government to negotiate lower prices for all Americans, with savings of more than 50 percent, just as every other industrial democracy does for its citizens.
The easy answer is that the religious right is far, far more powerful here than in any other industrial democracy," Lancaster says.

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