Workers' Participation in BHEL: I

S. V. S Raghavan
Before we start the discussion, we might well try to find out what does workers' participation in the public sector mean. Who are "workers" in the public sector? Since all employees from the top to the bottom are workers or "salary earners," the traditional distinction between management and workers gets blurred. With class distinction thus laid to rest, one would imagine that participation is an automatic consequence. But, in practice, it is seen that the psychology of the public sector employees taken as a whole, whether belonging to the executive group or to the non-executive group, is not very different from what we see in the private sector employees. The conventional distinctions and attitudes persist. This is the challenge that exists in the public sector. The founding fathers of the public sector had visualized for it a comprehensive and allembracing role. These organizations were not seen as few more companies producing goods and services in areas where private capital was shy to enter. Rather, they were seen as an extended arm of the government through which social and economic policies could get translated. The public sector was to act as a model employer and was to be a pacesetter for the private sector. Workers' participation in management is enshrined in the Indian constitution which provides that "The State shall take steps, by suitable legislation or in any other way, to secure the participation of workers in the management of undertakings, establishments or other organizations engaged in any industry." It is in pursuance of this that a committee has been set up to study and recommend measures for effectively 163

Workers' participation in management is enshrined in the Indian constitution which provides for "the participation of workers in the management of undertakings, establishments, or other organizations engaged in any industry." After a brief survey of several approaches in the private and the public sector organizations, an experiment carried out at one of the public sector organizations (Bharat Heavy Electricals Limited) is described here.

At the time of writing this article, S. V. S. Raghavan was Chairman and Managing Director of Bharat Heavy Electricals Limited. He has held covenanted positions in the Defence Accounts Department and the Ministry of Finance.

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implementing workers' participation in management. Two approaches to workers' participation have been 1) Works Committees which owe their origin to the Industrial Disputes Act of 1947 and 2) joint management councils which owe their origin to the recommendations of the 15th Indian Labour Conference in 1957. It must be confessed that neither of the schemes has achieved any appreciable success in India except in isolated instances. Another idea which has been tinkered with is the appointment of workers' representatives on the board of directors. In many countries workers' representation on the board is required by law. The concept of workers' directors has been in existence in Germany for more than two decades. In the case of Indian nationalized commercial banks, a workers' representative is statutorily required on the board of directors. This too has not been of much help. Participation at the board level does not enable the workers' representative to influence decisions on day-to-day activities taken at other subordinate levels in which he may be directly interested. Even if he is able to carry conviction, the decision may not be acceptable to other unions and the situation may be complicated by inter-union rivalries. Gandhi's idea of trusteeship is very much applicable to the public sector. Writing in the Harijan, he stated that the capitalists "would be allowed to retain the stewardship of their possessions and to use their talent to increase the wealth, not for their own sake but for the sake of nation, and therefore, without exploitation." Labour as well as management are equal partners in production and both are employed by the community. Gandhi experimented his idea through the Textile Labour Association in Ahmedabad. The results were a revelation. For about four decades there was no major confrontation between labour and management in Ahmedabad which led the Royal Commission on Labour in India to remark that "in Ahmedabad
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there is greater understanding if not sympathy between the employers and the employed than is usual elsewhere." If this idea could work so well in that city, there is every reason to make a nationwide effort in this direction so that men, machines, and other facilities are best utilized. Let us see how workers' participation can be made more effective and purposeful. 1. In order to get the best from an individual, it is imperative that the work is according to his aptitude and he is associated with its plan ning and execution. This may involve, and not necessarily be restricted to, technology, design, material procurement and its storage, productivity, and meeting targets. Participation could be at shop or factory level. In ths case of multidivisional enterprises, participation can even be extended to enterprise level. Workers' in volvement in these areas will give him a sense of participation. Naturally, the execution will be at its highest level since he has himself been one of the important architects of the superstructure. 2. Another area where workers' participation could be effective is the compensation an em ployee receives. Besides the monthly compensa tion, he also gets certain other benefits (e. g., incentive bonus) which are variable and depend upon individual or collective contribution. Then there are medical facilities, education allowances, insurance, etc. Very often, the employer and the employee are at loggerheads about compensation. The employee could participate at two stages: 1) information sharing, and 2) consultation or mutual discussion. In many cases, workers feel that profits are intentionally pitched low and/or a healthy picture is not painted of the company so that employees' compensation can be kept low. It is, therefore, essential to establish conditions of mutual trust between the employer and the employee to decide the quantum of compensation. In this way, the employee will see his way to acceptVikalpa

ing a reasonable amount and not clamour for the maximum which he is generally doing today. 3. Equity participation by employees may also prove very helpful in the public sector enterprises. Speaking at a convention arranged by the Standing Conference of Public Enterprises, P. L Tandon observed: " . . . the time has come for a move from state sector to a true public sector through the state divesting itself of its shares and allowing them to be held by employees (assured of a fair price for them when they cease to be in service) and the public." Throwing open public sector enterprises' shares to public in general may have wider ramifications. But allotting shares to employees can be tried out as <an experimental measure in some of the public sector enterprises which are declaring dividends regularly and have prospects of healthy growth. Participation in equity will give the employees a sense of owning the organization and satisfy their ego. This will also inculcate in them a sense of discipline and identification with the organization. Laying aside these conventional approaches, the author would like to share some experiences of Bharat Heavy Electricals Limited (BHEL) in worker participation in the last decade. Though slightly unconventional, the approaches yielded excellent results. BHEL, Tiruchy, had a recognized union as the negotiating agent for a long time. But it was found that some of the agreements arrived at through negotiations could not be implemented smoothly. It was therefore felt that a wider representation of the employees in various forums could bring about a better understanding and faith between the management and the labour. Following up this understanding a Works Committee was set up in 1967. Ever since its inception, the Works Committee has always been useful in taking decisions pertaining to plant activities with particular emphasis on productivity and welfare. The terms of reference for the Works Committee are also wider than those in the Industrial Dis-

putes Act. It has become a decision-making body rather than functioning as an advisory committee. It has been instrumental in evolving a variety of welfare schemes aimed at improving the workers' lot and in finding solutions to many of the complex technological problems. The continued faith end understanding shown by both employer and employees has brought about an atmosphere of cordiality and friendship. The company set up its first apex level joint committee in 1973. The committee consists of representatives from local unions, national trade union federations, and top management. Some of the cultural legacies of the Works Committee of BHEL,Tiruchy, were also grafted on to this new committee. The committee has since been successfully evolving policies on wage revision, standard designations, promotion channels, career planning, and other important issues. Based on the unstinted faith that participative style of management can lead to improved production and productivity, and result in the overall growth of society, the Joint Committee decided to extend its philosophy of participative management to grassroot level in the plants. The exercises carried out in this direction resulted in the BHEL Scheme of Workers' Participation in Management in August 1975 and inaugurated first in BHEL's Hyderabad plant. Some of the major provisions of the scheme are as follows: 1. Formation of a 2-tier system of participative forums: one at plant level, and the other at shopfloor level. 2. Provision for equal representation of man agement and labour while restricting the compo sition to a small number. 3. Proportional representation for various trade unions in the plants. In addition to formal participation forums, BHEL has also been experimenting with quality of working life. A few experiments have already been carried out at its Hardwar, Tiruchy and Hyderabad plants in job redesign. Formation of multi-trades in these plants have already shown
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positive results, encouraging both management and employees to apply this concept in other areas. Workers' participation cannot be confined to the four walls of formal forums instituted under various schemes; rather, it has to be a way of life. Workers' participation is a philosophy and a

noble concept. It aims at moving towards a high order where social justice and equality of man would lead to a more humane system of working. It should create a sense of belonging to the organization amongst employees, paving the way for healthy growth of the organization and its employees.

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