Why White-Collar Workers Unions

Seeing how unions of blue-collar workers had improved their service, employment and working
conditions by bargaining collectively with their employers for better and regular payment of
wages, bonus and other fringe benefits, and job and social security, whitecollar workers also
started uniting and organising themselves and forming their unions for fighting for better pay
scales, more fringe benefits, internal promotion by collective bargaining, agitation and litigation.
Other factors responsible for the growth of white collar unionism are discussed below.
1. Denial of both Job Security and Social Security to them by their exclusion from the
purview of labour laws like; Industrial Disputes Act, 1947, and Laws relating to wages, bonus
and social security against such social risks as sickness, maternity, premature death, and
permanent or temporary disabilities caused by accidents, old age and retirement.
2. Anomalies in pay caused by implementation of the recommendations of Wage Boards
and Pay Commissions.
3. Nationalisation and consequent rationalisation of pay and perquisites.
4. White and Blue collar workers unions are mostly registered under the Trade Unions Act,
1926 and are generally known as workers and employees Unions, white-collar workers
unions are registered either under the Trade Unions Act, 1926, or under the Societies
Registration Act, 1860, and are known as employees unions, or employees or staff
associations. Since the immunity from civil and criminal prosecution is provided to unions,
its members and office bearers for bona fide trade union activities under the Trade Unions
Act, and as this is not specifically provided under the Societies Registration Act, 1860 the
white-collar workers organisations registered as association under the latter Act have to be
selective in using pressures for getting their demand met. They generally take recourse to
mass casual leave, work to rule, peaceful demonstrations and dharnas, or hunger strike,
rather than to strike, picketing and boisterous agitation and demonstration.
5. Members of white-collar unions are more educated, knowledgeable and intelligent, and,
therefore, they are more capable in negotiating and bargaining for their demands. Their
union leadership is, therefore, mostly internal or endogenous. As blue-collar workers are
largely illiterate or low educated, the leadership is more external than internal, as they
require the help of the outsiders in bargaining for them collectively and representing them
in conciliation, arbitration and adjudication proceedings under the Industrial Disputes Act,
1947.
6. Financially and membership-wise white-collar unions are stronger than blue-collar
unions. Small membership and poor finances make the latter more dependent on outside
leadership and political parties for their day to day working, negotiations with employers,
and conciliation and adjudication of their disputes. These outsiders may not work always
entirely in the interest of workers. Increasing militancy of blue-collar unions could be
attributed to some extend to their poor bargaining power and frustration.
7. White-collar unions suffer must less from multiplicity, politicalisation and outside
leadership, and consequently from inter-union rivalries than the blue-collar unions. They,
therefore, have better bargaining power and greater possibility of arriving at collective and
bipartite agreements. Most of the whitecollar unions are independent, as they are not
affiliated to central trade union organisations with different political ideologies. All India
Federation of Railwaymen (AITUC), and National Federation of Indian Railwaymen (INTUC)
are working more cohesively than as rivals. Similar is the case with All India Bank Employees
Association and National Union of Bank Employees, they do not sacrifice the interests of
their members for some political gains.
8. Lastly, some of the white-collar employees may be outside the purview of the Industrial
Disputes Act, 1947, and so may have the problem of job security which their unions may
have to look after. This may not be the problem with Blue-collar Unions as their members
are almost covered by the I.D. Act, 1947.
9. Inconsistent and discriminatory promotion and salary policies which have been causing
so many conflicts and disputes.
10. Gradual narrowing of wages and salaries differentials of blue and white-collar workers
due to fast improvement in the wages and fringe benefits of the former organization account
of their union activities, and so causing feeling of deprivation among white-collar workers.
11. Inflation and soaring prices resulting in erosion of pay and standard living of whitecollar
workers, and thus leading to demand for higher pay, dearness allowance and annual bonus
and other fringe benefits. It is because of unions of the Government employees and public
sectors undertakings who had been excluded from the purview of the Payment of Bonus Act,
1965, enabled them to receive now annual bonus worked out on the basis provided under
this Act.
Distinguishing Features of White-Collar Unions
There are some noteworthy features of unions of white-collar workers which distinguish them
from that of the blue-collar unions as stated briefly below:
a) Managerial Association
Managerial trade unionism is no longer a fiction, but is an established fact. Though this
phenomenon is more than forty years old, it is yet to be considered as worthwhile to be concerned
with either by the Government, or by the central bodies of trade unions, or by academicians. The
Government could not enact a legislation concerning this aspect of trade unionism, or could not
introduce some procedure for redressal of grievances of the managerial staff. The Central
orgnisations of trade unions could have provided leadership or guidance for proper organisation of
such unions. The academicians, if they had wished, could have attempted an in-depth study of
managerial unionism and workshops. It is only the corporate managements who could not ignore
this happening. In fact they are finding it difficult to develop working relations with their
managers and other officers in the absence of any corporate or national policy on this subject.
b) Nature of Managerial Association
Hardly any organisation of managerial employees is a union. They are known as Officers
associations registered either under the Societies Registration Act, 1860, or under the Trade
Unions Act, 1926. The officers do not like their association to be equated with a trade union,
though many of their organisations are registered under the Trade Unions Act, 1927. Some cases
are also reported to be pending in the Courts, wherein the officers of certain oranisations are
claiming that they are not managers but workmen, and they should be given protection under the
provisions of the Industrial Disputes Act, 1947. The purpose of managerial unions is not very much
different from that of other trade unions for employees at different but lower levels in the
hierarchy. The means and strategies may differ in the sense that the managerial unions are
relatively soft in their wheelings and dealings than most of the blue-collar unions.
Employer-Employee The officers eligible for membership of such associations are below the level
of Relations
Director. They may be from the rank of trainees and upward up to the rank of Deputy General
Manager, and in some cases even the General Manager. It is the junior and middle level managers
who provide leadership of these associations. These officers rise from the ranks, and as members
of the non-executive cadre they may have had prolonged experience as members of trade unions,
if not, as office-bearers.
In India, Managerial unionism is more in public sector than in private sector. Its lesser
development in private sector may be due to the fact that most of the organisations in this sector
are usually small, and, therefore, they are free from the cold and impersonal atmosphere usually
found in large bureaucratic organisations. In small organisations the problems and difficulties of
the officers do not remain unattended. Such individualised attention is supposed to be missing in
big public sector establishments. The other possible reason for slower growth of managerial trade
unions in private sector may be that there employers are not willing to permit their officers to
combine and form unions of their own.
The emergence of Officers Associations in the public sector is relatively a new happening, whereas
these associations have existed in the banking industry and insurance companies for a fairly long
time. In Western Europe officers are organised in almost all countries, and there also it
predominates in the public sector. There the formation of such unions have been facilitated by the
fact that demarcation between a workman and non-workman is not so rigid as in India, and there
trade unions are also not so apathetic towards officers association as they are here in India. In fact
there the unions want to bring officers unions under the banner of the existing trade unions.
Why Managerial Association
i) Feeling of relative deprivation has been an important reasons for the officers/ managers
to organise themselves and form their associations for obtaining fair deal from their
managements. There has been a feeling that as compared to unionised cadre of workmen
and lower staff they have been getting a raw deal. They complain about narrowing wage
differentials generally. It is after the management had negotiated a settlement with the
unionised staff and a settlement is arrived at, the ad hoc increase in emoluments is given to
them unilaterally, which is usually less than the increase given emoluments of the junior
officers and the wages of the senior workmen.
ii) Feeling of insecurity is another reason for the growth of officers unions. They do not
have that enormous protection under the Industrial Disputes Act, 1947, which is enjoyed by
the employees covered by this Act. They are left high and dry to fend for themselves. This
has made them to realise the message of unit and organise to protect the interest of their
membership through collective bargaining, a strategy of which efficacy has been
demonstrated amply by the workmen and staff unions.
iii) Growing harassment of managerial staff by their subordinates: The authority of the
managers has been grossly eroded by the unionised workmen and staff. They are making it
difficult for the managers to take work from them by being emboldened by the support from
their union and protection they enjoy from labour legislation. Under pressure of the
unionised staff top management often fails to provide the required support to junior and
middle level managers. Even whenever they are assaulted by the workmen, the matters are
hushed up for maintaining industrial peace. Managerial unions have been formed to
pressurise top management to provide necessary protection against such harassment.
iv) To be a Third Force between the Working Class and the Management: Being denied
the protection of labour laws, and as well as of the privilege of a real manager, the junior and
middle level managers have gone for the only option left to them, that
is, the formation of the Officers Association. They would not like to be considered as part
and parcel of either of the working class or the management, but as a third force between
these two groups.
Workers Participation in Management
Workers participation in management is an essential ingredient of Industrial democracy. The
concept of workers participation in management is based on Human Relations approach to
Management which brought about a new set of values to labour and management.
Traditionally the concept of Workers Participation in Management (WPM) refers to
participation of non-managerial employees in the decision-making process of the organization.
Workers participation is also known as labour participation or employee participation in
management. In Germany it is known as co-determination while in Yugoslavia it is known as self-
management. The International Labour Organization has been encouraging member nations to
promote the scheme of Workers Participation in Management.
Workers participation in management implies mental and emotional involvement of workers in
the management of Enterprise. It is considered as a mechanism where workers have a say in the
decision-making.

Definition: According to Keith Davis, Participation refers to the mental and emotional
involvement of a person in a group situation which encourages him to contribute to group goals
and share the responsibility of achievement.

According to Walpole, Participation in Management gives the worker a sense of importance, pride
and accomplishment; it gives him the freedom of opportunity for self-expression; a feeling of
belongingness with the place of work and a sense of workmanship and creativity.
The concept of workers participation in management encompasses the following:
It provides scope for employees in decision-making of the organization.
The participation may be at the shop level, departmental level or at the top level.
The participation includes the willingness to share the responsibility of the organization by the
workers.

Features of WPM:
1. Participation means mental and emotional involvement rather than mere physical presence.
2. Workers participate in management not as individuals but collectively as a group through their
representatives.
3. Workers participation in management may be formal or informal. In both the cases it is a
system of communication and consultation whereby employees express their opinions and
contribute to managerial decisions.

There can be 5 levels of Management Participation or WPM:
a. Information participation: It ensures that employees are able to receive information and
express their views pertaining to the matter of general economic importance.
b. Consultative importance: Here workers are consulted on the matters of employee welfare
such as work, safety and health . However, final decision always rests with the top-level
management, as employees views are only advisory in nature.
c. Associative participation: It is an extension of consultative participation as management here
is under the moral obligation to accept and implement the unanimous decisions of the employees.
Under this method the managers and workers jointly take decisions.
d. Administrative participation: It ensures greater share of workers participation in discharge of
managerial functions. Here, decisions already taken by the management come to employees,
preferably with alternatives for administration and employees have to select the best from those
for implementation.
e. Decisive participation: Highest level of participation where decisions are jointly taken on the
matters relating to production, welfare etc.

Objectives of WPM:
1. To establish Industrial Democracy.
2. To build the most dynamic Human Resources.
3. To satisfy the workers social and esteem needs.
4. To strengthen labour-management co-operation and thus maintain Industrial peace and
harmony.
5. To promote increased productivity for the advantage of the organization, workers and the
society at large.
6. Its psychological objective is to secure full recognition of the workers.

Strategies / Methods / Schemes / Forms of WPM:
1. Suggestion schemes: Participation of workers can take place through suggestion scheme.
Under this method workers are invited and encouraged to offer suggestions for improving the
working of the enterprise. A suggestion box is installed and any worker can write his suggestions
and drop them in the box. Periodically all the suggestions are scrutinized by the suggestion
committee or suggestion screening committee. The committee is constituted by equal
representation from the management and the workers. The committee screens various
suggestions received from the workers. Good suggestions are accepted for implementation and
suitable awards are given to the concerned workers. Suggestion schemes encourage workers
interest in the functioning of an enterprise.

2. Works committee: Under the Industrial Disputes Act, 1947, every establishment employing 100
or more workers is required to constitute a works committee. Such a committee consists of equal
number of representatives from the employer and the employees. The main purpose of this
committee is to provide measures for securing and preserving amity and good relations between
the employer and the employees.
Functions: Works committee deals with matters of day-to-day functioning at the shop floor level.
Works committees are concerned with:
Conditions of work such as ventilation, lighting and sanitation.
Amenities such as drinking water, canteens, dining rooms, medical and health services.
Educational and recreational activities.
Safety measures, accident prevention mechanisms etc.
Works committees function actively in some organizations like Tata Steel, HLL, etc but the
progress of Works Committees in many organizations has not been very satisfactory due to the
following reasons:
Lack of competence and interest on the part of workers representatives.
Employees consider it below their dignity and status to sit alongside blue-collar workers.
Lack of feedback on performance of Works Committee.
Undue delay and problems in implementation due to advisory nature of recommendations.

3. Joint Management Councils: Under this system Joint Management Councils are constituted at
the plant level. These councils were setup as early as 1958. These councils consist of equal number
of representatives of the employers and employees, not exceeding 12 at the plant level. The plant
should employ at least500 workers. The council discusses various matters relating to the working
of the industry. This council is entrusted with the responsibility of administering welfare
measures, supervision of safety and health schemes, scheduling of working hours, rewards for
suggestions etc.
Wages, bonus, personal problems of the workers are outside the scope of Joint
management councils. The council is to take up issues related to accident prevention,
management of canteens, water, meals, revision of work rules, absenteeism, indiscipline etc. the
performance of Joint Management Councils have not been satisfactory due to the following
reasons:
Workers representatives feel dissatisfied as the councils functions are concerned with only the
welfare activities.
Trade unions fear that these councils will weaken their strength as workers come under the
direct influence of these councils.

4. Work directors: Under this method, one or two representatives of workers are nominated or
elected to the Board of Directors. This is the full-fledged and highest form of workers
participation in management. The basic idea behind this method is that the representation of
workers at the top-level would usher Industrial Democracy, congenial employee-employer
relations and safeguard the workers interests. The Government of India introduced this scheme in
several public sector enterprises such as Hindustan Antibiotics, Hindustan Organic Chemicals Ltd
etc. However the scheme of appointment of such a director from among the employees failed
miserably and the scheme was subsequently dropped.

5. Co-partnership: Co-partnership involves employees participation in the share capital of a
company in which they are employed. By virtue of their being shareholders, they have the right to
participate in the management of the company. Shares of the company can be acquired by
workers making cash payment or by way of stock options scheme. The basic objective of stock
options is not to pass on control in the hands of employees but providing better financial
incentives for industrial productivity. But in developed countries, WPM through co-partnership is
limited.

6. Joint Councils: The joint councils are constituted for the whole unit, in every Industrial Unit
employing 500 or more workers, there should be a Joint Council for the whole unit. Only such
persons who are actually engaged in the unit shall be the members of Joint Council. A joint
council shall meet at least once in a quarter. The chief executive of the unit shall be the
chairperson of the joint council. The vice-chairman of the joint council will be nominated by the
worker members of the council. The decisions of the Joint Council shall be based on the consensus
and not on the basis of voting.
In 1977 the above scheme was extended to the PSUs like commercial and service
sector organizations employing 100 or more persons. The organizations include hotels , hospitals,
railway and road transport, post and telegraph offices, state electricity boards.

7. Shop councils: Government of India on the 30
th
of October 1975 announced a new scheme in
WPM. In every Industrial establishment employing 500 or more workmen, the employer shall
constitute a shop council. Shop council represents each department or a shop in a unit. Each shop
council consists of an equal number of representatives from both employer and employees. The
employers representatives will be nominated by the management and must consist of persons
within the establishment. The workers representatives will be from among the workers of the
department or shop concerned. The total number of employees may not exceed 12.

Functions of Shop Councils:
1. Assist management in achieving monthly production targets.
2. Improve production and efficiency, including elimination of wastage of man power.
3. Study absenteeism in the shop or department and recommend steps to reduce it.
4. Suggest health , safety and welfare measures to be adopted for smooth functioning of staff.
5. Look after physical conditions of working such as lighting, ventilation, noise and dust.
6. Ensure proper flow of adequate two way communication between management and workers.

Workers Participation in Management in India
Workers participation in Management in India was given importance only after Independence.
Industrial Disputes Act, 1947 was the first step in this direction, which recommended for the
setting up of works committees. The joint management councils were established in 1950 which
increased the labour participation in management. Since July 1975 the two-tier participation called
shop councils at shop level and Joint councils were introduced.
Workers participation in Management Bill, 1990 was introduced in Parliament which
provided scope for upliftment of workers.

Reasons for failure of Workers participation Movement in India:

1. Employers resist the participation of workers in decision-making. This is because they feel that
workers are not competent enough to take decisions.
2. Workers representatives who participate in management have to perform the dual roles of
workers spokesman and a co-manager. Very few representatives are competent enough to assume
the two incompatible roles.
3. Generally Trade Unions leaders who represent workers are also active members of various
political parties. While participating in management they tend to give priority to political interests
rather than the workers cause.
4. Schemes of workers participation have been initiated and sponsored by the Government.
However, there has been a lack of interest and initiative on the part of both the trade unions and
employers.
5. In India, labour laws regulate virtually all terms and conditions of employment at the
workplace. Workers do not feel the urge to participate in management, having an innate feeling
that they are born to serve and not to rule.
6. The focus has always been on participation at the higher levels, lower levels have never been
allowed to participate much in the decision-making in the organizations.
7. The unwillingness of the employer to share powers with the workers representatives, the
disinterest of the workers and the perfunctory attitude of the government towards participation in
management act as stumbling blocks in the way of promotion of participative management.

Measures for making Participation effective:
1. Employer should adopt a progressive outlook. They should consider the industry as a
jointendeavour in which workers have an equal say. Workers should be provided and enlightened
about the benefits of their participation in the management.
2. Employers and workers should agree on the objectives of the industry. They should recognize
and respect the rights of each other.
3. Workers and their representatives should be provided education and training in the philosophy
and process of participative management. Workers should be made aware of the benefits of
participative management.
4. There should be effective communication between workers and management and effective
consultation of workers by the management in decisions that have an impact on them.
5. Participation should be a continuous process. To begin with, participation should start at the
operating level of management.
6. A mutual co-operation and commitment to participation must be developed by both
management and labour.
Modern scholars are of the mind that the old adage a worker is a worker, a manager is a
manager; never the twain shall meet should be replaced by managers and workers are partners
in the progress of business