Workers Participation in Management

of Railways
Workers Participation in Management
Whitely Committee in UK during 1917 has
recommended that workers should be given
opportunity to participate in the discussion for Promoting productivity for the general benefit of the
organisation, employee and community.
Giving employees a better understanding of their role
in the organisation in the process of production.
Satisfying the workers urge of self expression, to
achieve industrial peace, better relationship and
cooperation.

 In Railways, workers participation is in practice

for a long time by associating the representatives
of trade unions in different areas like:
Staff benefit fund committee
Quarters committee
Housing committee
Running room advisory committee
Canteen management committee
Hospital visiting committee
Labour advisory committee
Executive committees of Railway Institute and
clubs
Workshop productivity councils etc

 In addition in the area of workers participation

in management, corporate enterprise groups
of management and labour have been formed
at Railway Board, Zonal Railway and Divisions,
which is now being called as Participation of
Railway Employees in management(PREM).

 PREM at Railway Board

1. Four representatives each from two
Federations.
2. Two representatives of All India Officers
Federations.
3. Two representatives of Indian Railway
Promotee Officers Association.
4. On official side Chairman, member

 PREM at Zonal Railway

Four representatives each from
recognised unions affiliated to all India Railway
men's federation and national federation of
Indian Railway men.
1. Two representatives of the association
affiliated to all India Officers Federation.
2. Two representatives of the association
affiliated to Indian Railway Promotee Officers
Association.
3. GM and all Heads of Departments

 PREM at Division
It is constituted in the same manner as
constituted in the Zonal Head Quarters

Objectives of PREM
Evaluate the functioning of the railway and
exchange data, ideas, ways and means for
improving the efficiency and viability of the
organisation.
Apprise the investment program particularly
in regard to housing and welfare services.
Identify the areas and devise methods for
maximizing organizational effectiveness, use
of technology and towards building up of the
image of Railways as service organisation

 Facilities for PREM representatives

Two representatives from each of PREM Group
constituents at Board level namely, President and
General Secretary/Secretary General may be
allowed to travel with their spouse in the entitled
class while attending PREM Group meetings (4 in
a year) at the Apex level for which cheque passes
may be issued.
CUG phone facility existing with Presidents and
General Secretaries/Secretaries General of PREM
Group constituents at Apex and Zonal and
Divisional levels with monthly ceilings as follows:
Apex Rs. 1000, Zonal Rs. 800 and Divisional
Rs. 500

 Joint Councils and Shop Councils

During 1975 the Ministry of Labour introduced
Shop Councils at Shop and department level and
Joint Council at organisational level in
manufacturing and mining industries to function
as a step towards workers participation in
management.
The Shop and Joint councils consists of equal
representatives from management and the
workers.
In Railways these councils are functioning in
Production Units with a view to maintain good
relation among employees in production units

 After announcing several labour reforms last

week, the Narendra Modi government is
considering allowing workers to participate in
board decision of state-run firms such as Oil
and Natural Gas Corporation, Coal India,
NTPC, Indian Oil Corporation and BHEL.
The policy proposal, an initiative of the labour
ministry, is expected to be initially confined to
state-run enterprises, but its scope could be
enlarged later to include private firms,
government and industry officials said.

 "The labour ministry is expected to initiate

consultations with all stakeholders, including
representatives of industry and labour unions
from Monday," a source with direct knowledge of
the development said.
A similar proposal was initiated 34 years ago in
the form of "the Participation of Workers in
Management Bill", which was introduced in the
Rajya Sabha in May 1990, but was put on the
backburner by various governments because the
industry vehemently opposed it, sources said

 Participation of workers in management bill 1990 (Bill No. XXVIII of

1990):
So far, all the schemes pertaining to the workers participation in
management have been non-statutory which failed to provide meaningful
participation to workers in management.
To remedy the situation, the Government has, therefore, introduced a
Bill in the Parliament on 25th May 1990 to provide for:
1. Meaningful three-tier participation of workers in management in all
industrial establishments.
2. Formulation of scheme specifying criteria regarding nomination of
representatives from workers.
3. The principle of secret ballot for determining the representation of
workers on the shop floor and establishment level councils.
4. Rules for monitoring the scheme.
5. Deletion of Section 3 of the Industrial Dispute Act, 1947.
6. Rules for appointment of Inspector.
7. Imprisonment up to 2 years or a fine up to Rs. 20,000 or both for
contravention of the provisions.

 Blue chip public sector companies such as

ONGC, NTPC and IOC are still against the move
while their respective administrative
ministries are in-principle in favour of allowing
workers' participation in management of the
company, sources said. Executives in a staterun company said the move is impractical and
workers' participation could make decisionmaking cumbersome.

 Industry representatives have a view that participation of

workers in management should be limited to production
levels only, that too in manufacturing industries, officials
with direct knowledge of the matter said.
During past meetings, trade unions have assured that
workers in management would not hinder decision making
and use the policy for the purpose of bargaining, the
officials said. Trade unions say workers' participation in
management at all levels will help in increasing productivity
and production. But they want to revamp the 34-year-old
proposal to reflect current socio-economic reality, officials
added.
"The NDA government is serious about labour reforms and
believes that workers' participation would strengthen their
bond with the management and their involvement with the
company," an official in the labour ministry said requesting
anonymity.