The Industrial Policy Resolution of 1956 stated that in socialist democracy, labour is a partner in the standard development task and participates in it enthusiastically. There should be joint consultations and work, and technicians should, whenever possible, be associated progressively with management. The Government appointed a study group to see the experience of other countries also in this regard.
The Government recommended a scheme for the Joint Management Councils in 1958. Its introduction was left solely to the discretion of employers & employees. These councils will consist of equal no. of representatives of employees & employers, not exceeding twelve. The Council addresses issues related to accident prevention, management of canteens, water, meals, revision of work rules, absenteeism, indiscipline, etc.
Attributes of Joint Management Councils
- In certain matters management is expected to share information with members of council.
- It can be consulted by management on certain specified matters.
- The council has administrative responsibilities.
- Subjects under collective bargaining, such as wages, bonus and allowances have been excluded from the scope of JMC.
Objectives of JMC
- Promote healthy relations between management and workers.
- Build trust and understanding between management and workers.
- Improve worker efficiency.
- Provide welfare facilities to the workers.
- Educate workers about the scheme for their increased participation.
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.