PSU workers may be allowed to participate in decision-making process

NEW DELHI: 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.
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 state-run company said the move is impractical and workers' participation could make decision-making cumbersome.

"We are facing intense competition with global private firms. They have leaner management structures that help them in quick decision-making," one executive said requesting anonymity. “This is an extremely new thing and we will firm our views in due course," said a senior IOC executive, who is expected to attend the Monday meeting. IOC is representing public sector oil companies.

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.