The Adoption of Industrial Democracy

Abstract

With the publication in January 1977 of the Bullock Report on Industrial Democracy has come a recognition that the rights of employees are almost equal to the rights of shareholders and management. Industrial democracy is seen to represent an extension of modern political democracy to industrial companies. In society, political enfranchisement no longer takes account of the ownership of capital or land; nor requires an education or qualifying period. Democracy has come to mean ‘one adult, one vote’. While the Bullock Report is not recommending that degree of industrial democracy in companies, it is theoretically allowing employees an important influence on decision‐making at the policy level, with a subsequent loss of influence to the shareholders and relevant property owners. The majority of the Bullock Committee believe that the native capacities of the working population can be drawn out by putting the relationship between capital and labour on a new basis which will involve not just management but the whole work force in sharing responsibility for the success and profitability of the enterprise. This they believe can only be done if the representatives of the employees are given a real, not a sham or token share, in making strategic decisions which in the past have been reserved to management and the representatives of the shareholders. The debate about industrial democracy is much less about the desirability of moving in the direction of greater participation than about the pace of change and the need to extend such participation to the Board.