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Influence of the Eu on Industrial Democracy in the Uk:

In: Business and Management

Submitted By anishsanish
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Influence of the EU on industrial Democracy in the UK:
Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. In some European countries the structures of Industrial Democracy have been in place for decades but the ideas behind Industrial Democracy do not fit in well with the more aggressive relationship that has existed between managers and unions in British companies. European legislation encourages a much more prominent role for workers in a firm’s decision making process.The new 'partner based relationships' where unions and management works toward thesame goals, exist in British industry because of the present EU influence.Now Unions are perceived as an institution existing to educate management and employeesthe benefit of involving workers in decision making process.As a result, employee involvement in decision making has become functional, by this meansimpacting positively on workers performance and enhancing their contribution to thesuccess of the organization.Now works council is made up of representatives of all departments within a firm.The role of works councils is to discuss long term objectives of the business and to suggeststrategies for improving the future prospects of the business.There is also an option for Worker Shareholders and Worker Partners, who have a stake inthe ownership of the business.Share holdings are often encouraged by the use of share option and saving schemes.These schemes have seen some success in the UK, with some company putting a great dealof emphasis on the importance of as many workers as possible having a stake in thebusiness.Although it is feared that the European Monetary Union will increase ‘wage dumping

it isthe practice of paying workers less than the standard rate set by the industry. Some Germancompany is already facing trials for…...

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