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Productivity: legislate for workplace democracy and employee ownership

By Klaas Woldring - posted Friday, 31 August 2012


The entrepreneur shall give the Council an opportunity to render advice on any decision he proposes to make with regard to e.g.: transfer of control of the enterprise or any part thereof; the establishment, take-over or relinquishment of control of another enterprise; or entering into, making a major modification to or severing a continuing collaboration with another enterprise including the entering into, effecting of major changes to or severing of an important financial holding on account of or for the benefit of such an enterprise; termination of operations of the enterprise or a significant part thereof;¨ any significant reduction, expansion or other change in the enterprise's activities; major changes to the organisation or to the distribution of powers within the enterprise; any change in the location of the enterprise's operations; recruitment or borrowing of labour on a group basis; making major investments on behalf of the enterprise; taking out major loans for the enterprise;¨ granting substantial credit to or giving security for substantial debts of another entrepreneur, unless this is normal practice and part of the activities of the enterprise; the introduction or alteration of an important technological provision;¨ taking an important measure regarding the management of the natural environment by the enterprise.

The approval of the Council shall be required for every proposed decision on the part of the entrepreneur to lay down, amend or withdraw e.g. :regulations relating to a pension insurance scheme, a profit-sharing scheme or a savings scheme; regulations relating to working hours or holidays, pay or job-grading systems; regulations relating to working conditions, sick leave or reintegration; regulations relating to policy on appointments, dismissals or promotion, staff training; and staff appraisals.

If requested to do so, the entrepreneur shall in a timely fashion provide the Council and its committees with all the information and data such as they may reasonably be deemed to require in order to perform their duties. The information and data shall, upon request, be provided in writing. A fairly long list of data is provided in the Act.

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In order to facilitate proper discussion of the general operation of the enterprise, the entrepreneur shall, at least twice a year, provide the Council, either orally or in writing, with general information concerning the activities and financial results of the enterprise relating to the preceding period.

This Act commenced operations in 1971 and has been amended and expanded several times. The tripartite nature of Dutch politics, with a Government elected on a proportional electoral system, tend to give it a role of arbitrator between employers and employees. That is different from the two party system in Australia, which reinforces the adversarial mode of industrial relations and positions the major parties often as the representatives of labour and capital. If Australia wants to move away from that dated adversary political culture major reforms of party and electoral systems need to be contemplated as well.

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About the Author

Dr Klaas Woldring is a former Associate Professor of Southern Cross University.

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