Shop councils


The main features of the scheme pf Participative Management through Shop Councils are as follows:

1. In every industrial unit employing 500 or more workmen, the employer shall constitute a Shop Council for each department or shop or one Council for more than one department or shop, considering the number of workmen employed in different departments or shops.

2. (a) Each council shall consist of an equal number of representatives of employers and workers.
(b) The employers’ representatives shall be nominated by the management and must consist of persons from the unit concerned.
(c) All the representatives of workmen shall be from amongst the workers actually engaged in the department of the shop concerned.

3. The employer shall decide in consultation with the recognized union or the various registered trade unions or with workers, as the case may be, in the manner bets suited to local conditions, the number of shop councils and departments to be attached to each council of the undertaking or establishment.

4. The number of members of each council may be determined by the employer in consultation with the recognized union, registered unions or workers in the manner best suited to local conditions obtaining in the unit; the total number of members may not generally exceed 12.

5. All decisions of a shop council shall be on the basis of consensus and not by process of voting, provided that either party may refer the unsettled matters to the joint council for consideration.

7. Such decision of a shop council which have bearing on another shop, or the undertaking of establishment as a whole will be referred to the joint council for consideration and decision.

8. A shop council once formed shall function for a period of two years. Any member nominated or elected to the council in the mid-term to fill a casual vacancy shall continue to be a member of the council for the unexpired portion of the term of the council.

9. The council shall meet as frequently as is necessary and that at least once in a month.

10. The chairman of the shop council shall be a nominee of the management the worker members of the council shall elect a Vice-Chairman from amongst themselves.


Every decision of a shop council shall be implemented by the parties concerned within a period of one month unless otherwise stated in the decision itself and compliance report shall be submitted to the council. This council helps to sort out shop floor or production related problems between workers and management. It also helps in building up mutual confidence between workers and management and increasing the productivity.