An interest in workplace democracy has spanned the generations. Sidney and Beatrice Webb produced their monumental treatise on this subject a century ago and anchored the institutional foundations of industrial democracy in strong trade unions and effective collective bargaining machinery. But while worker participation (in both decision making and in ownership) is still far from the typical organizational form, a richness of pattern, structure and process is now evident internationally. Management Power Turning more specifically to developments in workplace democracy over the last decade or so, it is clear that, in many countries, both the state and trade unions have declined in significance in industrial relations. Underlying these changes have been the globalization of markets and production, fundamental political changes based on a neo-liberalist agenda, rapid technological advances and the emergence of ideologies that have buttressed the power of managers at enterprise level. Indeed, to many observers, the contemporary political and economic conjuncture seems to offer little hope for the realization of the long held desire for industrial democracy based on notions of the 'rights' of employees to participate in decisions in their firms. Rather, increased economic competition and a concern over economic performance among industrialized economies appear to have resulted in developments which make the realization of greater employee participation in management more difficult to achieve. But the overall patterns of development have been complex. For while increasing emphasis on labor market flexibility and the desirability of increased managerial prerogative would seem to militate against some forms of worker participation (and notably those based on 'rights' to participate), there has also been increasing awareness of the role that 'human resources' can play in underpinning and improving firm performance. Participation and Profit This is having rather different consequences. In the context of changes in production technology, service delivery, work organization and product markets, increasing focus has been given to the role that participation can play in increasing the responsiveness of firms to market demands. A range of theories linked with notions of high performance work organizations acknowledge the role that participatory mechanisms can play in engendering commitment, improving quality and productivity and optimizing work organization in at least some sectors of most national economies. Flexible specialization also enhances 'responsible autonomy' within work teams. Thus it has been possible to introduce new, or consolidate some, existing participatory mechanisms despite a generally unfavorable economic and ideological environment. Decentralised bargaining So far as trade unions and collective bargaining are concerned, there is also a link between the changing nature of collective bargaining and the emergence of new forms of participation (both indirect and direct). Until the 1980s, in many countries (including the USA), collective bargaining was the preferred means by which wages and conditions were determined. In many western European countries there was a high degree of centralized bargaining, although there were considerable variations. From the mid 1980s, however, there was growing pressure from employers (and some governments) to decentralize aspects of bargaining process in order to achieve more flexible and efficient outcomes. As unions began to lose power in the labor market, as well as in the political arena, the movement towards more decentralized (if not deregulated) bargaining arrangements gained momentum. The 'favorable conjunctures' of the early to mid 1980s when Labor gained federal government in Australia, partly on the strength of the Accord with the unions, marked a high point of enthusiasm for industrial democracy and employee participation. The economic problems which beset the government towards the end of the 1980s led to a gradual movement away from a collectivist approach, which favored employee participation through unions, to a more individualistic approach which relied on enterprise bargaining. As industrial relations became more decentralized, the ACTU saw its influence decline and enthusiasm for a national approach to industrial democracy wane. While employers have extolled the virtues of involving employees at the enterprise level, the evidence suggests that as employers have gained dominance and union power has been eclipsed, most changes have been introduced with little consultation. Formal systems of indirect employee representation (such as joint consultative committees) have become widespread, yet the degree of influence which employees are able to exert through such bodies appears to be rather minimal. While direct forms of participation have increased, employers do not appear to have regarded these as vital to their enterprises and only a minority of workplaces have introduced activities such as autonomous workgroups, team building, Total Quality Management or employee share ownership. It would appear that both Australian management and unions have tended to be reactive rather than taking the initiative on employee participation. But in the light of the prospects for Labor regaining government at the federal level in the near future, workplace democracy is once again on the agenda. The labour movement needs to have policies and programs to meet the challenges of the future. By Russell Lansbury and Nick Wailes Russell Lansbury & Nick Wailes teach Work and Organisational Studies at the University of Sydney. worksite home Work and Citizenship home