Workplace Self-Governance - Is It Obsolete?
By Amy Wong
Cynthia A. Estlund, a leading scholar in labor and employment law at NYU, will present “Putting Law to Work: The
Resurrection of Workplace Self-Governance,” a lecture that explores the
relationship between the workplace and democracy, on Feb. 28 at the
Case Western Reserve University School of Law.
Estlund will speak about why employees must ensure that their rights are protected. Gone are the days of union representation and collective bargaining. The government has gained control of employee rights by implementing employment regulations. In
response to this new system, Estlund argues, “firms have put in place
internal compliance and dispute resolution systems that aim to, and
sometimes do, deflect regulation and litigation.” Employees have taken a backseat as the government and firms wrestle over their rights.
Estlund
warns, “If employees continue to be shut out of these self-regulatory
systems, the result may be a disguised form of deregulation.” However,
“if employees can gain an effective voice in these systems, the result
could be improved regulation and revival of workplace self-governance.”
It’s true. As a result of globalization over these past few decades, companies have been growing larger and larger. It’s
become harder than ever for employees to protect their rights as their
skills have become more dispensable and politics more unmanageable.
Since Enron’s catastrophic debacle in 2002, the Securities and Exchange Commission has tried to reform corporate governance by allowing shareholders to elect directors. Its petition
noted, “Tweaking rules and regulations at the margins will only
minimally improve the quality of corporate governance” and asked, “What
happened to democracy?”
Workplace democracy would make management accountable to shareholders and employees. It would significantly limit the government’s and firms’ discretionary power. The rule protecting shareholders’ rights is arguably a viable solution to protecting employee rights. Nothing has yet been enforced, which means change will be slow to come as companies begrudgingly continue to drag their feet.
It should be noted, though, that some companies, like Zion Oil & Gas, have forged ahead by giving their shareholders one vote per share on all matters submitted to a vote of shareholders. Hmm…there’s a lot to think about and a lot to do. If you’re in the area, I would recommend attending Estlund’s speech. I’m sure it’ll be both thought-provoking and enlightening.
URL: http://lawwww.cwru.edu/curriculum/news_detail.asp?id=302&content_id=5
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