Workplace Democracy-The Recent Debate
Workplace Democracy-The Recent Debate
Abstract
The article reviews the recent debate about workplace democracy. It first presents and critically
discusses arguments in favor of democratizing the firm that are based on the analogy with states,
meaningful work, the avoidance of unjustified hierarchies, and beneficial effects on political
democracy. The second part presents and critically discusses arguments against workplace
democracy that are based on considerations of efficiency, the difficulties of a transition towards
democratic firms, and liberal commitments such as the rights of employees and owners to work
for or invest in non-democratic firms. The conclusion summarizes the debate and argues that
experiments with democratic workplaces as what Erik Olin Wright (2010) calls “real utopias”
could deliver new insights and thus move the discussion forward.
Keywords
Workplace democracy; meaningful work; employee rights; ownership; efficiency; liberalism; real
utopias
Introduction
At the most general level, the term “workplace democracy” describes systems for the exercise of
power by workers or their representatives. A broad variety of arguments have been brought
forward for granting self-management to workers, and an equally wide range of institutional
solutions have been proposed. The objectives pursued by means of workplace democracy are
broad as well: from the self-organization of work in the production unit to strategic decisions
concerning hiring policies, product development, or commitment to social and environmental
values (Weber, 1992). Organizational solutions to democratizing the workplace range from rather
bland organizational reforms of hierarchical structures (organizational participation) to delegation
systems based on workers’ representation, such as the German co-determination model,1 to more
involved forms of workers’ direct participation through works councils. Some argue that the
ownership of the firm by workers is a necessary requirement for workplace democracy, while
others hold that ownership and control can be separated. Yet others have contended that
workplace democracy and capitalism are incompatible, so that genuine workplace democracy
would require a more encompassing reform of the entire economic system.
In these different forms, ideas and projects for democratizing the workplace date back at
least to the first industrial revolution. We find them, for example, in early projects on industrial
cooperation (Pollard, 1971), as well as throughout the whole history of industrial relations.
Important parts of this history are the Yugoslavian works councils in the second half of the 20th
century (Széll, 1992) as well as numerous cooperatives, e.g., food cooperatives or cooperative
banks, that co-exist with capitalist firms in many countries. Experiments with democracy in the
workplace have also characterized many revolutionary experiences from the Paris Commune to
the political revolutions of the earlier twentieth century, where works councils were established as
1
This model includes both the right to form worker councils and the inclusion of worker
representatives on the boards of large companies (the majority lies with the side of capital,
however).
the only legitimate form of labor organization, and conceived sometimes as the basic units of the
political system (Ness & Azzellini, 2011).
These and other political experiences, often short lived, were accompanied by attempts at
theoretical articulation. Authors such as Robert Owen, Karl Marx, John Stuart Mill, G. D. H.
Cole, or John Dewey wrote about workplace democracy; the idea was debated in the circles of
utopian socialists, anarcho-syndicalists, and social liberals. The idea of worker democracy has also
been a long-lasting source of theoretical and political inspiration throughout the twentieth
century, often under the label of “industrial democracy” (Poole, 1982). Debates on workplace
democracy have spanned a variety of academic disciplines ranging from philosophy to
organization studies, sociology, economics, law, and political science. The concept has inevitably
been subjected to manifold interpretations and its exact meaning and the political visions that
come with it remain contested.
Having fallen into near oblivion in the late 1970s, particularly in philosophy, the idea of a
democratic organization of work has regained traction in recent decades. Sustained interest has
resurfaced in political philosophy, and a variety of arguments have been brought forward not
only to clarify the content of the concept but, moreover, to support or criticize the claim that the
democratic organization of work is justified. This article, which is divided into two parts, offers a
review of the major attempts at justifying this claim. Part I explores arguments in support of
workplace democracy, and Part II is devoted to arguments that reject the claim that the
workplace should be democratized. Part I discusses four arguments in support of workplace
democracy: (1) that workplaces should be democratized because they are relevantly similar to
political communities; (2) that democracy is required to render the work meaningful; (3) that
democracy is needed to avoid domination and achieve equality; and (4) that democratizing the
workplace has beneficial effects on political democracy. The counterarguments discussed in Part
II are based on concerns about (1) efficiency, (2) the feasibility of a transition to workplace
democracy, and (3) liberal commitments. In the conclusion, we summarize where the discussion
currently stands and call for a close collaboration with empirical researchers to move the debate
forward.
2
According to Dahl, equality is strong if in matters that concerns them individuals “all are equally
qualified to decide” (Dahl, 1989, 57).
Dahl, the scope of this inalienable right, originally defined with reference to political forms of
government, can be extended to other types of human association. The intuition is that if one can
show that firms are relevantly similar to political governments, then one is entitled to claim that
the members of firms have an inalienable right to govern themselves in democratic ways (Dahl,
1986, 61). Dahl is aware, however, that although this argument applies prima facie to the political
community, where equality trumps private property, it does not necessarily apply at the level of
the manifold associations that exist within the democratically organized polity itself. For strong
equality to hold, enterprises would have to be owned by workers. Thus, for Dahl, workers’
control is inseparable from workers’ ownership.
The debate spawned by Dahl’s work has seen a proliferation of arguments either
supporting or rejecting the state-firm analogy, which has led to some qualifications of his original
claim. On the one hand, supporters have contended that, while a perfect analogy between firms
and states may not hold, the similarities are nevertheless significant, so that some normative
bridges between the two types of institutions can be built. Supporters of the state-firm analogy
have thus devoted considerable efforts to prove that states, like firms, do have goals (Landemore
and Ferreras, 2016; Moriarty, 2005), or that firms, like states, do have high exit costs, i.e. it is
difficult for individuals to leave them (González-Ricoy, 2014a; Moriarty, 2005). On the other
hand, critics have highlighted disanalogies that, according to them, invalidate the overall
analogical strategy. Explicit criticisms of the state-firm analogy (e.g., Arneson, 1993;
Narveson,1992; Mayer, 2000; Phillips and Margolis, 1999) adopt the same argumentative strategy:
it consists in identifying at least one dimension with reference to which firms differ significantly
from states. Discussions have mainly revolved around the following points: exit costs, property
rights, the relevance of expertise, the nature of the goals pursued, or environmental
circumstances.
As it stands, the debate seems inconclusive because the success of analogical arguments
depends heavily upon the examples chosen, the perspectives adopted, and the data used.
Nonetheless, analogical arguments have some merits. While they may not provide direct support
for workplace democracy, they help put the question in a broader cultural and historical
perspective, which can contribute towards a critical reconsideration of received views and of
existing institutional arrangements.
3
At least this holds for societies without a sufficiently high unconditional basic income (see, e.g.,
Widerquist, 2013; for a critical discussion, see, e.g., Jubb, 2008).
is inconclusive, and as Carter (2006) rightly points out, there are many variables that can
confound the relation between cause and effect, e.g., job autonomy or the degree of conflict in
firms. Moreover, it is difficult to empirically explore the broader systemic effects of workplace
democracy on political democracy, as long as we have no democratic countries with fully
democratized workplaces. Hence, the empirical claims that workplace democracy would be
necessary or sufficient for political democracy to flourish in the long run have been neither
confirmed nor rejected so far.
There are three main arguments brought forward against the idea of workplace
democracy. The first argument states that for various reasons democratic workplaces are
inefficient in most markets and unable to compete with hierarchical companies. According to the
second argument, it is unrealistic to assume that there can and will be a spontaneous transition
towards a democratization of all or at least the majority of workplaces. The third argument claims
that a mandatory transition to democratic workplaces interferes in an unjustified way with the
liberties of citizens and especially of employees, who may prefer to work in hierarchical
companies. None of these three arguments states that there should be no democratic workplaces
at all. Instead, they all—and especially all three taken together—imply that governments should
not intervene in markets and directly prescribe the democratization of workplaces.
4
We thank an anonymous reviewer for pressing us on this issue and providing us with sources.
of democratic workplaces is in need of explanation and that the assumption of mutually
reinforcing forms of inefficiency does provide such an explanation (Jacob and Neuhäuser, 2018).
But commentators have also suggested other possible explanations, such as path dependencies or
network effects among capitalist firms (e.g., Bowles and Gintis, 1993).
Conclusion
As these arguments show, the debate about workplace democracy is currently
inconclusive. We can nonetheless distinguish a certain pattern: core arguments in favor of
workplace democracy emphasize the intrinsic value of democratic practices as an expression of
egalitarian social relations, while there are additional arguments of an instrumental nature (such as
more meaningful work or the support of democratic habits and skills). Core arguments against
workplace democracy focus on the negative consequences it may have, while there is only one
intrinsic argument, that about potentially illegitimate interferences with the liberties of capital
owners or employees. This latter issue raises larger questions about what it means to have rights,
about what to do if different rights clash, and about the role of the state in securing citizens’
autonomy and the conditions for using one’s rights in a meaningful way, e.g., by securing
sufficient options to choose from. These are issues we cannot address here, but it should be
noted that the fault line is likely to be similar to that between “classical” and “high liberal” or
“social liberal” traditions, i.e., between those who attach great weight to economic rights and
liberties and those who want to balance them with other rights and liberties (Freeman, 2011).
Those in the latter camp are likely to be more open to ideas about workplace democracy than
those in the former.
However, some of the inconclusiveness of the debate stems from the lack of clear
empirical evidence about the actual consequences of workplace democracy. As emphasized
throughout the paper, these concern points such as the effects of democratization on meaningful
work, the robustness of workers’ rights in systems with and without workplace democracy, the
implications for civic virtue, and—perhaps most centrally—the relation between democratization
and efficiency. Here, the philosophical debate could benefit from integrating empirical research;
for example, on the German co-determination system (e.g., Jackson, 2016), on existing co-
operatives (e.g., Penceval, 2012), or on the psycho-social effects of different workplace
environments (e.g., Weber, 2009). This research indicates that at least some types of more or less
democratic enterprises can survive in an environment in which most firms are capitalist, and that
the spread of democratic enterprises can benefit the individuals working there as well as the
society at large.
But there can only be empirical research where there are empirical cases. Hence, in the
area of workplace democracy, experimentation for the purpose of social learning, in the sense of
“real utopias” (Wright, 2010), seems called for. Given that the strongest counter-arguments are
those against mandatory workplace democracy, democratic governments may want to support
voluntary experiments with democratic governance, where social scientists could carefully observe
to understand what does and does not work. These insights would help illuminate the strength of
different arguments based on the consequences of workplace democracy. And they could also be fed
back into the conceptual and normative debate about the values—of self-determination, equal
respect, shared control, or others—that some believe a workplace should realize.
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