Worker directors and worker participation : the BOV experience

Abstract

In the post war period up to the 1950's the world has experienced a certain degree of apathy. This was later transformed, through a period of economic enhancement to a degree of greater participation in the 1960's. A democratic theory by nature must have at its base a certain degree of participation. If one accepts that democracy equals participation or rather that democracy cannot exists without a certain degree of participation, it can be held that in a democracy people rule themselves rather than being ruled by others. Participation can be seen as a means by which to produce a sense of community for individuals. Given the constant division of labour and the requirements of modem mass society, this will not easily be achieved. Participation could eventually produce an identification with the wider community and its enterprises. In our case, such an enterprise is the Bank of Valletta Group. Thus it is only quite natural that the organisation which permits participation will ultimately produce individuals who are responsible to it. The Bank of Valletta was one of the first institutions where worker participation was introduced. The Bank was formed in 1974 and in 1976 Mr Joseph Rizzo was appointed as the first Worker Director after whom elections were held each year to elect a Worker Director if contested otherwise the Prime Minister of the day could accept or reject the uncontested candidate. Up to now, one can say that this form of participation, whilst being of utmost importance to the Bank is only a concession by the Government of the day and no concrete materialisation of this concept exists in the Memorandum and Articles of Association on the lines of the TeleMalta Corporation Act of 1987 besides the fact that this 'concession' has frequently taken the centre stage of litigations between unions and between elected worker directors and management on the interpretation of the worker director's role and if it goes 'ultra vires' to the role of a director to the board of Directors. [...]