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Workers' Co-operative:
Another form of privatisation is transfer ofownership of a loss-making concern to the workers. Mr. R. Ganpati, formerChairman of the Board of Industrial and Financial Reconstruction (BIFR)is of the view: "If more managements are divested of control of theircompanies and workers' co-operatives set up in their place, promoters maybe galvanised into curing their sick units." The basic logic of the proposalis that workers besides receiving wages for work, would also be entitled toa share in ownership dividend. Since workers' personal interest is linked tothe interest of the enterprise, the workers are likely to work hard to increaseproductivity so that they can earn more. Such schemes were introduced inKamani Tubes, Central Jute and Mewar Textiles, Hoist O' Mech andCalcutta Chemicals etc. But for a few experiments which yielded positiveresults at least in the short run, it became difficult to expand the coverageof such proposals. Neither did any Government show any commitment tothe idea of workers' co-operatives. Consequently, this form of privatisationdid not assume a significant role in economic reform.
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