No evidence that reducing rights will increase employee ownership, says EOA CEO Iain Hasdell

Friday 19th October EOA/PR/191012


Commenting on the new BIS consultation on workplace rights “Implementing Employee Owner Status”, Employee Ownership Association CEO Iain Hasdell:

There is absolutely no need to dilute the rights of workers in order to grow employee ownership and no data to suggest that doing so would significantly boost employee ownership.

“Indeed all of the evidence is that employee ownership in the UK is growing and the businesses concerned thriving, because they enhance not dilute the working conditions and entitlements of the workforce.

“However it is good that the Government is consulting on this plan rather than jumping straight into implementation. We will be submitting a response and will work with the thousands of people in our network to share their deep experience of being successful current employee owners. This will help the Government deliver on its stated commitment that this initiative to increase the number of employee owners has no unintended consequences.”

The consultation outlines a series of measures impacting on workplace rates, linking changes to a form of share ownership and what the consultation terms “a new employment status: “employee owner”.”

The EOA will be submitting a response to this consultation in due course

Ends


Notes to editors

  1. For more information visit . For further information or interviews, please contact The Employee Ownership Association press office: 020 7922 7762// 07944 381743 or sam.dowling@employeeownership.co.uk

  2. The Employee Ownership Association is the voice of co-owned business in the UK – a network of companies with significant employee ownership and a sector worth over £30 billion annually. Members include public sector mutual MyCSP, co-owned Gripple, Childbase, John Lewis, Waitrose, Unipart, Arup, and a host of successful enterprises from many sectors of the economy. The Association’s role is to serve its member companies and promote the growth of employee ownership in the UK.

  3. The consultation (http://bit.ly/Rbmlpl) outlines amendments to certain workplace rights including unfair dismissal and maternity rights in exchange for CGT relief on shares issued to employees and closes on 8 November.  

  4. This follows the earlier announcement made by the Chancellor at Conservative Party Conference, in response to which we issued the following statement: http://bit.ly/TbzlcB.

    New research (to be published this month) conducted by Edinburgh Napier University and commissioned by John Lewis Partnership shows that job security, job satisfaction, and productivity are already significantly higher in employee owned businesses compared to traditional companies surveyed by the national Workplace Employee Relations Survey.