tag:blogger.com,1999:blog-2372264260202259467.post7817541316118549134..comments2022-11-20T13:49:40.224+00:00Comments on UK Worker Co-operatives: What is an employee owned co-operative?John Athertonhttp://www.blogger.com/profile/09335465474707227574noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2372264260202259467.post-4357727826532368852010-11-15T10:53:38.465+00:002010-11-15T10:53:38.465+00:00Thanks for the comments Carol, yes I agree that ea...Thanks for the comments Carol, yes I agree that each business needs to find the model best for them and their situation. As long as it's clear if these are poperly set-up cooperatives or employee owned businesees.<br /><br />The Benn Co-operatization of failing industries in the 70's and the privatisation of public transport in the 80's both in my view tarnished Government view about employee ownership of bussiness, as they both failed to implement the model fully.<br /><br />I'm glad to see there is a committment by Government to try better this time and I hope as a sector were better equipted to support them.John Athertonhttps://www.blogger.com/profile/09335465474707227574noreply@blogger.comtag:blogger.com,1999:blog-2372264260202259467.post-6668642455512036272010-11-15T10:30:43.893+00:002010-11-15T10:30:43.893+00:00The other interesting thing that came out of the B...The other interesting thing that came out of the Bill discussions is the commitment to avoid the mistakes of previous privatisations from the 80s: these were seen as "get rich quick" schemes rather than attempts to instil any sense of ownership either with employees or share purchasing citizens.<br />Employee ownership works well because the absence of external shareholders means that the organisation can concentrate on being a successful, sustainable enterprise. There has to be thought given to the longevity of the shareholding and how that shareholding can be exited. Of course, neither of these points are issues with employee trusts. <br />(On your comment re worker vs employee, I thought the working time regulations set the precedent here that they covered workers, not necessarily just individuals with employee status? It's an important point, especially with so many kinds of contracts for services now)CaroleRLhttps://www.blogger.com/profile/18084379864823557295noreply@blogger.comtag:blogger.com,1999:blog-2372264260202259467.post-27586986969916381032010-11-15T10:30:24.915+00:002010-11-15T10:30:24.915+00:00Good stuff, John, and timely considering all the c...Good stuff, John, and timely considering all the confusion regarding what is and what isn't the "John Lewis model"! None of the examples described in the media represent anything like the 100% Trust ownership that exists at JLP. Definition and understanding of terms is crucial if we are to be clear what we are talking about. <br /><br />I believe that what is important is that each organisation finds the model that is right for them. In some cases that will be a workers' co-op, in some cases it may be an employee owned business. Of course, it might be something completely different. I think your proposition that to be properly employee owned requires a controlling stake is good, and I'd like to see that. However, the reality is that for many reasons it is not always possible. I've spent the weekend reviewing the evidence given to the Parliamentary Committee on the Postal Services Bill and consensus appears to be Royal Mail requires external funding. It's likely this will be equity and therefore large scale employee ownership AT THIS STAGE, doesn't seem a likely outcome. However, I agree with you that the proposed 10% is paltry and it was good to see that many of the MPs agreed with that. The actual wording on the Bill is "at least 10%" so let's hope that is increased. There are many employee owned businesses with less than 50%, but I'd say these organisations use their governance structures to ensure real employee voice. Personally, I do agree this is sub-optimal.CaroleRLhttps://www.blogger.com/profile/18084379864823557295noreply@blogger.com