Labour Conferance Proposes "Inclusive Ownership Funds" To Benefit Workers

Labour conference for a moment longer, Shadow Chancellor John McDonnell has outlined plans to force large firms to give up 10 per cent of their shares to worker ownership funds.

 Businesses with over 250 employees would have to tranfer one per cent of ownership to "Inclusive Ownership Funds" every year, until they reached ten per cent. Workers could take up to £500 in dividends each year, with the excess being given to government.

 On the Shadow Chancellor's proposal Stephen Martin, Director General at the IoD, pointed out that while employee ownership can have potential benefits in some cases, the measure to enforce this form was "far too draconian."

 Meanwhile, Labour also unveiled plans to impel firms to reserve a third of board seats for workforce representatives.

 In a similar vein, IoD Head of Corporate Governance Roger Barker responded that 'Employee directors are a valid option, but imposing them on all large businesses is a step too far', adding that 'Firms should be allowed flexibility in how they take account of a wider range of stakeholders perspectives, including those of employees.'

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