EFES NEWSLETTER - NOVEMBER 2012

British Government's plans to boost employee ownership sector
British Government announced its plans to boost employee ownership sector. The plans include assessing whether to establish an independent Institute for Employee Ownership, an ‘off the shelf’ model for setting up an employee owned business, work to examine the guidance on tax issues relating to employee ownership, a guide for staff and employers to request and agree an employee ownership takeover and work with the John Lewis Partnership to examine the barriers to funding for private sector employee owned companies. More details

Employee owner or sub-employee owner?
To be or not to be? We are still in the UK of course. Every day brings its new ideas to boost employee ownership. Chancellor George Osborne announced the new "employee-owner" contract: Employees could be given shares in their companies in exchange for giving up certain employment rights under plans for a new type of employment contract. Storm of controversy! Would you trade your employment rights for shares? "Osborne's announcement is a big boost to employee ownership scheme", the Employee Ownership Association said. And again: "Employee ownership is now being embraced as the most prominent alternative to the over-dominant PLC model and its inherent short-termism." The National Center for Employee Ownership said Chancellor Osborne’s proposals were "awful", a “very bad idea” and that no “rational person” would give up employment rights for a small capital gains tax break. Finally, most employee ownership organizations agreed that the rights of workers couldn't be reduced in order to grow employee ownership. See press review for all details

Press review
We made a selection of 56 remarkable articles in 14 countries in October 2012: Austria, Canada, Finland, France, Germany, Ireland, Italy, Morocco, Netherlands, Poland, Spain, UK, USA, Zimbabwe.
Austria: Vice Chancellor Michael Spindeleggers promotes employee ownership in his "25 ideas for Austria".
Canada: New investment fund for promoting employee buyouts through workers' shareholding cooperatives in Quebec.
Finland: Personnel funds are a good way for employee ownership in Finland; foreign participants cannot be discriminated in taxation, compared to Finnish ones, the Court decided.
France: Successful new employee share plan for Capgemini whose employees are now the biggest shareholder with 7%. Higher taxation will discourage employee ownership in new start-ups. Employee savings are growing in 2012 but higher taxation will certainly not help. Free shares are increasingly used rather than stock options. It is time for employee buyouts. A number of new companies to be rescued as workers' cooperatives.
Germany: Catholic Bishop Losinger for employee ownership. RWE Group has a long tradition in employee ownership.
Ireland: ESB workers value their 5pc stake in the semi-state at half what the government thinks it is worth.
Italy: General Assembly in Monte dei Paschi di Siena: ADAMP shares the views of Azione MPS, voting a different proposal in opposition to the management. More than 3.500 proxies in a system based on individual share ownership: It is time for a specific law in Italy.
Morocco: New legislation encouraging Employee Savings Plans in 2013.
Netherlands: Arcadis (20.000 employees in 20 countries) changes its mind about multinational employee share plans: Too difficult and too expensive to adapt our plans to multiple state legislations.
Poland: Ports Authorities want to buy back shares held by employees.
Spain: Sociedades laborales are an effective model for starters as well as for business transfers; a good description in French.
UK: Chancellor George Osborne announces the new "employee-owner" contract: Employees could be given shares in their companies in exchange for giving up certain employment rights under plans for a new type of employment contract. Storm of controversy! Would you trade your employment rights for shares?
On the other hand, British Government announces its plans to boost employee ownership sector. The plans include assessing whether to establish an independent Institute for Employee Ownership, an ‘off the shelf’ model for setting up an employee owned business, work to examine the guidance on tax issues relating to employee ownership, a guide for staff and employers to request and agree an employee ownership takeover and work with the John Lewis Partnership to examine the barriers to funding for private sector employee owned companies.
USA: Some new ESOP companies. Employee stock ownership plan (ESOP) companies saw an economic upturn in 2011, with continued increased share value, support among company leaders and better productivity.

The full press review is available on:
              http://www.efesonline.org/PRESS REVIEW/2012/October.htm 

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