UK Labor Party Develops Employee Ownership Proposals

The UK Labour Party's shadow chancellor John McDonnell unveiled a plan to dramatically increase employee ownership in the United Kingdom by setting up "ownership funds" in all companies with 250 or more employees. McDonnell said, "What this will ensure is that in large companies, in addition to rewarding workers with wages, they will reward them with shares that will go into a pool that will allow them to have an ownership role." Although the mechanisms are still up for discussion, possibilities include companies putting a percentage of profits into a fund to put company shares in a trust on behalf of employees.

The Financial Times cites Adam Marshall, director-general of the British Chambers of Commerce, as supporting the idea that employee ownership could be a good idea for many companies, but stating that it should be encouraged through stronger incentives rather than "via government fiat."