George Osborne has many faults, but we have to thank him for one thing – uniting the Liberal Democrats. There are groups within the Lib Dems holding different, even opposite views. However, many Lib Dems are united in their opposition to Osborne’s idea of exchanging workers’ rights for shares in their company. If you agree, please help us by taking part in the consultation on these proposals which ends on 8th November.
Whilst the Lib Dems are fully behind the idea of Employee Share Ownership, we do not believe that an employee should have to give away hard-won employment rights. The John Lewis model of staff shareholding is one that the Liberal Democrats strongly support and Nick Clegg is working hard to present it to businesses. This could be an important move towards growth stimulus in the long term economy. Employees with a stake in a company have been shown to be more committed and more productive because when the company does well, they do well. Liberal Democrats also passed a motion at conference along these lines.
But George Osborne seems to think that workers will be encouraged and productive if the threat of dismissal is held over them in exchange for shares. It’s like holding a gun at someone to make them work. If you thought you could lose your job in an instant with no legal comebacks allowed, no redundancy money, and having to sell the shares back to the employer at a rate determined by them, would you want to go out spending money in the economy? Would you feel secure and stable? Or would you save every penny in case the unthinkable happened? This ‘model’ would not encourage growth by any stretch of the imagination.
This elitist idea is presented as an aid for new start-up companies to free them from the binds of employee rights whilst they get off the ground. However, employees don’t have the full range of rights immediately. Unfair dismissal only kicks in after one year’s service, right to redundancy after two years. You have a right to ask for training, but your employer is not obligated to give you that time. The same applies for flexible working – the employer does not have to agree to it. So where are the disincentives to new start-ups on this issue? They have at least one year before unfair dismissal comes into play. So what of Osborne’s proposals? Well, they state that it would apply to current companies too. Where is the excuse for removing employee rights for current companies if not to bring in Beecroft’s ‘fire at will’?
And where does the idea that it is voluntary for the employee come from? If a company chooses to offer ONLY that kind of employment does a potential employee have the choice to turn the job down? Is there an abundance of jobs that they can pick and choose from? Does someone on Job Seekers’ Allowance have the option to turn the job down? Well, only if they want to lose their benefits and end up on the street.
The Tory view of the world we live in is so far removed from reality. Whilst they try to keep their banks and big business paymasters happy and whilst Labour sit on their hands in the comfort of opposition, the Liberal Democrats are the only ones who can stop these outlandish plans which would damage, rather than improve our economy. This is why we have come together to send a message to Osborne. Please take part in the consultation today.
* Tracy Connell is a member of the Liberal Democrats in Newcastle City, and a regional officer.
Follow @libdemvoice.org on Bluesky
Like us on Facebook
Subscribe to our feed
Sign-up for our daily email digest
Lib Dems are reviewing policy and strategy says PoliticsHome
From Norman settlement to a civic square
Church Green video
Thinking of standing for election or re-election next year? Helpful questions to consider
Simon Robinson
Tom Arms
Andrew Ducker
David Evans
paul barker
16 Comments
Osborne has also united unions and bosses over this. The CBI think it’s daft, too. What warped thinking suggests that you have to threaten people to get them to work? Isn’t the carrot of share ownership enough? It certainly results in more productive and efficient working where it is already employed. But no, George has to find a negative element to make him look tough. I am extremely disappointed to find that Nick has agreed to support this, even though it has no chance of succeeding. It will never fly but it also undermines the great and positive intentions of the policy we voted in at Conference last month.
I’m not sure there is a united approach..
https://www.libdemvoice.org/vince-cable-mp-writes-my-view-on-george-osbornes-employee-ownership-scheme-30780.html
@Neville Farmer “I am extremely disappointed to find that Nick has agreed to support this”
Has he? If so then it would be yet another last straw for me. I know that there has been overwhelming opposition to the proposals on this site, but have I missed any comments on the issue from senior Lib Dems?
Oops, I’d forgotten that Cable appeared to support the policy (Steve Way’s link) and triggered an angry response from many (including me). Have any other senior figures expressed a view on it?
There seems to be some carpetbagging going on in the search for a “John Lewis Econonomy”.
The defining feature of John Lewis is not ’employee share ownership’, rather it is the governance setup, which if I have it right was designed by the successful capitalist who created the business.
if Mr Clegg wishes to encourage more John Lewises he needs to focus on developing entrepreneurs with a conscience, rather than esops or small businesses run by committees.
The evidence surely is that the latter do not grow well.
Nick hasn’t indicated that he agrees with this. He is promoting the John Lewis Model which is different from Osborne’s proposal.
“The Tory view of the world we live in is so far removed from reality.” True, It is such a pity that the LibDems will be judged to have helped the very same Tories get their policies into law 2010—2015. Also, “the Liberal Democrats are the only ones who can stop these outlandish plans ………” But you haven’t stopped them because you Party is now run by so many Tory-inclined LibDems.
@Matt. I was relieved to read your comment. The Osborne proposals are at best irrelevant, but the widespread adoption of the ‘John Lewis model’ is not a possibility. Some liberals seem to be unable to deal with the private sector.
But George Osborne seems to think that workers will be encouraged and productive if the threat of dismissal is held over them in exchange for shares. It’s like holding a gun at someone to make them work. If you thought you could lose your job in an instant with no legal comebacks allowed, no redundancy money, and having to sell the shares back to the employer at a rate determined by them, would you want to go out spending money in the economy? Would you feel secure and stable? Or would you save every penny in case the unthinkable happened?
Indeed. And would you work hard and show initiative trying our new idea for you company? Of course not. You’d adopt a “heads down” do whatever your boss tells you attitude, because that’s the best way to keep your job. You would do what is always done, never offer a word of criticism, because that’s the best way not to get blamed for anything and keep your job. If you saw your boss fiddling the books, or your boos making big mistakes and being inefficient, what would you do? Keep your mouth shut in order to keep your job. And if you’re a young woman and the boss sticks his hand up your skirt, what would you do? Same as the sentence previously.
Matthew Huntback
” And if you’re a young woman and the boss sticks his hand up your skirt, what would you do”
And this only applies to ‘young’ women?
Phyllis, no, I’m just giving an illustrative example. By the way, my surname end in a ‘h’ and not a ‘k’. See for example, that great 19th century Liberal, Alderman Huntbach of Hanley. Who, one might note, purchased land using public money to create public parks, he did not put this job out to tender, nor claim that taxation is evil and it should be up to the market to provide parks and charge entrance fees to pay for them.
@BIGDAVE We are in the process of stopping them. That is the whole point of this post.
Tracy
“@BIGDAVE We are in the process of stopping them. That is the whole point of this post.”
Tracy, Vince Cable has already said he supports it. It’s a done deal. He hasn’t retracted that position or modified it. The Lib Dem activists etc will kick up a fuss but in the end the Tories will get what they want. We’ve seen it all before. Matthew Huntbach will explain that as Lib Dems are only a tenth of the government, they have to support everything the government wants.
Phyllis
Matthew Huntbach will explain that as Lib Dems are only a tenth of the government, they have to support everything the government wants.
No, they don’t have to. Try looking at Conservative discussion where they are always moaning about the things they want to do which the Liberal Democrats are stopping them doing. It is necessary to see just how extreme the Conservatives are now – way more so than they were under Margaret Thatcher – to realise that the reason it seems the Liberal Democrats are doing little to stop them is that they have moved so much further right than they used to be that even compromise with them looks like hardline Conservatism.
I am trying to be realistic, while very critical of the Liberal Democrat leadership, which you seem to keep ignoring in all your interaction with me, treating me as if I am a cheerleader for Clegg et al. You appear to believe it’s possible for the Liberal Democrats to convert the entire Conservative Party to support pure Liberal Democrat policy. I don’t believe that, but your refusal to accept there might be a middle ground means we’re getting nowhere.
You only have until 8 Nov to fill in the Shares for Rights Consultation: http://www.taxation.co.uk/taxation/Articles/2012/10/19/48661/call-views-shares-rights-contract
Please help to protect workers rights
Phyllis, we do not have to support everything the government wants.
Shares for rights is not in the coalition agreement and we do not have to support it. Vince can’t do much until the consultation process has finished.
We are not merely activists kicking up a fuss. We have MPs and House of Lords Peers on our side and things are in motion to act against this proposal. You haven’t heard the last of it.
IT IS NOT A DONE DEAL.