Interesting Proposal
The UK’s Labour Party is proposing that as much as 10 percent of companies’ shares be set aside for employee ownership and as many as a third of board seats be reserved for employee directors. The British chambers of commerce predictably opposed the plan. The idea, however, is interesting. It has been widely discussed that workers have not seen the fruits of fat earnings from companies in this expansion. Wages have barely risen although stocks and dividends have. Companies are rewarding owners over labor, so why not make labor owners as well? It would serve to deflect much of the criticism that corporations are experiencing. Labour’s idea should be studied further.
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