European Parliament adopted report on Employee Financial Participation
The year is only two weeks old and Employee Ownership is already a positively discussed topic in the EU Parliament. Today (14/01/2014), the European Parliament adopted, with an amazing 562 positive to 62 negative votes, an own-initiative report 2013/2127(INI), that treats financial participation of employees in companies’ proceeds.
Video “Men and Jobs” by The Economist
We found this interesting video on the contribution of capital and labor to work. Ryan Avent describes here that the share of capital is increasing while the share of labor is simultaneously decreasing. This decreasing share of labour was already observed by Louis O. Kelso, he claimed that employee ownership is a great tool that lets labour participate in the outcomes of productive capital via ownership. Ryan Avent from The Economist (Video below) seems to have the same thoughts as he says that employee ownership might function as one of the solutions by having ownership in the productive capital.
The best way to make this capital ownership available to all employees is by means of a leveraged ESOP model. The leveraged ESOP model allows the company to take on a bank loan in order to provide employees with shares of the company, by using the trust as the vehicle of holding shares. The leveraged effect originates from the loan repayment by future earnings.
[youtube=http://www.youtube.com/watch?v=BLqN8mj17hU&w=560&h=315]
Also see our previous blog posts:
The Economist: A shirnking slice – Labours’ share of national income has fallen
197 Words intro on leveraged ESOPs
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Employees becoming co-owners, that´s the aim of EFP – says Prof. Verheugen
´The final aim is that the employees become co-owners,´ said Prof. Verheugen, former vice-president of the European Commision in Mai 2011 at the press conference at the European Univerity Viadrina in Frankfurt (Oder), Germany. He considered the EFP-model presented at the EFP-conference by Prof. Lowitzsch and his colleagues as the best model on the market so far and it should become the basis of the future legislation in Germany.
Watch the highlights of the press conference with:
Prof. Günther Verheugen – former Vice-President of the European Commision, Professor at the European University Viadrina
Prof. Jens Lowitzsch – Professor at the European University Viadrina
Alexander Graf von Schwerin – Rapporteur of the own initiative opinion SOC371/2010 on EFP of the European Economic and Social Committee
How do you participate?
[youtube=http://www.youtube.com/watch?v=34lF5TtgsCg]
A small group of suited “gentlemen” is busy feeding their private Read More…