Employee ownership organisation rejects "employee-owner" plans

"There is no need to dilute the rights of workers in order to grow employee ownership."

The Employee Ownership Organisation, which represents employee-owned businesses "contributing some £30bn to the UK economy each year", has written an open letter to Jo Swinson, the incoming Minister for Employment Relations, Consumer and Postal Affairs, about the government's plans to introduce a new "employee-owner" status for workers in some businesses. 

Earlier this month, I referred to the plans as "Beecroft through the back-door", and in the intervening time, the actual proposals haven't got any better, while the execution of them has been even worse than expected. The first reading of the bill to introduce the new status happened on the very same day that a consultation into its implementation was launched. Today is the second reading of that bill, while the consultation doesn't even close until 8 November.

No wonder, then, that the EOO is concerned that the measures may tarnish the entire concept of employee ownership. The EOO's Chief Executive, Iain Hasdell, writes in his letter to Swinson that members of his organisation have three concerns:

Firstly, proposed legislation has appeared in a Bill before the Government consultation on the possibility of deploying this model of employee ownership has finished. Indeed it has only just started. Secondly, our Members are very aware that there is no need to dilute the rights of workers in order to grow employee ownership and no data to suggest that doing so would significantly boost the number of employee owners. Indeed all of the evidence is that employee ownership in the UK is growing and the businesses concerned thriving, because they enhance not dilute the working conditions and entitlements of employee owners. Thirdly, the appearance of this measure in the Growth and Infrastructure Bill appears to our Members to be completely disconnected to the recommendations in the Nuttall Review. That Review, as you know, contained a series of recommendations on how to grow employee ownership and none of those recommendations suggested the dilution of worker rights.

If it wasn't clear enough that these measures are a proposal aimed at reducing rather than increasing employees' rights in the workplace, the fact that the  very organisations they are named after are rejecting them ought to be a strong indicator.

Waitrose and John Lewis, Britain's best known employee-owned organisations. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Geoffrey Howe dies, aged 88

Howe was Margaret Thatcher's longest serving Cabinet minister – and the man credited with precipitating her downfall.

The former Conservative chancellor Lord Howe, a key figure in the Thatcher government, has died of a suspected heart attack, his family has said. He was 88.

Geoffrey Howe was the longest-serving member of Margaret Thatcher's Cabinet, playing a key role in both her government and her downfall. Born in Port Talbot in 1926, he began his career as a lawyer, and was first elected to parliament in 1964, but lost his seat just 18 months later.

Returning as MP for Reigate in the Conservative election victory of 1970, he served in the government of Edward Heath, first as Solicitor General for England & Wales, then as a Minister of State for Trade. When Margaret Thatcher became opposition leader in 1975, she named Howe as her shadow chancellor.

He retained this brief when the party returned to government in 1979. In the controversial budget of 1981, he outlined a radical monetarist programme, abandoning then-mainstream economic thinking by attempting to rapidly tackle the deficit at a time of recession and unemployment. Following the 1983 election, he was appointed as foreign secretary, in which post he negotiated the return of Hong Kong to China.

In 1989, Thatcher demoted Howe to the position of leader of the house and deputy prime minister. And on 1 November 1990, following disagreements over Britain's relationship with Europe, he resigned from the Cabinet altogether. 

Twelve days later, in a powerful speech explaining his resignation, he attacked the prime minister's attitude to Brussels, and called on his former colleagues to "consider their own response to the tragic conflict of loyalties with which I have myself wrestled for perhaps too long".

Labour Chancellor Denis Healey once described an attack from Howe as "like being savaged by a dead sheep" - but his resignation speech is widely credited for triggering the process that led to Thatcher's downfall. Nine days later, her premiership was over.

Howe retired from the Commons in 1992, and was made a life peer as Baron Howe of Aberavon. He later said that his resignation speech "was not intended as a challenge, it was intended as a way of summarising the importance of Europe". 

Nonetheless, he added: "I am sure that, without [Thatcher's] resignation, we would not have won the 1992 election... If there had been a Labour government from 1992 onwards, New Labour would never have been born."

Jonn Elledge is the editor of the New Statesman's sister site CityMetric. He is on Twitter, far too much, as @JonnElledge.