EFES NEWSLETTER - SEPTEMBER 2007
share ownership - what's in it for you?
Is buying shares in your company a wise investment and a
good way to keep your eye on management? In this interview
for Rhodia Alliance OnLine (Rhodia's association of employee
shareholders), we talk about the advantages of owning a
stake in your company, whether criticism of your management
is a bad career move, and we break down some of the
mysteries and financial ins and outs of share ownership.
New European Report
The European Foundation in Dublin just published a new
report about financial participation of employees in the
European Union. Conclusion: "There has been a clear
trend of rising levels of financial participation over the
five years between 2000 and 2005. In all countries there
has been an increase, in some cases notable, in the percentage
of employees participating
This indicates that the percentage
of workers involved in financial participation schemes in
Europe, although still low, is on the increase, suggesting
that the phenomenon will probably become more significant
in the near future." More details
Political debate about employee share ownership in Germany
proposals are discussed in Germany. The Christian Democratic
Party has published a paper with a list of proposals to
promote financial participation on the company level. The
proposal of the Social Democratic Party has a different
objective: They propose to establish a so called Germany
Fund. A common proposal of the two governmental parties
that means a compromises could be expected in autumn.
Request to the new Member States of the European Union
EFES requests all new Member States to adopt a legislation
allowing employee share plans based on international standards.
Most countries answered positively. More information
Much new information about employee ownership in
August 2007, with 1.121 articles in this press review (on
which 381 involving stock options and 171 about workers'
cooperatives). We made a selection of 42 remarkable
articles in 10 countries: Austria, Canada, France, Germany,
Ireland, Jamaica, Poland, UK, USA, South Africa.
Austria: Employee share ownership gets more and more
support, even faster than in Germany. "Alle wollen
Mitarbeiterbeteiligung" they all want employee
Germany: Debate about employee share ownership is
at the top, both political parties of the big coalition
having published their own proposals. "Das
Canada: The lure of ESOPs is growing. Planning for
employee share ownership in your Canadian company.
France: More and more companies are offering shares
to wider groups of employees. A new survey shows that employee
share ownership is considered as a win/win tool by 91% of
executives and 66% of employees.
Ireland: Employee share ownership trusts (with a
35% stake in Eircom and a 15% stake in Aer Lingus) support
Jamaica: Government will transfer a 20% stake to
the employees of the Jamaica Public Service.
Bus services strike ends - the president of Kielce is to
withdraw the motion to close the company, and its personnel
is to set up a new employee-owned corporation.
Firms owned by staff have beaten the FTSE all-share. So
why aren't there more?
USA: Ideally, employee stock plans can give workers
more leverage. Recently released results from the Employee
Ownership Foundation's 16th Annual ESOP Economic Performance
Survey prove that the decision to become employee-owned
means better company performance and greater wealth creation
for employee owners. However, a recent study suggests that
big public companies are backing away from employee stock
ownership plans. Now decision was taken to buy the Chicago
Tribune through an Employee Stock Ownership Plan, things
are progressing: Tribune buyout plan won shareholders OK
- Unions demand employee representation on Board Still
many questions about how solid is the deal.
Africa: "Employee Share Plan a Victory, Unions
The press review is available
This is how much an employee held in 2006, in average, in
Telekom Austria 1.900
WincorNixdorf 2.986 UBS 87.000
needs more members. Download
EFES membership form
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NEWS distribution: 80.000