EFES NEWSLETTER - OCTOBER 2007

A trade unionist in the world of employee ownership
David Wheatcroft is a British trade unionist and an experienced practitioner in the employee ownership field. He just published a new paper: "Caring and sharing – the co-owned route to better care", a personal account of how an employee owned company – Sunderland Home Care Associates – was formed and has flourished. Of course such company is not listed – the paper tells how a regulated internal share market is used for employees who wish to sell or buy shares. Another aim of this report is to show national and local policy makers why the co-ownership model has so much to offer public services. Download  

Soon coming - The European Employee Ownership Top 2007
Last year we set up a full database of employee ownership in all widest European groups, including detailed description and history of all share-based and option schemes in each group. Our database is presently being updated for year 2007. So we'll be able to see how employee ownership evolved from 2006 to 2007 in all 27 countries of the European Union. This year the database will cover all 2.500 widest European groups, on which 1.200 are already updated. In these 1.200 companies, we can mention that capitalisations held by employees rose by 29,8% in 2007. Of these capitalisations, executives held 19% in average and common employees 81% (but executives held 67% in Spain, 29% in Germany, 17% in Finland). Last year, many companies designed and launched new employee share and options plans. 44% did so in Denmark, compared to 39% in Ireland, 35% in Finland, and only 22% in Germany, 15% in Spain, 8% in Portugal… The database will be soon completely updated and we will publish our rankings for year 2007 and our detailed analysis through a publication and a conference in March 2008. Would your company be a sponsor for this publication and event? Sponsoring

Press review
Much new information about employee ownership in September 2007, with 1.100 articles in this press review (on which 495 involving stock options and 160 about workers' cooperatives). We made a selection of  63 remarkable articles in 12 countries: Argentina, Austria, Canada, Colombia, Germany, France, Ireland, India, UK, USA, South Africa, Zimbabwe.
Austria: Debates about new legislation for employee share plans are still developing.
Germany: Similar debate as in Austria. Contacts occurred between both countries. Both political parties of the big coalition having published their own proposals, it is now time for compromise. Things should be decided for the end of the year.
France: Some typical developments in a set of employee-owned companies: Essilor celebrates the 50^th anniversary of Varilux glasses (30.000 employees, 9,3% employee-owned), Steria (10.000 employees, 16% employee-owned) is taking over Xansa (7.000 employees, 14% employee-owned), bad times for  L'Yonne Républicaine (workers-cooperative) – this famous newspaper faces hard difficulties. Safran, Areva, Suez have also place in the news. France celebrates the 40 the anniversary of "the participation" (one of those first legislations which led to employee share ownership in France), while  employees savings are in strong progress. On the other hand, new political debates are developing about tax on stock options. Finally, Pierre Alanche publishes a book about his experience as a representative of employee shareholders within the Board of Directors of Renault.
Ireland: Employee owners face strategic choices in Eircom (35% employee owned) and Aer Lingus (14%).
UK: Interest rate rise for employee share schemes. Some typical cases of employee-owned companies: Chocolate workers-coop and investment manager Martin Currie.
USA: A lot of cases also in the US. "Offering a stake in the business has become the predominant means of attracting, retaining and rewarding high-flying executives, managers and employees in America. In fact, share ownership is such an accepted part of the executive remuneration landscape that the typical private sector executive team now owns more than eight per cent of the company", according to a survey. On the other side, new fields seem opening for employee-owner solutions: "Could the UAW union buy General Motors?"
South Africa: Major new BEE deals (black economic empowerment) – being welcomed by the big trade union Solidarity. Would they also be open to white employees?

The press review is available on:
              http://www.efesonline.org/PRESS REVIEW/2007/September.htm 

WHAT ABOUT YOU?
This is how much an employee held in 2006, in average, in shares of:

Vallourec   8.442 €
ThyssenKrupp   213 €
Salzgitter  1.773 €
Rautaruukki  4.486 €
Outokumpu   845 €
Arcelor   4.584 €
MittalSteel   34 €
Acerinox   9.139 €
Voestalpine   16.774 €
BoehlerUddeholm 489 €
Amag  47.425 €
Eni   1.151 €
Statoil   1.226 €
NorskHydro   3.444 €
BP  16.383 €
RoyalDutchShell   4.439 €
MøllerMærsk  0 €
Repsol  0 €
MOL 4.323 €
Veolia   692 €
E.ON  4.813 €
RWE  8.555 €
Suez  19.039 €
Centrica   5.034 €
UnitedUtilities   845 €
Fortum   29.820 €
EDF   9.343 €
Enel   4.577 €
NationalGrid 19.290 €
ScottishPower 24.877 €
Scot&SouthEnergy 1.014 €
Endesa   0 €
Iberdrola  0 €
GazdeFrance   11.494 €
Technip   4.468 €
UBS  87.000 €
Total 47.000 €
Novartis 48.000 €
Mondragon 54.000 €
DeutscheBank 61.000 €
SocGen 38.000 €
BNPParibas 30.000 €
CréditAgricole 48.000 €
AXA 27.000 €
Bouygues 23.000 €

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