EFES NEWSLETTER - JULY 2007

2007 surveys in France and United Kingdom
France publishes its Sixth Annual Survey on employee savings plans. In 2007, 84% of Executives and 82% of employees consider employee share ownership as a good thing for companies (it was 79% and 80% in 2002). Download French Survey  UK released the results of its annual SIP (Share Incentive Plan) and SAYE (Save As You Earn) survey – the most common plans, a succesful story. More information about UK  

And now Germany
From its start one year ago, Angela Merkel's Government plans to make up the time Germany had lost regarding employee share ownership. Both political parties of the big coalition had their own working groups. Now both proposals are on the table. Socialist SPD thinks to indirect employee ownership, free of risk, through a big "German Fund", managing employees savings and investing in German companies. Christian Democrat CDU/CSU is more inclined to favour direct employee share ownership. See more information in press review.

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 (annual employee share purchase plans, 20% discount price free of tax and social security, up to 5.000 Euro or 10% annual wage, 3 years blockage). We already got answers from Slovenia, Estonia, Latvia and the Czech Republic. More information

Strong differences between European companies
In former issues, we underlined the fact that employee share ownership shows major differences between European companies in the same sector. Let's see how it is in chemicals and pharmaceuticals (see column on right side).

Press review
Much new information  about employee ownership in June 2007, with 1.360 articles in this press review (on which 444 involving stock options and 208 about workers' cooperatives). We made a selection of  51 remarkable articles in 9 countries: Australia, Egypt, France, Germany, Italy, Kenya,  UK, USA, South Africa.
Australia: Many small businesses are beginning to set up employee share plans.
Germany: Debate about employee share ownership is at the top since June 25, both political parties of the big coalition publishing their own proposals. 
Egypt: Employee shareholders associations are also developing in Egypt.
France: Auchan is very proud to be the first foreign group being allowed to introduce employee share ownership plans in China. The place and role of employee share ownership are still in discussion in several major groups like Eiffage and others. On the other hand, the new legislation of December 2006 has already proved a tremendous success with companies.
Italy: Employee shareholders of Banca Popolare di Milano blocked the project of a merger with Banca Popolare dell'Emilia Romagna.
Kenya: A number of companies are adopting ways to ensure that staff interests and those of the shareholders are aligned through Employee Share Ownership Plans.
UK: Co-operative challenge in Wales and in Scotland.
USA: After Chrysler and the Chicago Tribune in May, a new big deal in June, Dow Jones could be bought through an Employee Stock Ownership Plan (ESOP). "Employee Ownership: Economic Miracle or ESOPs Fable?" – articles and very detailed presentations about ESOPs are multiplying.
South Africa: Here also a rash of new Employee Share Ownership Schemes (Esops) and ESOP fables linked to black empowerment.

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

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