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EFES NEWSLETTER - OCTOBER 2024
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Wrong
information in the Netherlands
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For
over forty years, Nijmegen University has been instrumental
in establishing the concept and doctrine of “employee
financial participation”. Today, however, the Netherlands
is about the only country where this remains a benchmark
of public debate.
A few weeks ago, the new Secretary of State for Taxation,
Mr Folkert Idsinga, informed Parliament of conclusions
based on a 2022 study by Utrecht University. In short,
according to Mr Idsinga, the State has limited power
in this area; power is actually held by the social partners,
employers and employees.
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We are not familiar with the study in question, we only
know what Mr Idsinga said about it. However, we know
enough to understand that the debate is based on incomplete
and inaccurate information.
A new dynamic has emerged worldwide over the last ten
years or so, that of collective employee ownership
in SMEs. It takes precedence over other types of
“financial participation” (profit-sharing, individual
employee shareholding). It does not take the place of
these other types, but is a new type that was previously
virtually unknown. Mr Idsinga’s information completely
ignores this new development.
This involves the transfer of businesses, mainly SMEs.
We know that companies are passed on to a new generation
of managers and owners every 20 years or so. The most
notable development is coming from the UK with the Employee
Ownership Trust. This allows companies to be transferred
gradually (30%, then 60% or more...) or in full – in
most cases, 100% to employees.
Unlike traditional individual employee share ownership,
the aim here is not to “share a small piece of the pie”.
The idea is to “transfer control” of the company to
a collective employee share ownership scheme. That's
another thing entirely.
In the UK, this scheme has been in place since 2014.
In two to three years, one in ten business transfers
will be to employees. Another ten years and we'll be
approaching the threshold of one in ten employee-owned
SMEs in the UK. This is a major transformation of the
business landscape, its roots and its leadership.
We'll soon explore what this could mean for the Netherlands
as well.
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Press
review
A
selection of 25 remarkable articles in 6 countries in September
2024: Spain, France, Italy, Netherlands, UK, USA.
France: New employee share plans for Elis, for Serma
Group, for Renault, for Michelin, for Capgemini, for Axa,
for Veolia, for Amundi, for Spie. Election for employee shareholders
representatives at Orange. The takeover of Duralex company
(iconic and bankrupt) by its employees has led to an unprecedented
enthusiasm in the press for the cooperative model.
Italy: Celebration of the 50 years of the ESOP model
in the USA.
Netherlands: The STAK is the Dutch equivalent of the
stock ownership trust. The new government is examining the
(fiscal) obstacles to employee financial participation.
Spain: Most so-called European startups organisations
are based in California or in Texas. This one is based in
Barcelona.
UK: Thanks to the Employee Ownership Trust formula,
one or two new SMEs are transferred to their employees every
day. This month, among others, the case of: Kontroltek Electronics,
Excellence IT, Myerson Solicitors, Robert P.Slight & Sons
Construction.
USA: More than 50 organizations join together in new
"Expanding ESOPs" Coalition.
The full press review is available
on:
https://www.efesonline.org/PRESS
REVIEW/2024/September.htm
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A
political roadmap for employee ownership in Europe
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