Owner-employee contracts will be unnecessary and unpopular

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  • Whilst this increased focus on employee ownership is welcome, growing employee ownership should be part of the UK’s Industrial Policy and does not require a dilution of the rights and working conditions of employees – indeed employee ownership often enhances them.
    Ownership matters. Employee ownership, creating businesses whose employees have significant ownership and involvement, offers a brilliant mechanism to spread business ownership from the few to the many whilst increasing productivity and innovation.
    New research shows that job security, job satisfaction, and productivity are significantly higher in employee owned businesses compared to traditional companies surveyed by the national Workplace Employee Relations Survey. See more here; www.employeeownership.co.uk

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  • The idea is that firms can buy employees' employment rights and thereby save themselves redundancy costs.
    The problem is that redundancy costs are a small part of the total wage bill, so the amount that could be offered is very small.
    For example, if 10% of the workforce would ultimately be given 3 months redundancy pay, that amounts to 2.5% of the total wage bill.
    I don't see many workers accepting a payment of one weeks pay in exchange for their employment rights.

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