Shares for Rights – Unravelling
Reported earlier this week on the blog was the announcement from the Conservative Party conference of the Chancellor’s shares for rights policy: workers trading in their claim to redundancy and other future payments for shares.
The unanswered questions surrounding this policy are mounting: Thompsons Solicitors, the most experienced trade union firm in the UK, says many employees would be trading their cow for half baked beans.
The CWU’s Simon Sapper points out the policy has more holes than swiss cheese, and Unison’s Dave Watson in his 7 problems with Osborne’s ‘owner-employee’ scheme highlights not only the disincentives to employees taking part, but also some of the legal and procedural issues “the very red tape the Chancellor is so fond of complaining about”.
Another issue is the cost to business – If everyone who left a job held £2,000 of shares and was entitled to cash them in that would amount to £Billions. Ultimately, if the ‘flexibility’ the Chancellor is seeking led to more hiring and firing – the cost to employers at £2,000 each time could be the equivalent of a huge new tax – the very taxes the Chancellor is so fond of complaining about.
Posted in: Deep Dives |Tagged with: on a point of order