The Labour party has set out proposals to expand
employee ownership schemes of large firms.
Commenting on these ahead of the Shadow
Chancellor’s speech at the Labour party conference on Monday,
Carolyn Fairbairn, CBI Director-General,
said:
“Rising wages are what everyone wants to see. But
Labour is wrong to assert that workers will be helped by these
proposals in their current form. Their diktat on employee share
ownership will only encourage investors to pack their bags and
will harm those who can least afford it. If investment falls, so
does productivity and pay.
“Business has been resilient in the face of
uncertainty, but Labour’s anti-business positioning
is starting to bite. It’s time for pro-enterprise
collaboration, not public proposals that set alarm bells ringing
in boardrooms at home and across the world.
“Labour raises the right questions, but these
are not the right answers. From boardroom to shop
floor, firms know fair treatment of customers and
employees drives success.
“Employee ownership does work well for some
businesses, but Labour can’t keep assuming that
what works for one will work for all. It’s
time to talk to business about what really makes a difference on
the ground.
“And while a social dividend sounds appealing,
in current form it sounds like yet another new tax that adds to
the impression that Labour sees business as a bottomless pit of
funding.
“If Labour is really to find
solutions that improve lives, they must sit down
with firms and understand what will drive productivity
and investment. The answer lies in the partnerships, innovation,
infrastructure and skills that creates growth. It does not
lie in dogma.”
