On Employee Ownership Day, Economy Minister Dr has today announced that
her Department is providing almost £100,000 of funding to
Employee Ownership Ireland (EOI) to increase awareness of the
employee ownership trust (EOT) model across Northern Ireland.
Employee ownership is a transformative approach to business where
employees hold a substantial financial and decision-making stake
in the organisation.
The transition to employee ownership often happens when business
owners are looking for a succession solution. Instead of selling
to external buyers, they transfer ownership to their employees,
preserving the company's legacy and keeping it rooted in the
local community.
The announcement came during the Minister's visit to S&W
Wholesale, a Newry-based wholesalers which became an EOT in
January 2023.
Minister Archibald said: “The benefits of employee ownership are
well documented and are strongly aligned with my economic plans.
Employee-owned businesses pay, on average, a higher wage. They
are more likely to remain in the same location and invest in
their local economy and importantly, they are 8-12% more
productive.
“Today's funding announcement will help increase awareness of
employee ownership and support businesses transitioning to
employee ownership through funded feasibility studies.”
Aidan O'Neill, Board Member, Employee Ownership Ireland, said:
“We welcome the Minister's announcement today and are encouraged
that this funding will now be available for businesses across all
sectors who are interested in becoming an EOT. Much of this
funding will be directed towards providing feasibility studies
for firms who at the beginning of the EO journey and will enable
the EOI board to continue offering mentorship, peer to peer
support and a bank of resources at crucial early stages.
“It is particularly welcome that this announcement was made on
Employee Ownership Day when the EO community across NI is coming
together and celebrating the momentum behind the movement. There
are now around 1,000 employee-owners working in this region and
as a board, we are working hard to increase this figure even
further and to showcase the many benefits EO brings to both
businesses and the local economy.”
Anthony McVeigh, CEO of S&W Wholesale, added: “It was
wonderful to welcome Minister Archibald to S&W Wholesale
today and speak to the many positives of being a business
operating for the benefit of the employees. Since S&W made
the transition back in 2023, we have experienced significant
growth and are supported by a highly engaged and committed
workforce. We have a very positive story to tell and are grateful
to the Minister for taking the time to visit our offices and meet
with many of our brilliant colleagues who are now playing an even
greater role within the business.”
Learn more about Employee
Ownership Ireland and the support they can offer
businesses(external link opens in a new window / tab) at the
Employee Ownership Ireland website where you can also find
information on how to apply for a fully-funded feasibility study.
Notes to editors:
Employee Ownership model can take various forms, including:
- Employee Ownership Trusts (EOTs): A trust holds the company
shares on behalf of the employees, ensuring long-term stability
and collective benefit.
- Direct Share Ownership: Employees individually own shares in
the company, either purchased or granted as part of a reward
scheme.
