cb25
Posts: 3,528 
Likes: 2,668
|
Post by cb25 on Sept 27, 2018 14:34:04 GMT
i.e. the idea that UK-based companies with 250+ employees give 10% of their equity (at the rate of 1% per year, I believe) to be held in Inclusive Ownership Fund that would pay each worker a maximum of £500pa from dividends with the government getting the rest of the dividends from the fund.
Some view it as £500pa increase for workers, though would companies then suppress wage growth in response? Others view it as a company tax grab by the government, with scraps going to workers.
Labour also intend to raise the national minimum wage to £10/hr.
Thoughts?
|
|
|
|
Post by Butch Cassidy on Sept 27, 2018 14:47:44 GMT
Politics on the forum - You're brave, have you thought about asking something on Brexit opinions?
|
|
cb25
Posts: 3,528
Likes: 2,668
|
Post by cb25 on Sept 27, 2018 14:49:00 GMT
Politics on the forum - You're brave, have you thought about asking something on Brexit opinions? Best to leave Brexit until later, maybe about 2069. As to the rest, it's a political money thing, so why not.
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on Sept 27, 2018 14:50:12 GMT
If JC and his friends get in there wont be any companies left so it probably doesn't matter!
|
|
jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,806
Likes: 3,237
|
Post by jonno on Sept 27, 2018 14:50:58 GMT
Politics on the forum - You're brave, have you thought about asking something on Brexit opinions? Now, now. You'd have to be bananas to do that 
|
|
cb25
Posts: 3,528
Likes: 2,668
|
Post by cb25 on Sept 27, 2018 14:51:40 GMT
bigfoot12 Why? Can't see small companies, say 300 workers, are going to just close or re-register abroad.
|
|
benaj
Member of DD Central
N/A
Posts: 5,573
Likes: 1,734
|
Post by benaj on Sept 27, 2018 15:11:49 GMT
I don't think it's the scheme, its all about the employer.
There are so many tricks nowadays and share ownership could mean nothing in the worst scenario.
I am talking about something like Carillon, the firm collapsed and the fund become 0
|
|
Mike
Member of DD Central
Posts: 651
Likes: 446
|
Post by Mike on Sept 28, 2018 8:54:34 GMT
A growing close company has 200 employees -- wonder how they would feel about hiring more staff?
|
|
cb25
Posts: 3,528
Likes: 2,668
|
Post by cb25 on Sept 28, 2018 9:22:28 GMT
I do wonder if such a scheme will mean firms won't want to grow past 249 workers unless it's really necessary, say to 300 workers. For any small jump, say from 249 to 255 workers, firms might be tempted to just pay overtime to the existing 249 workers. Similarly any firm with just over 250 workers might be tempted to make a few redundant, what with this share scheme and the proposed jump in minimum wage.
The aspect of the share scheme I'm not certain on is the cost to the employer. Various articles have stated the scheme will work like an increase in corporation tax with the firm having to pay more to the government.
However -let's say company X currently has 100,000 shares and has 250 workers
-currently make good profit, distributes £3m to shareholders, hence £30/share -Labour implement their scheme -after 10 years, the company has given 10% of the shares to the workers' fund, so created 10,000 more shares giving 110,000 in total -each of the 250 employees gets the dividends from 40 shares (scheme allocates the shares themselves to the fund, not the employees)
-end of next financial year, company still in profit, company could: i) once again distribute £3m to shareholders, hence £27.27/share. Each worker would get £1090.91, but scheme caps that at £500/employee, and 40*£590.91 goes to the government OR ii) decides to follow a 'grow the dividend' strategy, so allocates (say) £3.5m to shareholders, hence £31.82/share, each employee still gets the same £500, government gets more
Only scenario ii) costs the company any money. If it went with scenario i) it wouldn't cost the company though longstanding shareholders might get upset at lower dividend. Company says "blame Labour".
|
|
benaj
Member of DD Central
N/A
Posts: 5,573
Likes: 1,734
|
Post by benaj on Sept 28, 2018 9:52:36 GMT
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,307
Likes: 11,519
|
Post by ilmoro on Sept 28, 2018 11:56:59 GMT
Private & public are surely the same thing in this context. (Is he going to let the banks not participate?) That list includes lots of 'public' listed companies. Private just means not in public ownership ie nationlised in this context.
|
|
benaj
Member of DD Central
N/A
Posts: 5,573
Likes: 1,734
|
Post by benaj on Sept 28, 2018 12:11:40 GMT
Private & public are surely the same thing in this context. (Is he going to let the banks not participate?) That list includes lots of 'public' listed companies. Private just means not in public ownership ie nationlised in this context. Well, the list was a bit outdated, Biffa went IPO in 2016. I can't imagine John Lewis Partnership "Employees" would feel about £500 cap of this scheme ownership since by employee is 100%.
|
|
|
|
Post by Deleted on Sept 28, 2018 12:27:44 GMT
In Italy such tax limits force companies to not grow Moving abroad is very easy 10% limit would only be the limit for now, assume another election and they said 50% Can you imagine the debates about transient workers, people who get sacked, who gets to manage the employee's funds (and charge for the pleasure).
On the surface it looks interesting but in detail voting for this would be voting for poverty.
|
|
jwatson
Member of DD Central
Posts: 51
Likes: 39
|
Post by jwatson on Sept 28, 2018 13:44:18 GMT
I imagine it could well be used as a tax efficient (from an employer's point of view) way of giving a pay rise. I'd also envisage that for lower paid staff the chances are they would be sold as soon as possible for cash in the bank, for higher paid staff the limits are too low to make a make it a major employment incentive.
|
|
cb25
Posts: 3,528
Likes: 2,668
|
Post by cb25 on Sept 28, 2018 13:53:38 GMT
... I'd also envisage that for lower paid staff the chances are they would be sold as soon as possible for cash in the bank.. AIUI employees won't be given shares, only the dividends that result from those shares (to a maximum of £500), hence they won't be able to sell them asap as can happen in some profit share schemes.
|
|
