European Parliament adopted report on Employee Financial Participation
The year is only two weeks old and Employee Ownership is already a positively discussed topic in the EU Parliament. Today (14/01/2014), the European Parliament adopted, with an amazing 562 positive to 62 negative votes, an own-initiative report 2013/2127(INI), that treats financial participation of employees in companies’ proceeds.
The report was presented in the plenary yesterday. At that occasion, rapporteur Phil Bennion (ALDE) explained the benefits of EFP for companies and especially SMEs as “a concrete way for companies to share success”. In the Strasbourg hemicycle, Bennion called for the EU to act, pointing out the lack of information within the EU, the lack of legislative incentives in some Member States, the different national taxation as well as the multitude of existing ESO models hampering companies that operate cross-border. To overcome these problems, Bennion proposes to share best practice examples between the Member countries, possibly leading to mutual recognition of these schemes. At this regard, Bennion refers to the current EU pilot project and the benefits that a Virtual Centre for EFP as well as an effective tax rate calculator could bring in order to augment the available information. Finally, he invited the Commission to conduct an impact assessment for a 29th regime for EFP.
— These topics will be part of our Brussels conference “Taking Action: Promotion of Employee Share Ownership” that will take place on the 30th of January 2014. —
In the following contributions, MEP Sari Essayah (EPP) pointed out the importance of the exchange of information between Member States. Shadow rapporteur Evelyn Regner (S&D) mentioned the Spanish Sociedades Laborales (click here to read more about this topic) as a well-working example for alternative EFP models. She also highlighted the voluntary character of EFP schemes which should always come on top of basis pay.
In his speech Commissioner Janez Potočnik emphasised the role of EFP as a source for long-term investment and he underlined Barnier’s support for the idea of a 29th regime. He further referred to the conference on ESO on 30 January, presenting an opportunity to get the feedback from the various stakeholders.
Tags: Business, EFP, Eigentum, Employee Financial Participation, employee ownership, employee stock ownership plan, Employment, ESOP, Europe, European Parliament, European Union, finanzielle Mitarbeiterbeteiligung, Politics, productive capital, profit sharing, Small and medium enterprises, Social justice, social market economy, Stock Ownership