John McDonnell: Labour will give workers financial stake in companies
2 min read
Employees will be given a financial stake in their company and a greater say on how it is run under a Labour government, John McDonnell will say.
The Shadow Chancellor is set to pledge radical reforms to “restore the balance of power in the workplace” by forcing private companies which employ over 250 people to set up "ownership funds".
Addressing the TUC conference later today, the left-winger will vow to create a “new workplace environment” which will “restore the balance between employer and worker”.
Among the plans to be included in Labour's next manifesto is a boost in trade union powers designed to “modernise” corporate governance structures and give employees the chance to “share collectively in the benefits of ownership of their company”.
“The role of Conservative governments throughout history has been to restrict and restrain the rights and influence of workers to maximise the profits of the companies that so generously fund their party. It’s a straight quid pro quo,” he will tell delegates.
“The Conservatives try to dress it up as securing some form of balance of power between workers and employers, but few today can argue that the balance hasn’t been overwhelmingly tipped against workers.
“Cumulative legislative assaults on trade union freedoms have seriously weakened the ability of trade unions to negotiate effectively on behalf of their members.
“The result is that for the first time shareholders now take a greater share of national income than workers.
Mr McDonnell will also compare today’s “insecurity” in working conditions to the Great Depression of the 1930s, while insisting Labour will act to tackle low productivity and meet the challenges for “the emerging fourth industrial revolution”.
“The massive growth in zero hours contracts and the gig economy have produced a workplace environment of insecurity not seen since the 1930s,” he will add.
“The decline of collective bargaining has meant that workers also now have little say over the key decisions taken by their employers over the future of their companies.”
Chancellor Philip Hammond said of Mr McDonnell’s proposals: “This is Labour’s record on workers: The last Labour government left over half a million more people out of work and every Labour government leaving office with unemployment higher than when it started.
“Under the Conservatives, there are over 3 million more people in work with the security of a regular pay packet, unemployment is at an all time low and the lowest paid have seen the fastest rise in pay for 20 years thanks to our introduction of the National Living Wage.”
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