Brussels, 29/10/2014 (Agence Europe) - The European Commission is looking at the question of introducing legislation to harmonise employee ownership and participation. According to a study published by the European Commission on Wednesday 29 October, this kind of enterprise has demonstrated its usefulness and could go far.
The study was carried out on behalf of the Commission by the Inter-University Centre and argues that companies that use employee ownership and participation schemes are more profitable, productive and competitive and create more jobs by remaining anchored in their respective communities. Since the beginning of the crisis, the number of companies proposing employee ownership and participation opportunities such as profit sharing, for example, increased from 14% to 30% between 2009 and 2013. This kind of scheme is already widespread in the US and its potential should therefore be used in a cross-border fashion by getting rid of certain barriers, such as different national legislation and differences involving the way in taxes are applied.
In the short and medium term, the study recommends the combination of different kinds of action such as raising awareness about employee ownership and participation schemes and promoting them. Other options include the exchange of good practices, a voluntary code of conduct, an employee ownership and participation events day and a virtual information centre.
Legislative intervention could prove appropriate in the longer term. Although creating a legally binding framework would be desirable as a means for harmonising national legislation, the study recommends that the Commission should adopt a more pragmatic approach. In an effort to avoid conflict with different national legal systems, developing a common European regime for employee ownership and participation systems could be planned in an optimum way as possible. (MD)