Employee ownership - the future?

The government has just begun its consultation on employee ownership.  This is essentially where an employee will be able to have shares in a company, so that they become "employee owners" and have a stake in the business.  This on the face of it, is a good idea and is a sure indicator that the government wants to spread employee ownership in the economy, so that many more workers feel empowered and part of a business, which in turn (it is hoped) will lead to greater productivity and loyalty from workers.  The Liberal Deputy Prime Minister, Nick Clegg is keen to promote this as a way of creating more John Lewis style business models in the economy.   As a Liberal Democrat, I completely support greater share ownership by employees, as all the evidence suggests that employees have a greater sense of well-being if they feel part of a company and are empowered - a very Liberal idea.  However, given what the Conservative Chancellor announced at the Tory party conference, this comes at a price (what a surprise when Tories are involved).  

Under plans drawn up by the Conservatives, employers will be able to require employees (i.e. new starters, rather than existing employees, where in theory it will be voluntary) to become employee owners, but they will lose key employment rights, such as the right to claim unfair dismissal and redundancy pay.  This is typical of a Tory party who thinks that restricting employment rights is the way back to economic prosperity and my concern is that this is the Beecroft report by the back door, undermining hard won rights.  This would not help with creating greater well-being in the work place  The employer would be able to include a clause in employment contracts requiring the employee to surrender their shares when the employee resigned, was dismissed or made redundant. When shares are surrendered, there are unanswered questions about how the shares would be bought back.  Of course there is a balance to be drawn between employee rights and labour flexibility but my concern is that individuals will sign up to employee owner contracts without fully understanding the implications, leaving many workers vulnerable and without protection.  Also, there is a risk that employees are signing up for shares that are essentially worthless when it came down to it, but lose all their employment rights.

I hope Liberal Democrats in the coalition resist what the Tory party is trying to do here.  We do not want an American style fire at will culture, where workers are left with very little redress if their employer proceeds to treat them unfairly.  That will do little to increase well-being in our fragile economy and is likely to undermine productivity.

Cleggy and the Lords

It was clearly a sad day for Mr Clegg yesterday with House of Lords reform being ditched.  The Liberal Democrats cherish constitutional and political reform and is an important reason why some of us are Liberals and were willing to enter into a coalition with the Tories.  However, the recent episode has highlighted that the Tories will do anything to preserve privilege and vested interest.  Labour saw a political opportunity and went for it.  They knew the Liberals would probably vote against boundary reforms if Lords reform was not delivered, which will go a long way to help secure a possible victory for Mr Miliband's Labour party in 2015 (if anyone bothers to vote).  I understand why Mr Clegg will whip his MPs to vote against boundary reforms, but can he honestly say they are part of the same package of reforms?  A little tenuous in my view.  It looks like "tit for tat" politics, which will not encourage the British people to be pro-coalition in the future.  It will also alienate people even further from the political process and despise politicians still further.  However, at the same time I don't think Mr Clegg has much alternative.

Political reform presented an opportunity to give political renewal to this country to help re-engage Britain's population in the political process.  The final nail in the coffin to that project came yesterday.  "Small c conservatism" is destroying our politics and it needs urgent repair.  I think the Liberals will think twice about ever entering into a coalition again with a party that backs privilege in such an underhand way.

Lib Dems Fairer Fares Campaign

Today the London elections got underway with gusto as we launched our fairer fares campaign.  It was good to meet local residents at Bethnal Green tube in Tower Hamlets (albeit slightly bleary eyed at 7am, but nothing that a strong coffee couldn't cure).  Our message is simple - the huge fare rises under Boris Johnson are a scandal that really hit those on low incomes, particularly those who use pay as you go oyster cards.  Ken Livingstone has no effective solutions and has run out of ideas.  Something needs to be done.  The Liberal Democrats have a 5 point plan for fairer fares in London:


1. A one hour bus ticket to stop penalising travellers who need to change on route. 

2. Special early bird rates to encourage commuters to avoid the main morning rush hour. 

3. Part-time travelcards for travellers who don’t commute into London every day. 
4. The reintroduction of the Zones 2-6 day travelcard for Outer London residents who don’t

journey into Zone 1. 

5. A review of the current zones to ensure no area is being unfairly penalised.

I firmly believes these policies will go a long way in ensuring that the residents of City and East and across London have a fair deal when it comes to public transport.  If you want to join the campaign, please visit www.brianpaddick.com/survey

Campaigning outside Bethnal Green tube, speaking to a Lib Dem supporter