B888 - Worker Co-Operative Bill 2015

Watch
This discussion is closed.
Birchington
Badges: 20
Rep:
?
#1
Report Thread starter 4 years ago
#1
B888 - Worker Co-Operative Bill 2015, TSR Government
Image

Worker Co-Operative Bill 2015
An Act allowing workers to take control of their economic lives by aiding workers to take control of their workplace under certain conditions.

BE IT ENACTED by The Queen's most Excellent Majesty, by and with the advice and consent of the Commons in this present Parliament assembled, in accordance with the provisions of the Parliament Acts 1911 and 1949, and by the authority of the same, as follows:-

1. FORMATION

(1) Any new business wishing to become a co-operative and agreeing to the limits in section 3 will have interest on a business loan paid in the manner detailed in 2)i)

2. ACQUISITION BY CLOSURE

(1) If any business files for bankruptcy a vote must be organised by the management for the workers to purchase the business or workplace with a business loan.
(i) The Government pays the interest on the loan for 2 years, at which time:
a) If the business if profitable and employing at least the total UK based workforce it was before occupation the government continues to pay the interest for a further 4 years while the business can pay off its loan.
b) If the business is employing less than the total UK based workforce or is not in profit an independent review will be commissioned to see if the business is progressing. If the review finds the business has little or no chance of becoming profitable, funding is withdrawn. Otherwise the government continues to pay the interest for a further 4 years at which time the business is looked at again as if it had only had its loan interest paid for once.

3. CONDITIONS

(1) All workers must be allowed to vote on any of the following:
(i) raising/lowering wages and bonuses
(ii) employment of managerial staff
(iii) firing of more than 2% of the workforce
(iv) any firing where 50% of the workforce sign a petition to the senior management of the facility
(2) The highest wages must not exceed 5 times the wages of the lowest paid employee
(3) This includes any outsourced staff, whether UK based or otherwise.
(4) All people employed by the business will have an equal stake of the shares of the company.
(i) Shares owned by employees of the company must equal at least 50% total shares.
(5) A cap will be implemented at -
(i) an interest rate of 8%
(ii) a total loan of £250,000

4. COMMENCEMENT SHORT TITLE AND EXTENT

(1) This Act may be cited as The Worker Co-Operative Bill 2015
(2) This act shall extend to the UK; and
(3) Shall come into force following Royal Assent

NotesThe worker co-operatives are propped up only in the event that they will become profitable, with the government only paying the interest on the loans they receive. This helps keep and create jobs at minimal cost to the taxpayer. As many examples, thinking of those in south America specifically, that have shown that this can and does work. This encourages economic growth.

Of course the co-operative model will not be viable for all industries, but those industries would either know this and not use the scheme, or not know/ignore this and use the scheme till it failed, at which point the loan is paid with the businesses assets. The reason for such emphasis on worker co-ops is because they ultimately create a happier workplace, and thus a happier country. They certainly can form a viable business plan as is seen in co-operatives that include these elements around the world.
Spoiler:
Show
The cost will be up to £20,000 per annum per loan. For four years this will be up to £80,000

£2 million will be put to the Department of Business, Innovation and Skills to cover the administrative costs.
0
James Milibanter
  • Political Ambassador
Badges: 17
Rep:
?
#2
Report 4 years ago
#2
Aye
0
PetrosAC
  • Political Ambassador
Badges: 20
Rep:
?
#3
Report 4 years ago
#3
Aye of course
0
Jammy Duel
  • Political Ambassador
Badges: 21
Rep:
?
#4
Report 4 years ago
#4
Nay, the very conditions applied make it untenable. Capping the wages of the highest paid dooms it to failure in most cases outside sole traders. In the case of sole traders I would expect employees to prefer seeking other employment. Furthermore, in the few cases where it could work the interest rates are somewhat punitive and/or the loan provided may well be insufficient. Finally, it strikes me that the author doesn't quite understand the concept of a co-operative.
0
SakuraCayla
Badges: 14
Rep:
?
#5
Report 4 years ago
#5
Aye
0
James Milibanter
  • Political Ambassador
Badges: 17
Rep:
?
#6
Report 4 years ago
#6
(Original post by Jammy Duel)
Nay, the very conditions applied make it untenable. Capping the wages of the highest paid dooms it to failure in most cases outside sole traders. In the case of sole traders I would expect employees to prefer seeking other employment. Furthermore, in the few cases where it could work the interest rates are somewhat punitive and/or the loan provided may well be insufficient. Finally, it strikes me that the author doesn't quite understand the concept of a co-operative.
The wages aren't capped, if the highest paid want to earn more then they are perfectly able to, provided they also pay the lowest paid more as well.

The loan is capped because at any more the risk will be too high, and considering something like this will have an element of risk anyway it's safest to put a cap on the interest rate too.
0
Saracen's Fez
Badges: 20
Rep:
?
#7
Report 4 years ago
#7
It is a typically socialist proposal, but hey, we're not forcing it on all businesses. It is a choice.

Aye.
0
Junaidk7
Badges: 9
Rep:
?
#8
Report 4 years ago
#8
Aye.
0
Jammy Duel
  • Political Ambassador
Badges: 21
Rep:
?
#9
Report 4 years ago
#9
(Original post by James Milibanter)
The wages aren't capped, if the highest paid want to earn more then they are perfectly able to, provided they also pay the lowest paid more as well.

The loan is capped because at any more the risk will be too high, and considering something like this will have an element of risk anyway it's safest to put a cap on the interest rate too.
The wagea are effectively capped, even the dumbest of socialists should be able to recognise that they can only incerase their wages so far and keep their job.
0
cranbrook_aspie
Badges: 19
Rep:
?
#10
Report 4 years ago
#10
Aye
0
TheDefiniteArticle
Badges: 20
Rep:
?
#11
Report 4 years ago
#11
I can't vote in favour of this in its current form. There needs to be significantly more clarification about who owns what after a vote, and on what basis (for instance, the result of the workers as a whole as an unincorporated association owning the company on a contract-holding basis would be very different from those who voted in favour owning the company in equal shares). Also, does this mandate existing shareholders to sell their stakes in the business? At what price? Who provides the loan? Who decides the interest rate? How are directors appointed, and do they count as employees of the business for the purpose of s3(4)? Also, a loan of £250k is ludicrously small, a good many one-venue commercial businesses will be worth more than that.

RayApparently , if the government would like some advice on making the Bill legally coherent, I'm happy to provide it, but I strongly urge all members of this House to vote against this Bill in its present form.
2
Aph
Badges: 22
Rep:
?
#12
Report 4 years ago
#12
How is it going to be possible to cap the wages of outsourced work?
0
thehistorybore
  • Political Ambassador
Badges: 18
Rep:
?
#13
Report 4 years ago
#13
No.
0
cBay
Badges: 15
Rep:
?
#14
Report 4 years ago
#14
Like a true commie, I ultimately believe in worker ownership of production and that workers should bear the fruit of their labour. As such I am very interested in cooperatives and how their role in society could be boosted to the extent that I am actually currently working on a couple bills of my own aimed at furthering the cause of cooperatives as well as a real life non-political project I am working on to encourage the path of some degree of worker ownership for start-up companies.

Aside from ideological reasons, the main problem with our economy right now is that it is a low wage economy, as David Cameron continuously points out (correctly) without actually showing any signs of doing anything to change this. One of the biggest factor behind this is the determination of corporations to drive down wages so that they can maximise dividends to 'investors' at the end of the year. Anything that can help to encourage higher wages should be supported and cooperatives are just one way.

As such, I am very interested in this bill. From a quick read through it looks like it will need to a second reading. In the coming days I will provide a full analysis of where it can be improved as it is something that matters a lot to me.
0
Jammy Duel
  • Political Ambassador
Badges: 21
Rep:
?
#15
Report 4 years ago
#15
Could the author tell us what they coceive the loans actually being spent on?
0
James Milibanter
  • Political Ambassador
Badges: 17
Rep:
?
#16
Report 4 years ago
#16
(Original post by Jammy Duel)
Could the author tell us what they coceive the loans actually being spent on?
Investment, wages, whatever is required to re-start the company
0
Jammy Duel
  • Political Ambassador
Badges: 21
Rep:
?
#17
Report 4 years ago
#17
(Original post by James Milibanter)
Investment, wages, whatever is required to re-start the company
Those things revenues are for, you mean?

Posted from TSR Mobile
0
James Milibanter
  • Political Ambassador
Badges: 17
Rep:
?
#18
Report 4 years ago
#18
(Original post by Jammy Duel)
Those things revenues are for, you mean?

Posted from TSR Mobile
However, these will effectively be businesses starting out pretty much from scratch, the loans are to bolster revenues until they're back on their feet.
0
Jammy Duel
  • Political Ambassador
Badges: 21
Rep:
?
#19
Report 4 years ago
#19
(Original post by James Milibanter)
However, these will effectively be businesses starting out pretty much from scratch, the loans are to bolster revenues until they're back on their feet.
You mean a loan for the business to lose given they were already likely losing money hand over fist, something that will suddenly turn around when individuals probably less competent than the previous ownership take over.

The bill also advocates theft.

I shall finally add that this bill doesn't necessarily do what it is intended due to some legal definitions, although these same issues may well solve the theft issue. I shall have to have a good think about sole proprietorships

Having done a bit more reading, this could, in theory, cost over one TRILLION in a single year, so business needs specifying for the bill.

Posted from TSR Mobile
0
barnetlad
Badges: 19
Rep:
?
#20
Report 4 years ago
#20
The basic premise I support, of saying that when a business goes into administration or there is the possibility of total closure, then a workers co-operative should be given the opportunity to run it. The detail needs to be looked at carefully, and also whether it should apply to some form of partial business closure. An example would be some of the recently announced steel plant closures, which are not the whole company.
0
X
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

How will you be receiving your results?

Going into school to pick them up (188)
33.39%
Receiving them online / by email (282)
50.09%
I still don't know (93)
16.52%

Watched Threads

View All