A worrying silence on rights for shares

Today’s seen George Osborne give his speech to the Conservative Party Conference. As you might expect, there are many things in it that concern me, but I want to highlight two of them.

First we have the heavily trailed announcement that he wants to cut another £10bn off welfare costs by introducing more cuts and restrictions on who can claim various benefits. This, of course, is before we’ve even seen the impact the first wave of cuts in Housing Benefit and Council Tax Benefit will have, but then when did sense ever apply to an Osborne proposal?

This proposal has obviously caused some consternation, but there has been a firm line from the Liberal Democrats against this proposal. Sure, it started with ‘party sources’ saying it was bad, but now I’ve seen quotes directly attributed to Nick Clegg saying that nothing of the sort has been agreed, and Tim Farron making a clear statement of the same point.

However, there’s been another Osborne proposal that hasn’t been shot down and I’m actually worried that this has already been agreed to by the leadership without members even being consulted. It’s the ‘rights for shares’ proposal in which you would surrender various rights (unfair dismissal, redundancy payments etc) in exchange for being given shares in the company you work for. So, if the company goes belly-up you’re left with no redundancy and a bunch of worthless shares. Or if you’re unfairly dismissed, you can’t get compensation, but you can try and find someone interested in buying shares that will give them no control over a privately traded company. You won’t get a choice in this, either – employers will be free to offer contracts based on this with no alternative, so forget the idea that your employment rights in any way belong to you and that you have a choice whether to exercise them.

Some have attempted to claim that it’s a John Lewis-style model of employee ownership, ignoring the fact that staff at John Lewis keep their rights while being the sole owners of the company. This is much more Fifty Shades Of Grey – you might have a contract, but you’re still getting screwed.

It’s illiberal nonsense, and the sort of thing the Liberal Democrats should be shooting down before it’s even left the auditorium, but I’m worried that we’re allowing it to happen. As well as the announcement at the Tory Conference, it’s on the Treasury website, alongside the logo for the Department of Business, Innovation and Skills (where Vince Cable is Secretary of State). That, and the mention at the bottom of the press release that the Government will be consulting on this, makes me fear that this is already well on its way to the statute book.

Have the party leadership allowed this to happen? And will they let us know, or have they traded our rights away for a few magic beans?

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1 Comment to "A worrying silence on rights for shares"

  1. Jennie's Gravatar Jennie
    October 9, 2012 - 12:59 am | Permalink

    We’re talking about our party leadership here. We’re lucky to get magic beans.

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