John_McDonnell_MP_and_Shadow_Chancellor_8th_Feb_2018,_Preston
Image: © Sophie Brown via Wikimedia Commons

Labour wants businesses to share profits with their employees

Businesspeople are pissed off about it.

Businesspeople are pissed off that a new Labour policy would force them give some of their company's profits to their employees.

What it means: The profits-for-workers plan was announced at the TUC conference this week by Labour’s shadow chancellor John McDonnell, aka the guy who will be in charge of financial and economic stuff if Labour wins the next election. McDonnell hasn’t decided yet how much of a company’s profits should be paid into ‘employee funds’ to be shared out among staff, but another Labour insider says it’ll probably only be a few percent.

McDonnell didn’t invent this idea of giving out dividends (economist-speak for sharing out some of your profits). Businesses already give them to shareholders, who are the people who collectively own the company. McDonnell also didn’t invent the idea that workers could own their company instead of shareholders. Companies owned by their staff are called cooperatives, and include department store John Lewis and the supermarket chain Co-op (we bet they spent ages coming up with that name).

So why are company bosses so upset? Well, it’s partly because they don’t like governments telling them what to do. And it’s partly because they think they’re already having their profits squeezed enough by ‘uncertainty and change’ (read: Brexit) and government taxes. (Labour also wants to raise corporation tax from 19 to 26 percent).

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Reader Comments

  • WhereAreTheVikings

    What a terrible, terrible shame. Western Civilization nurtured capitalism, and now capitalism is destroying it. And these young people seem to welcome the invasion of their homeland. The media and schools have been very efficient in wiping out all traces of blood and soil.

    • prollawalllynotahumanoid

      Capitalism isn’t the problem. It’s corrupt politicians taking bribes and kickbacks from Globalists and the Chinese.

      • WhereAreTheVikings

        Maybe I should have said crony capitalism. Although Italians importing Chinese to make “Italian leather” shoes is not crony capitalism. It is capitalism, pure and simple.

        • prollawalllynotahumanoid

          That would be crony capitalism and globalism combined. They aren’t concerned with the affect their policies have upon their citizens, the health and welfare of their society and culture or their economy. What it isn’t is fair-free trade to further national interests.

          • WhereAreTheVikings

            I’ve always seen them as one and the same, but perhaps they need to be named individually, just to bring home the point.

      • WhereAreTheVikings

        But now that travel is so easy and borders are virtually down through H1bs and the like, theoretically you can’t blame capitalists for the pursuit of cheaper labor, although I do heartily blame them not being more patriotic than that. Perhaps the emerging nationalism will force them to voluntarily do what they should have morally been doing all along, and that is employing business practices that preserve their countries and nationalities. The government should be doing everything it can to encourage that, to the extent that small government should do anything but guard the borders and strictly, drastically, limit immigration.

      • Henry Lam

        It is China with its corrupted mindset affecting the world.

        • prollawalllynotahumanoid

          No it is not. Capitalism is the fairest and least corrupt system of all.

          Socialism and communism is based on authoritarianism, coercion and police intimidation. It has and always will be rife with criminality, bribes and kickbacks.

          Corruption can be anywhere but it is the very basis of socialism and communism.

    • Henry Lam

      The government is too weak. They do not understand the mindset of communists and how they educate their people. Those communist people are only loyal to their country and could be dangerous. The immigration law should only accept those who accepted multiculturalism and taught from a democratic education system. This virus events clearly has shown how stupid to take China as a friend.

      • WhereAreTheVikings

        The government is not too weak. Just weak-minded about some things.

  • Gabi Rodrigues

    For how many days can a country maximum close their borders to foreigners maximum? Like now, with the virus, everyone is using 30 days. Can it be more?