Public back plans to make big companies share profits with workers

Labour MP Gareth Thomas has today put forward a motion to the House of Commons supporting the idea that employees should be entitled to a share of their company’s profits – as a new poll reveals huge public support for the initiative.

Three-quarters of people said they would back a plan for “compulsory profit sharing” if a company had made significant profits. In a poll commissioned by the Co-op Party, which Thomas chairs, and carried out by pollster Populus, 76% of people said that they either strongly or slightly support the idea. Only 8% expressed opposition to the plan.

The 10 Minute Rule Motion Thomas has put forward today would require companies with over 50 members of staff would be required to distribute 5% of their profits among employees. Independent research from the House of Commons Library suggests it could mean workers in supermarkets and high street shops could see a £1,200 a year boost to their salaries.

Last week, John McDonnell set out plans to give employees “right to own” their companies in a speech to the Co-operative UK in Manchester.

Ahead of his Commons motion today, Gareth Thomas said that imbalance in wage growth over the last 10 years had driven his plan. “Most people have seen little change in their pay packet over the last decade, whilst income at the very top has soared,” he said. “Employees at all levels of a business should enjoy fairer rewards from the profits their hard work creates.”

“Giving employees a greater say and ensuring that everyone has an incentive to drive up profits boosts productivity – where Britain lags far behind other G7 countries.”

He added that it was important to share influence as well as profits among workers. “In short, we need to champion a shared economy which promotes long term business growth and profitability, places more value on the work of all staff, and ensures power isn’t just the preserve of the highest paid.”

Claire McCarthy, the Co-op General Secretary, added that the UK needs to work towards an economy where everyone is a stakeholder: “Britain is in desperate need of a pay rise, with workers facing the longest decline in living standards in a generation,” she said. “We need an economy where everyone has a stake, with the benefits of success fairly shared.”