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Monday, 24 September 2018

Labour conference: John McDonnell unveils shares plan for workers per BBC News

Hidden down this BBC report https://www.bbc.co.uk/news/uk-politics-45621361 on John Mcdonnell's announcements comes the analysis:

'Analysis: A smash and grab raid?
By BBC business editor Simon Jack

Many companies offer incentives and discounts to employees who wish to build a shareholding over time. That is not the same as taking 10% of the company away from its current owners to stick in a fund for the workers and the government's benefit, which seems to be what the shadow chancellor is proposing.

For a start, the workers will not be able to buy and sell the shares - so they won't really "own" them in a traditional sense. They will be eligible to receive dividends on the shares up to a value of £500 per worker per year. The government gets the rest.

The Labour Party reckons this will raise about £2bn a year. It could end up much more. Let's take just one company - bumper dividend-payer Shell. Ten percent of its £12bn annual dividend comes to £1.2bn.

If each of its 6,500 UK employees got £500 each (totalling £3.25m) that leaves £1.116bn for the government. That's just from one company - every year. Wow.'

But don't expect the Labour Party's propaganda arm to go big on that analysis, after all there's a Labour government to ensure. 

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