House of Representatives Committees

Standing Committee on Employment, Education and Workplace Relations

Inquiry into employee share ownership in Australian enterprises
Media release, 19 March 1999

Report on Employee Share Ownership Schemes

The Minister for Employment, Workplace Relations and Small Business, the Hon Peter Reith MP, has requested that the House of Representatives Standing Committee on Employment, Education and Workplace Relations inquire into and report on:

The extent to which employee share ownership schemes have been established in Australian enterprises and the resultant effects on:
a. workplace relations and productivity in enterprises; and
b. the economy.


The Committee Chair, Dr Brendan Nelson, MP (Lib, NSW), said: "Employee share ownership schemes have become relatively common in Australian publicly listed companies. The schemes encourage employees to more closely identify with their employer and are claimed to have a positive impact on workplace relations, productivity and enterprise profitability."

"The Committee is keen to examine the extent of employee share ownership and its effect on workplace relations and productivity. Do employees appreciate the opportunity to take a stake in their employer and do they view the objectives of the schemes in a positive light? Do companies believe that employee share ownership schemes meet their objectives?"
Dr Nelson said: "It also appears that enterprises in the software, information and internet arena, which rely heavily on the intellectual capacities of their workforces, are using employee share and option schemes as a 'golden handcuff' to reward loyalty and reduce staff turnover."

The Committee is inviting submissions from all interested organisations and individuals. On the basis of submissions received, the Committee will be taking evidence at public hearings throughout Australia, starting in June. The Committee has asked that written submissions be forwarded by 30 April 1999 if possible, although the Committee will accept submissions throughout the course of the inquiry.

Written submissions should be forwarded to:

The Secretary,
House of Representatives Standing Committee on Employment,
Education and Workplace Relations
R1, 116, Parliament House, Canberra ACT 2600

Emailed submissions to eewr.reps@aph.gov.au will be accepted provided they include a postal address.

Back to top

We acknowledge the traditional owners and custodians of country throughout Australia and acknowledge their continuing connection to land, waters and community. We pay our respects to the people, the cultures and the elders past, present and emerging.

Aboriginal and Torres Strait Islander people are advised that this website may contain images and voices of deceased people.