Standing Committee on Employment, Education
and Workplace Relations
Buy Australian - Buy Employee Shares
The House Employment Committee has called on the Federal Government
to give Australian workers greater opportunities to have shares in the
companies that employ them.
A report supporting increased access to Employee Share Ownership Plans
(ESOPs) was released today, Monday 9 October, by the House of Representatives
Standing Committee on Employment, Education and Workplace Relations.
This report, Shared Endeavours, is the most significant
and detailed examination ever undertaken into ESOPs in Australia. It
features 45 recommendations that focus on ways in which ESOPs can be
taken up by eligible workers and can be adopted by businesses, irrespective
of their size or type.
Shared Endeavourssets out an integrated legislative
and administrative framework for providing more everyday Australians
with access to employee share plans. If adopted by the Federal Government,
this package will foster a culture of employee share ownership in Australia.
"The recommendations in this report should not be seen in isolation
from one another," Dr Brendan Nelson, Chair of the House Employment
Committee, explained. "We will only attain the policy goal of widespread
Employee Share Ownership if we encourage share plans with comprehensive
legislation.
"With this report, employee share plans now have a clear rationale
in public policy."
Specifically, Shared Endeavours outlines four key policy
objectives:
- To more closely align the interests of employers and employees;
- To provide a net contribution to national savings;
- The facilitate the development of sunrise industries;
- To facilitate succession planning and employee buyouts.
"Such goals are essential if the Australian economy is to compete
internationally," Dr Nelson added. "Employee share plans can promote
productivity, motivate employees, foster long-term prosperity and, in
general, nurture a better working environment. Every one wins when that
happens."
Dr Nelson identified two other important social and economic objectives
for embracing an employee share ownership culture.
"Close to half Australians now own shares. But half do not. Employee
share ownership gives everyday working men and women the opportunity
to join fellow share owning Australians in a relatively structured and
secure way."
"At the moment Australians are buying a lot of peanut butter. Dick
Smith peanut butter because of a desire to support Australian owned
companies. Employee Share Ownership gives us practical and enduring
opportunities if widely adopted to invest in Australian companies and
reduce our reliance on foreign savings", said Dr Nelson.
The inquiry into employee share ownership in Australian enterprises
began in March 1999 after the Minister for Employment, Workplace Relations
and Small Business, Peter Reith, asked the House Employment Committee
to review the effects that employee shares have on the Australian economy,
and on workplace relations and productivity within the workplace.
Throughout the inquiry, the House Employment Committee held public
hearings across Australia and received more than 50 submissions. These
were received from Commonwealth Government Departments, unions, multi-national
organisations, industry associations and Australian companies - large
and small.
For media comment contact Dr Brendan Nelson MP, Chair of the
House Employment Committee, on 0418 123 438 or 02 6277 4433
(Parliament House).
For media inquiries contact the House of Representatives Media Adviser,
Sally Webster on 6277 2063 or 0401 143 724.
For background information and copies of Shared Endeavours report,
contact the Committee Secretariat on 02 6277 4573 or visit http://www.aph.gov.au/house/committee/eewr/ESO/index/htm
Terms of reference
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.
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