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Workers’ ownership schemes important step in creating inclusive economy: Patel

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The government says it is working closely with corporates to expand its workers’ ownership programme.

Speaking to the media ahead of international Workers’ Day celebrations on Saturday, Minister of Trade and Industry Ebrahim Patel commended companies who have enabled employees to own shares in the company.

Patel says over the past number of years, the government has begun to prioritise empowerment schemes that provide their workers’ equity or shares in the company that they work for.

The Minister says broad-based transformation through workers’ ownership schemes is an important step in creating an inclusive economy. The Minister commended companies mostly listed on the JSE,  which have provided equity or shares to its workers.

He applauded Coca-Cola South Africa which recently completed its legal work on the transfer of shares for 8 000 of its employees through its Ikageng Employee share trust.

Minister of Trade and Industry hosts briefing on worker ownership structures

Agreement between government and various businesses

The Minister says this was made possible through an agreement between the company, government and the competition tribunal. He says there are five other big corporates that have provided workers’ ownership schemes that cover more than 29 000 workers.

“A workers ownership scheme like this Coca Cola example shows has been advanced through the competition processes since parliament made some changes to the competition Act to provide for workers ownership. Those amendments were signed into law by President Ramaphosa in February 2019,” says Patel.

The department will soon be publishing new guidelines on the use of worker-ownership and broad-based schemes. The IDC is also working with companies to strengthen workers’ ownership schemes in the country.

“We have now begun to develop a register with workers ownership schemes as we had no data available previously, that contained that information. And in celebration of May Day, I wish to announce that more than 150 000 South African workers are part owners of the companies they work for, through shareholding in those firms and it’s our hope we can increase that number in the period ahead,” says Patel.

Department of Trade & Industry unveils worker-ownership schemes

Government, business and organised labour are currently in discussion through the NEDLAC process to increase opportunities for worker representation on the boards of large companies.

Pioneer Foods, Simba, South Africa, Astron, Vodacom, Sasol, and Kumba are some of the few other companies that have implemented workers’ ownership structures in their company.

 

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