Instances of worker-ownership of organisations can be found. Indeed governments
may encourage worker ownership as did Mrs Thatcher in giving employees preference
in the purchasing of shares in nationalised companies being privatised In
situations of industrial decline e.g. Meriden in the British motor-cycle
industry of the 1970's a firm may be rescued by workers who combine their
redundancy pay to buy control. It is noticeable in the UK that trade unions have
little invested in companies in this way.
Such worker-owned firms typically face problems of commercial survival. Company cost structures, loss of market share and lack of previous investment are but three factors which have led the firm into trouble. Pragmatic action is needed to keep the wolves (typically suppliers and banks) at bay. The dilemmas are obvious - further closures and redundancies run counter to the objectives of worker support for worker.
Successful employee-run organisations include The John Lewis Partnership (each employee - one voting share), National Freight Corporation (employee shareholding) and Lucas Aerospace.
Buy-outs
These normally involve a few (the managers) buying the business with external
investment support, from previous owners who want to divest. The hope is that
local decentralised management can run the firm better and with more committment
than previous large corporate owners. One group of owners/managers has been
substituted for another. Greater loyalty however may be felt by the staff
towards the smaller, new company than towards the larger corporation. The buy-out
may include contributory shareholdings - buy-ins - by employees.
Managers and non-managers combine into a new coalition pursuing the same imperatives and exhibiting more trust and sensitivity towards each other. Such a solution is an example of the unitary framework applying.
