Business group slams Labour plan for enforced profit sharing
POTENTIAL Labour party plans to force companies to share profits with staff have been slammed by the Institute of Directors as “counterproductive” and a deterrent to investment.
The policy to force firms with over 50 employees to set up profit-sharing schemes in the style of John Lewis is reportedly being considered by Ed Miliband in a bid to level out economic growth.
“We cannot believe that the Labour leadership will take such an obviously counterproductive measure seriously,” said Simon Walker, the director general of the Institute of Directors. “Employee profit-sharing can work well for companies who choose it, but it has to be up to them. This idea would give companies with 49 employees a very strong incentive not to grow.
“The UK has a productivity problem, but it cannot be solved with a quick fix, and certainly not with a policy which could only deter investment,” he said.