Improving the role of Employee Financial Participation in creating jobs and reactivating the unemployed
The Plenary voted today in favour of an ALDE report to improve and better regulate the role of the Employee Financial Participation (EFP) schemes, that offer direct benefits beyond basic remuneration to workers — through profit sharing, individual employee share ownership and employee stock ownership plans — and constitutes one form of employee participation in companies.
This ALDE Report aims to stimulate the development of EFP schemes by raising awareness on their potential for both workers and employers, with regards to growth and social protection, along with underlining the existing obstacles to these schemes, which the Commission and the Member States shall help to overcome. Even if in 2018 exist 10 million employee shareholders in the EU, and 20 MS have some kind of regulation, there are severe geographical imbalances to address
MEP Renate Weber, ALDE rapporteur on this file, said:
“Employee-share ownership has a potential to stabilise the European economy as a whole. This report aims at creating a momentum again for EFP by emphasizing the potential of these schemes for both workers and their employers, with respect to more sustainable governance, better business continuity and access to capital for SMEs, better social dialogue and quality of work, more fidelity and less absenteeism, more motivation, efficiency and better skills development which could lead to less unemployment and redundancies.”
The financial participation of employees can lead to a broad range of positive economic and social effects, including to stimulate job creation and reactivate unemployed people. Watch her speech during the debate below:
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