U.K. to Proceed With Plans to Increase Worker-Owned Companies

The U.K. government said it will press on with plans to stimulate employee ownership of companies as it seeks to create a more sustainable economic model in the wake of the financial crisis.

Deputy Prime Minister Nick Clegg and Cabinet Secretary Francis Maude welcomed recommendations by government-appointed adviser Graeme Nuttall, a partner at London law firm Field Fisher Waterhouse, to create a government-led working group to foster worker ownership. They also backed the creation of an independent body to support companies in transition to a new ownership model and the creation of legal templates for companies to speed up the process.

“Businesses that are owned by their employees produce more, grow faster, keep their workforce happier and pay staff more fairly,” Clegg said in an e-mailed statement in London today. “Our economy suffered a massive heart attack –- now we have to build our strength back up.”

The government will consult on changes to amend company law until Nov. 16 and on plans to give workers the right to request ownership. The U.K. has about 250 worker-owned companies with sales of about 30 billion pounds ($48 billion).

To contact the reporter on this story: Gonzalo Vina in London at gvina@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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