Vox Political: Corbyn Aid Says Companies Should Give Workers Shares

Last Thursday, Mike ran an article from that day’s Guardian, which reported that one of the Corbynistas in the Labour party, John McDonnell, had recommended that Labour should give employees the right to request their bosses to give them shares in their company. He also stated that employees should also have the right to buy out companies that are being dissolved, sold or floated on the stockmarket first before they are offered elsewhere.

This was after Corbyn had stated that companies should be prevented from paying their workers poverty wages while their bosses awarded themselves vast pay rises by limiting the amount management could pay themselves beyond those of their employees.

Mike stated of the proposal to extend workers’ ownership and co-operative control

These are plans that would succeed. Employment would stop being a trap, forcing people to slave for the enrichment of others while being forced to claim state benefits themselves; the government would pay out fewer in-work benefits as wages rise, meaning taxes could be diverted to other causes or cut altogether; and there would be much less of the old “us v them” enmity supported by our “divide and conquer” Conservatives.

The article’s at http://voxpoliticalonline.com/2016/01/21/another-great-idea-a-labour-government-would-let-employees-own-shares-in-companies/ Go and read it.

Mike’s quite right. Germany and Austria have had workers in the boardroom and forms of workers’ control since the 1920s. They’ve been immensely successful, and have no doubt contributed to those countries’ stable, prosperous economies and the ‘social peace’ that has existed there. I’ve no doubt that when Corbyn and McDonnell made these speeches, there were splutterings of ‘Communism!’ and ‘Cultural Marxism!’ by right-wing blowhards, who know little of either. In point of fact, the German and Austrian Communist parties cordially hated workers being given power while the economy remained capitalist. This betrayed the working class, they claimed, by giving them a stake in the capitalist economy, thus preventing their radicalisation. It was part of the process by which Social Democratic leaders hoodwinked and betrayed the workers into supporting capitalism, rather than rising up and overthrowing it. Proper Communists, at least at that time, were much more in favour of letting capitalism become as predatory, rapacious and exploitative as possible in the hope that this would radicalise more members of the working class, who would then revolt and overthrow the capitalist system.

Furthermore, Maggie Thatcher attempted to make capitalism popular by spreading share ownership. She did so by making a percentage of the shares in the firms she privatised available to small investors, including their workers. Ten or twenty years after she did so, these shares had, of course, nearly all been gobbled up by the big capitalists. Nevertheless, this raises the questions: if it’s fine for Maggie Thatcher to offer shares in private industry to the workers, who were employed in them, then why, under the same logic, is it wrong for Corbyn and Labour to do so? After all, if the objective is to make employees work harder and be more loyal because they actually have a stake in those companies, then this should be a worthy goal no matter which government is in power. Correct?

As for workers having first refusal to buy out firms when they’re being sold off, this has been done in Argentina. There workers were given the option to buy and turn into co-operatives companies that were going to be shut down. I’ve put up here documentaries on them, one of which included Naomi Wolf as one of the talking heads. Although the vast majority have since been returned to capitalist ownership, it did save many firms. The proposal is essentially a sound one. If it’s turned down or sneered at, then this shows that the Tories and the capitalist class have absolutely no interest in creating a prosperous economy or jobs, but simply lining their own pockets at the expense of their employees.

And laws preventing company bosses from paying themselves excessively high wages beyond the rest of their employees have been in place in Japan since forever and a day. They were introduced by the ruling Liberal Democratic Party as part of their programme to create a harmonious, middle class society governed by the social consensus and which avoided creating social stress through excessively polarised incomes. Nobody was to be too rich, or too poor.

Japan is a very authoritarian society, with a lot wrong with it. It is extremely sexist and women are very definitely seen as belonging in the home. There is little welfare provision, which has become a major issue as increasing numbers of Japanese have been thrown out of work by the long-running economic crisis. There is also an element of racism in Japanese political culture. Only full-blooded Japanese have full civil rights. This means that the descendants of Korean immigrants or prisoners of war, that have been there for three generations, are effectively excluded from mainstream Japanese society. But their concern to ensure social harmony through limiting excessive management pay and fostering solidarity between management and workers is a good one, and doubtless has also contributed to Japan becoming one of the world’s strongest economies, apart from their reputation for quality products and hard work.

Corbyn and McDonnell have thus recommended policies that should lead to the revival of British industry, and which also have their echoes schemes put into practice by the political Right. There is thus little good reason to reject them.

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