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Re: Why EO in Privatisation



Dear Dave
 
Welcome to COG EOPriv and Happy New Year to all!
 
I concur with your sentiments. As an active member of the Australian Labor Party I believe the EO agenda is a natural agenda for Labor. The challenge is to get the balance right and to institute some excellent industrial models in various economies.
 
I note Prime Minister Blair is soon to introduce a new threshold of 3000 English pounds of tax free shares fro employees in the UK. This is a radical and welcome initiative and shows that labor thinkers are heading in the right direction.
 
Cheers all
 
Tim Mitchell
----- Original Message -----
Sent: Monday, December 27, 1999 8:43 AM
Subject: Why EO in Privatisation

Dear EO Privers
I believe of all the sources of EO, Privatisation is the worst one to promote it. 
I say that mainly for the global abuse and the failure rate that has resulted in using this source.
 
 However there are many empirical and successful examples of EO through Privatisation non more so than the Herend Porcelain Manufactory in Hungary.
 
Form a Worker's point of view Privatisation World Wide has been a disaster, particularly in Labour Intensive Industries which most invariably are. As a worker if you don't lose your job you can bet your wages and conditions will be under attack in a bid to put profits before people.
 
Little wonder then that workers and their representatives i.e. Trade Unions oppose privatisation so strongly. The problem is that when a situation is inevitable the TUs do not have a plan "B" which is to get involved in the process in order to get the best out of the situation for their members. Even if initially it is viewed as a damage limitation exercise that can only be a good thing, the positive thinking can come later.
 
The way forward for workers is to join the flow and become owners themselves in order to influence (even to some degree) what is happening and some would say to try and protect them from the corruption and mal-practice that seems prevalent in privatisations.
 
Once having reached that conclusion we can address the questions posed by Dan Bell
 
Having been in and witnessed many Privatisation situations where the workers were given the option of EO they took it for the following reasons.
 
1. to protect our jobs and conditions as much as we could
2..to be able to control our own destiny as much as we could.
3. we could see what management and outsider buy-outs were doing to their workforces  
    and we didn't want that.
4  the accumulation of capital was not something we were concerned with at the beginning
   this was developed over a period of time and we did turn £800 investment into 
   £1600 in 5 years
 
I hope this has answered a few questions as far as how workers see EO in Privatisations 
 
What is clear is that you cannot expect to move from one culture to another overnight, some protective programme has to be developed to make the transition smooth and successful     
 
 
Dave Wheatcroft
01246 233438 -Tel