One of the major criticisms of ESOPs we have run into over the years is that ESOPs do not make employees “real” owners, or that ESOPs are not “real ownership.”  Generally, those making this criticism would be labeled as more “liberal.”  [Certain views in conservative circles use different points to criticize ESOPs.]

 

The President of United Steelworkers International, a very influential labor union in our national politics, Mr. Leo W. Gerard, said in a press release earlier this week:

 

“We have lots of experience with ESOPs, but have found that it doesn’t take long for the Wall Street types to push workers aside and take back control.  We see Mondragon’s cooperative model with ‘one work, one vote’ ownership as a means to re-empower workers and make business accountable to Main Street instead of Wall Street.”

 

[The quote stems from the announcement of collaboration with the Basque Region’s MONDRAGON, which is the world’s largest worker-owned cooperative.]

 

We share because this because it is the most clear cut statement from the “not real ownership” viewpoint we have read in print.

 

If you wish to read the entire press release go to http://www.usw.org/media_center/releases_advisories?id=0234