Washington, DC (June 10) – George A. Ray, President and CEO, LeFiell Manufacturing Company, Santa Fe Springs, CA, and Chair, The ESOP Association, will testify at 2 PM today in front of the Subcommittee on Financial Institutions and Consumer Credit for the Committee on Financial Services of the U.S. House of Representatives.
Mr. Ray is testifying on behalf of The ESOP Association, the national trade and advocacy organization for companies with employee stock ownership plans (ESOPs). LeFiell Manufacturing Company is 67% owned by its employees through an ESOP.
The hearing, “Financing Employee Ownership: An Overview,” will focus on expanding employee business ownership in the United States and providing financial institutions incentives to provide loans to employees in order to create employee stock ownership plans (ESOPs) and Eligible Worker Owned Cooperatives (EWOCs). In addition to Mr. Ray, J. Michael Keeling, CAE, President, The ESOP Association and Sherry Ceresa a Statistical Analyst for Gardener’s Supply Company, Burlington, VT, will also present testimony. (Gardener’s Supply is a 100% employee-owned owned catalog company specializing in gardening tools and supplies including composters, seed starting equipment, greenhouses, fertilizers and, other gardening needs.)
LeFiell was established as a small tool and die shop more than 60 years ago, and has since evolved into the global leader in the design and fabrication of precision tubular products. In addition, LeFiell is a preferred supplier to the Boeing Company. Ray has been employed at LeFiell for 38 years, having started as a machine operator at age 22, earning $2.00/hour.
“In 1954 LeFiell incorporated to a privately held C corporation so that the then-owner could give some shares of the company to key employees and also allow employees who want to invest in the company to purchase through a payroll deduction plan,” comments Ray in his testimony. “In 1974, when legislation to allow the creation of ESOPs was enacted by Congress, LeFiell was one of the first companies in the US to form an ESOP.”
“I am pleased and proud to have George testify on behalf of The ESOP Association,” stated ESOP Association President J. Michael Keeling. “George Ray and LeFiell Manufacturing Company are golden examples of the successes that can be achieved when employees become owners of the companies in which they work,” he added. “George’s enthusiasm has trickled through the ranks, and has infused an entire company of employee owners in southern California.”
Founded in 1978, The ESOP Association represents more than 2400 companies and service providers with a professional commitment to employee ownership through ESOPs.