British Chancellor Mr Osborne wants to allow new employees to agree to accept shares worth up to £50,000 in their company in exchange for waiving a range of legal rights, including the ability to claim unfair dismissal and redundancy payments or to request flexible working.
Female workers would also accept some restrictions on maternity leave. As an incentive to take part, shares taken up under the new rules will be exempt from capital gains tax, Mr Osborne has promised.
The Chancellor has said that the scheme would allow companies to avoid “gold-plated” employment rights which he says are hampering businesses and holding back the economy.
But it has been rejected by many business leaders, including Justin King, the chief executive of Sainsbury’s, who said the change could harm the reputation of British companies.
The criticism from Mr King, whose firm employs more than 150,000 people, followed a lukewarm response from others.
Business lobby groups have said that the rules are unlikely to be of use to the majority of firms. The CBI called the scheme “a niche idea and not relevant to all businesses”.
It seems nearly impossible that labour unions would fall for this completely 'out of wack' proposal whereby workers must put their faith in the unreliable stock and financial markets when it comes to their salary, benefits and retirement, when they provide constant, reliable and productive work.
EU-Digest
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