Tuesday, 22 November 2016

Worker directors: yet another illiberal retreat

It seems like only a few days ago that I was praising Mrs May's conversion to German-style (and traditionally Liberal) worker directors. Yesterday, in her speech to the CBI, that was yet another firm policy pledge which weakened to an airy-fairy wish. Chris Dillow makes the attack from a Marxist economist's standpoint.

On the radio yesterday, an Economist magazine correspondent suggested that Mrs May's original idea was unworkable because under English law, directors had a "fiduciary duty" to their company's shareholders. Leaving aside the consideration that in view of recent City financial scandals "fiduciary duty" is disregarded anyway, the obvious retort is that the law can be changed. The TUC drawing up its 2013 paper entitled "Workers on Boards" was aware of the concept and clearly saw no difficulty.

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