Employee share option schemes will become an increasing option in many companies in both the private and public sectors, a Telecom Eireann worker-director said yesterday. Companies should prepare now to extend their boards and prepare employees for greater participation at boardroom level.
Mr Adrian Harney was speaking at the annual meeting of the Worker-Directors Group within the Irish semi-state sector at the European Foundation at Loughlinstown, Co Dublin. He said it was also an ideal time to review worker participation legislation in Ireland, which had given employees of semi-state companies worker-directors 21 years ago.
"I believe that companies which strive for the ideal partner ship approach based on financial participation are likely to be best placed to expand and develop," he said. They would respond more quickly to changes in their industries, retain customer confidence by giving a better service and have a more committed workforce.
Social partnership had been the catalyst for the Celtic Tiger and it would have to be extended to the board room in private and semi-state companies. He asked why worker participation had not progressed in the private sector when it had long been accepted as the norm in many parts of Europe.
He said the advent of worker-directors was likely in EU company law and the high-level expert group on worker involvement had recommended that a fifth of seats on company boards should be reserved for members designated by the workforce.
Mr Harney also called for the Government to give a commitment that worker-directors would be retained on the boards of existing semi-state companies if they became private firms.
The managing director of Bord na Mona, Mr Paddy Hughes, told the conference that the greatest test of worker participation was whether it would survive the transition from state to private ownership. "Participation will only sur vive if those of us who want it look at the big picture and if those who favour the worker-director system are pragmatic in their aspirations," he said.
"I believe that Bord na Mona is one example where the promotion of worker-directors and other forms of employee participation has definitely worked for the benefit of all stakeholders, employees, owner and management.
"However, when all the state-owned commercial companies have changed their ownership structure, if there are still worker-directors and a culture which promotes employee participation, then the system will have proved that the experiment worked.
"My personal view is that participation is now broadly accepted as a very successful means of achieving the optimum results in to day's competitive business environment. I believe therefore that the future will certainly see staff representation in one form or another at board level."