South Africa Continues to Move Forward on Employee Ownership

Three of South Africa's largest companies-Italtile, Tongaat, and Woolworths-have introduced employee ownership plans. Woolworths, a large chain of food and clothing stores, is providing preferred stock worth 10% of the company that the company projects could be worth R250,000 per employee after eight years (about $35,000). The company is guaranteeing a minimum of R20,000 if the company does not grow at least 10% per year. The Woolworths plan is more generous than those of other large employers, where plans typically own more in the 5% range. Many of the country's large mining companies have already introduced plans.