The Employee Ownership Update
January 15, 2019
South Africa's ANC Endorses Employee OwnershipOn January 13, the African National Congress (ANC) released its election manifesto, similar to a party platform in the U.S. The manifesto calls for the party to " [i]ntroduce legislation for the extension of company ownership to a broad base of workers through an employee ownership scheme and similar arrangements to supplement workers' incomes and build greater partnerships between workers and owners to build these businesses."
Why Dansko Is Employee-OwnedWriting in Forbes, Susan Adams describes the day in August 2005 when Mandy Cabot decided not to sell her company, which sells wooden clogs, to a much larger company. When Word leaked out that Cabot was considering a sale to Timberland, "our retailers were in an uproar, our phones at Dansko were flooded and the company was in total meltdown."
She realized that for Dansko employee, "[f]or me to even consider selling the company was appalling to them." Despite having spent ten months negotiating the sale, she had a realization: "I saw the impact the deal was going to have on everyone whose lives our business had touched, and I couldn't go through with it." In 2012, Cabot sold 100% of the company to employees through an ESOP.