Scottish Labour considering worker buyout legislation

Scottish Labour is to consider bringing forward legislation that would allow workers to buyout closure-threatened firms.

The party is looking at the prospect of introducing a member’s bill at Holyrood to introduce a law similar to the Marcora law in Italy.

Under such a law, employees have been able to buy ownership stakes in under-threat businesses to keep them trading.

In Italy, the move has led to a rise in employee-owned firms largely set up as worker co-operatives.

Labour MSP Richard Leonard is to examine the prospect of introducing a bill after the policy was mooted in the party’s new industrial strategy.

He said: “In our view, too much economic power rests in too few hands. Scottish Labour wants to see a rebalancing of the economy.

“We need to grow the co-operative element of our economy, particularly employee-owned businesses.

“We will investigate the possibility of introducing an enhanced ‘Marcora law’ which would enable workers to have the right to buy an enterprise when it is up for sale or threatened with closure.

“We should consider promoting employee ownership as a desirable choice that does not destroy value.

“As well as safeguarding jobs, this could also stem the loss of local ownership and local jobs by anchoring businesses in their local community.”