Productive Companies Include Workers on Their Board

Interview

Since the late 1970s (coinciding with the rise of neoliberalism) wages have stagnated while executive pay keeps rising. This has led to inequality being one of the largest issues facing companies and countries in the 21st century. Accordingly, people sick of neoliberalism have been looking into ways to address inequality and the subsequent economic stagnation. One solution is to have workers sit on the board of their employer. This results in better treatment of the workforce while providing more opportunity for growth in efficiencies within the company.

Research has found that the setup reduces worker turnover, boosts salaries and productivity, and supports income equity. Shareholder returns do suffer slightly, but researchers largely agree that tilting the flow of revenue back toward workers is a good thing.

It stands to reason that the concept holds a great deal of sway over the American public. The gulf between CEO and shareholder earnings and that of employees is often as extreme as 25 to one. Wages for regular workers have held largely stagnant over the last three decades, as executive salaries have ballooned. Bringing actual employees to the table where these decisions are made could serve to flatten the cliff between management and workers.

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