While this report from @SMFthinktank is well intentioned, the mechanisms it suggests are focused on compliance requirements rather than incentives and would be better dealt with by other areas of policy. Thread with constructive suggestions. 1/
2/ It seems focused on what to do with low skilled, relatively low paid jobs that leave people stuck. As my company grows, it’s likely that I will employ people (e.g. in call centres) in such circumstances so it’s worth thinking about how to do so in a socially responsible way.
3/ But reporting requirements don’t seem to me to be the right answer. They create bureaucracy but don’t have a clear mechanism to effect change. The examples cited in the report were anectotal (e.g. Walmart) and no attempt was made to assess continental European policies.
4/ Profit-sharing is fine (and it’s what bankers’ bonuses do), but what happens in bad years if the company makes a loss? These workers won’t have cushions, like bankers do and might not be able to cope with irregular income.
5/ They are right to highlight training (and the UK has been bad at training its workers for a hundred an fifty years), but don’t supply a mechanism by which training could be made to pay for the company.
6/ So here are some ideas.
In years of losses, employers should get a tax credit equal to the amount of “loss-share” they employees would have had to forego were they also to absorb the loss.
In years of losses, employers should get a tax credit equal to the amount of “loss-share” they employees would have had to forego were they also to absorb the loss.
7/ To promote training, there shuold be a training tax credit, similar to the R&D tax credit (perhaps linked to apprenticeships and other qualifications if appropriate)
8/ Employees’ profit-share pay should be taxed favourably, perhaps like dividends are for company directors.
I’m sure there are many more good ideas out there. Make them in the comments below.
I’m sure there are many more good ideas out there. Make them in the comments below.
.@mjrharris @MESandbu would be genuinely interested in your thoughts on this
