Marxist madness: Labour is coming for everything

One of the UK’s biggest business groups pleaded with Labour not to see enterprise as “the enemy” after shadow chancellor John McDonnell delivered a radical speech at his party’s conference.

Sunday, the UK Labour party started their annual conference. Overnight (NZ Time) I watched the live speech from the John McDonnell, The UK Labour Shadow Chancellor of the Exchequer (Finance Minister)

He started by off by greeting everyone as Comrades. Throughout the speech, he frequently referred to himself as a Socialist. He went so far as to say that if anyone (the Arch-Bishop in-fact) got insulted by being called a Marxist, then he John McDonnell, had the answer of how to respond to that.

So Mr McDonnell?s speech. Two promises, then the detail? Under a UK Labour government?

A. The minimum wage will be lifted immediately to ?10 an hour (from the current ?7.83. That?s a 27% increase)

B. 10% of company shares would be forcibly given to employees.

Those were the headlines. But let?s drill down into Mr McDonnell?s own words regarding item B based on my notes from watching the speech.

  • This will only apply to companies with 250 employees.
  • Each year (for 10 years) the company must give 1% of its value to the employees
  • This will not be given directly to the employees, but held in a consolidated fund on the employee?s behalf.
  • The fund will be administered by Worker?s Representatives (I?m guessing the Union)
  • The company must pay dividends to the consolidated fund. At the same rate, it pays other shareholders.

And here is the big one

  • The Consolidated Fund will distribute those Dividends to the employees of that company? However, the maximum that an employee can receive in a year is ?500. The rest will be given to the government
  • Also, workers committees must make up 30% of the management board

So UK Labour is promising to forcibly take 10% of the assets & 10% of the dividends from large companies. Give a token to the employees of those companies, and keep the rest.

Searching around I found that there is a lot of un-worked out detail. Eg, it may only apply to listed companies. It may not be enforceable against foreign registered companies operating in Britain. Of course this means that any listed company in the UK will want to:

Downsize; or

Go private; or

Move its headquarters offshore … but I guess UK Labour will come up with more ideas to stop that.

We watched the speech in disbelief. However, UK Labour is going into the next election campaign with 2 big promises?and who looks at the detail? Certainly not people being promised a 27% pay increase & 10% of the company they work for.