Rep. Chafee & Rep. McCarthy Vahey testify in support of Center for Worker Ownership proposal
State Representative Brandon Chafee (D-Middletown) and State Representative Cristin McCarthy Vahey (D-Fairfield) both testified in support of a bill they co-introduced, HB 6120, An Act Establishing a Connecticut Center for Worker Ownership during the March 4th Labor and Public Employees Committee public hearing.
If enacted, HB 6120 would create a state Center for Worker Ownership. This organization would serve as a resource for both new and existing businesses to convert to an employee stock ownership plan (ESOP) or cooperative business model (COOP). These types of centers have been implemented in states across the country, including Vermont, Pennsylvania, and a joint program involving New York and New Jersey
Both the ESOP and COOP models allow for workers to have an ownership stake in the businesses where they are employed. The Center for Worker Ownership would also help businesses create succession plans to sell the business to current employees. ESOPs and COOPs have been shown to increase worker wages, increase retirement security, and create a more positive workplace culture.
Connecticut is routinely listed as one of the states with this highest income inequality in the world. We are a highly prosperous state in which too many residents struggle to meet their basic needs,” said Rep. Chafee. “Worker cooperatives and employee stock ownership plans have been proven to increase wages and wealth for workers. This policy will help to keep businesses, jobs, and wealth in our state.”
“Over 27,500 Connecticut businesses are owned by baby boomers and make up $12.7 billion in payroll – that is money created and directly invested back into our communities,” Rep. McCarthy Vahey said. “Worker ownership assures retention of those jobs, builds wealth, creates a stronger buy-in, addresses income inequality, and gives more options to our business community. It is vital to our state that we do all we can to offer resources to businesses that may be looking for a succession plan and their employees who are pivotal in the success of our local economy. The creation of a CT Worker Ownership Center will ensure these businesses know how to access them.”
The bill now awaits a vote from the Labor and Public Employees Committee.