Scotland’s largest worker-owned business has trumpeted the benefits of the structure as firms across the UK today mark the first ever Employee Ownership Day.
Markinch-based Tullis Russell which has more than 740 workers, each with a stake in the firm, and is Scotland’s longest-established employee-owned firm says it considers its status an important corporate point of difference in challenging global markets.
“Our structure allows for quicker decision making, freeing us to respond to market demands across the world, with a view on the long-term without the short-term pressures often imposed by external shareholders,” said group chief executive Chris Parr.
“Ultimately people are our greatest resource. Our experience is that employee owners have higher levels of job satisfaction and feel a greater sense of fulfilment than is the case in non-cooperative businesses.
“As the UK economy looks for new approaches to cope with the uncertainties of a turbulent global marketplace, there is a paradigm shift under way, and employee ownership is an important element of this new dawn.”
He hailed the establishment of a new Tullis Russell Environmental Education Centre, which will serve the community, and the opening later this year of a new combined heat and power plant to serve the paper mill.
Employee ownership trusts hold 64% of Tullis Russell’s ordinary shares, with 8% held directly by employees, and the balance being in the hands of the charitable Russell Trust.
Finance Secretary John Swinney said the business model could “stimulate entrepreneurial culture, innovation and growth.”
“Scotland has already made great strides in embracing this innovative business model,” he said.
“Evidence tells us that this often creates a more sustainable business in difficult times and is one that creates jobs faster. Productivity and performance are boosted by employee ownership.”
Scotland’s 578 co-operative or employee-owned businesses employ an estimated 28,000 people, turning over in excess of £4 billion.