The ‘John Lewis model’ is in fashion, although instead of catwalks, this time it’s boardrooms being taken by storm. Businessmen and policymakers alike are examining the employee ownership model, most famously practised by the John Lewis partnership, as something to aspire towards. ‘Red Tory’ Phillip Blond, who apparently has the ear of Prime Minister David Cameron, has outlined his vision of an ‘ownership state’, where local communities are empowered by having a stake in the provision of public services: ‘the state of ownership, and the ownership of the state, would be extended to the masses’. Also getting in on the act, Lambeth Council has announced plans to rebrand itself as ‘the first John Lewis council’ where, among other things, tax rebates will be offered to residents in exchange for their help running services. In the private sector too, directors are looking favourably upon the co-operative model as a way of motivating staff by giving them a ‘vested interest’ in the development of the company. 

Few would disagree that many employees have valuable knowledge they could bring to an organisation. But how much power should they actually have to make real changes within an organisation? Will organisations actually become democratic, or is this simply a way of managers shunting responsibility onto their staff? Is the employee ownership model always more successful? What are the new challenges that employers, staff and now the public will face with this structure?

Is this trend towards employee ownership and the ownership state ideologically aligned with the long history of the cooperative movement, or more of a passing fad? Indeed, is this something that staff and the public are actually demanding, or simply a top-down initiative? Could this, as some have argued, be little more than a cynical ploy to celebrate front-line staff and community spirit, and distract from imminent cuts? Will the increased responsibility placed on already hard-working staff be adequately rewarded? And should we welcome the passing of the old era of ‘us and them’ dividing lines between managers and employees in favour of a new consensus that we’re all co-operative now?

Listen to session audio: