20 February 2010
This proposal was announced on 15 February.
In setting out the proposal George Osborne, the shadow Chancellor, stated:
"The new right to form employee owned co-operatives will apply throughout the vast majority of the public sector – including JobCentre Plus offices, community nursing teams and primary schools.
Employee owned co-operatives will continue to be funded by the state so long as they meet national standards, but will be freed from centralised bureaucracy and political micromanagement.
They will be not-for-profit organisations - any financial surpluses will be reinvested into the service and the staff who work there, rather than distributed to external shareholders."
In a Radio 4 interview on the same day, George Osborne accepted that these co-ops would have the right to get rid of the existing managers of the service that was being incorporated into a co-operative and replace them with managers of their choice.
So will it be a case of Tories in, Bosses out? We shall see.