Archibald announces funding to encourage greater uptake of employee ownership
Date published:
On Employee Ownership Day, Economy Minister Dr Caoimhe Archibald has today announced that her Department is providing almost £100,000 of funding to Employee Ownership Ireland (EOI) to increase awareness of the employee ownership trust (EOT) model across Northern Ireland.
Employee ownership is a transformative approach to business where employees hold a substantial financial and decision-making stake in the organisation.
The transition to employee ownership often happens when business owners are looking for a succession solution. Instead of selling to external buyers, they transfer ownership to their employees, preserving the company’s legacy and keeping it rooted in the local community.
The announcement came during the Minister's visit to S&W Wholesale, a Newry-based wholesalers which became an EOT in January 2023.
Minister Archibald said: “The benefits of employee ownership are well documented and are strongly aligned with my economic plans. Employee-owned businesses pay, on average, a higher wage. They are more likely to remain in the same location and invest in their local economy and importantly, they are 8-12% more productive.
“Today’s funding announcement will help increase awareness of employee ownership and support businesses transitioning to employee ownership through funded feasibility studies.”
Aidan O’Neill, Board Member, Employee Ownership Ireland, said: “We welcome the Minister’s announcement today and are encouraged that this funding will now be available for businesses across all sectors who are interested in becoming an EOT. Much of this funding will be directed towards providing feasibility studies for firms who at the beginning of the EO journey and will enable the EOI board to continue offering mentorship, peer to peer support and a bank of resources at crucial early stages.
“It is particularly welcome that this announcement was made on Employee Ownership Day when the EO community across NI is coming together and celebrating the momentum behind the movement. There are now around 1,000 employee-owners working in this region and as a board, we are working hard to increase this figure even further and to showcase the many benefits EO brings to both businesses and the local economy.”
Anthony McVeigh, CEO of S&W Wholesale, added: “It was wonderful to welcome Minister Archibald to S&W Wholesale today and speak to the many positives of being a business operating for the benefit of the employees. Since S&W made the transition back in 2023, we have experienced significant growth and are supported by a highly engaged and committed workforce. We have a very positive story to tell and are grateful to the Minister for taking the time to visit our offices and meet with many of our brilliant colleagues who are now playing an even greater role within the business.”
Learn more about Employee Ownership Ireland and the support they can offer businesses at the Employee Ownership Ireland website where you can also find information on how to apply for a fully-funded feasibility study.
Notes to editors:
1. Photo caption: A celebration event to mark Employee Ownership Day was held at S&W Wholesale in Newry. Pictured are Anthony McVeigh, CEO S&W; Aidan O’Neill, Employee Ownership Ireland board representative; and Economy Minister Dr Caoimhe Archibald. At the event, the Minister announced a new funding package to boost employee ownership.
2. Employee Ownership model can take various forms, including:
- Employee Ownership Trusts (EOTs): A trust holds the company shares on behalf of the employees, ensuring long-term stability and collective benefit.
- Direct Share Ownership: Employees individually own shares in the company, either purchased or granted as part of a reward scheme.
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