Funding announcement boosts Newry firm’s Employee Ownership Day celebrations
Employee Ownership Day celebrations were given an extra boost as Northern Ireland Economy Minister, Dr. Caoimhe Archibald, announced almost £100,000 of funding to Employee Ownership Ireland.
This funding will be used by the newly established business board to raise awareness of the employee ownership trust model and to support those businesses who are in the process of or interested in transitioning to employee ownership through funded feasibility studies.
The announcement was made on the eve of Employee Ownership Day when Minister Archibald visited S&W Wholesale, which became an EOT in January 2023.
The economy minister took part in S&W’s celebrations for Employee Ownership Day which is celebrated across the UK on 20th June and aims to empower the EO community and its supporters.
This year saw the biggest celebration to date of EO Day in Northern Ireland as more and more businesses have transitioned to the business model which brings many proven benefits to firms, employees and the local economy.
OWNERSHIP MODELS
Currently there are 16 Employee Owned businesses operational across Northern Ireland and include firms from all sizes and sectors such as FMCG wholesaler S&W Wholesale, manufacturing firms, Relinea and Gilbert Ash and healthcare providers People 1st.
This represents over 1,000 employee owners now in NI and is in line with Employee Ownership Ireland’s aim of creating 10,000 employee owners by 2030. The model is a transformative approach to business where employees hold a substantial financial and decision-making stake in the organisation. This model can take various forms including:
- Employee Ownershiop 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.
Making the funding announcement, Minister Archibald described the benefits of employee ownership as profound and far-reaching. Businesses often see improved performance, employees experience greater job satisfaction and financial rewards, and society benefits from stronger, more resilient local economies.
“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,” said the Minister.
‘POSITIVE STORY’
Aidan O’Neill, Board Member of Employee Ownership Ireland added: “We welcome the minister’s announcement 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.”
Anthony McVeigh, CEO of S&W Wholesale said: “It was wonderful to welcome Minister Archibald and her team to S&W Wholesale 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.”
To learn more about the Employee Ownership Ireland and the support they can offer businesses search Employee Ownership Ireland, where you can also find information on how to apply for a fully funded feasibility study.
