NDP brings legislation to allow more people to realize the dream of business ownership

QUEEN’S PARK – Ontario NDP MPP Terence Kernaghan (London North Centre) is debating his Private Member’s Motion today that would allow more people to realize the dream of business ownership. The motion, supported by the Ontario Chamber of Commerce, the London Chamber of Commerce, and Employee Ownership Canada would establish an Employee Ownership Strategy to promote, encourage, and advertise employee ownership models in Ontario.

“Employee-owned companies help local communities thrive, build long-term prosperity, and contribute to the democratization of both labour and wealth,” said Kernaghan. “Employee Ownership Trusts encourage meaningful business succession, keep local jobs local, and allow employees to realize the dream of business ownership. Employee owners are 92% wealthier and selling owners are able to keep their legacy alive instead of selling to a hedge fund or large corporation that may not have the best interests of the community at heart.”’

According to Canadian Federation of Independent Business, 75% of small business owners in Canada plan to exit their business in the next 10 years with the baby boomer generation retiring. This puts $2 Trillion in assets at stake. It is incumbent upon all legislators to not only protect, but to maintain, and even grow the wealth currently in Ontario. Employee Ownership responds to today’s economic projections as well as the growing cost of living crisis we all face.

ADDITIONAL QUOTES:

Daniel Tisch Echevarría, President and CEO, Ontario Chamber of Commerce

“The Ontario Chamber is a longtime proponent of Employee Ownership Trusts (EOTs), which create value for business owners and workers alike - while ensuring Ontario businesses are built to last. By moving forward with this strategy, we can strengthen our economy, and our communities, for years to come.”

Graham Henderson, London Chamber of Commerce

“On behalf of the London Chamber of Commerce, we are writing to express our strong support for MPP Terence Kernaghan’s motion to implement an Ontario Employee Ownership Strategy. This initiative represents a crucial step toward addressing significant economic challenges and fostering sustainable, community-driven growth across Ontario.” “The proposed Ontario Employee Ownership Strategy addresses these issues head-on by providing retiring business owners support for a practical, sustainable succession option: selling to their employees. This approach offers multiple benefits, including preserving jobs, retaining local wealth, and empowering employees to realize the dream of business ownership.”

John Shell, Social Capital Partners/Employee Ownership Canada

“Employee Ownership Canada is very supportive of the Employee Ownership Strategy proposed by the Ontario NDP. These are exactly the right kind of actions that Provinces can take to super-charge employee ownership now that Employee Ownership Trusts are law of the land. Employee ownership keeps Ontario businesses Ontario-owned, keeps jobs in local communities and makes Ontario’s economy more resilient. We hope these measures will be adopted so we can help make our economy better together.”