ERIC Number: ED179756
Record Type: RIE
Publication Date: 1979-Nov
Reference Count: 0
Employee Ownership in Plant Shutdowns. Prospects for Employment Stability.
Stern, Robert N.; And Others
Prospects for local purchase of plants, resulting in community-employee-owned firms (CEFs), as an alternative to shutdowns, are examined in this three-part study. Part 1 considers the nature of plants in terms of industry-community relationships and the effects of a closing. Part 2 evaluates, through a cost-benefit approach, the strategy involved in a community investment. After examining an actual case in detail, the authors consider alternatives along with the difficulties of estimating costs, both social and economic. Part 3 evaluates cost-benefit methodology itself in terms of strengths, limitations, and how it applies to CEFs. A final chapter examines the CEF for its ability to maintain local control and worker participation in the long run. In looking at the issues from both statewide and local perspectives, the study notes that (1) local CEFs represent reassertion of control over one's personal fate in an increasingly centralized society, (2) economists and policy makers have tended to believe that corporate decisions to close plants are based on sound economic calculus (though such decisions relate costs and benefits to a company, not a community), and (3) the analysis in the report should serve as a model and as a tool to inform government officials who might support or reject CEF attempts. It shows the possibility that a company abandoned by a larger corporation can be run successfully by a community. (CP)
Descriptors: Business, Business Responsibility, Community Cooperation, Community Involvement, Community Resources, Cost Effectiveness, Economic Change, Economic Research, Employer Employee Relationship, Investment, Labor Relations
W. E. Upjohn Institute for Employment Research, 300 South Westnedge Ave., Kalamazoo, Michigan 49007 ($6.00, hardcover; $4.00, paperback)
Publication Type: Books; Reports - Evaluative
Education Level: N/A
Authoring Institution: Upjohn (W.E.) Inst. for Employment Research, Kalamazoo, MI.