Julian Le Grand, Chair of the LSE’s Mutuals Taskforce, has responded to Sir Samuel Brittan assertion in the FT, that “there is simply not enough evidence or analysis to support a politically ordained wholesale transfer of enterprises” to worker-owned entities or employee-led mutuals (“The market still has no real rivals”, January 13).
He refers to the wide review of the evidence on the effectiveness of employee-led mutuals produced by the Mutuals Taskforce, andbased on a number of systematic reviews undertaken by academic research units and consultancies.
When operating in competitive markets, these mutuals consistently demonstrated:
· higher consumer satisfaction,
· lower absenteeism
· lower staff turnover
· lower production costs than their non-mutual competitors.
· faster job creation
· more resilience in economic downturns.
He concludes that the report offers enough evidence “to warrant a substantial injection of competition from such mutuals into both private and public sectors”.