Canadian Employee Ownership Coalition

We are committed to unlocking the potential of Employee Ownership for the benefit of Canada’s economy and workers.

[Canadian Employee Ownership Coalition @CanadaEO]

After taking the time to review the legislation in Deputy Prime Minister @cafreeland's recent Budget Bill, we are ready to celebrate. 🎉👏

Employee Ownership Trusts are well on their way to being a reality in 🇨🇦

This is a big win for workers and local communities!

[Canadian Employee Ownership Coalition @CanadaEO]

The @OntarioCofC's 2024 pre-Budget submission is forward looking - it recommends the province start work on an Employee Ownership policy framework.

With federal legislation almost in place, it's time for provinces to think about their own policy levers.

https://t.co/F5TIUBLEhQ

[Canadian Employee Ownership Coalition @CanadaEO]

Lisa Taylor (@changepaths) in the @TorontoStar explains how Employee Ownership Trusts could disproportionately benefit women entrepreneurs.

But only - as she notes - if the government steps up with robust incentives in the upcoming Budget. 👇

https://t.co/0uaZvSe7Av

[Canadian Employee Ownership Coalition @CanadaEO]

Thank you @TonyLoffreda for the ongoing championing of employee ownership in Canada.

[Senator Tony Loffreda @TonyLoffreda]

Every month, I publish an article that highlights some of my current work as a Senator. Check out my latest article on Employee Ownership Trusts.

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Chaque mois, je publie un article qui met en lumière certains de mes travaux actuels en tant que sénateur. Jetez un coup d'œil à mon dernier article sur les Fiducies collectives des employés.

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Ogni mese pubblico un articolo che mette in luce alcune delle mie attuali attività di senatore. Date un'occhiata al mio ultimo articolo sui Fondi di proprietà dei dipendenti.

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A SUCCESS STORY IN CONSULTATIONS AT THE FEDERAL LEVEL: EMPLOYEE OWNERSHIP TRUSTS ARE COMING TO CANADA

Canada will soon have an employee ownership trust (EOT) regime.

We knew this was coming as the Federal Government had first articulated its intention to engage with stakeholders to examine what barriers exist to the creation of these trusts in Budget 2021.

A year later, in Budget 2022, and most recently, in Budget 2023, the Government reconfirmed its commitment to incorporate EOTs into the Income Tax Act and sought further stakeholder feedback to make sure that the model Canada would adopt can be successful and achieve its intended objectives. Following consultations this summer, the Government finally set out its plan in the Fall Economic Statement that the Deputy Prime Minister and Minister of Finance delivered in the House of Commons last week.

As described by the Government, EOTs enable employees to share in the success of their work by supporting participation in business decisions and allowing workers to receive their share of profits. Because of this, I have been a vocal advocate for EOTs.

For months, the Canadian Employee Ownership Coalition, of which I am a supporter, has been collaborating with the Department of Finance and advocating for the best possible EOT model for Canadian entrepreneurs and businesses. Our Coalition knew that without proper incentives, business owners would likely not consider EOTs as an attractive option.

All our hard work paid off last week when the Government announced that it would integrate incentives into its model, something it had been hesitant to include from the outset. The Government is now proposing to exempt the first $10 million in capital gains realized on the sale of a business to an EOT from taxation.

The timing of this measure could not have been any better. Projections suggest that 76% of Canadian business owners anticipate retiring in the next decade. Having EOTs as an alternative option for any business succession plan is quite appealing and, with last week’s announcement, a very incentivizing one that, I hope, Canadian business owners will seriously consider.

Indeed, according to the Canadian Federation of Small Businesses, 59% of entrepreneurs support adopting EOTs and more than half of those surveyed also said they would be more likely to sell their business to their employees if incentives would be incorporated into the Canadian model.

The Government projects this measure will reduce federal revenues by $52 million over the next four years. While I appreciate that the Government needs to be increasingly more fiscally responsible, I strongly believe the long-term benefits certainly outweigh the short-term costs.

First, and perhaps most importantly, EOTs allow employees to reap the benefits of its employer’s success and take part in profit-sharing. Beyond that, EOTs can also help support local economies, protect jobs, improve business performance, and can even help mitigate and reduce worker inequalities.

With a Federal Government committed to growing the middle class, this measure should help Canadian workers accumulate more wealth and, hopefully, make life a little more affordable for them in the long run. Of course, EOTs are also quite appealing to entrepreneurs and owners themselves because they could help secure and preserve their business legacy, ensure that their life’s work remains in their community, and protect and strengthen the connection they have established and cultivated with its people, its customers and its staff over many years and decades.

Putting politics and partisanship aside, I believe that last week’s announcement can serve as a great example of consultations gone right.

Just a few months ago, it was apparent that the Government wanted to introduce EOTs without the capital gains incentive. I had a sense that they wanted to introduce EOTs incrementally and evaluate its initial success before adding any incentives into the model.

Clearly, the Government always kept an open mind. I wrote extensively on the subject, spoke with the minister’s office and the Coalition lobbied Finance Canada. The Government listened, and I think, what we have before us, is an interesting and appealing alternative for business owners to consider, whether it be a part of a succession plan or not.

Business owners and workers alike can benefit tremendously from employee ownership trusts, and I look forward to casting my vote in favour of this measure when the Senate reviews the upcoming bill that will legislate this concept into law.

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DES CONSULTATIONS RÉUSSIES AU NIVEAU FÉDÉRAL: LES FIDUCIES COLLECTIVES DES EMPLOYÉS ARRIVENT AU CANADA

Le Canada disposera bientôt d’un régime de fiducies collectives des employés (FCE).

Nous savions que cela allait arriver, car le gouvernement fédéral avait d'abord exprimé son intention de s'engager avec les parties prenantes pour examiner les obstacles à la création de ces fiducies dans le budget 2021.

Un an plus tard, dans le budget 2022, et plus récemment, dans le budget 2023, le gouvernement a reconfirmé son engagement d’incorporer les FCE dans la Loi de l'impôt sur le revenu et a sollicité d'autres commentaires des parties prenantes pour s'assurer que le modèle dont le Canada adopterait atteindrait les objectifs visés. À la suite des consultations menées cet été, le gouvernement a finalement exposé son plan dans l’énoncé économique de l'automne que la vice-première ministre et ministre des Finances a présenté à la Chambre des communes la semaine dernière.

Décrit par le gouvernement comme un mécanisme qui permet aux employés de partager le succès de leur travail en favorisant la participation aux décisions de l'entreprise et en permettant aux travailleurs de recevoir leur part des bénéfices, je suis un ardent défenseur des FCE depuis un certain temps.

Depuis des mois, la Coalition canadienne de l'actionnariat salarié, dont je suis l'un des membres, collabore avec le ministère des Finances et plaide en faveur du meilleur modèle de FCE possible pour les entrepreneurs et les entreprises du Canada. Notre coalition savait qu'en l'absence d'incitations appropriées, les propriétaires d'entreprises ne considéreraient probablement pas les FCE comme une option attrayante.

Tous nos efforts ont porté leurs fruits la semaine dernière, lorsque le gouvernement a annoncé qu'il intégrerait des mesures d'incitation dans son modèle, ce qu'il avait hésité à faire dès le départ. Le gouvernement propose désormais d'exonérer d'impôt les dix premiers millions de dollars de plus-values réalisées lors de la vente d'une entreprise à une FCE.

Cette mesure ne pouvait pas mieux tomber. Selon les projections, 76% des propriétaires d'entreprise canadienne prévoient prendre leur retraite au cours de la prochaine décennie. Le fait d'avoir des FCE comme option alternative pour tout plan de succession d'entreprise est très attrayant et, avec l'annonce de la semaine dernière, très incitatif. J’espère que les propriétaires d'entreprise l'envisageront sérieusement.

En effet, selon la Fédération canadienne des petites entreprises, 59% des entrepreneurs sont favorables à l'adoption des FCE et plus de la moitié des personnes interrogées ont également déclaré qu'elles seraient plus enclines à vendre leur entreprise à leurs employés si des mesures incitatives étaient intégrées au modèle canadien.

Le gouvernement prévoit que cette mesure réduira les recettes fédérales de 52 millions de dollars au cours des quatre prochaines années. Bien que je comprenne que le gouvernement doive être de plus en plus responsable sur le plan financier, je suis fermement convaincu que les avantages à long terme l'emportent sur les coûts à court terme.

Tout d'abord, et c'est peut-être le plus important, ces fiducies permettent aux employés de récolter les fruits de la réussite de leur employeur et de participer à l'intéressement aux bénéfices. En outre, les FCE peuvent également contribuer à soutenir les économies locales, à protéger les emplois, à améliorer les performances des entreprises et même à atténuer et à réduire les inégalités entre les travailleurs.

Le gouvernement fédéral s'étant engagé à appuyer la classe moyenne, cette mesure devrait aider les travailleurs canadiens à accumuler davantage de richesses et, espérons-le, leur rendre la vie un peu plus abordable à long terme. Bien entendu, les FCE sont également très attrayantes pour les entrepreneurs et les propriétaires eux-mêmes, car elles pourraient contribuer à garantir et à préserver l'héritage de leur entreprise, à faire en sorte que l'œuvre de leur vie reste dans leur communauté, et à protéger et renforcer le lien qu'ils ont établi et cultivé avec leurs collaborateurs, leurs clients et leur personnel au fil des années et des décennies.

Au-delà de la politique et de la partisanerie, je pense que l'annonce de la semaine dernière peut servir d'exemple de consultation réussie.

Il y a quelques mois à peine, il était évident que le gouvernement voulait introduire les FCE sans l'incitation aux plus-values. J'avais le sentiment qu'il souhaitait introduire les FCE de manière progressive et évaluer leur succès initial avant d'ajouter des incitations au modèle.

Il est clair que le gouvernement a toujours gardé l'esprit ouvert. J'ai beaucoup écrit sur le sujet, je me suis entretenu avec le cabinet de la ministre et la Coalition a fait pression sur le ministère des Finances. Le gouvernement a écouté et je pense que ce que nous avons devant nous est une alternative intéressante et attrayante pour les propriétaires d'entreprise, que ce soit dans le cadre d'un plan de succession ou non.

Les propriétaires d'entreprise comme les travailleurs peuvent tirer un grand profit des fiducies collectives des employés, et je me réjouis de voter en faveur de cette mesure lorsque le Sénat examinera le projet de loi qui donnera force de loi à ce concept.

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IN CANADA ARRIVANO GLI EOTs, I TRUST DI PROPRIETÀ DEI DIPENDENTI

Il Canada si doterà presto di un regime di trust di proprietà dei dipendenti (EOT).

Era risaputo che sarebbe successo, visto che nella Legge di Bilancio del 2021 il Governo federale aveva espresso per la prima volta l'intenzione di impegnarsi con le parti interessate ad esaminare gli ostacoli che si frappongono alla creazione di questi trust.

Un anno dopo, nella Legge di Bilancio 2022, e più recentemente, nella Manovra Finanziaria del 2023, il Governo ha riconfermato il proprio impegno a integrare gli EOTs nell’Income Tax Act ed ha chiesto ulteriori feedback alle parti interessate per assicurarsi che il modello che il Canada avrebbe adottato avresse avuto successo, reggiungendo gli obiettivi prefissati. Dopo le consultazioni di quest’estate, il governo ha finalmente presentato il suo piano nella Dichiarazione Economica Autunnale che la Vice Prima Ministra e Ministra delle Finanze ha depositato la settimana scorsa alla Camera dei Comuni.

Descritto dal governo come un meccanismo che permette ai dipendenti di condividere il successo del proprio lavoro sostenendo la partecipazione alle decisioni aziendali e consentendo ai lavoratori di ricevere la loro quota di profitti, sono da tempo un convinto sostenitore degli EOTs.

Per mesi, la «Canadian Employee Ownership Coalition», di cui sono un grande simpatizzante, ha collaborato con il Dipartimento delle Finanze e si è adoperata per ottenere il miglior modello di EOTs possibile per gli imprenditori e le imprese canadesi. La nostra Coalizione era consa del fatto che, senza incentivi adeguati, gli imprenditori probabilmente non avrebbero considerato gli EOT un’opzione allettante.

Tutto il nostro duro lavoro è stato ripagato la settimana scorsa, quando il governo ha annunciato che avrebbe integrato gli incentivi nel suo modello, cosa che fin dall’inizio era stata riluttante a includere. Ora il governo propone un’esenzione fiscale per i primi 10 milioni di dollari di profitti (capital gains) realizzati sulla vendita di un'azienda a un EOT.

Il tempismo di questa misura non poteva essere migliore. Le proiezioni indicano che il 76% degli imprenditori canadesi prevede di andare in pensione nel prossimo decennio. Avere gli EOTs come opzione alternativa per qualsiasi piano di successione aziendale è piuttosto interessante e, con l’annuncio della scorsa settimana, un incentivo che, spero, gli imprenditori canadesi prenderanno seriamente in considerazione.

Infatti, secondo la Federazione canadese delle piccole imprese, il 59% degli imprenditori è a favore dell’adozione degli EOTs e più della metà degli intervistati ha anche affermato che sarebbe più propenso a vendere la propria azienda ai propri dipendenti se gli incentivi fossero integrati nel modello canadese.

Il Governo prevede che nei prossimi quattro anni questa misura decurterà le entrate federali di 52 milioni di dollari. Pur apprezzando il fatto che il Governo debba essere sempre più responsabile dal punto di vista fiscale, sono fermamente convinto che i benefici a lungo termine siano sicuramente superiori ai costi a breve termine.

Innanzitutto, e cosa forse più importante, gli EOTs permettono ai dipendenti di raccogliere i frutti del successo del datore di lavoro e di partecipare alla distribuzione degli utili. Inoltre, gli EOTs possono contribuire a sostenere le economie locali, a proteggere i posti di lavoro, a migliorare le prestazioni aziendali e persino a mitigare e ridurre le disuguaglianze tra i lavoratori.

Con un governo federale impegnato a far crescere la classe media, questa misura dovrebbe aiutare i lavoratori canadesi ad accumulare più ricchezza e, si spera, a rendere la loro vita un po’ più accessibile nel lungo periodo. Naturalmente, gli EOTs sono molto interessanti anche per gli stessi imprenditori e proprietari perché possono contribuire a proteggere e preservare l’eredità della loro azienda, assicurarsi che il lavoro di una vita resti nella loro Comunità, salvaguardare e rafforzare i legami che hanno instaurato e coltivato con la loro gente, i loro clienti e il loro personale nel corso di molti anni e decenni.

Mettendo da parte la politica e la partigianeria, credo che l'annuncio della scorsa settimana possa essere un ottimo esempio di consultazioni andate a buon fine.

Solo pochi mesi fa era evidente che il governo voleva introdurre gli EOTs senza l’incentivo sui profitti (capital gains). La sensazione era che volessero introdurre gli EOTs in modo graduale e valutarne il successo iniziale prima di aggiungere eventuali incentivi nel modello finale.

Chiaramente, il governo ha sempre mantenuto un approccio aperto. Ho scritto ampiamente sull’argomento, ho parlato con l’ufficio del Ministro e la Coalizione ha esercitato pressioni sul Ministero delle Finanze. Il governo è rimasto all’ascolto e penso che ora abbiamo davanti a noi un'alternativa interessante e allettante da prendere in considerazione per gli imprenditori, che si tratti di un piano di successione o meno.

Sia gli imprenditori che i dipendenti possono trarre enormi benefici dai trust di proprietà dei dipendenti, e non vedo l’ora di esprimere il mio voto a favore di questa misura quando il Senato esaminerà il prossimo disegno di legge che trasformerà questo concetto in legge.

[Employee Ownership Association (eoa) @EmployeeOwned]

Great news coming out of Canada - tax incentives have been added to their EOT policy - we can vouch for this being powerful in growing employee ownership in the UK! #employeeownership

[Ryan Turnbull 🇨🇦🇺🇦 @TurnbullWhitby]

Among many other meaningful elements of the Fall Economic Statement from @cafreeland, I couldn’t be more pleased to see the advocacy and hard work of so many stakeholders, lawmakers, and activists paying off for Canada, Canadians and the climate. 🇨🇦🌎

Thank you for your efforts 🙏

3 Big Wins
✅ Green Taxonomy
✅ Climate-Related Disclosures
✅ Employee Ownership Trusts

Canada is building a Sustainable Economy. 💪 #FallEconomicStatement #FES2023

[Canadian Employee Ownership Coalition @CanadaEO]

When legislation passes later this fall, it will be a powerful starting point for employee ownership in this country, and we commend the government for their ambition.

[Canadian Employee Ownership Coalition @CanadaEO]

@cafreeland's Fall Economic Statement marks a watershed moment for employee ownership in Canada.

Starting in Jan 2024, a new made-in-Canada Employee Ownership Trust will help workers across the country build wealth and keep jobs in local communities.

[Canadian Employee Ownership Coalition @CanadaEO]

Our Coalition had the support of many strong advocates helping us to get here.

Special thank-you's to @cafreeland, @TurnbullWhitby, @TonyLoffreda, @SenatorHYussuff, @rechievaldez and Senator Frances Lankin.

[Canadian Employee Ownership Coalition @CanadaEO]

Tim Masson, Chief Steward and CEO of Raise, as well as one of our Steering Committee members, has just had an important piece published in the Toronto Star, calling for Ottawa to make it easier for owners to sell their businesses to their employees: https://t.co/HgqkYxpKyb

[Canadian Employee Ownership Coalition @CanadaEO]

Wesley Novotny is a Tax Partner at the law firm Bennett Jones. Wesley has written about the potential for employee ownership in Canada and contributed to EOT policy development.
#EmployeeOwnership #CanadianEconomy

[Canadian Employee Ownership Coalition @CanadaEO]

One of our Steering Committee Members, Tiara Letourneau, has just released an op-ed in The Province about how Employee Ownership Trusts help keep businesses local and prosperous, and why it's time for federal legislation to help build that foundation. https://t.co/ZA2R9giMM7

[Canadian Employee Ownership Coalition @CanadaEO]

Christine Cooper is the Head of Commercial Lending at BMO, which has been one of the leading lenders to employee-owned companies in the United States for 50 years. She is passionate about the benefits of having the same options available to Cdn business owners #EmployeeOwnership

[Canadian Employee Ownership Coalition @CanadaEO]

Heather Payne is the CEO of Juno College of Technology. A long-time entrepreneur, Heather would like to be among the first to adopt a new Employee Ownership Trust in Canada.

#EmployeeOwnership #CanadianEconomy

[Canadian Employee Ownership Coalition @CanadaEO]

Victor Beausoleil is the Executive Director of SETSI, and in his social justice work is an advocate for employee ownership in Canada

#EmployeeOwnership #CanadianEconomy

[Canadian Employee Ownership Coalition @CanadaEO]

The UK's Employee Ownership Association has released a report on the benefits of #employeeownership, showcasing significant impacts. This paves the way for Canada too. Read the report here: https://t.co/UrW3mGdqWh #CanadianEconomy

[Canadian Employee Ownership Coalition @CanadaEO]

@KatyPitch is a tax lawyer who leads the Canadian tax practice of the newly formed Toronto office of Mintz LLP.

#EmployeeOwnership #CanadianEconomy

[Canadian Employee Ownership Coalition @CanadaEO]

Tiara Letourneau is CFOO of Rewrite Capital Advisors and a long-time advocate for #employeeownership in Canada. Rewrite sees a path to building wealth for women and BIPOC workers by financing employee ownership throughout North America.

#CanadianEconomy

[Canadian Employee Ownership Coalition @CanadaEO]

Dave Filipchuk is in his 40th year with 100% employee owned @PCLConstruction, currently serving as president and CEO.
#EmployeeOwnership #CanadianEconomy