The writer followed the fortunes of the Baxi co-operative for some years. Philip Baxendale [pictured], the owner of an old-established and greatly respected Lancashire firm, decided it should become a co-operative and it prospered until November 2000, when there was a ‘forced sell-out’.
The Sunday Times records that since it started in 2002 it has financed several employee buyouts, including UBH International, a Lancashire firm that makes container tanks, and Woolard & Henry, a 125-year-old Aberdeen engineering business.
With each investment, Baxi takes half the equity in the company and the other 50% is retained by the employees. The Baxi shares are held in trust for the benefit of the employees and the shares held by employees can be traded in the normal way.
Beyond the Corporation: Humanity Working, is a book about employee ownership by Baxi’s non-executive director David Erdal, reviewed in April this year, in a Financial Times article.
In 1985 he introduced a profit-sharing share scheme that bought shares from family shareholders and passed them on to employees who had been with the company for more than a year. The next step was to set up an Employee Benefit Trust, which bought a block of some 15% of the shares for the employees. By 1994 all the family shares had been acquired and the employee buy-out was complete.
Below, in the January 2010 ICOF Newsletter, managing director John Alexander records the increasing success of the trust’s work and welcomes the building of a fruitful relationship with Co-operative and Community Finance – another story worth telling.