Trade tensions: Can employee ownership schemes create common ground?

The current tensions between the United States and South Africa run far deeper than any single issue. Disagreements over South Africa’s stance on Gaza and other foreign policy elements have strained diplomatic relations and stirred trade conflicts. Despite these high-stakes disputes that dominate headlines, there is a less obvious but enduring point of common ground – when the time is right, and the US has moved beyond rhetoric.  

Employee ownership, a bipartisan model embraced in both the US and South Africa, could bridge the two nations amid trade tensions. Despite political challenges, this approach fosters corporate success and shared value.

A Rutgers University poll found that 74% of Democrats and 72% of Republicans prefer working for employee-owned companies, highlighting bipartisan support for a model that aligns worker interests with company performance. 

Aligned with Trump-era policies, employee ownership in the US is seen as a proven strategy for corporate success when governed by strict fiduciary standards and strong oversight. 

Well-structured employee ownership stabilises companies, preserves jobs, and boosts productivity, principles that extend far beyond US borders and reinforce a business model rooted in shared value creation.

South Africa, with its long history of Broad-Based Black Economic Empowerment (B-BEE) initiatives, already recognises the importance of employee ownership. Employee ownership is a well-established model, and plays a vital role in South African policy. The Competition Commission and various government initiatives recognise it as a key driver of economic growth. 

Employee ownership schemes that have been successfully implemented in South Africa encompass all employees—both black and white—affirming a non-racial, inclusive model. Such schemes are highly transformative due to the inherent characteristics and demographics of the workforce

Multinational corporations including US companies operating in South Africa have successfully implemented this model, generating local investment and fostering economic inclusion. Support for employee ownership spans the political spectrum, from the ANC to the Democratic Alliance and other parties within the government of national unity, highlighting its role and effectiveness in driving business success and job creation.

Employee ownership allows employees, regardless of their background, to gain a direct stake in the business, creating a sense of ownership and accountability. By ensuring that those who contribute to the company’s success are invested in its future, this approach strengthens businesses and enhances overall performance.