This paper considers the possibility that founding owners in the artisan craft beer industry in Québec will find it attractive in the future to implement employee ownership trusts (EOTs) that are promoted as a retirement option for small business owners in the 2023 omnibus Federal Canadian bill. The Canadian legislation is flexible enough to allow combinations of aspects of US Employee Stock Ownership Plans (ESOPs) and the structure of longstanding UK EOTs. The characteristics used to investigate meaningful employee ownership are worker agency over company earnings and worker voice in decision-making. We present detailed information about ESOPs along with an example of a minority ESOP in a US craft brewery to illustrate the potential for failure on these two counts. A brief characterization of EOTs in the United Kingdom introduces a comparison between Canadian hybrid EOTs and US ESOPs focusing on the potential for worker voice in decision-making and worker agency over company earnings in the newly legislated Canadian EOTs. As a case study of the potential relevance of employee ownership in Canada, we consider the craft beer industry in Québec, consisting of over 250 microbrasseries accounting for 12% of total beer sales in the province in 2020. Based on relevant aspects from the experiences of US craft beer companies with ESOPs, we present four mini case studies of craft brewers in Québec’s developing boutique artisan industry. The paper concludes with a brief discussion of the prospects of these microbrasseries adopting EOTs in the future.
The characteristics used to investigate meaningful employee ownership are worker agency over company earnings and worker voice in decision-making. We present detailed information about ESOPs along with an example of a minority ESOP in a US craft brewery that illustrates the potential for failure on these two counts. A brief characterization of EOTs in the United Kingdom is included to identify aspects pertinent to the Canadian legislation. A comparison between the Canadian EOTs and US ESOPs follows, focusing on the potential for worker voice in decision-making and worker agency over company earnings in the newly legislated Canadian EOTs.
The craft beer industry in Québec, consisting of over 250 microbrasseries accounting for 12% of total beer sales in the province in 2020, provides material for four mini case studies. Based on these and considering relevant aspects from the experiences of US craft beer companies with ESOPs, the paper ends with a discussion conjecturing about the prospects that craft brewers in Québec’s developing boutique artisan industry will find it beneficial to implement EOTs in the future.
The Canadian legislation is too recent for any craft brewers to have already implemented an EOT based on it. However, a brief discussion of an Ontarian craft brewer who put in place an ESOP prior to the new Canadian legislation is included. We conclude with a brief discussion of reasons to expect future adoptions (or not) of EOTs by the owners of the four craft breweries in our case study.
The paper provides guidelines to consider for owner/founders of small craft beer companies in Québec who may wish to adopt EOTs in the future to retain the boutique artisan characteristics of their businesses.
The paper compares worker agency and worker voice in ESOPs and newly legislated Canadian EOTs to inform the social benefits for workers of the federal legislation.
This paper compares newly authorized Canadian EOTs with US ESOPs and the potential application of the new Canadian legislation on employee ownership to the craft beer industry in Québec.
