Izar studied as a model by the European Parliament

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11 February

IZAR CUTTING TOOLS S.A.L., has been taken as a model of good practice in a study made by the Euro-parliament about "Employee Financial Participation (EFP) in companies' proceeds".


This analysis states that EFP is a mechanism for promoting greater cooperation between owners, management and employees, tending to increase workplace harmony and reduce conflict, thereby making the enterprise more flexible, efficient and productive, hence more economically competitive.

One of the reasons is that employee shareholders are concerned with the long-term performance of the business, not just short-term movement of share prices. All this contributes to permanently fixing the company to the territory where it stands, a particularly important factor in the European industry case.

This study reviews the performance of employees participation in the EU-27 and shows a  positive dynamic between 2000 and 2009 despite the financial crisis. Eight cases are selected and analysed in order to identify the best practice in Europe, one of those eight being IZAR.

IZAR's example as a European reference of good practice

The analysis focuses also in IZAR's  business development along its centenarial history, emphasizing its workers sacrifice during 90's when they took charge of the company, until today when it is recognized as a European reference in quality cutting tool manufacturing and innovation, selling to over 80 markets worldwide; all that without forgetting its social commitment, both in promoting quality long-term jobs within the company and out of it, showing social responsibility in its nearby society.

The work also analyses IZAR's corporate governance (administration council, shareholders general assembly...), that contributes every reality of the company to have a say in the decision making process. It also emphasizes, in a positive way, the commitment of IZAR with long-term employment and enabling workers to become shareholders by choice, making them owners of their future.
For a detailed analysis you can go to the following link: Employee Financial Participation in Companies´ Proceeds. IZAR's case is shown from page 133.




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