Employee owners of Rex-Cut Abrasives met with U.S. Senator Scott Brown, U.S. Representative William Keating, and U.S. Senator John Kerry’s Legislative Correspondent on May 10, 2012 in Washington DC to discuss the importance of employee ownership through ESOPs in America.
As an Employee Stock Ownership Plan (ESOP) Company, Rex-Cut Abrasives advocates to keep these unique business models on the minds of business leaders, educators, and elected officials. ESOP companies have a very positive 35 year track record of providing locally controlled jobs that provide significant benefits in high performing companies. For example, during the recession of 2009, employees of employee-owned companies were four times less likely to be laid off than employees of conventionally-owned companies (General Social Survey, February, 2010).
Founded in 1928, Rex-Cut Abrasive is a manufacturing company that provides the Metalworking Industry with high performance, non-woven cotton fiber and other premium abrasive products offering time saving solutions for our worldwide customer network. In 2008, Rex-Cut became an ESOP company. The ESOP has had a very positive effect on the company, as it created broad-based ownership among employee owners, and fostered an environment in which everyone understands his or her role in helping the company improve its bottom line and achieve the company’s objectives.
During the visit to Washington DC for the ESOP Association Conference, Rex-Cut Abrasives along with other members of the New England Chapter, asked Brown, Keating, and Kerry to advocate on the behalf of ESOP companies by supporting two bills currently on the table; H.R. 1244 the Promotion and Expansion of Private Employee Ownership Act of 2011 and S. 1512 the Promotion and Expansion of Private Employee Ownership Act of 2011.
“The enactment of these bills would continue to allow Congressional policies to encourage employee ownership through an employee stock ownership plan (ESOP),” said Maria Prado, Vice President, Human Resources. “We are counting on members of congress to stand up for ESOPs and employee ownership in America.”
For further information on ESOPs, please visit The ESOP Association at www.esopassociation.org or www.esopassociationblog.org or call 202-293-2971
