Stewartry Care looks to a bright future since it became employee owned safeguarding 130 local jobs

Event showcases success of employee ownership model in the International Year of Co-operatives

Co-operative Development Scotland (CDS) and Stewartry Care today (June 18) hosted a special event in the United Nations-led International Year of Co-operatives 2012.

Established in 1993 Stewartry Care was set up to provide an alternative to long term residential care for the elderly and disabled people with care needs. It is widely believed that allowing people to remain in their own homes substantially increases their quality of life.

Today Stewartry Care has grown into a substantial business with turnover of £1.9m and employing 130 staff. Much of that success story is down to a decision taken in 2004 to become employee owned and thus give staff a real stake in their place of work. It is now the largest independent employee owned care-at-home company in Dumfries and Galloway, recruiting and retaining high quality staff.

At the CDS event on Monday Margaret Paterson and Debbie Cochrane from Stewartry Care shared the story of how and why the business became employee owned. Sarah Deas, chief executive, Co-operative Development Scotland, also provided an overview of employee ownership and how it sustains businesses in their local communities.

South of Scotland MSP Dr Aileen McLeod was also present to hear how the employee ownership model works in practice.

Sarah Deas, chief executive of Co-operative Development Scotland (CDS), said: “Stewartry Care has really thrived since it became employee owned. This is a proven business model that safeguards jobs in local communities.

“It has been a real delight to hear first hand how employees can become masters of their own destinies. There is more interest across Scotland in employee ownership with a growing number of companies now adopting this business model. We encourage more business owners to consider this exit option.”

Margaret Paterson, managing director of Stewartry Care, said: “We wanted to see the company sustained in the local community and to continue prospering. We are delighted that the business is now owned by our former employees as it could not be in better hands.

“We’ve had great support along the way from CDS and Baxi Partnership. This business model is good for the owners, good for the employees and good for local communities. We are committed to employee ownership and it drives everything we do. Despite the current economic climate we are expecting our turnover to be £1.9 million for this year.”

South of Scotland MSP Dr Aileen McLeod, said: “I was delighted to have the opportunity to meet with Stewartry Care today. It was interesting to hear first-hand from workers at Stewartry Care the benefits of becoming employee owned. It is a business model where productivity thrives and it ensures that jobs are secured for the local community. We hope that other companies in Scotland will consider the employee owned business model.”

This decision to go into employee ownership was supported by 97 per cent of staff in a ballot and Stewartry Care trustees and management team are currently working on a new shares strategy for later this year.

This is the fourth in a series of Co-operative Development Scotland-organised visits to successful employee owned businesses taking place across Scotland in 2012. Three more will follow later this year: on 7 September at Woollard and Henry in Dyce; 5 November at John Lewis in Edinburgh and 16 November at Tullis Russell in Glenrothes.

Notes to editors

For further information & images please contact:

Ed Black Tel: 0141 333 0557 / 07770 886908 / eblack@webershandwick.com
Bill Ranatunga Tel: 0141 333 0557 / 07770 886950 / branatunga@webershandwick.com

2012 has been declared by the United Nations as the International Year of Co-operatives (IYC). First Minister Alex Salmond launched CDS’s Collaboration Prize to mark the Scottish launch of IYC on 29 March. A prize fund of £30,000 is available for companies who come up with the best ideas for a consortium co-operative. The closing date for entries is 31 July.

For further information on CDS see www.cdscotland.co.uk or call on 0141 951 3055.

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