John McDonnell of the UK Labour Party just unveiled a policy that would require large corporations to gradually place 10 percent of their equity into an Inclusive Ownership Fund (IOF) owned by workers. The IOF is a form of funds socialism similar to the 1980s Meidner plan in Sweden and the social wealth fund proposal published by People’s Policy Project last month.

Under the plan, companies with more than 250 workers would be required to create an IOF for their company and grant that fund 1 percent of their shares every year. Once an IOF reaches a 10 percent equity stake, the annual share grants would stop.

Workers would be able to vote as shareholders in proportion to the shares held in the IOF and would receive dividends from their ownership just like any other shareholder. The dividends would be capped at £500 per year per worker, with the remainder flowing to a separate “social dividend fund” that will provide money for public services and welfare benefits.