If 40% of the board is selected by the employees, I expect an intense political power struggle over compensation and automation, because continued employment an

If 40% of the board is selected by the employees, I expect an intense political power struggle over compensation and automation, because continued employment and the paycheck are the paramount concerns of the employees, that by far trump any other social responsibility yadda yadda. It's as if all employees have received equity by force from the business owners, and they can cash out dividends every month regardless of marketplace performance. This will tend to form a caste system, where existing employees are strongly favored over potential new hires, with impact in unemployment figures, just like in Europe. It will also reduce the adaptability of the firm - any reorganization that involves layoffs is out of the question. Again, just like Europe, a stronger safety net and worker stability at the price of lower national competitiveness.