Sainsbury's chief executive Justin King criticises shares-for-rights proposal The Government could better drive our country's growth agenda by reducing the barriers to employment and lowering National Insurance. The Sainsbury's chief executive, speaking at the retail industry's IGD Convention in London, said that government and businesses "needs to be careful to demonstrate we are listening to customers." He added: "What do you think the population at large will think of businesses that want to trade employment rights for money?" Mr King's comments add to an already lukewarm business reaction to Mr Osborne's proposal. The CBI said it is a "niche idea and not relevant to all businesses," while the British Chambers of Commerce said it is "unlikely to be a game-changer" although "could be a useful option for some new and fast-growing businesses." The Federation of Small Businesses, whose members are most likely to take up the scheme, said it will promote loyalty to companies and could drive improved productivity. However, John Walker, the national chairman, said "the number of businesses who adopt the scheme may be small." The Chancellor is proposing that workers are offered shares worth between £2,000 and £50,000, which would be exempt from capital gains tax, in return for dropping their right to sue for unfair dismissal or request flexible working hours. Greg Campbell, employment partner at law firm Mishcon de Reya, said: "That the Government has indicated only a six month lead time on such a significant scheme is astonishing. There a number of issues yet to be resolved before implementation in April. Will employers force new employees to join on these terms - and not hire those who don't? Will the shares give the owner-employee any degree of control over the business? How will shares for departing employees be valued and paid for? Clarity is lacking in a number of areas and needs to be addressed before we can understand how it can work at all successfully in practice.