Businesses attacked Labour last night over plans to force companies to share profits with employees . Senior party figures are said to be considering a proposal to oblige all firms with more than 50 staff to set up a profit-sharing scheme . Workers would then be handed a regular cash sum based on their employers ' financial position . Senior business leaders have lined up to predict that Ed Miliband is a potential 'catastrophe ' for the country . Labour last night said the idea was not official policy , although a shadow minister said it was being considered at the top of the party . But senior business leaders warned the plan would encourage employers not to take on staff . It is the latest in a string of damaging clashes between Labour and business leaders – who have lined up to predict that Ed Miliband is a potential 'catastrophe ' for the country . Glen Cooper , chief executive of Midlands bollard makers ATG Access , said : 'We need Britain 's small companies to grow bigger , not be stifled by Labour 's meddling . 'This idea will make companies stop taking on employees rather than grow . I am happy to run my own scheme to motivate my employees , but I do n't want to be dictated to by Labour . ' The Labour policy would mirror the situation in economically feeble France , where companies with more than 50 employees have extra obligations , such as the establishment of a workers ' council . It has been reported that such burdens are costing 140,000 jobs , and President Francois Hollande wants to repeal them . Charlie Bradshaw , managing director of Matrix APA , a product design company with 60 staff , said : 'Forcing companies to share profits when they hit 50 employees , just as France seeks to repeal similar laws , will threaten jobs ' Simon Walker , of the Institute Of Directors , said : 'We can not believe that the Labour leader will take such an obviously counterproductive measure seriously . 'Employee profit sharing can work well for companies who choose it , but it has to be up to them . This idea would give companies with 49 employees a very strong incentive not to grow . 'The French government is actually attempting to reduce the bureaucracy that kicks in at 50 workers because they know it is damaging job creation . ' Mr Thomas , chairman of the Co-op party , said the policy was being considered at the highest levels . Charlie Bradshaw , managing director of Matrix APA , a product design company with 60 staff , said : 'Forcing companies to share profits when they hit 50 employees , just as France seeks to repeal similar laws , will threaten jobs . 'Small companies should be run by the people who know their culture and staff best , not by central government . ' There are around 36,000 companies with 50 or more employees in Britain , employing a total of 12.9million . It means the suggested legislation would therefore affect about 53 per cent of those employed in the UK . It is being championed by Gareth Thomas , a shadow minister and has been adopted by the affiliated Co-operative Party , represented in Parliament by 31 Labour MPs – including Ed Balls . Mr Thomas , chairman of the Co-op party , said the policy was being considered at the highest levels . He added : 'Hard work too often does n't lead to higher wages for the working majority , but simply gets funnelled into greater rewards for those at the very top . ' A Labour source insisted last night the idea was not party policy . Tory MP Julian Smith said : 'This is another policy that will kill off jobs . Every Labour government in history has left unemployment higher . ' Mr Miliband has proposed a series of ideas which have infuriated business groups – including an energy price freeze and plans for more paternity leave . Bosses have also been riled by Labour 's anti-business rhetoric .
Labour may make firms with 36,000 staff set up profit sharing scheme . Workers would get regular sum based on employers ' financial position . Business leaders warn it would encourage employers not to take on staff .