Worker cooperative

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Worker cooperative

A worker cooperative is a type of cooperative that is owned and self-managed by its workers. This means that the workers have a direct stake in the business and participate in its decision-making processes. Worker cooperatives are based on the principles of democracy, equality, and solidarity.

Characteristics

Worker cooperatives are characterized by the following features:

• **Ownership**: The workers own the cooperative, and each worker typically has one share and one vote, regardless of their role or seniority.
• **Democratic Control**: Decisions are made democratically, often through a general assembly where each worker-member has an equal vote.
• **Profit Distribution**: Profits are distributed among the worker-members, usually in proportion to their labor contribution.
• **Autonomy and Independence**: Worker cooperatives are autonomous organizations controlled by their members.

History

The concept of worker cooperatives dates back to the early 19th century during the Industrial Revolution. One of the earliest examples is the Rochdale Society of Equitable Pioneers, founded in 1844 in Rochdale, England. This cooperative established the Rochdale Principles, which have influenced the cooperative movement worldwide.

Types of Worker Cooperatives

Worker cooperatives can be found in various industries, including:

• **Manufacturing**: Factories and production facilities.
• **Service**: Businesses providing services such as cleaning, consulting, and healthcare.
• **Retail**: Stores and shops owned and operated by their workers.
• **Technology**: IT and software development firms.

Benefits

Worker cooperatives offer several benefits, including:

• **Job Security**: Workers have greater job security as they are the owners of the business.
• **Fair Wages**: Wages are often more equitable compared to traditional businesses.
• **Employee Satisfaction**: Higher levels of job satisfaction due to democratic participation and shared ownership.
• **Community Impact**: Worker cooperatives often have a positive impact on their local communities by promoting local economic development and social cohesion.

Challenges

Despite their benefits, worker cooperatives face several challenges:

• **Access to Capital**: Raising capital can be difficult as traditional investors may be hesitant to invest in a democratically controlled business.
• **Management**: Balancing democratic decision-making with efficient management can be challenging.
• **Scalability**: Expanding a worker cooperative while maintaining its core principles can be difficult.

Examples

Some well-known examples of worker cooperatives include:

• Mondragon Corporation in Spain, one of the largest worker cooperatives in the world.
• Cooperative Home Care Associates in the United States, a worker-owned home care agency.

See Also

• Cooperative
• Employee stock ownership plan
• Social enterprise
• Mutual organization
• Fair trade

Related Pages

• Rochdale Principles
• Mondragon Corporation
• Cooperative Home Care Associates
• Industrial Revolution
• General assembly