Worker Cooperative

Worker Cooperatives (also called Producer Cooperatives, Employee-Owned Enterprises or Labor-Managed Firms) are cooperatives which produce goods or provide services and are managed by their workers in assemblies or by elected managers. Money gained by the cooperative is reinvested to pay for the operating costs of the business (like bills, rent, taxes, licensing, materials and so on) and then is either equally distributed to workers via shares or is paid based on the amount of time worked in the cooperative.

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Explanations for Rarity

Despite generally offering greater rates of productivity and higher worker happiness, worker cooperatives are exceptionally rare in capitalist economies, making up less than 1% of total GDP in most capitalist countries. This apparent paradox has many explanations:

Notable Worker Cooperatives

• Amul - Dairy Products
• Edinburgh Bicycle Co-operative
• Egged - Bus Transport
• Evergreen Cooperatives - Green Industry