worker cooperative

worker cooperative is a cooperative self-managed by its workers.

Purpose: To maximize net and real worth of all owners. Organization: Organized and controlled by worker-members. Incorporated under relevant incorporation laws - varies by country. Only worker-members may own stock, one share per member. No public sale of stock . Ownership: Worker members.

Control: By worker members. Policy set by directors elected by worker-members, or by assembly of worker-members. One person, one vote. Proxy votes seldom allowed.

Sources of capital: By members or lenders who have no equity or vote. From net earnings, a portion of which are set aside for reinvestment.

Distribution of net margin: To members after funds are set aside for reserves and allocated to a collective account. 

Capital dividends: Limited to an interest-like percentage set by policy.

Operating Practices: Workers set production schedules either through elected boards and appointed managers or directly through assemblies. Working conditions determined by labour law and assembly of worker-members, or internal dialogue between members and managers. 

TAX Treatment: Special tax treatment in some jurisdictions.


Defying the Crisis - The Spanish Collective Mondragón

Defying the Crisis - The Spanish Collective Mondragón

How Worker Cooperatives Work

How Worker Cooperatives Work