Worker Cooperatives Research Articles

Worker co-operatives in Australia 1833–2024

While there are qualitative discussions of the history of worker co-operatives in Australia, there have been no substantial quantitative long-term studies of their development. The development of the Visual Historical Atlas of Australian Co-operatives allows long-term analysis to be undertaken of Australian worker co-operatives. This paper will examine the definitional and theoretical issues surrounding worker co-operatives before proceeding to a discussion of the development of the Atlas and the general insights it provides into the history of worker co-operatives in Australia. The paper will then examine in more detail specific periods of Australian co-operative history to provide a more detailed explanation of the fluctuating fortunes of worker co-operatives in Australia. It notes that recent development of the Earthworker co-operative in Victoria provides a pathway for the future of worker co-operatives in Australia.

Economic Growth in a Cooperative Economy

Abstract We develop and formalise an equilibrium concept for a dynamic economy in which production takes place in worker cooperatives. The concept rules out allocations of workers to cooperatives in which a worker in one cooperative could move to a different cooperative and make both herself and the existing workers in the receiving cooperative better off. It also rules out allocations in which workers in a cooperative would be made better off by some of the other workers leaving. We also provide a minimum-information equilibrium-selection criterion which refines our equilibrium concept. We illustrate the application of our concept and refinement in the context of an overlapping-generation economy with specific preferences and technology. The cooperative economy follows a dynamic path qualitatively similar to the path followed by a capitalist economy, featuring gradual convergence to a steady state with constant output. However the cooperative economy features a static inefficiency, in that, for a given aggregate capital stock, firm size is smaller than what a social planner would choose. On the other hand, the cooperative economy cannot be dynamically inefficient, and could accumulate capital at a rate that is higher or lower than the capitalist economy. As a result, steady-state income per worker could be higher or lower in the cooperative economy. We also present an illustrative calibration which quantitatively compares steady-state incomes and welfare in a cooperative and in a capitalist economy.

Defending and expanding industrial democracy and worker cooperatives in an age of neoliberal globalisation

ABSTRACT Neoliberalism has reinforced inequality, environmental collapse, famine, refugee crises, supply chain vulnerabilities and more. We agree with Gibson-Graham (2006) that the core of the issue for a post-capitalist politics is to overcome the sense of the inevitability of the dominant system of political economy. With this argument in mind, we analyse the diversity, innovativeness, and resilience of two specific manufacturing alternatives to neoliberal capitalism: the Norwegian industrial democracy and the Mondragon Cooperative Experience. The cases show that each example arises from a unique history, environment, and has unique structures. This diversity shows that there are many paths to workplace democracy, such systems are capable of innovation, and they are internationally competitive. Our comparison also reveals that no successful equilibrium is ever static. Scaling (up or out) to secure market share presents a challenge potentially existential for both models. Reviewing their efforts for meeting these challenges conclude our analysis.

Against the extremes: Simmel’s social and economic pluralism

ABSTRACT We live in times of increasing polarization in which the margins of the political spectrum begin to dominate our social imagination again. While the neoliberal iteration of the capitalist project suggests extreme individualism as the normative default position, the devastating impact of the globalized economy on many has reignited the pursuit of socialist alternatives. In this constellation, Simmel's social theory of modernity can be a useful resource to undercut the return of the old battle between opposite economic systems. This paper argues that two kinds of pluralism can be derived from his conceptualization of the social effects of the money economy. In contrast to one-size-fits-all concepts of freedom, Simmel embraces a social pluralism which acknowledges a plurality of cultural spheres as relevant for the self-actualization of modern individuals, attributing different combinations of independence and embeddedness to them. Moreover, he rejects the social extremes of socialism and individualism since they fail to properly integrate individual freedom into the social whole without undermining it. Instead, Simmel gives us the vision of a pluralist economy in which democratic worker's cooperatives are combined with an overall liberal market to satisfy both the longing for community and the endeavour for individual distinction.

Pragmatic utopianism in the union cooperative movement: (Dis)Organizing transformative social change

ABSTRACT This paper adopts a critical pragmatist perspective to investigate how the union cooperative movement promotes transformative change. The study describes how 1worker1vote.org network leaders enact “pragmatic utopianism” by articulating an ambitious counter-narrative to extractive capitalism grounded in worker ownership, sustainability, and solidarity. This project expands the concept of pragmatic utopian organizing, describing how the movement mobilizes realistic hope for this idealistic vision by creating “plausibility structures.” First, leaders’ dialectical framing of perceived values-viability tensions rooted in the status quo contributed to innovations that served as reasons to believe. Second, advocates engaged improvisational strategic capacity building to manage doubts resulting from ongoing disorganizing forces. The conclusion discusses the implications for critical theorizing, alternative economy organizing, and transformative change from below.

Crafting alternative work organisations: Paradoxes of workplace democracy and emancipation in worker-buyout cooperatives

Drawing on an interpretative study primarily based on two waves of interviews, the authors traced two cooperativisation experiences over 10 years from an actor-centred approach. The shift to worker ownership did not automatically lead to workplace democratisation and workers’ emancipation. Indeed, the early development of the cooperativisation experiences was marked by internal conflict and worker-owners’ dissatisfaction. Over time, a paradoxical alternative workplace was consolidated, in which worker-owners’ emancipation was ultimately sustained through the exploitation of non-member employees. The study makes a twofold contribution to the cooperativisation literature. First, it moves beyond utopian or sceptical perspectives to provide a more nuanced view of worker-buyout co-ops, emphasising the paradoxical nature of their emancipatory potential. Second, the study’s longitudinal analysis of co-ops formed out of financially sound firms, rather than bankrupted ones, advances knowledge of the diversity of cooperativisation experiences and the mechanisms that contribute to the longevity and sustainability of worker-buyout co-ops.

Data envelopment analysis of cooperative efficiency and members’ deposit in Ogun state, Nigeria

Abstract Subject and purpose of work Cooperatives offer significant opportunities for economic empowerment of people in difficult economic climates. However, concerns exist in literature on the efficiency level of these organisations in relation to members’ deposits and financial-related factors. This study analysed the influence of members’ deposits and related financial factors on the efficiency level of cooperative organisations. Materials and methods Data Envelopment Analysis (DEA) and the Tobit regression model were used to analyse the secondary data collected from 99 cooperative organisations over 7 years. Results Empirical results indicate a low level of efficiency below 50%. Further evidence from Tobit regression identified the significant effect of loan (β = 2.05, t = 3.41, p < 0.01), interest rate (β = 1.07, t = 2.16, p < 0.05), surplus (p < 0.05), expenses (p < 0.01), cooperative age (p < 0.01) and saving deposits (p < 0.10) on cooperative efficiency. Conclusions The efficiency level of cooperatives is low, and the contribution of deposits is also negative, but potential to raise the level of efficiency exists with organisational management of loans and interest rates. Increasing cooperative efficiency is imperative to achieve the expected economic support from organisations.

Beyond Dependency in Puerto Rico: Exploring Social and Solidarity Industrial Policy as an Alternative for the Global South

This article challenges the mainstream economic argument that attributes Puerto Rico’s economic struggles to overly generous federal welfare programs or an excessively high minimum wage. It traces the root of the island’s structural economic issues to its mid-twentieth-century dependent growth strategy, pre-dating these commonly cited factors. Examining the role of Puerto Rican elites, the article argues that their vested interests in the current model could undermine a suitable industrial policy program. The article posits that the island’s vibrant worker cooperative movement and Social and Solidarity Economy (SSE) offer a more promising foundation for an effective industrial policy agenda. Finally, it introduces the concept of Social and Solidarity Industrial Policy as a framework for sustainable development in Puerto Rico and potentially other Global South economies, leveraging democratic state firms, worker cooperatives, and other SSE initiatives. JEL Classification: B50, L52, O54

Entrepreneurship and innovation in worker cooperatives and conventional firms: the role of external cooperation

AbstractThrough the comparison of conventional firms (CFs) with worker cooperatives (WCs), which are a type of collective enterprise with significant experience in cooperation, this research aims to analyse the influence of external cooperation on the two most prominent factors for the success of enterprises: entrepreneurship and innovation. To this end, a research model is proposed based on contributions from the stakeholders’ perspective of the resource-based view of the firm and tested with data from a survey conducted on WCs and CFs located in two Spanish regions with a long tradition in the cooperative movement. The results highlight that the influence of external cooperation on innovation performance is more relevant for WCs and demonstrate that these collective firms are not disadvantaged in innovation compared to CFs. Furthermore, the results suggest that WCs have a more remarkable ability to compete and cooperate simultaneously, that is, to coopete, due to their participative nature.

Measuring the Organisational Horizontality in Argentinian Software SMEs: The “Worker Ownership – Horizontality of Management” Scale

Measuring the Organisational Horizontality in Argentinian Software SMEs: The “Worker Ownership – Horizontality of Management” Scale

Hammering It Out: On Worker Cooperatives and the Question of Transforming the Tech Industry

This article describes what it's like to work at an employee-owned technology cooperative, grappling with working conditions and the present state of the tech industry. The benefits of unionization are described, as are attempts to resist and refuse oppressive tech through consciousness of and engagement with struggles for justice around the world.

Worker Cooperatives for a Democratic Economy

Worker Cooperatives for a Democratic Economy

Aging in Place in Rural Nebraska: Homecare Worker Cooperatives

In 2022, the Nebraska Cooperative Development Center (NCDC), in partnership with the Northwest Cooperative Development Center of Washington state, introduced a six-week Homecare Worker Cooperative Academy designed to take caregivers through the worker cooperative development process. Topics covered by the academy included democracy in the workplace, business basics, marketing and member engagement. The impetus for the academy was the realization that Nebraska — and the U.S. as a whole — are facing a potential elder care crisis.

How Well Do Worker Cooperatives Perform in Manufacturing? Evidence from a Large Low-Income Country

Previous articleNext article No AccessHow Well do Worker Cooperatives Perform in Manufacturing? Evidence from a Large Low-Income CountryGirum Abebe and Mulu GebreeyesusGirum Abebe Search for more articles by this author and Mulu Gebreeyesus Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Economic Development and Cultural Change Just Accepted Article DOIhttps://doi.org/10.1086/726179 HistoryAccepted June 02, 2023 © 2023 The University of Chicago. All Rights reserved.PDF download Crossref reports no articles citing this article.

Voice Behaviours within Cooperatives. The Importance of the Relational Aspects of Leadership and Integrative Mechanisms for Loyalty

AbstractThis study explores the dynamics of cooperatives, with a focus on the internal challenges associated with sustaining democratic governance and promoting active member participation. The emphasis is on individual-level participation within the workplace, an often-neglected aspect in cooperative literature. An empirical model examines how member loyalty influences constructive and destructive voice behaviours. Leader–member exchange (LMX) relationship and integrative mechanisms are the proposed mediators in this context. Analysing data from 301 members of 19 worker cooperatives in Italy revealed different mediating effects through LMX, integrative mechanisms and a combined sequence. These findings enrich the cooperative literature by highlighting the importance of loyalty and voice behaviours in regenerating cooperative principles and member participation. The study also underscores the role of interpersonal relationships in affecting operational processes and explaining members’ loyalty and participation dynamics, proposing suggestions for cooperative management upholding democratic governance rooted in trust-based relationships, organic organisational models and mutual values.

Agri-food supply chain optimization through a decentralized production process in the olive oil industry

A tactical/operational model is proposed to assist decision-making in harvest planning and olive oil production planning of the different producers in the rural sector, considering allocation and transportation decisions of the kilograms of olives to the production plant with temporary relocation decisions of the mobile olive oil mills through decentralized production activities in the agri-food supply chain. A Mixed Integer Linear Programming model is presented that maximizes the profit of small farmers in the production process of single-varietal extra virgin olive oil. The decisions are based on the geographical dispersion of the different olive growers and the oil concentration of the olive varieties in a certain period, which depends on the climatic conditions of each sector where the olives are cultivated. The mathematical programming model is applied in Coquimbo, Chile, using actual data collected from previous harvest seasons. The computational results of the optimization model indicate that transportation decisions impact olive harvesting and oil production decisions. It is concluded that cooperatives of small producers in the rural sector increase overall profits and reduce transportation costs and the number of kilometers traveled by at least 41% through a decentralized production process with mobile production plants.

(Data-) Cooperatives in health and social care: a scoping review

Abstract Aim To gather information about the structure of cooperatives in health and social care, in general, and data cooperatives, in particular, to derive implications for their future implementation. Subject and methods Health and social care systems are currently under pressure due to rising costs and demands. Many hopes lie on digitization, digitalization, and the potentials of health data. A scoping review was conducted searching nine databases and grey literature. Data on information about aim, type, and structure of the cooperatives, member structure, founding process, and their way of financing were extracted. Results All searches resulted in 9080 articles and websites. Overall, we included 26 cooperatives and categorized them as follows: (1) worker cooperatives with focus on workers’ rights and service provision to clients, (2) consumer cooperatives, (3) consumer and worker cooperatives, (4) cooperatives of institutions, (5) general practitioner (GP) cooperatives, (6) cooperatives as health insurance models, and (7) health data cooperatives. Conclusions Information provided on (data) cooperatives differed greatly in detail. Their common goal is to tackle and overcome existing barriers in their field such as working conditions or unequal health care. We identified five challenges: (1) salary structures; (2) cooperating with other providers and surrounding institutions; (3) building an identity and recruiting potential members; (4) motivation of members to participate actively; and (5) distinction from other types. Benefits are: (1) improvement of conditions; (2) being stronger together; (3) support of research; and (4) data governance. When successful and competent, (data) cooperatives can be powerful tools on public, scientific, and political levels.

Job quality in worker cooperatives: Beyond degeneration and intrinsic rewards

AbstractWhile there are normally positive expectations concerning job quality in cooperatives, many studies have described a more complex picture. The extant literature has, however, found it difficult to deal with evidence of poor working conditions in these organisations. Some contributions downplay the relevance of this issue, arguing that poor extrinsic aspects of job quality are compensated by intrinsic rewards, as confirmed by higher levels of job satisfaction. Others focus on external market pressure and interpret bad labour conditions as a form of degeneration of originally good employment practices. Through a qualitative analysis of job quality in cooperatives in three sectors of the Italian economy (social services, hotel cleaning and meat processing), we advance a different argument: we contend that employment practices associated with poor job quality are not the result of difficult market conditions but are rather the key explanation for the quantitative expansion of this form of economic organisation, which has moved from being an instrument for promoting good employment to a way of ensuring lower labour costs and higher flexibility within outsourcing relationships.

Worker ownership in North America: the cases of Weirton Steel (West Virginia) and Algoma Steel (Ontario)

ABSTRACT During the last quarter of the 20th century, worker ownership emerged as a popular option for North American workers trying to save their mills or factories from closing. Most of these efforts eventually failed, sometimes at great financial cost to workers who gambled away their savings or pensions. Yet a few worker buyouts succeeded over the long term. This article examines two of these success stories, one on either side of the Canada-United States border, while situating them within the wider history of worker ownership in North America. When the United Steelworkers of America engineered the worker buyout of Algoma Steel in 1992, Canada’s third largest integrated steel-maker, it became the largest worker owned industry in North America. Before that, Weirton Steel had been the largest since 1984 when independent steelworkers there bought the mill from National Steel. If worker ownership offered short-termed relief to workers facing plant closings, its longer-term viability is highly suspect. Many worker-owned firms shut during the next down-turn. Both Weirton and Algoma eventually reverted back to corporate ownership, albeit this time inside Indian-based multinationals, but worker ownership saved the two steel mills and helped modernize them.

WE economy: Potential of mutual aid distribution based on moral responsibility and risk vulnerability.

Reducing wealth inequality is a global challenge that requires the transformation of the economic systems that produce inequality. The economic system comprises: (1) gifts and reciprocity, (2) power and redistribution, (3) market exchange, and (4) mutual aid without reciprocal obligations. Current inequality stems from a capitalist economy consisting of (2) and (3). To sublimate (1), the human economy, to (4), the concept of a "mixbiotic society" has been proposed in the philosophical realm. In this society, free and diverse individuals mix, recognize their respective "fundamental incapability," and sublimate them into "WE" solidarity. Moreover, the economy must have a moral responsibility as a co-adventurer and consider its vulnerability to risk. This study focuses on two factors of mind perception-moral responsibility and risk vulnerability-and proposes a novel wealth distribution model between the two agents following an econophysical approach, whereas the conventional model dealt with redistribution through taxes and institutions. Three models are developed: a joint-venture model in which profit/losses are distributed based on their factors, a redistribution model in which wealth stocks are redistributed periodically based on their factors in the joint-venture model, and a "WE economy" model in which profit/losses are distributed based on the ratio of each other's factors. A simulation comparison reveals that WE economies are effective in reducing inequality, resilient in normalizing wealth distribution as advantages, and susceptible to free riders as disadvantages. However, this disadvantage can be compensated for by fostering fellowship and using joint ventures. This study presents the effectiveness of moral responsibility and risk vulnerability, complementarity between the WE economy and joint economy, and the direction of the economy in reducing inequality. Future challenges include developing an advanced model based on real economic analysis and economic psychology and promoting its fieldwork for worker coops and platform cooperatives to realize a desirable mixbiotic society.