Worker Cooperatives Research Articles

Productivity Gains and Firm Ownership: The Case of the French Worker Cooperatives

In this study, we examine how different forms of ownership structure (worker cooperatives vs. traditional firms) affect firm productivity and performance. In particular, we analyze multi-method data from the French worker cooperatives’ movement (e.g., “SCOP”) to interrogate the relationship between ownership structure and productivity. We theorize, and find, that size and maturity are major predictors of the productivity of worker cooperatives. In a series of between and within-firm comparisons, we find that smaller and older SCOPs are more productive than comparable traditional firms. By contrast, larger and younger SCOPs face productive inefficiencies that hamper their overall performance. A survey of, and qualitative evidence gathered with, SCOP directors revealed the mechanisms that explain why productivity gains are associated with smaller and mature worker cooperatives. Specifically, workers in a limited in size and mature SCOP are (1) more motivated, (2) more productive, (3) more easily find a purpose in their job, (4) benefit more from higher group cohesion due to lower income inequalities, and (5) more likely to have clear and well-defined roles within the organization.

The Mondragon Worker Cooperatives’ Employment Record 1983–2019

Abstract In 2019, the Mondragon worker cooperatives, which number around 100, employed over 81 000 workers. Based primarily on information from the Mondragon annual reports, this article traces Mondragon’s employment record from 1983–2019. In this period its Spanish employment growth outran that of Spain by a factor of 3.4, and that of the aggregated oecd countries by a factor of 6.3. On top of the Spanish employment, Mondragon cooperatives’ subsidiaries employed about 4300 workers abroad (7% of the total) in 2001, and about 14 500 (18% of the total) in 2019. The article expands on the reasons for this last type of employment. The article also explains why the proportion of cooperative owner-members in the total employment varies over time. Depending on the sector, in 2019 this proportion is 32–45%, and measured as a proportion of the employment in cooperatives 32–74%—the difference being engendered by non-cooperative subsidiaries. Many cooperatives regard these proportions as second-best practices in the search for a modus between competitive pressures and the maintenance of employment within cooperatives.

Revitalisasi Kompetensi Tenaga Kerja Bongkar Muat di Pelabuhan Cirebon

The purpose of this study was to determine the competence and performance of the loading and unloading workforce to improve loading and unloading services at the Port of Cirebon. The research method uses qualitative methods through Importance Performance Analysis. Data collection techniques are direct observation, in-depth interviews, literature studies, focus group discussions, triangulation, documentation, and participation. The results of the study indicate that the performance of loading and unloading workers at the Port of Cirebon towards efforts to improve performance for unloading workers is currently considered not in accordance with the expectations of the Unloading Workers Cooperative and also service users, while the competencies possessed by unloading workers Loading at the Port of Cirebon has not been fully used to improve performance for the Unloading Workers at the Port of Cirebon, and also the facilities owned by the Port of Cirebon still need to be improved in order to obtain smoothness, speed, security and safety to support the loading and unloading of goods. from and to ships at Cirebon Harbor.

Underemployment due to overeducation: An analysis of worker cooperatives versus conventional firms

This research study analyses overeducation in worker cooperatives (WCs) compared to conventional firms (CFs) to determine whether there is any evidence to suggest that underemployment due to overeducation is less probable in WCs (where decisions are made democratically by worker members to maximise collective wellbeing) than in CFs in Spain. A total sample of 945 workers (315 worker members from WCs, 315 non-member workers from WCs and 315 workers from CFs) taken from the Continuous Working Life Sample from the Spanish Ministry of Inclusion, Social Security and Migration was used. The methods applied in the study include regression line comparison between WCs and CFs and logistic regression analysis. The results show that the probability of underemployment due to overeducation may be lower in worker members from WCs than in workers from CFs. Nevertheless, this is not the case for non-member workers in WCs, who display a similar level of underemployment due to overeducation as workers in CFs. This study lays the foundation for research into underemployment due to overeducation in WCs, a topic which has not yet been explored.

Neuroeconomics in Cooperatives: Hierarchy of Emotional Patterns in the Collective Decision-Making Process for Sustainable Development

The goal of this study is to determine the level of adaptation of agro-industrial cooperatives of small producers of alternative crops, and it considers the hierarchy of patterns to evaluate their systemic responses to accelerated change following the COVID-19 pandemic by evaluating the risk of their structures adapting to the digital environment. With a total of (n = 90) volunteer responders, the study is experimental, transactional, descriptive, and correlational, with a control group (CENFROCAFE) and an experimental group (ACEPAT) (24 producer partners, 14 producer managers, and 7 employees for each cooperative). In Step 1 (SOFT aspect), it measures the organizational memory (OM) of Y0 = 0.32 in the (control group) and Y1 = 0.59 in the (experimental group) by measuring hidden plots in the formal and informal interrelations of its members with the correlation of the holistic competencies of innovation. In Stage 2 (HARD aspect), the impact of the digital operational risk (DOR) is measured in the adaptation of the organization structure, which results in the control group with a Digital Operational Risk (DOR) = (3.4), which is “High” and greater than the experimental group with DOR = (3.3), which is “Moderate”. In conclusion, Hypothesis 1 is met with a greater adaptation of the experimental group, greater organizational memory, and lower digital operational risk, which reflects that the memory of the organization would reflect the temporal memories of the human brains of its members, and that, in the same way, its behavior could be predicted linearly.

Commitment issues? Analysing the effect of preference deviation and social embeddedness on member commitment to worker cooperatives in the gig economy

As enterprises that are owned and governed by workers themselves for their mutual benefit, worker cooperatives are currently re-emerging as a promising antidote against precarity and economic dependence in the gig economy. Considering the social and geographic fragmentation of gig workers, it remains unclear whether cooperatives can count on the member commitment necessary to survive. This study investigates whether preference deviation and social disembeddedness stifle the commitment of gig workers to such cooperatives. A cross-sectional survey was used to gather data from members of four interconnected cooperatives in Italy that consist of gig workers in the cultural, ICT and education sectors ( n = 425). The results show that members with more deviating preferences and less social embeddedness among fellow members have a lower commitment towards their cooperative. These findings demonstrate the conditions for gig workers’ commitment to cooperatives, being a key factor in cooperative longevity.

Friends against capitalism: Constructive resistance and friendship compliance in worker cooperatives

The article examines how members of worker cooperatives articulated friendship as resistance against capitalist work relations. This elucidates relatively unexplored links between research on workplace friendships and resistance studies. Based on interviews with members from small Swedish worker co-ops, the analysis shows that the co-ops hinged their friendships on authenticity, but also valued friendship explicitly for its economic and political benefits. Yet, this ideal of authentic and equal friendships sat side by side with narratives of what the article calls ‘friendship compliance’. This concept denotes how friendships may instil loyalty, reduce dissent and promote self-sacrifice. It is argued that while such compliance can be at odds with cooperative ideals, its expression in the worker co-ops studied here did not coincide with how the same mechanism has been described as operating in capitalist work organisations.

Employment protection regimes and dismissal of members in worker cooperatives

In connection with the "Great Reset" literature in management and organizational theory, this article discusses human resource sustainability, employment stability, and layoffs in worker cooperatives, a unique organizational form in which employees are members holding residual control rights. Theoretical and empirical contributions show that worker control stabilizes employment better than investor ownership, opening the door to stronger employment protection. The paper leverages key theoretical insights from evolutionary economics and systems theory to discuss the benefits and critical elements associated with limiting member layoffs in worker cooperatives. While strong employment protection can lead to short-term inefficiencies and underperformance due to labour hoarding, imperfections in governance and control mechanisms, it can foster better accumulation and retention of firm-specific human capital and dynamic capabilities, thereby supporting long-term performance.

Food Crisis as a Tool for Social Change: Lessons from New York City's COVID-19 Response

The COVID-19 pandemic disrupted food availability and affordability and changed the daily food practices of New Yorkers in three critical ways: (1) closing restaurants and public institutions, including schools, reduced food access and changed shopping patterns, food expenditures, and diets; (2) economic disruption exacerbated food insecurity and increased the need for food assistance; and (3) altered food practices affected diets. Vulnerable populations were disproportionately affected by these disruptions to the food system. The city's response included emergency measures to stave off food insecurity and hunger, yet the crisis also prompted a refocusing of food governance to address other social equity issues in the food system: fears of engaging with food programs by immigrant communities; disparities in access to online grocers; worker rights and worker ownership; and new priorities for the use of public space. The paper presents policy responses to the pandemic that illustrate how the crisis has opened opportunities for initiating changes that can lead to a more just food system.

자기효능감의 동기부여 역할: 직원협동조합과 자율성의 강화 효과

This study examines whether self-efficacy can play a role as a motivator. By integrating person-environment fit theory and the job demands-resources model, this study investigates whether worker cooperatives interacts with self-efficacy to reinforce employees’ intrinsic motivation. Since worker cooperatives are owned and managed by members who work for the organizations, the members are provided with considerable autonomy. If employees with strong self-efficacy are given considerable autonomy, their intrinsic motivation will be reinforced because a means to actualize their self-efficacy is provided. Thus, this study explores whether worker cooperatives, through autonomy, play a role as an organizational resource that can strengthen the relationship between self-efficacy and intrinsic motivation. Using a multilevel mediated moderation model, this study analyzed the surveys conducted at worker cooperatives and corporations in 2019. The findings of this study provided evidence that worker cooperatives strengthen the relationship of self-efficacy with intrinsic motivation because they provide their members with more autonomy than corporations. Thus, the findings of this study provide implications on how worker cooperatives and autonomy can change the relationship between self-efficacy and intrinsic motivation. Furthermore, this study contributes to the literature by offering a mechanism through which worker cooperatives play a moderating role through autonomy.

What if employees with intrinsic work values are given autonomy in worker co-operatives? Integration of the job demands–resources model and supplies–values fit theory

PurposeThis study explores the role of intrinsic work values as a motivator in the workplace. By integrating the job demands–resources model and supplies–values fit theory, it also investigates whether autonomy and worker co-operatives can strengthen the intrinsic motivation of employees who have strong intrinsic work values.Design/methodology/approachLongitudinal surveys collected at 25 worker co-operatives and 27 corporations were analyzed with a model in which a moderated mediation model and a mediated moderation model are integrated.FindingsThe results revealed that individuals with strong intrinsic work values had stronger intrinsic motivation and engaged less frequently in job search behavior. The moderation analyses demonstrated that employees with strong intrinsic work values were more strongly motivated in worker co-operatives than in corporations and that this result was obtained because more autonomy was granted in worker co-operatives than in corporations.Research limitations/implicationsTo date, little research has examined the moderating roles of autonomy and worker co-ops in the associations of intrinsic work values with employee motivation and behavior. The present study contributes to the literature on work values and worker co-operatives by providing evidence that autonomy and worker co-operatives can accelerate intrinsic motivation of employees with intrinsic work values.Practical implicationsManagers should grant employees enough autonomy and opportunities to participate in decision-making to stimulate their motivation, especially for employees with strong intrinsic work values.Originality/valueBy integrating the job demands–resources model with the supplies–values fit theory, this study proposes interaction effects of a personal resource with job and organizational resources on intrinsic motivation.

Multiple entrepreneurial ecosystems? Worker cooperative development in Toronto and Montréal

The emergence in practice of worker cooperative ecosystems, which draws on the entrepreneurial ecosystems (EEs) concept, has been largely ignored in academic research. Contrasting worker cooperative development efforts in Toronto with Montréal, we affirm there are multiple and multiscalar EEs in each region, including both a dominant capitalist and a worker cooperative EE. Productive enterprises like worker cooperatives, operating with a different logic than investor-owned firms, not only construct their own EE, but the relational connectedness of the worker cooperative EE to other EEs also plays a role in outcomes. Worker cooperatives have been less successful in navigating these dynamics in Toronto than in Montréal. Future research might seek to more fully specify the relational and multiscalar configuration of regions’ multiple EEs.

Recentring Fair Trade in the movement for a just, inclusive and regenerative economy

From the 1970s to the 1990s, Fair Trade was at the front edge of an emerging new paradigm about the purpose of business and the meaning of economic success. The movement for a just, inclusive, and regenerative economy has continued to expand, but today’s young entrepreneurs and activists are more likely to enter through other communities like Buy Local campaigns, racial justice, worker ownership, platform co-operatives, B Corps, social enterprise, regenerative agriculture, zero waste or climate action. Social movements often happen in waves across multiple generations. As Fair Trade commodity certification has become increasingly mainstream, it can be seen as a first wave of the movement. It is a success that deserves to be celebrated, but on its own, it is difficult to sustain. The Fair Trade enterprise community has the potential to engage the next generation of mission-driven entrepreneurs and activists, speed up the next wave of the movement and lock in the success of the first.

Recentring Fair Trade in the movement for a just, inclusive and regenerative economy

From the 1970s to the 1990s, Fair Trade was at the front edge of an emerging new paradigm about the purpose of business and the meaning of economic success. The movement for a just, inclusive, and regenerative economy has continued to expand, but today’s young entrepreneurs and activists are more likely to enter through other communities like Buy Local campaigns, racial justice, worker ownership, platform co-operatives, B Corps, social enterprise, regenerative agriculture, zero waste or climate action. Social movements often happen in waves across multiple generations. As Fair Trade commodity certification has become increasingly mainstream, it can be seen as a first wave of the movement. It is a success that deserves to be celebrated, but on its own, it is difficult to sustain. The Fair Trade enterprise community has the potential to engage the next generation of mission-driven entrepreneurs and activists, speed up the next wave of the movement and lock in the success of the first.

„Pięć milionów dzieci czeka na nowe zabawki…”. O organizacji przemysłu zabawkarskiego i wzornictwie zabawek w Polsce lat 50. i 60. XX wieku

In the first years after World War II, the task of setting up a toy industry was undertaken in Poland. According to the declarations from the Polish People’s Republic authorities about providing all children with a carefree childhood, access to education and help in developing individual interests, a well-designed and carefully made toy was to reach the hands of 5 million children. It was also supposed to be aesthetic and accessible to the impoverished society after the war. Therefore, toys were mainly produced from waste materials, such as wood, leather, felt, fabrics, provided by state-owned industrial plants or production cooperatives. Toys made in artists’ studios and in the BNEP Toy Factory under the direction of Jan Kurzątkowski met these criteria. A turning point in the history of the organization of the post-war toy industry was the establishment of The Office for Toy Industry Studies and Projects, a facility included in the structures of Cepelia and unique not only on the national, but also on the Europe scale. The office was established on 5 December 1950 by order of the president of the Central Office of Fine Manufacturing. The specialists employed in this institution (artists, educators, psychologists and material scientists) ensured that children received a good educational toy – carefully made, appropriate for their age, safe and nice at the same time. The designs developed under their professional supervision were handed over to Cepelia’s cooperatives for implementation, while providing appropriate instructions on the material and decorations used. One of the Office’s first initiatives was to produce a specific type of wooden and fabric doll, which was exported to Western Europe and the USA and created what was termed the “Polish Doll”. The office only existed for 4 years. Pursuant to the resolution of the Presidium of the Government dated on 18 December 1954, it was transferred to the Board of the Toy Industry at the Central Union of Work Cooperatives. In practice, this meant its liquidation and the cessation of research and development of new toy designs. This decision resulted in a rapid constriction in the development of Poland’s toy industry. The idea of such a holistic, comprehensive approach to the issue of toys has never been returned to, not only from the point of view of aesthetics, but also toys’ role in children’s upbringing and education. This was changed neither by the Central Design Office of the Toy Industry established in 1956 at the Ministry of Education, nor “Plastuś”, a competition for the best toy for children available on the market, launched in 1961.

Associated work in a cooperative is neither dependent work nor selfemployed work

The celebration of the 100th anniversary of the ILO’s Cooperatives Unit sparked interest in reviewing the progress made by this institution in relation to the recognition and promotion of worker cooperatives. To this end, the Promotion of Cooperatives Recommendation (2002) and the Guidelines concerning statistics of Cooperatives (2018) were taken as the focus of study. From the analysis of both documents, the conclusion was drawn that although the former calls for the recognition of cooperatives in the terms established by the ICA, and for their promotion by States, establishing a legal framework favourable to them and compatible with their nature as self-managed enterprises, the fact is that associated work is still not recognised as a mode of work distinct from dependent work (wage-based) and self-employed(individual) work. This lack of recognition does not correspond to the recommendations of the ICA (2005) claiming that “the relationship of the worker-member with their cooperative should be considered as distinct from that of conventional wage-based dependent work and self-employed work”. The lack of recognition is often attributed to the modest size of these cooperatives and their possible use to circumvent the application of labour law. However, as we have shown, the former cannot be proven, and the latter is not sufficient reason to ignore or prohibit them, since there are other means to combat fake cooperatives. The lack of a contractual relationship between the worker-member and the cooperative is not a weakness but a strength and is the result of having a specific legal type for the cooperative, as opposed to other countries such as France or Italy which, because they lack such a type, are incorporated as Public Limited Companies or Limited Liability Companies, and subsequently hire their members so that they can work in their company.

Capital as common-pool resource: Horizon problem, financial sustainability and reserves in worker cooperatives

• Collective capital reserves are considered as common-pool resources in cooperative enterprises. • The problem of undercapitalization due to the members’ truncated temporal horizon and capital variability is reconsidered. • A new layered system of divisible and indivisible reserve funds is proposed as possible solution to under-investment. • Inner or indivisible layers correspond to stability and strength of patrimony. •Outer or divisible layers correspond to performance and members’ financial involvement. In most countries, self-financed accumulation of capital in cooperative enterprises makes substantial (but variable) use of indivisible reserves, which can be understood as common-pool capital resources, since they are characterized by rivalry and non-excludability in utilization among the members of the cooperative. The paper is structured in two main parts. The first part deals with dynamic inefficiency in investments and the problem of undercapitalization due to the members’ truncated temporal horizon in worker cooperatives. The conjugation of different types of reserves, divisible and indivisible, is envisaged as possible solution to under-investment. In the second part, a new layered system of reserve funds, both divisible and indivisible, is discussed, showing that each different layer has distinctive functions in facing the stability vs performance trade-off: stability and strength of patrimony are adjudicated to the indivisible layers, while efficient allocation of reinvested funds and members’ financial involvement require divisible reserve layers.

When workers matter most: a study of worker cooperatives and the prioritization of workers through COVID-19

PurposeAs a part of the authors’ continued efforts to understand the experience and trends related to small business cooperatives, the US Federation of Worker Cooperatives (USFWC) and the Democracy at Work Institute (DAWI) explored themes around the impact of the COVID-19 pandemic on worker cooperatives and democratic workplaces.Design/methodology/approachThe USFWC and DAWI conduct a biannual Economic Census of worker cooperatives and democratic workplaces. Survey themes this year included questions around the impact of the COVID-19 pandemic on individual firms.FindingsGeneral findings indicate that worker cooperatives experienced financial losses similar to conventional small businesses, but that this varied widely by industry. Although it has been found that BIPOC-owned conventional small businesses have been some of the hardest hit during the pandemic, the authors find that there may be some mitigating protective effects of the worker cooperative form when the authors explore the impacts on worker cooperatives with a majority BIPOC workforce. Additionally, the authors find that worker cooperatives and democratic workplaces strive to ensure the safety and wellbeing of their workers even when facing significant financial challenges throughout the pandemic.Research limitations/implicationsThis research utilizes non-random convenience sampling in data collection. The outreach for our biannual Economic Census is concentrated on a highly connected worker cooperative and democratic workplace network, the experiences of which may not generalize to the larger worker cooperative and democratic workplace landscape. Additionally, outreach efforts were hindered by challenges presented by the pandemic that were not present in prior census years, as was firm bandwidth to respond, which likely affected the sample composition in comparison to prior years.Originality/valueWorker cooperatives have been proven to be a resilient crisis response form of business, but little is known about how the worker cooperative ecosystem in the United States is faring in the face of the continuing COVID-19 crisis.

Like principal, like agent? Managerial preferences in employee-owned firms

AbstractThe relationship between firms’ owners and managers is a quintessential example of costly principal–agent interaction. Optimal design of monetary incentives and supervision mechanisms are the two traditional ways of reducing agency costs in this relationship. In this paper, we show evidence which is consistent with a third mechanism: firms have managers whose economic preferences are aligned with owners' interests. We uncover differences in economic preferences between managers employed in firms controlled by two distinct classes of ‘patrons’: employee-owned firms (worker cooperatives) and conventional investor-owned firms. In a high-stakes lab-in-the-field experiment, we find that co-op managers are less risk-loving and more altruistic than their conventional counterparts. We do not observe differences between the two groups in terms of time preferences, reciprocity, and trust. Our findings are consistent with existing evidence on worker cooperatives, such as their tendency to self-select into less risky industries and their compressed compensation structures.

노동자 소유 플랫폼 협동조합은 불안정한 플랫폼 노동의 대안이 될 수 있는가?

본 연구의 목적은 노동자 소유 플랫폼 협동조합이 플랫폼 노동의 불안정성에 대한 대안으로 작동할 수 있는지를 분석하는 것이다. 이를 위하여 가사서비스 부문의 플랫폼 노동자협동조합인 ‘라이프매직케어협동조합’을 사례분석 하였다. 분석 결과 플랫폼 노동자협동조합의 핵심적인 원칙은 ‘공동소유’, ‘민주적 의사결정’, ‘자원의 관리’로 요약할 수 있으며, 이는 플랫폼 노동의 불안정성 해소 대안으로 가능성과 한계를 동시에 가지고 있었다. 분석결과의 내용은 다음과 같다. 첫째, 플랫폼 노동자협동조합의 ‘공동소유’ 원칙은 플랫폼 노동자의 주관적 소속감 및 만족도를 높이고, 노동권 보호를 통해 플랫폼 노동자의 객관적 고용불안정성을 완화하고 있었다. 둘째, 플랫폼 노동자협동조합의 ‘민주적 의사결정’ 원칙은 플랫폼 노동자의 민주적 통제권한 행사를 통해 사업장 내 의사결정 참여뿐만 아니라 노동과정을 통제할 수 있게 하였다. 이러한 민주적 통제권한의 행사는 플랫폼 노동자의 불안정성을 해소하는 핵심적인 요인이었다. 셋째, 플랫폼 노동자협동조합의 ‘자원의 관리’ 원칙은 플랫폼 노동자의 경제적·사회적 자원의 결핍을 보완하고 있었다. 경제적 자원의 결핍은 코로나19 위기로 인해 플랫폼 서비스 이용자 수는 급감하였으나, 오프라인(전화) 방식의 일감 선택으로 소득의 단절을 보전할 수 있었다. 사회적 자원의 결핍은 플랫폼 노동자들이 교육과 모임의 참석, 배상보험 가입, 주민금고의 이용 등을 통해 자조적 방식의 사회안전망을 누릴 수 있었다. 다만 호출노동의 한계, 노동법상 가사사용인 적용제외 등의 법·제도상의 한계는 협동조합 내에서도 여전히 한계로 작용하고 있어, 플랫폼 노동자의 고용 불안정성 해소를 위해 해결해야 될 과제로 남아있다. 또한 조직 내 한계로서 기존 노동자협동조합에서 플랫폼 노동자협동조합으로의 전환은 조합원들과 서비스 이용자의 보다 적극적인 참여 및 플랫폼에 대한 신뢰가 구촉되어야 함을 제시하였다.