Worker Cooperatives

Worker cooperatives are enterprises owned and democratically managed by their workers. Each worker-owner has an equal vote in major decisions — from hiring managers to distributing surplus — regardless of their role or seniority. This structure inverts the conventional corporate model where capital hires labor; in a cooperative, labor hires capital.

Worker cooperatives represent the most direct form of economic-democracy: bringing democratic principles into the institution where most people spend the majority of their waking lives. Research consistently shows that cooperatives produce more equitable wage distributions, greater job satisfaction, higher productivity, and stronger local economic multiplier effects than conventional firms. The Mondragon Corporation in the Basque Country — a federation of over 80 cooperatives employing tens of thousands of workers — demonstrates that the model scales beyond small artisan workshops.

In the context of systems change, worker cooperatives are a key expression of dual-power strategy: functioning economic alternatives that can be built within the existing system while prefiguring a post-capitalist economy. They connect to community-land-trusts as complementary structures for democratizing different forms of wealth (productive enterprise and land, respectively), and to platform-cooperatives as the digital-age evolution of cooperative ownership. Within regenerative-economics, cooperatives represent the organizational form most aligned with circulating wealth within communities rather than extracting it upward.

Further Reading