Worker cooperative

A worker cooperative is a cooperative owned and self-managed by its workers. The meaning of this control varies by definition; it may mean a firm where every worker-owner participates in decision-making in a democratic manner, or it may refer to one in which management is elected by every worker-owner, each of whom has one vote. Worker cooperatives may also be referred to as labor-managed firms.

Worker cooperatives appeared as part of the labour movement in reaction to capitalism and the Industrial Revolution. Such organizations began in the 18th century and developed further throughout the 19th century with groups such as the Rochdale Society of Equitable Pioneers, who established the Rochdale Principles to guide cooperative management.

Compared with traditional investor-owned firms, worker cooperatives tend to have greater longevity, trust, and job satisfaction. Cooperatives also tend to be less competitive and profitable. Productivity results are mixed and vary by location and sector. They tend to have more volatility in wages, but less wage inequality, and employment tends to be more stable.