WHAT IS A WORKER COOPERATIVE?
A worker cooperative is a form of business organization in which workers voluntarily join together to create and manage a joint enterprise. In this type of cooperative, the workers are both the owners and the primary beneficiaries of the enterprise. Decision-making in the cooperative is based on democratic principles, where each member has the right to participate in decision-making and generally has one vote, regardless of the amount of capital they have invested in the cooperative. The primary objective of a worker cooperative is to meet the economic and social needs of its members, creating sustainable employment and providing a work environment in which workers can have meaningful control over their own work and participate in the management of the enterprise. In addition to seeking economic benefits, worker cooperatives often seek to promote values of fairness, equality, and solidarity among their members. These cooperatives can operate in a variety of industries and services, from manufacturing and agriculture to professional services and technology.
The impact of Chicago Community and Workers Rights
In recent years, Chicago Community and Workers Rights (CCWR) has pushed for the creation of cooperatives and changes in laws favorable to this business model. CCWR began generating its own versions of a cooperative model for groups of workers interested in going into business for themselves and demonstrating that decent working conditions are possible. CCWR advises, educates and encourages new, forming and existing cooperatives. CCWR also collaborates with and receives support from the Illinois Workers Cooperative Alliance (IWCA) and Seed Commons, a national network of loan funds. We also work under a grant from the City of Chicago's Community Wealth Building to grow and strengthen cooperatives.
History of worker cooperatives
Worker cooperatives have a rich and varied history dating back several centuries. These organizations emerged in response to inequalities and precarious working conditions during the Industrial Revolution in Europe in the late 18th and early 19th centuries.
- Origins in the Industrial Revolution: With the rise of industrialization, many people faced extremely difficult working conditions, long working hours and low wages. Workers banded together to form the first worker cooperatives, initially in sectors such as mining and manufacturing. An early example is the "Lanark Spinners' and Weavers' Association" founded by Robert Owen in Scotland in 1813, which offered fairer working conditions.
- Cooperative movement in England: In the mid-19th century, the cooperative movement was consolidated in England with the creation of the "Rochdale Pioneers' Society" in 1844. This society established fundamental cooperative principles that are still followed today, such as open and voluntary membership, democratic management, distribution of surpluses among members and cooperative education.
- Worldwide expansion: As the 19th century progressed, the cooperative movement spread throughout Europe and beyond. Cooperatives were formed in different sectors, such as agriculture, banking, housing and consumer services. The cooperative philosophy was popularized by leaders such as William King in the United States and Charles Fourier in France.
- Challenges and resurgence: Cooperatives faced challenges over time, such as economic changes, labor conflicts and political changes. However, in times of economic crisis and unemployment, worker cooperatives often emerged as an alternative to maintain employment and self-management. During the Great Depression in the 1930s, many cooperatives provided stability for their members.
- Cooperatives in the 20th and 21st centuries: Worker cooperatives continued to develop around the world, adapting to changing economic and social circumstances. Federations and networks of cooperatives were established to promote collaboration and knowledge sharing among these organizations. Some worker cooperatives have achieved significant success in sectors such as manufacturing, technology and services.
- Social and economic impact: Worker cooperatives have proven to be a successful model for improving the working and economic conditions of their members. They provide a sense of ownership and direct control over the workplace, which can lead to greater job satisfaction and a more equitable distribution of benefits. In addition, they have contributed to the revitalization of communities and job creation in times of economic crisis.
Advantages of joining a Cooperative
- Equality and Democracy: All members have equal voting rights, regardless of seniority or function. Important decisions are made collectively.
- Profit Sharing: Unlike a traditional job, here you will share in the economic benefits of the business based on your contribution and not just as a salary.
- Job Stability: By being part of the cooperative, everyone is committed to the success of the business, which can lead to greater job stability and a sense of belonging.
- Professional Development: Cooperatives encourage training and skills development, as the growth of the organization benefits all members.
Steps to Create a Worker Cooperative:
- Gather Stakeholders: Find other workers who share the desire to create a cooperative.
- Form a Working Group: Form a team to research, plan and shape the operation of the cooperative.
- Develop a Business Plan: Define the objectives, cooperative structure, financial plan and responsibilities of each member.
- Establish Bylaws and Regulations: Defines the rules that will govern the operation of the cooperative, including workers' rights and duties.
- Obtain Financing: Seek funding sources, such as loans, grants, or contributions from members to start the cooperative.
- Register the Cooperative: Complies with legal requirements and registers the cooperative according to local laws and regulations.
- Start Operating: Once established, start operations and work as a team to achieve success.
Welcome to the Worker Cooperative
Worker cooperatives didactic video created by: California Center for Cooperative Development
Send us a message
Do you have any questions or are you interested in creating a cooperative? We are here to help you. Contact us by WhatsApp.
You can also send us an email to: cooperativas@chicagoworkersrights.org
Chicago Community and Workers Rights
CCWR is an organization that provides support to the primarily Latino working community without excluding anyone on the basis of color, ethnicity, religion, or sexual orientation.