Worker
Cooperatives (Coops)

A worker cooperative (coop) is a business owned and managed by its workers. Unlike traditional companies, worker cooperatives operate on democratic principles, where each worker-member has an equal say in decision-making and shares in the business’s success.

How it Works

1

Step 1

Ownership

Each worker is an equal co-owner of the business.

2

Step 2

Democratic Governance

Decisions are made collectively, usually following a one-member, one-vote system.

3

Step 3

Profit Sharing

Profits are distributed equitably among worker-members, typically based on hours worked or agreed-upon criteria.

4

Step 4

Membership

Workers join as members, contributing to the cooperative’s capital and committing to its principles.

Benefits of a Coop

Shared ownership and profits

Equal voice in business decisions

Job security and stability

Keeps wealth within the community

Promotes local economic growth and resilience

Encourages ethical and sustainable business practices