Worker cooperatives

Worker cooperatives, or co-ops, are self-managed businesses that are collectively owned and democratically controlled by their members, who are worker-members or worker-owners. Unlike conventional firms, where decisions are typically made by individuals with little connection to daily operations, in worker co-ops, every worker has a vote in the decision-making process. Businesses face the highest risk of closure within their first 3-5 years. However, worker co-ops across the world have notably higher survival rates than traditional firms, on average about 30% higher. Not only are they more resilient, but they also provide greater wage flexibility and employment stability, always prioritizing the well-being of their workers. As a result, worker satisfaction, trust, health, and commitment are remarkably positive in these enterprises.

The origins of worker co-ops—specifically in Europe—can be traced back to the Industrial Revolution, emerging as a response to the excesses of industrial capitalism, the threatened livelihood of workers, and the unreliability of wage labor. The cooperative movement took root in the writings of socialist thinkers such as Robert Owen, often regarded as the “father” of the movement. Later, British physician and philanthropist Dr. William King refined Owen’s ideas to make them more practical and founded The Co-operator, a monthly periodical offering practical advice. Shortly thereafter, the consumer-owned Rochdale Society of Equitable Pioneers—one of the earliest and most influential examples of a cooperative—was founded in 1844 in Rochdale, England. Comprised of tradesmen, the organization became one of the first successful cooperatives, providing affordable food to its members and community. The cooperative movement, as we currently know it, resurfaced in the 1960s under a new system of “collective ownership.” In this system, members typically own up to one share each to preserve an egalitarian ethos. 

How Do Worker Cooperatives Differ from Other Types of Collective Ownership?
While worker cooperatives are a form of collective ownership, they differ from other models in their specific focus, purpose, and structure of governance. Most, if not all, cooperative models share democratic principles, but the key differences lie in their goals and in who holds ownership or voting rights. In a worker cooperative, the focus is naturally centered on the employees, ensuring that the individuals directly involved in the business operations have control over its governance and share in its profits. This contrasts with consumer cooperatives, such as grocery co-ops, which are owned and operated for the benefit of customers.

How Do Worker Cooperatives Function?
In these businesses, major decisions are made collectively by the workers, often through general assemblies or elected committees. Workers typically participate in setting company policies, determining wages, and deciding on profit distribution. Profits are usually shared among worker-owners based on their labor contributions rather than capital investment. Worker cooperatives tend to prioritize sustainable growth and community well-being over short-term profits. While day-to-day operations may still be overseen by managers, these managers are often appointed by the workers themselves. The model promotes fairness and encourages long-term commitment from employees; this generally leads to higher job satisfaction and productivity, making worker cooperatives an appealing alternative to traditional corporate structures.

Worker Cooperatives Around the World

Spain: The Mondragon Corporation

Perhaps the most famous example of a worker cooperative is the Mondragon Corporation, located in the Basque region of Spain. Founded in 1956 by a group of young workers under the guidance of a Catholic priest, Mondragon has grown into a federation of 81 autonomous cooperatives spanning industries such as manufacturing, retail, finance, and education. It employs over 70,000 people, the majority of whom are worker-members. Each employee has a say in how the company is run and receives a share of the profits. Mondragon’s success is largely attributed to its commitment to democratic governance and solidarity among its cooperatives.

For instance, during economic downturns, Mondragon redistributes resources and reassigns workers among its cooperatives to preserve jobs. Worker-owners often express gratitude for moments of personal hardship when their colleagues volunteered to take over shifts or offered accommodations for more flexible schedules. Compared to the largest 500 companies in the United States, where the salary differential between the highest- and lowest-paid workers averages around 272 to one, Mondragon maintains a ratio of approximately six to one. By prioritizing “people over capital” and striving to create “rich societies, not rich people,” Mondragon exemplifies a more equitable and compassionate approach to business. This model has made Mondragon a global symbol of the potential for worker cooperatives to thrive on a large scale.
The Mondragon Corporation

United States: Arizmendi Association of Cooperatives & The Cheese Board

Founded in 1996, the Arizmendi Association of Cooperatives in California is a remarkable example of a successful worker cooperative in the United States. Named after José María Arizmendiarrieta, the founder of the Mondragon cooperative movement, Arizmendi is made up of eight member businesses. These include six worker-owned bakeries in the Bay Area. Although the bakeries share similar products and recipes, each one operates independently while adhering to the cooperative principles of democratic governance and profit sharing. In addition to the bakeries, Arizmendi also includes Root Volume, a landscape design cooperative, and a development and support collective. This collective provides shared resources such as training, accounting, and legal services to all members. The association’s collaborative model enables its different cooperatives to benefit from collective resources while maintaining their autonomy, demonstrating how worker co-ops can thrive in diverse local markets.

Arizmendi was initially inspired and supported by another worker cooperative: The Cheese Board Collective in Berkley. The collective, which operates a cheese shop/bakery as well as a pizzeria, was founded 30 years before Arizmendi. Originally a privately-owned business, its founders sold it to their employees and remained active members, transforming The Cheese Board into an egalitarian worker-owned collective. The collective popularized baguettes among Americans, with the variety of breads offered growing alongside its sales. Its pizzeria serves only one type of pizza each day, always vegetarian and topped with seasonal produce. Each slice comes with an extra, thinner slice to compensate for any uneven slicing. The restaurant is a lively venue, featuring a piano and floor space for live performers, often jazz groups. Notably, The Cheese Board was a driving force in the development of North Berkley’s “Gourmet Ghetto,” an area known as the birthplace of Californian cuisine. The collective’s success sent ripples across California, inspiring the creation of other similar-minded businesses, including the Arizmendi Association.
Arizmendi Association of Cooperatives
The Cheese Board

United Kingdom: Suma Wholefoods

In the UK, Suma Wholefoods stands out as one of the largest worker cooperatives, and in Europe, as the largest equal-pay worker co-op. Based in West Yorkshire, Suma is a wholesale distributor of vegetarian, natural, and ethically sourced products. They deliver over 7,000 items—including food, body care, and home cleaning products—throughout the UK and internationally. Since its founding in 1977, Suma has operated as a fully worker-owned and managed cooperative, with approximately 200 members earning equal pay and participating in decision-making processes. Each worker-owner at Suma takes on a variety of roles each week, including truck driving, accounting, and cooking.

In response to the ongoing climate crisis, Suma established a sustainability strategy in June 2023 to guide its operations through 2030. Since then, the cooperative publishes annual sustainability reports detailing updates on its progress. The company also adheres to a set of 10 ethical statements, acknowledging that “the honest answer to difficult questions around sustainability isn’t a simple or popular one.” Suma’s dedication to transparency, equality, and sustainability has earned it a strong reputation among ethical businesses. The company exemplifies how a worker cooperative can successfully integrate ethical business practices with a commitment to addressing social and environmental challenges, making it a noteworthy model for sustainable and socially responsible enterprises.
Suma Wholefoods

Netherlands: The Afrikaanderwijk Cooperative

In the Netherlands, there are hardly any worker cooperatives; among the few that exist is the Afrikaanderwijk Cooperative, which has been connecting workspaces, entrepreneurs, producers, and social organizations in Rotterdam Zuid—specifically in the Afrikaander district—since 2013. Their mission is to promote sustainable local production and cultural development, strengthening the area and making it more financially stable. The cooperative’s efforts increase the district’s capacity for self-organization, providing physical spaces and services to the local community. They operate from the Gemaal op Zuid, a neighborhood common space where most of their meetings and activities are held. The building is shared with several other local partners and is collectively used for a variety of purposes. The common space also features a neighborhood kitchen where members participate in and teach cooking workshops, work on catering commissions, and gain invaluable culinary experience. The Afrikaanderwijk Cooperative also initiated the SCHOON program, which ensures that cleaning service jobs are not outsourced to larger companies but instead insourced to neighborhood residents, including those seeking to make a career switch. Additionally, they run a cultural program in which they closely collaborate with artists and museums. Through its wide-ranging initiatives and as one of the few worker cooperatives in the country, the Afrikaanderwijk Cooperative serves as a pioneering model for encouraging cultural and economic resilience in local communities across the Netherlands.
The Afrikaanderwijk Cooperative

Conclusion
Worker cooperatives can succeed in a variety of industries and cultural contexts, as the above examples of worker co-ops from across the globe show. While challenges such as access to financing and scaling operations remain, the resilience and adaptability of worker cooperatives demonstrate their potential to reshape the future of work and business. They show us how businesses can be more than profit-driven entities—they can be communities of shared purpose that work toward a more equitable and sustainable global economy.

Other Worker Cooperatives
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Red Emma’s
Firestorm Books & Coffee
Come as You Are
Lijjat
Edinburgh Bike Coop