Worker cooperatives, businesses owned and managed by their employees, are proving more productive than traditional companies. A study of Italian firms revealed that worker cooperatives are 6-14% more productive, attributed to increased worker motivation and engagement.
Despite these benefits, worker cooperatives remain rare, comprising less than 10% of businesses in most countries. Barriers to their establishment include difficulty accessing capital and a lack of understanding about their structure and benefits.
To overcome these hurdles, supportive policies and legislation are required. For instance, Spain’s Mondragon Corporation, the world’s largest worker cooperative, thrived due to favourable laws. Similarly, Italy’s Marcora Law, which allows unemployed individuals to invest their unemployment benefits in cooperatives, has led to a surge in such businesses.
In the U.S., there is growing political support for worker cooperatives, with Senator Bernie Sanders proposing the U.S. Employee Ownership Bank Act. This legislation would provide low-interest loans to help employees buy out businesses and convert them into cooperatives.
As the world grapples with economic inequality and job insecurity, worker cooperatives could offer a solution, fostering a more equitable and productive work environment.
Go to source article: https://www.thenation.com/article/worker-cooperatives-are-more-productive-than-normal-companies/