What is a worker cooperative?
A worker cooperative is a business that is owned and controlled by its workers, who constitute the members of the cooperative. The two central characteristics of worker cooperatives are:
- workers own the business, and they participate in its financial success based on their labor contribution to the cooperative
- workers have representation on and vote for the board of directors, adhering to the principle of one worker, one vote
In addition to their economic and governance participation, worker-owners often manage the day-to-day operations through various management structures. The worker cooperative sector in the United States is represented by the US Federation of Worker Cooperatives and an international apex organization, CICOPA, represents the global worker cooperative community.
How many worker cooperatives are there in the US?
U.S., researchers and practitioners conservatively estimate that there are over 751 worker cooperatives in the United States, employing approximately 7,000 worker owners and generating over $550 million in annual revenues. The number of workers cooperatives has grown steadily over the past 20 years and is made up of both well-established businesses and new, growing ones, including some businesses that have been sold to their employees by their owners.
Source: The Democracy at Work Institute (DAWI)
How big is the typical worker cooperative?
Most worker cooperatives in the United States are small businesses, with between 5 and 50 workers, but there are a few notable larger enterprises with between 150 and 500 workers. The largest worker cooperative in the United States is Cooperative Home Care Associates (CHCA), a home care agency with over 2,000 workers based in the Bronx, New York.
What industries are worker cooperatives in?
Any business can be a worker-owned and -controlled business. Worker co-ops have been successful in different sectors and industries.
Examples include:
- Service - housecleaning, day labor, restaurants, taxis, childcare
- Retail - grocery stores, bakeries, bookstores, bike shops
- Health care - nursing, home health care, clinics, bodywork
- Skilled trades - printing, plumbing, woodworking, contracting
- Manufacturing and engineering - machine parts, fabricating
- Technology - web hosting, networking, voice and data systems
- Education - charter schools, teacher/student/parent-run schools
- Media and the arts - designers, galleries, performers, publishers
For more information, contact:
Cindy Houlden, Cooperative Development Specialist, choulden2@unl.edu
For Information on the Nebraska Homecare Worker Cooperative Project
Downloadable Worker Cooperative Fact Sheet