What Is a Worker Cooperative?
A business owned and run by the people who work there.
The short version
A worker cooperative is a business where the workers are the owners. They share profits, make decisions together, and each get one vote regardless of seniority or role. The people doing the work control the business.
How is that different from a normal company?
| Traditional Company | Worker Co-op | |
|---|---|---|
| Who owns it? | Shareholders or a founder | The workers |
| Who gets profits? | Shareholders | The workers, split equitably |
| Who makes decisions? | CEO/board | Workers vote (one person, one vote) |
| Accountability? | Top-down | Peer-based |
What about ESOPs?
An ESOP (Employee Stock Ownership Plan) is different from a worker co-op. In an ESOP, employees own shares of the company through a trust, but management structure is usually traditional. Companies like King Arthur Baking and Bob's Red Mill are ESOPs. Workers benefit financially but don't necessarily have democratic control over decisions.
Both models are better for workers than conventional ownership. This directory includes both.
Are there real examples?
There are hundreds of worker cooperatives in the US. Here are a few you can buy from today:
- Equal Exchange - Fair-trade coffee, tea, and chocolate. Worker-owned since 1986.
- Alvarado Street Bakery - Organic sprouted grain bread. Worker-owned since 1977.
- Defector - Sports and culture journalism. Worker-owned since 2020.
- Cooperative Coffee Roasters - Small-batch coffee from Asheville, NC.
- AK Press - Independent books and publishing. Worker-owned since 1990.
How do I start one?
These organizations help people start worker cooperatives:
- US Federation of Worker Cooperatives - National federation, resources and networking
- Democracy at Work Institute - Training, technical assistance, research
- CooperationWorks! - Network of cooperative development centers
Why does this matter?
In a worker co-op, profits stay with the people who created them. It's a simple idea: the people who do the work share in what the business earns.