About Worker Cooperatives

What is a Worker-Cooperative?

A worker cooperative is a business entity that is fully owned and operated by its workers. The business is democratically structured giving every worker an equal voice, individual input and vote into the decision making process and direction of the business. A worker-owned cooperative is a business model that values the needs of it’s workers and quality of life before profit. It stands for a healthy, empowering, and life giving workplace! All worker-owners invest in the co-op with a buy-in amount as they begin working. Any business surplus (or profit) is distributed to the workers annually or a portion in reinvested back into the co-op. Each worker cooperative is uniquely different and creates a structure that is best suited for them!


International Cooperative Alliance Statement on the Cooperative Identity


A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.


cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility and caring for others.


The cooperative principles are guidelines by which cooperatives put their values into practice.

1st Principle: Voluntary and Open Membership

cooperatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

2nd Principle: Democratic Member Control

cooperatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives members have equal voting rights (one member, one vote) and cooperatives at other levels are also organised in a democratic manner.

3rd Principle: Member Economic Participation

Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.

4th Principle: Autonomy and Independence

cooperatives are autonomous, self-help organisations controlled by their members. If they enter to agreements with other organisations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.

5th Principle: Education, Training and Information

cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general public – particularly young people and opinion leaders – about the nature and benefits of cooperation.

6th Principle: Cooperation among cooperatives

cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.

7th Principle: Concern for Community

cooperatives work for the sustainable development of their communities through policies approved by their members.

Source: US Federation of Worker Cooperative, https://www.usworker.coop/about/what-is-a-worker-coop#coopvalues

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