Talk:Worker cooperative

Price of member share equity

I don't know about the US, but worker cooperatives in Canada still operate by the "ownerwship" model of paying a share price. The value of the share DOES increase, which benefits members. Some worker cooperatives will finance a share price.

—Preceding unsigned comment added by TLJMP (talk • contribs) 15:58, 25 September 2006

I am relatively new to editing Wikipedia page but it occurs to me that visitors to this page may find it beneficial to review my forthcoming article in the Social Enterprise Journal specifically on cooperative social enterprises

• Ridley-Duff, R. J. (2009) "Cooperative Social Enterprises: Company Rules, Access to Finance and Management Practice”, Social Enterprise Journal, 5(1), forthcoming.

This was peer-reviewed by Roger Spear - probably the UK's leading authority on cooperatives. It contains a meta-theory of different forms of worker co-operative encompassing those that either do or don't issue shares, and those that embrace different ideologies (communitarianism and liberalism) in their political orientation. The result is four distinct approaches to worker co-operatives. Further insights can be gain from obtaining academic texts in the field (e.g. Professor Rob Paton)

• Paton, R. (1989) Reluctant Entrepreneurs, Open University Press

as this examines the range of issues in developing employee-controlled organisations. His work also provides some theory to navigate the different orientations and issues arising from different approaches to worker cooperation. Another excellent paper, published in 2007, comes from Paulo Kalmi

• Kalmi, P. (2007) “The Disappearance of Cooperatives from Economics Textbooks”, Cambridge Journal of Economics, 31(4): 625-647.

who writes extensively on both co-operatives and employee-ownership (principally in response to their growth and potential in the former Eastern Block states). The importance of worker co-operative principles to the early thinking of the social enterprise movement can be reviewed in

• Ridley-Duff, R. J. (2002) Silent Revolution: Creating and Management Social Enterprises, Barnsley: First Contact Software Ltd. ISBN 1-904391-01-X.

Most of these sources will eventually surface in a 2010 textbook from Sage Publications, but these key references on worker cooperation will help to frame the debate.

When a worker cooperative does not charge a share price, there is little "buy-in" from the members. The share price creates an ownership mentality, strengthening the cooperative. Evidence to support this can be found in the above papers and books, and particularly work undertaken at the Open University in the 1980s

• Cornforth, C. J., Thomas, A., Spear, R. G. & Lewis, J. M. (1988) Developing Successful Worker Co-ops, London: Sage Publications.

—Preceding unsigned comment added by Roryridleyduff (talk • contribs) 13:26, 11 January 2009

Wiki Education Foundation-supported course assignment

This article was the subject of a Wiki Education Foundation-supported course assignment, between 18 January 2021 and 21 May 2021. Further details are available on the course page. Student editor(s): Alexdaviesmorris. Peer reviewers: ToharZamir, Jimzhen21, SaraParkwood.

Above undated message substituted from Template:Dashboard.wikiedu.org assignment by PrimeBOT (talk) 05:05, 18 January 2022 (UTC)

Promotion and Finance:: Addition

I have collected research from a variety of different sources regarding the financialization methods of different workers' cooperatives around the world. My outline for the section will proceed as follows:

Internal Capital Accounts/Member Buy-Ins - U.S.: Member Voting Equity Shares. These shares are distributed equally to workers and are exclusively for worker-owners (Project Equity). Typically equal to a term's length of wages and is essentially a mandatory loan to the cooperative. However, these internal capital accounts have a fixed return rate that is not directly tied to profits or losses (Cooperation Jackson). - Spain: Mondragon Corporation utilizes 10:20:70 system to allocate profits, including to Internal Capital Accounts. 10% to community charity investments, 20% to maintain corporate reserves, and 70% into internal capital accounts/individual member accounts. These accounts increase annually with the cost of living and produce interest profits paid by the corporation (Morris).

Committed Capital/Preferred Stock - U.S.: Preferred Stocks and Private Offerings. These shares are offered exclusively to accredited investors that are not a part of the cooperative. Often have unguaranteed rates of return (Project Equity). Advertised to produce both financial return and social return (Democracy at Work Institute).

State Financing - Spain: Basque Government provides investment for many cooperatives within Mondragon and for Mondragon's education and health programs. Additionally, the Basque government has bought private businesses for the Mondragon Corporation, providing initial financialization (Morris).

Ownership Transitionary Financing

External Finance Firm Investment - U.S.: Indirect Investments and Cooperative Funds/Community Development Financial Institutions. Either come from finance firms specializing in financialization to workers' cooperatives or from funds dedicated to investment and lending to workers' cooperatives. (Project Equity)

Direct Public Offerings (DPOs) - U.S.: Investment Crowdfunding. Open to both accredited and non-accredited investors. Raises a large number of small-dollar investments. Status of voting rights vary. (Project Equity)

Possibly More Methods to Come Alexdaviesmorris (talk) 00:57, 8 April 2021 (UTC)