Worker Cooperatives Share The Wealth
The idea of sharing the profits of a company equally among its workers may seem like a radical idea in a country based on the capitalist inverted triangle of profit distribution. Conversely, all of the employees in a cooperative business have equal value and tend to be happier and more productive since they are all owners of the company rather than “owned” by the company. The model would more closely approximate a wheel and spoke design in which each spoke (or employee owner) has the exact same length. If the spokes were of varying lengths, then the wheel would be lopsided and unable to turn freely.
Alvarado Street Bakery of Petaluma California is an example of a successful cooperative in which workers each own an equal share of the company that entitles them to make decisions affecting salaries and benefits as well as a whole host of other business decisions such as how to allocate profits. The average salary for these bakery workers is close to $70,000 per year with over half of the 116 workers having at least 15 years of service with the company. Each day, Alvarado Street Bakery ships over 40,000 loaves of bread which is a tribute to the success of this form of business.
The idea of a worker cooperative owned business is not new. Its origins date back to early 19th century England and was based on principals of improving the plight and quality of life for skilled workers and artisans. The sustaining nature of this form of business is directly linked to the concept of employee stake in the success of the business. Rather than the typical corporate model today, in which companies are owned by institutions of investors, the primary focus of the cooperative owned business becomes long term sustained growth driven by owner employees, rather than short run profits achieved through cost cutting consultive schemes.
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In: Business Stories · Tagged with: 19th Century England, Artisans, Average Salary, Business Decisions, Cooperative Business, Corporate Model, Equal Share, Petaluma California, Plight, Principals, Profit Distribution, Quality Of Life, Radical Idea, Salaries, Salary Information, Skilled Workers, Spokes, Stake, Street Bakery, Worker Cooperatives
