Social Benefits

Workers cooperative is an enterprise in which workers share in the profits and it is a business in
which the workers retain a majority control of the enterprise control is exercised democratically on
the basis of one person, one role, Membership is open as far as possible to all workers and there are
limit on the return to capital invested in the enterprises.

Over the years, capital; has hired lab our and treated it like an expendable factors of production
same as any other factor, capital has explored labour and subjected it to the imperialism of profit
maximization capital has claimed all the authority and all met profit while disclaiming full liability for
the debts of he enterprise incase of liquidation. But now, Worker want all that to change these days
there was change, labour will live capital. A famous co-operative maxim says” Labour hires capital, in
the new workers ownership capital will not be divided into equity share because if will be owned
collectively.

Examples are producing durable goods and nourishing goods, additive free goods not highly
processed snack adopting methods, of production devoid of polluting effects, refusal to produce
war related material or to deal with government practicing, racial segregation.

These workers industrial cooperatives have social objective as well as economic objectives.

They won’t out man at the centre of business, they place democratic control and the nature of the
product before profitability. They employ technology that is friendly to the environment. As long as the
enterprise can cover its costs and break even they fell free, to pursuer their social objectives. The capital
assets of an industrial cooperative should be jealously guarded. It should maintain intact and
progressively expanded and developed facilities. The aim should be to catch up with completing capitalist
out lifts in terms of capital base. With drawing members should be required to leave their share capital
behind. If members decided to dissolve their society, it should not be in order to share the asset.

Benefits:

1. Longevity and resilience

According to an analysis of all businesses in Uruguay between 1997 and 2009, worker cooperatives
have a 29% smaller chance of closure after controlling for variables such as industry. In Italy, worker
owned cooperatives that have been created by workers buying a business when it is facing a closure
or put up to sale have a 3-year survival rate of 87%, compared to 48% of all Italian businesses. A 2012
study of Spanish and French worker cooperatives found that they “have been more resilient than
conventional enterprises during the economic crisis.” In France, the three year survival rate of worker
cooperatives is 80%-90%, compared to the 66% overall survival rate for all businesses. During the
2008 economic crisis, the number of workers in worker owned cooperatives in France increased by
4.2%, while employment in other businesses decreased by 0.7%.

2. Pay and employment stability

A 2006 study found that wages on co-ops pay in Italy were 15 to 16 percent lower than those that
capitalist firms paid on average, and were more volatile, while employment was more stable. After
 controlling for variables, such as schooling, age, gender, occupation, industry, location, firm-size, user
cost of capital, fixed costs, and deviations in its real sales, this changed to 14 percent. The authors
suggest this might be due to worker cooperatives being more likely than capitalist firms to cut wages
instead of laying off employees during periods of economic difficulty, or because co-op workers may
be willing to accept lower wages than workers in capitalist firms. A study looking at all firms in
Uruguay concluded that when controlling for variables such as industry, firm size, gender, age and
tenure, workers employed in a worker-managed firm earn 3 percent higher wages compared with
similar workers employed in the conventional firms. However, this wage premium declines
significantly with increasing pay and becomes negative for top earners. According to research by
Virginie Pérotin, which looked at two decades worth of international data, the tendency for greater
wage flexibility and employment stability helps explain why some research observes higher and
others lower pay in worker cooperatives relative to conventional businesses.

3. Worker satisfaction, trust, health and commitment

According to a study drawing on a questionnaire from the population of the Italian province of
Trento, worker cooperatives are the only form of enterprise that fosters social trust between
employees. A survey conducted in Seoul suggests that in conventional firms, employees become less
committed to their job as their work becomes more demanding; however, this was not the case in
worker cooperatives. In the US, home health aides in worker cooperatives were significantly more
satisfied with their jobs than in other agencies. A study from 2013 about home aid workers found
that “Home health aides at the worker-owned, participative decision-making organization were
significantly more satisfied with their jobs than those at other agencies.” One 1995 study from the US
also indicates that “employees who embrace an increased influence and participation in workplace
decisions also reported greater job satisfaction” and a 2011 study in France found that worker-owned
businesses “had a positive effect on workers’ job satisfaction.” One 2019 study indicates that “the
impact on the happiness of workers is generally positive”.

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