Worker Self-Directed

Enterprises (WSDEs):
What are they, what are the
advantages, and what would it
involve to convert into one?

A presentation by Chloé St. Onge-Shank

 What is a “WSDE”?
 Workers form their own collective board of
directors.

 Tasks are shared equally, and everyone

develops multiple skills.

 Ownership is likely split among workers and

nonworkers (with most workers also owning
a part of the company and thus, having a
say on the board).
What is a “WSDE”?

 Cooperation > Competition.

 Profits are just one objective,

alongside employee wellness,
community solidarities, and our
enterprise’s relation to the natural
environment.
 Contrasting WSDEs with modern
private capitalist corporations.
Worker Self-Directed Enterprises Modern private capitalist corporations

Each worker has an equal say. Shareholders vote (1 vote per share) on who
makes up the board of directors.

Only workers can become a member of the Shareholders aren’t usually workers inside the
board of directors. corporation.

Workers’ health, environmental

Profits are the main priority.
considerations, profits, and community
solidarities are all equally prioritized.

Minimum and maximum worker incomes are Worker wages are decided by the board of
decided democratically. directors (non-workers)

Workers rotate between roles and learn

Workers are each given specific roles.
multiple skills.
 A modern-
day example

Mondragon Cooperative Corporation in Northern Spain

What are the possibilities of taking over
the workplace and running it as a WSDE?

 Management roles would be eliminated.

 Salaries will be re-evaluated based on a collective

agreement & pay differentials would be kept at a minimum.

 Our company’s success would no longer be based on our rate

of profits.
What are the possibilities of taking over
the workplace and running it as a WSDE?
 Dedicated research committee.

 Creating and maintaining channels for open communication.

 Expert-led training sessions/external management may be hired.

 Labour/leisure decisions are made collectively.

 Various ownership arrangements can coexist with WSDEs.

What are the challenges of taking over
the workplace and running it as a WSDE?

 Decisions may take longer as each worker (or representative) must

be given a chance to vote.

 In the face of economical challenges, workers may need to

collectively agree upon a salary reduction.

 Everyone must be in agreement with the principles of a worker

cooperative, and actively participate in the voting process.
In summary…

 In transforming our corporation into a WSDE, we will become our own

bosses and work to form our own collective board of directors.

 There will be no hierarchy amongst the workers and everyone will

rotate positions and build a universal skillset.

 Should a salary differential be agreed upon, this ratio will be

standardized and voted upon by all of the workers.

 Profits will no longer be our only objective.

 References

 Lingane, A. (2015). Case studies. Business Conversions to Worker Cooperatives—Insights and Readiness

Factors for Owners and Employees. Project Equity. Retrieved from

https://project-equity.org/about-us/publications/case-studies-business-conversions-to-worker-cooperatives/.

 Masquelier, C. (2017). Beyond co-optation: Revisiting the transformative function of “workers’ self-directed

enterprises.” Socialism and Democracy, 31(2), 53–72. https://doi.org/10.1080/08854300.2017.1330322

 Wolff, R. D. (2014, September 20). Socialism and workers' self-directed enterprises. Truthout. Retrieved

October 2, 2022, from https://truthout.org/articles/socialism-and-workers-self-directed-enterprises/

 Wolff, R. D. (2012). Democracy at work: Workers' self-directed enterprises. Haymarket.