What is a Worker Cooperative?

Worker cooperatives are owned and operated by their employees. This allows the worker-members to directly benefit from the business’s success. Profit distribution to worker-members is based on a combination of job position, hours worked, seniority, and salary. The model has proven to be an effective tool for creating and maintaining sustainable, dignified jobs; generating wealth; improving the quality of life of workers; and promoting community and local economic development, particularly for people who lack access to business ownership or sustainable work options. One of the most versatile cooperative forms, worker cooperatives are found in a variety of sectors, from transportation to manufacturing to home healthcare.

In the US, there are over 500 worker cooperatives employing more than 8,000 people, and generating over $400 million in annual revenues.

Learn more about Worker Cooperatives at University of Wisconsin-Madison Center for Cooperatives!