What is a worker cooperative and how does it work?
The functioning and business model of an associated work cooperative is different from the other models that exist in the market. It is a business company with some differences from conventional companies, such as limited or autonomous companies. In cooperatives, all members have and enjoy the same rights and obligations.
Firstly, they must have statutes which specify a series of specific data:
- Name
- Society model
- Social Address
- Expected duration
- Reason why this cooperative was created
What are the obligations of each of the members of the worker cooperative?
For the good functioning of a worker cooperative, the first thing to be done is to register the society in the Register of Cooperative Societies of the Ministry of Employment within a period of no more than sixty days from the time it is constituted.
A chairman and a secretary must be appointed to act in accordance with the statutes agreed a priori. All this is decided by means of a constituent assembly, in which all the members of the cooperative must participate. Secondly, it is important to establish the bases for the creation of internal rules that define and mark the guidelines for its proper functioning.
This makes an important difference between co-operatives and other business models. While in conventional companies decisions are taken by the boards of directors, in cooperatives it is all the members in assembly who are in charge of taking them.
How do worker cooperatives work?
As mentioned above, a principle of equality and equity is established among all members of the cooperative in terms of decision-making, sharing of responsibilities and economic benefits. It functions democratically and as an assembly, and the steps to be taken must be taken together in the assemblies. It is a business model that is much more transparent, ethical, and takes a certain distance from traditional business models.
