Workers' co-operatives
Workers' co-operatives are set up to meet mutual need. A group of people, often not always known to each other, come together to form a business.
Each of the members - from the manager to the office junior - owns a share of the business. Decisions are made together, and profits are shared among the members or put back into the business itself.
There are different types of co-operatives:-
- New Start
Most co-operatives are brand new enterprises, which are set up to cater for a newly identified niche in the marketplace. The people who start these genuinely want to work together and share responsibilities in setting up and running the business. - Conversion
Some well-established traditional companies have been converted into co-operatives because the owners have wanted to sell up, and have chosen to sell to the workforce. This is often better than closing a business down or selling to a competitor. - Rescue
Workers often need to defend their jobs by forming a co-operative if their firm is faced with closure for some reason. However, in order to survive in this instance, the members must have a good idea of what has caused the business to fail; they must know how they can put things right to make the business profitable again. - Phoenix
It is sometimes possible to create a new business out of the ashes of one that has failed. This could be part of a larger business; the part being able to be more successful on its own. However, as with the rescue scenario, this needs the members to be highly motivated and have solutions to any problems that caused the failure in the first place.
If you would like to know more about how to start or register a workers' co-operative, contact ICOM (Industrial Common Ownership Movement) on 0113 246 1737/8. You can email them at icom@icom.org.uk
More information is also available from:
Liverpool ACAS:
Pavilion 1
The Matchworks
Speke Road
Speke
Liverpool
L19 2PH
Telephone 0151 728 5600
Please make an appointment before visiting this office as interviews cannot be guaranteed.
You can also find out more about workers' co-operatives on the Business Link website.