How effective are worker cooperatives?

It also found that worker cooperatives do not become less productive as they get larger. A 1995 study of worker cooperatives in the timber industry in Washington, USA found that “co-ops are more efficient than the principal conventional firms by between 6 and 14 percent”.

Why do worker cooperatives fail?

Co-ops may fail because of poor management. Excessive costs, inadequate marketing, lack of attention to customers, etc. are bad for any business. Securing technically competent management is necessary for co-ops, but is not in itself sufficient for their needs.

How was Yugoslavia organized?

The 1946 Constitution organized Yugoslavia as a federal state. That meant that each republic largely controlled its own affairs. The six republics were Bosnia-Herzegovina, Croatia, Macedonia, Montenegro, Serbia, and Slovenia. Kosovo and Vojvodina became autonomous regions (later autonomous provinces) of Serbia.

What do you think would be the advantages of Labor managed firms of the kind that operated in the former Yugoslavia?

Labor-managed firms seemed to allow freedom of choice and direction for workers ; equally, self-management was an indicator both of a market economy taking root and the presence of economic democracy within Yugoslavia.

What is the promise of worker cooperatives?

The goal is to provide the best possible employment conditions for the members and to provide the customers and community with a service or product at a fair price that meets their needs and leads to a sustainable community.

Are worker cooperatives more efficient?

The term “co-op” evokes images of collective farming or crunchy craft breweries. On balance, Perotin concludes, “worker cooperatives are more productive than conventional businesses, with staff working ‘better and smarter’ and production organized more efficiently.”

Are worker coops capitalist?

Privately owned worker coops are capitalist, by definition. Publicly owned coops would be socialist, by definition. All successful worker coops are privately owned, and therefore capitalist.

How is a workers cooperative different to other businesses?

A worker cooperative is a type of cooperative where the members are the employees of the business. Accordingly, a worker cooperative is a business entity that is owned and controlled by the people who work in it. Worker cooperatives face the same market conditions and difficulties as any other business.

What is former Yugoslavia?

What is meant by the term former Yugoslavia is the territory that was up to 25 June 1991 known as The Socialist Federal Republic of Yugoslavia (SFRY). In 2003, the Federal Republic of Yugoslavia was reconstituted and re-named as a State Union of Serbia and Montenegro.

Why are worker cooperatives better?

Jobs at worker cooperatives tend to be longer-term, offer extensive skills training, and provide better wages than similar jobs in conventional companies. Furthermore, worker cooperatives offer opportunities for greater participation in management and governance decisions that help the business succeed.