Worker-Owned Cooperative
What is a Worker-Owned Cooperative and why is TFC building one?
Why is now the time to support the growth of worker cooperatives?
The United States is facing unprecedented levels of inequality.
The top 10% used to earn 1/3 of total income; it now takes in 1/2.
The average CEO now earns 273 times more than the average worker.
The top 1% has a net worth 288 times higher than the typical family (a record in the United States).
A growing consensus recognizes worker cooperatives as a timely and powerful tool for stabilizing jobs, expanding ownership opportunities, and reorienting business toward broad-based prosperity. According to the New York Times, “Support for full-fledged co-ops has inched into the mainstream as communities have grown weary of waiting for private investors to create good jobs — or sick of watching them take jobs away.”
Worker cooperatives are values-driven businesses that put worker and community benefit at the core of their purpose.
At TFC, we are rooted in our mission, “…to revolutionize the art of gathering by creating healing third spaces that center Latinx, BIPOC, and LGBTQ+ communities.” solidifying our need to develop TFC as a worker-owned cooperative.
In contrast to traditional business, workers at worker cooperatives participate in the profits, oversight, and often management of the organization using democratic practices. 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 even sustainable work options.
The main benefits of worker-owned cooperatives:
Worker cooperatives build local wealth. At a worker cooperative, profits do not go to distant investors, but instead go directly to the workers. As a result, the money stays grounded in the local economy, building community wealth. With ownership in the hands of workers, who are usually living and spending locally, these companies stay connected and accountable to their communities.
Worker cooperatives create quality jobs. Workers have a meaningful role in the business, as they contribute to and benefit from the success of a company they co-own. Jobs at worker cooperatives tend to be longerterm, 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.
Worker cooperatives create meaningful change for underserved populations. More than half of worker cooperatives in the United States today were designed to improve low-wage jobs and build wealth in communities most directly affected by inequality, helping vulnerable workers build skills and earning potential, household income and assets.
Tools to build a cooperative in your community:
TFC is currently in the process of building a worker/owner cooperative through The U.S. Federation of Worker Cooperatives.
The U.S. Federation of Worker Cooperatives offers technical assistance services through The Co-op Clinic. In addition to training programs for worker coops, the clinic also provides culturally-affirming services to worker cooperatives and traditional businesses converting to worker-ownership. They do this work through trained staff and a network of Peer Advisors, primarily composed of current or former worker-owners.
Their staff and peer advisors can help you…
Create a roadmap for starting or converting to a cooperative.
Find the right structure and governance for your democratic workplace.
Get training in cooperative finances.
Become loan ready.
Finish your business plan.
Create policies that work for your team.
AND MORE!