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What Is a Worker Cooperative?

A Democracy at Work Institute explainer defining worker cooperatives through shared worker ownership and democratic control.

Source: Democracy at Work InstituteAdded June 12, 2026
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Why it matters

The explainer identifies the model's two defining commitments—worker ownership and democratic member control—without implying that every co-op uses the same management structure.

Best for

Workers, founders, and advisors who need to distinguish a worker cooperative from employee participation without worker ownership.

The Democracy at Work Institute frames worker cooperatives around two minimum characteristics: workers own the business together and govern it democratically, generally on a one-member, one-vote basis. It also connects that definition to the international standards for worker cooperatives and provides a short downloadable handout.

Use it to establish model identity before moving into bylaws, membership expectations, governance design, or financing. It is a free introductory web resource, not a formation guide and not a substitute for jurisdiction-specific legal advice.

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Next readings

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An Introduction to Employee Ownership Trusts (EOTs)

Choose this U.S. primer to understand indirect, trust-held ownership. Pay attention to the fact that employee benefit and voice are designed through the trust and company rather than individual worker shareholding.

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