Employee co-operatives
Employee owned businesses
Employee owned businesses are like conventional companies, but with much greater employee involvement. They are often formed when retiring owners decide to sell the company to their staff. This option allows the owner to leave a legacy and ensure that employment is maintained in the local community.
With trade sales, employment and assets are often moved elsewhere. However employee owned businesses tend to remain in their communities. They also tend to survive longer, because the employees have a stake in the business and are therefore more entrepreneurial and committed to the company’s success.
Employee owned businesses in Scotland include Tullis Russell, Loch Fyne Oysters, Woollard & Henry and John Lewis Partnership.
Worker co-operatives
Worker co-operatives are businesses that are owned and democratically controlled by their employees. The main benefit to members is satisfying self-managed employment with a fair return for their work.
The majority of shares in a worker co-operative are owned by the workforce. In 'pure' forms of worker co-operative, only workers can own the equity and there are no external shareholders. As with other co-operative models, ownership is usually on a one share, one vote basis, giving each member an equal voice. Worker co-operatives tend to have a flat management structure and aim to operate according to the seven key co-operative principles.
Worker co-operatives in Scotland include Edinburgh Bicycle Co-operative, The Graphics Company and Atomised.