CooperativesComparison with capitalist businesses

Survival Rates Two studies in Canada found that the

5year survival rate of coops is 64 to 67%

Capitalist survival rate ranges between 38% and 43%

Wage differential US average CEO to worker pay is 344:1

Coops rarely exceed 4:1

Many coops have equal pay

Wages In traditionally low paying sectors such

as house cleaning and home healthcare coops often pay more. House-cleaning ranges between 50-100% more.

In larger coops, management positions pay less than capitalist counterparts, while non-management pays the same or more.

Job security Coops prioritize job security Coops tend to adjust to downturns by

cutting wages rather than laying off workers

Productivity Plywood cooperatives – 50% more

productive than capitalist counterparts. Same in British coal mining cooperative.

Productivity is higher due to fewer supervisors, higher levels of shared information, quality, fewer labor disputes, lower levels of absenteeism and turnover.

Investment Mainstream critique: worker owners will

invest less, preferring to raise their wages instead.

Mondragon invests 4 times as much as capitalist enterprises

A study of Italian coops show a comparable level of investment

Democratic participation Pro-coop claim: workplace democracy

encourages participation in civil society, political arena, community and commitment to public interest

Evidence is mixed. Plywood coops didn’t demonstrate this. (Greenberg, Workplace Democracy, 119).

Others like Equal Exchange and Rainbow Coop are clearly political and activist.

Upshot: Importance of business culture and

connection to larger struggle for economic transformation