FAQ
From VAWC
What are worker collectives or worker cooperatives?
Both are essentially enterprises or organizations operated for the benefit of those using its services. A co-op may or may not be actually owned its members, and may not always require that members also be workers. These two elements are integral to a collective; its members own and operate it equally. The decision-making process is another area in which the two may differ: co-ops often operate on the basis of majority rule, whereas collectives are characterized by consensus.
Who’s the manager in a collective?
A collective doesn’t really have a ‘boss’ — it runs counter to the collective philosophy. In some collectives, there may be a member whose task it is to act as office manager, another who does bookkeeping, another who purchases inventory...each of which in a traditional business might be regarded as a managerial position but, in a collective, these tasks are usually distributed among numerous members, based on skill and inclination and in such a way as to avoid a power imbalance. Cooperatives often have hierarchies with supervisory powers or representatives of departments that are elected by members.
How does anything get done if there’s no boss?
Don’t you find that you pretty much already know your own job? Most people, when they go to work, have a pretty good idea what needs to be done and how to proceed without being told. The day-to-day stuff is easy because we are all experienced and know our jobs. For collectives, who each have their own approach, consensus is always key when making decisions that affect the business. Cooperatives use elected representatives or management positions who oversee workers.
How does the business management end of things get done? (Who pays the bills?)
Again, each collective will approach this in their own way. In our case, in addition to our usual daily work, each of us takes on administrative tasks on the basis of skill or inclination. We break down the administrative areas as follows: Accounts payable, accounts receivable, financial, sales, marketing/promotion, accounts development, payroll/vacation, new technology research.
How do you decide what to pay yourselves - benefits and stuff like that?
We’re the owners as well as the workers; while this presents sometimes competing instincts, our decisions are ultimately based on what we’d like, what’s fair, and what’s good and reasonable for the business. One of the incentives to be responsible in this area is the year-end distribution of profit shares; if spending has been high, we have little to distribute at year’s end. If investment in the business has been too low, profits will diminish over time.
I'm part of a group starting a worker co-op or collective. How should we incorporate? Do you know where to find good legal advice and funding? What about bylaws or co-op structure?
You're getting into the fun stuff now! The short answer is we can help you. Depending on where you're forming and what you want to do we can show you what others have done or connect you with resources that will help you get started. Give us a call- 1-888-682-4801 and we'll be glad to talk with you.
