The co-operative business model is intended to be an alternative to the traditional capitalist business model, in which the business’ owners or their representatives (managers) run the business and receive the profits from the business’ operations. In a co-operative, the customers of the business are also the owners of the business. Customers usually have to purchase a membership in the co-operative to use its products or services. The members elect a board of directors which is responsible for overseeing the business’ operations, and profits from the business are returned to the members in the form of dividends or reduced prices.
Many co-operatives were formed in areas or industries that traditional businesses refused to serve – either because they did not think there was enough of a market, or because they did not think they would make enough profit. So the co-operative business model is not only an alternative to capitalist business; it’s also a direct challenge to that model. As such, you would think that co-operatives would also challenge the traditional top-down relationship between managers and workers, and treat their employees fairly and respectfully. But workplace disputes at three different co-ops are showing that unfortunately this doesn’t always happen.
In Saskatchewan, unionized workers at the Saskatoon Co-op, (more…)