2016 STATE OF THE SECTOR
Worker Cooperatives IN the U.S. WORKER CO-OPS ACROSS THE U.S. WE ESTIMATE THAT THERE ARE
357
THE TYPICAL WORKER COOPERATIVE
Worker Cooperatives and democratic workplaces
EMPLOYS
with an estimated* workforce of
WORKERS, WHO MAKE
6,833
AND AN ESTIMATED* TOTAL GROSS REVENUE OF
$428,188,895
9.5
$15.82
PER HOUR, and WORK
30.35
HOURS PER WEEK
BRINGS IN AN AVERAGE OF
15
$3,930,786
NEW WORKER COOPERATIVES were STARTED this year
IN REVENUE EACH YEAR, An average PROFIT OF
11
$150,075
conventional businesses converted to worker ownership Statistics in this report are based on 2016 economic data. * Estimated numbers are calculated based on the reported figure plus the total number of nonparticipating cooperatives, multiplied by the median.
and ON AVERAGE has a PROFIT margin of
3%
NET GROWTH OF BUSINESSES
301 2013
6.0%
319 2014
2.8%
330 2015
u
u
u
Since we have started to track worker cooperatives in the U.S., there has been slight growth. 2.4%
$15.82 PER hour
338 2016
PAY RATIO
The vast majority of worker cooperatives maintain a
Reporting worker cooperatives show a workforce that is 63% people of color. This is an increase from the 2015 percentage of 59%.
37 % 43 %
2% 1% 1%
Black Latino White Asian/Pacific Islander Native American
HOW WORKER CO-OPS GET STARTED Most worker cooperatives operating in 2016 began as startups.
Conversion 23%
2 - to -1
top-bottom pay ratio or less.
The average large U.S. corporation has a CEO-to-worker pay ratio of 303-to-1, this ratio verifies that worker cooperatives are prioritizing the reduction of internal inequality over other compensation goals.
ENTRY WAGES The entry level wage paid at all reporting worker cooperatives ranged from $8.00 / hour to $50 / hour, with many clustered around
$10 - $13 PER HOUR
PATRONAGE
A substantial portion were converted from existing conventional businesses. Other/Not Known 7%
HOURLY WAGEs The typical worker makes
DEMOGRAPHICS
16 %
COMPENsATION
Worker co-ops that distribute surplus as patronage to members have a wide distribution of payments from $1,800 to $1,960,000 to the collective membership, with a median total patronage of Self-started 56%
$18,900
Incubated 14%
This report is based on the participating 102 businesses, and only businesses that generated revenue and paid workers during FY2016 were included in the effort. For more information visit institute.coop/2016stateofthesector
Patronage can be a significant supplement to wages.
This report is a co-production of the U.S. Federation of Worker Cooperatives and the Democracy at Work Institute
Worker Cooperatives IN THE UNITED STATES
1
a n d
PORTLAND, OR
14 15 14 14 2013
2014
2015
2016
MADISON, WI
OLYMPIA, WA
5
2013
5
5
2014
2015
w o r k p l a c E S
2013
9
2014
2015
3
2013
12 13 12 12 2013
2014
2015
2016
5
5
2016
SEATTLE, WA
6
PORTLAND, ME
3
8
2016
MINNEAPOLIS, MN
16
17 15
14
6
5
10 12 11
2014
2015
5
2015
5
2016
NEW YORK, NY
17 18 21 20 2013
2013
2014
2015
5
8
7
13
SAN FRANCISCO, CA
14
DENVER & BOULDER, CO
4
57 58 55 50 7
ASHEVILLE, NC
6
2013
6
2014
5
2015
2014
5
2016
2015
8
LOS ANGELES, CA
16%
REGIONAL HUB
0
2013
2
2014
2
2015
4
2016
HIGH GROWTH REGIONAL HUB 10+ BUSINESSES
3%
The data included in the map refers to net growth (new and existing cooperatives, minus closed cooperatives) and only includes businesses that generated revenue in a given year, employed paid workers in the same year, and had democratic governance in place. Entities with shared finances are counted as one organization.
13%
3% 3% 4%
11%
6% 8%
8%
2016
6
3
2013
5
10 11
2014
2015
2016
5
5
2014
2015
6
2014
2015
6
2016
15
WASHINGTON, DC
7
2013
7
7
2014
2015
7
2016
5
2016
BALTIMORE, MD
2016
While there are an estimated 357 worker cooperatives and democratic workplaces across the country, this map represents hubs of activity and high growth.
2015
17
16%
36 40 39 41 2013
2014
PHILADELPHIA, PA
2013
RURAL U.S.
2016
BOSTON, MA 2013
CLEVELAND, OH
18
2016
2015
18 18 18 18
4
2016
6
2015
2014
12
2016
16
2014
MA (OUTSIDE BOSTON)
29 33 38 47
2013
2013
10
13
11 12 11 11 2013
4
2014
11
9
4
3
9
4 1 2
3
2
d e m o c r a t i c
9%
MAJOR INDUSTRIES Manufacturing Professional, Scientific, and Technical Services Accommodation and Food Services Construction Health Care and Social Assistance Transportation and Warehousing Information Educational Services Retail Trade Agriculture,Forestry, Fishing, and Hunting Waste Management Remediation Services Other
4
2013
4
2014
4
2015
4
18
2016
AUSTIN, TX
5
2013
6
2014
7
2015
8
2016