How CWCF Is Addressing the Challenges of the Worker Co-op Model

By Kenzie Love and Hazel Corcoran

As Simon Kinsey observes in his recent case study, Value and Challenges of the Worker Co-op Model, the value of the worker co-op model, in offering workers the power to be collectively self-employed and to be able to disengage from the exploitative wage labour market, is clear. It’s also clear that in spite of this valuable contribution, worker co-ops in Canada face challenges that have prevented them from becoming more widespread. However, CWCF is working to address these challenges in a variety of ways.

Raising awareness

Because the worker co-op model remains unfamiliar to many Canadians, CWCF offers an opportunity to learn more about it through its regular “What Is a Worker Co-op?” webinars, introductory sessions for entrepreneurs and others curious about worker co-ops. For those who have a group of at least three and a concept for a business, CWCF also offers its Worker Co-op Academy, an online incubator that guides start-up groups through developing and launching their worker co-op enterprises.

Supporting worker co-ops

For many of the people who join worker co-ops, the opportunity to work in an environment that shares their values holds significant appeal. However, individuals who join existing worker co-ops sometimes lack the necessary knowledge about management and governance, financial matters, and other critical aspects of running this kind of enterprise. CWCF’s 101 webinar series covers all of these areas, with presentations by experienced co-op developers.  

Our annual Conferences are another source of support – for practical training opportunities, networking, and inspiration in building the movement for collective worker empowerment. Resources from past Conferences are available on our website.  For example, you can find the 2023 Quebec City Conference documents here, including from sessions such as Mental Health for Worker Co-ops and Mental Health & Holistic Wellbeing for Equity-Denied Groups and the Role of Social Purpose.  The upcoming fall 2024 Conference will be virtual and free to attend, with funding being offered to members who wish to host associated regional mixers. 

The CWCF Technical Assistance Grant Program also provides support to CWCF worker co-op members in a wide variety of areas, offering grants of up to $4,000 to work with co-op developers or other consultants on marketing, financial administration, governance, expansion, conflict resolution or legal issues. Worker co-ops that are starting up are also eligible to apply.  Past recipients of the grant have testified to their value.

Government relations

Because government support is critical to a strong worker co-op sector, lobbying is an important part of CWCF’s activities. CWCF will soon submit its pre-budget brief to the federal government advocating for additional support for worker co-ops and enabling tax changes.  Thanks in part to CWCF’s efforts, the federal government recently announced that worker co-op conversions would receive comparable tax treatment to employee ownership trusts, with draft legislation expected soon. CWCF is also currently lobbying for the federal government to create a more enabling environment regarding self-directed registered plans, through measures such as allowing small worker co-ops to make use of these plans.  

Conclusion

CWCF is better resourced now than before, with a larger staff team, the ability to offer increased funding, and a stronger lobbying presence. But if we are to realize the huge potential of democratic worker co-operatives to meet people’s needs, as we face escalating economic, social, and environmental crises, we need a vibrant ecosystem supporting their development.  This includes enabling legislation, promotion, better education, technical assistance, capital, and after-care, working in solidarity with and for equity-denied groups. While providing all the support that we can with current resources, CWCF continues to seek to build a stronger ecosystem and to partner with others in building a Solidarity Economy.