Worker cooperatives may sound like something out of the 19th century, but they still exist in the age of global capitalism.
In Spain, for instance, the Mondragon Corporation is a huge worker-run cooperative based around 95 collectives – the largest cooperative in the world.
Worker cooperatives produce products or services. But they are run very differently. Workers can become members of the cooperative they work for by buying a share of the business. This gives them a vote in how the business is run and a share of net income, after costs have come out.
Co-ops do not have external shareholders – the profits stay with workers. Rather than bosses deciding and workers carrying out the tasks, worker cooperatives are based on democratic principles. Big decisions are discussed and then voted on, and each member gets one vote. They offer a direct way for workers to control their production and shape the economy.
In Australia, these models peaked in the 1980s. Most are gone, though a few older cooperatives are still running, such as Tasmanian recycling cooperative Resource Work Collective, founded in 1993.
In recent years, there’s been renewed interest in the model. The Earthworker cooperative network focused on Victoria’s Latrobe Valley. The goal: find new types of employment and products in a coal area undergoing transition.
Coal plants in the Latrobe Valley provided jobs for generations of workers. Their closure poses real challenges.
How well does the model work?
Mondragon is the most well-known example. Founded in 1956 in the Basque region of northern Spain, Mondragon grew and became self-sustaining. It has developed supporting institutions such as research and development companies and even a university. It also established a credit union, which attracted capital and provided loans to cooperatives.
While Mondragon is a successful example, these organisations face a number of barriers to their survival.
Critics have argued worker cooperatives tend to fail as workers do not understand the market for their products, but Mondragon undercuts this criticism.
Worker cooperatives can have difficulties raising capital. Some banks can be reluctant to invest as they may lack familiarity or sympathy with the model.
Instead, workers may put some or all of their savings into the organisation to get it started. Taking these kinds of risks means some workers may be focused on getting immediate rewards, rather than investing surplus funds or building up cash reserves.
Workers can sometimes choose to transform a successful cooperative into a capitalist enterprise to achieve greater capital gains.
Surprisingly, trade unions are generally hostile and suspicious of worker cooperatives. Union organisers may fear worker-owners could see little need for trade unions in representing their interests, or that cooperatives could undercut union wages and conditions to remain competitive.
To date, worker cooperatives have had a limited impact in Australia, despite the relatively strong historical position of workers.
Compared to member cooperatives and other types, worker’s cooperatives tend to be short lived in Australia. That’s because most were formed by workers after an industrial dispute or to maintain employment during economic downturns.
In 1987, for instance, workers retrenched by a major communications company decided to form a co-op which became the Electronic Service Centre in Fairfield, New South Wales. A later example is Abrasiflex, a NSW company bought by workers facing retrenchment in 1993. Both cooperatives failed by the early 2000s.
Their popularity peaked in the 1980s, when the model was promoted by state Labor governments. Policymakers saw them as a short term means to resolve unemployment, rather than a long term means to secure economic democracy.
The model lost traction in the early 1990s due to an economic downturn, capital shortfalls and changing political circumstances.
New energy
The idea for Earthworker came from discussions between unionists and environmentalists over job creation and the environment. Earthworker founders were influenced by the Green Bans.
As the project’s website states:
Conflict can occur between environmentalists who want to shut down certain industries, and unionists who want to protect jobs […] we should work together for a “just transition” and create jobs that aren’t just better for the earth, but for workers too.
In this respect, Earthworker has much in common with the Cleveland Model in the United States, which links green business, local economic development and fair labour practices.
Earthworker only formally became a cooperative in 2011, though discussions date back to the late 1990s. In 2016, the network bought a hot water tank manufacturer in Morwell and began making their own tanks and solar hot water systems as the Earthworker Energy Manufacturing Co-operative. The cooperative is aimed at helping the Latrobe Valley’s transition away from coal power jobs.
Morwell and other Latrobe Valley towns are losing coal jobs. But new industries and business models are emerging.
Earthworker promotes the payment of trade union wage rates and conditions. The goal is to build a network of cooperatives supporting each other to build economies of scale.
Their other cooperatives include Earthworker Construction (residential construction, landscaping and maintenance) and Earthworker Smart Energy (improving thermal efficiency and comfort in homes). These cooperatives are generally small, with 10 members or fewer.
Another cooperative, Redgum Cleaning, closed down in 2023. It was not viable due to staff shortages, increased costs and work cancellations during the pandemic. Paying union rates in a competitive industry also assisted its demise.
By contrast, the Earthworker Energy Manufacturing Co-operative has found a way to survive in a competitive market.
Niche or mainstream?
Australian worker cooperatives ensure manufacturing and services remain locally owned and controlled. Could they expand? It’s possible.
Capital remains a major issue for Australian worker cooperatives such as Earthworker. Without capital, it’s hard to scale. Government efforts to expand domestic manufacturing often overlook this model.
The Earthworker network points to one future for Australian worker cooperatives. Despite the failures of the past, Earthworker’s focus on building a network of sustainable businesses rather than a single cooperative is a promising path.
Experience the joy and sense of purpose that connecting to community, nature, and your own creativity can provide this weekend at the Planetary Health Wellness Weekend. There will be delicious food and coffee, music, art, workshops, nature walks, talks, an Interfaith Gathering and the following stalls:
Food vendor: @8thingskatoomba Zensational Coffee Cart @blue_mts_conservation_society Blue Mountains Wildplant Rescue Blue Mountains Women`s Health & Resource Centre (BMWHRC) Greater Blue Mountains Rotary @permaculturematters Acoustic Ecologist and author of ‘Deep Listening to Nature’, Andrew Skeoch @lacebrookstitchery Sustainable death care BMCC Sustainability and Waste team BMCC Bushcare team View the full program and reserve your spot for a range of activities here (link in profile): https://bit.ly/4kUkzfm
Are humans the only species capable of grief? While grief is often treated as a uniquely human experience, any animal capable of forming attachments also has the capacity to grieve. Join Teya Brooks Pribac, author of ‘Animal Grief and Spirituality: Cross-Species Perspectives’ at the Planetary Health Wellness Weekend on Sat 28 Feb, as she reviews key theoretical foundations of cross-species grief. The flip side of deeply caring for animals is the grief we also feel when we lose them - beloved companion animals, wildlife, or animals harmed by human activity. By validating both nonhuman animal grief and human grief for other animals, this presentation invites a more compassionate and inclusive understanding of loss. Reserve your spot here (link in profile for Wellness Weekend): https://bit.ly/4kUkzfm
Would you like to help those around you who may be struggling with their mental health? Come along to the Planetary Health Wellness Weekend on Sat 28 Feb for an Introduction to Mental Health First Aid. Rotarian Ian Scott will define mental health, talk briefly about the most common mental health issues in Australia, and cover the basics of recognising when someone is experiencing a mental health issue or problem. He`ll outline what is covered in a full Mental Health First Aid course. We are planning to deliver a course later this year so it`s a great opportunity to learn more. Reserve your spot here (Link in profile for PH Wellness Weekend): https://bit.ly/4kUkzfm
At our Planetary Health Wellness Weekend on Sat 28 Feb, Christopher Smith and Juan Roberson, Shared Reading facilitators, will introduce how the reading and discussion of great short stories and poetry can change lives and strengthen social connection, compassion, and empathy. Shared Reading, or social bibliotherapy, for all ages, is one of the most inspiring and magical ways of dealing with loneliness and the struggles of the human condition. "Shared reading makes the process of revealing who you are to other people safer." Learn how groups can be run in-person and online. Reserve your spot here (Wellness Weekend link in profile): https://bit.ly/4kUkzfm
You can view Christopher Smith`s TED Talk here: https://www.youtube.com/watch? v=dAxk61E0R88
It`s just under a week until the Blue Mountains Interfaith Gathering on Sun 1 March, starting with a smoking ceremony by Chris Tobin at 2pm. It`s the culmination of the Planetary Health Wellness Weekend which is looking at physical, emotional, mental and spiritual health. Afternoon tea will be provided. Reserve your spot here (link in profile under Wellness Weekend): https://events.humanitix.com/planetary-health-wellness-weekend
Join Harumi Hayakawa for an introduction to ikebana, the Japanese art of flower arranging at the Planetary Health Wellness Weekend on Saturday 28 February. You’ll get hands-on practice creating an arrangement and learn about the history and philosophy of ikebana, and how this calm, meditative practice uses flowers as a gentle and creative form of therapy. Reserve your spot here (link in profile): https://events.humanitix.com/planetary-health-wellness-weekend
Learn how to incorporate meditation and Mindfulness-Based Stress Reduction into your life at our Planetary Health Wellness Weekend on Sat 28 Feb. Experience a short interactive mindfulness activity led by Betty Ramsay, physio and health coach at The University of Sydney. She has years of experience working with people who are living with life stresses including caring roles, work demands, pain, chronic illness, depression, and anxiety. Reserve your spot for this inspiring and free event here (link in profile): https://events.humanitix.com/planetary-health-wellness-weekend
Thought about doing yoga but never tried it? Join Sheila Annis from Mountain Mist Yoga in Woodford to experience how this rich and vast practice can lead you on a path to better health, and can even be practised from a chair! Reserve your spot for the Chair Yoga session on Sat 28 Feb at the Planetary Health Wellness Weekend in Katoomba here (link in profile): https://events.humanitix.com/planetary-health-wellness-weekend
Learn more about Mountain Mist Yoga here: https://mountainmistyoga.com/
Join multi-award-winning photographer Sue Lightfoot at the Planetary Health Wellness weekend on Sat 28 Feb as she shares how taking up photography to manage her mental health after PTSD has opened up a life filled with creativity, compassion and consciousness. Living a creative life has expanded to include creating permaculture gardens from recycled materials and finding multiple ways to give back to the community. Through creativity she has learnt "to see and feel the world, to live with awe and wonder, to change lenses, shift [her] focus and embrace all forms of light … to enjoy nature and mother earth and accept we are all connected.” She’s been inspired by Miksang, Tibetan for “good eye”, which is a form of contemplative photography that is about seeing and photographing the world exactly as it is, rather than how we want it to be, focusing on colour, light, texture, and pattern. Her session is free but reserve your place here (link in profile): https://events.humanitix.com/planetary-health-wellness-weekend
Learn more about Sue and her work here: www.suelightfoot.com
We are Nature, and the more intimately we connect with the living world around us, the more alive we are. Hone your observations and connect more deeply in an inspiring nature journalling workshop led by Anna Barnes from @ArtFoodCultureNature on Saturday 28 February at the Planetary Health Wellness Weekend. Bookings essential here (link in profile): https://events.humanitix.com/planetary-health-wellness-weekend
“When we see with clear eyes, we know that we are surrounded by beauty. Let yourself fall in love with your life by paying attention”. John Muir Laws
How can we engage our hearing to connect more deeply to nature around us? Join us at the Planetary Health Wellness Weekend on 28 February and 1st March to hear from one of the most inspiring and engaging presenters we’ve ever had at the Planetary Health Centre. Author and acoustic ecologist Andrew Skeoch will guide us into hearing the languages of nature. Learn how we can develop our auditory awareness, identify species by ear, recognise behaviours and repertoire, and find empathy with the voices of other beings. Andrew’s presentations are an immersive weaving of evocative recordings, fascinating spectrogram analysis and original ideas. You’ll hear the natural environment around you in a whole new way. Each morning at the Wellness Weekend Andrew will also lead Deep Listening Immersive Field Workshops demonstrating how to increase your sensitive auditory perceptions of the extraordinary natural world around us. Tickets available here (link in profile): https://events.humanitix.com/planetary-health-wellness-weekend
This event has been made possible because of the generous support of Greater Blue Mountains Rotary and the Katoomba and Upper Blue Mountains Bendigo Community Bank.
We are looking forward to this (Em)power(ing) tools presentation being delivered by Robyn Catchlove, Sherlie McMillan, Suzie van Opdorp and Teja Brooks Pribac at our Planetary Health Day on Sat 28 Feb. It`s free but you need to register to attend here (link in profile): https://events.humanitix.com/planetary-health-wellness-weekend
This interactive presentation explores an unexpected but deeply empowering practice: using power tools. With the help of co-presenters and their favourite tools, the session demystifies DIY and shows how accessible practical skills really are. Beyond the satisfaction of building and repairing, working with power tools fosters confidence, patience, and problem-solving skills. It can also be financially empowering, reducing dependence on paid labour, and reinforces the belief that challenges—practical and personal alike—can be worked through with focus, persistence, and curiosity. This session invites participants to reconsider what empowerment can look like, and how hands-on making can translate into resilience in everyday life.
It`s one of many events during our Planetary Health Wellness Weekend at the Planetary Health Centre in Katoomba on 28 Feb and 1 March and has been organised in collaboration with Rotarians 4 Planetary Health and Greater Blue Mountains Rotary
In Katoomba, a grassroots litter-picking group tackles rubbish before it reaches our water supply. Their story shows how local environmental action, fueled by community connection, can drive meaningful change for planetary health.
