Labour Co-operatives, Labour-Capital Partnerships, and Profit-Sharing Schemes
One radical reform of our institutions which has been advocated as a way of coping with stagflation is the replacement of our capital—entre-preneurial firms by labour co-operatives. It is proposed to get rid of the problems of the wage explosion by getting rid of wages.
1. The Case for Competitive Labour Co-operatives
In its simplest unadulterated form the labour co-operative is a productive firm in which the workers themselves own and manage the business. The funds needed for the purchase of the capital equipment and for the finance of the working capital are raised by borrowing at fixed interest in the capital market. The workers purchase the necessary ...