For too long, the corporate world has been built on an absurd contradiction: the people who actually do the work have no say in how it’s run, while those who own the business—often a faceless cabal of investors—sit back, collect dividends, and periodically demand “efficiency,” which usually translates to layoffs, wage suppression, or relocating the entire operation to wherever labor is cheapest. The result? A world where workers toil away in someone else’s castle, growing someone else’s wealth, while they themselves live one bad month away from financial ruin.
Employee ownership changes this. It says that the people who create the value should also share in it. It says that the purpose of work isn’t just to enrich a handful of executives and hedge funds—it’s to sustain the people who actually do the work.
There are many forms of employee ownership, from worker cooperatives, where employees own and control the company directly, to Employee Stock Ownership Plans (ESOPs), which grant workers ownership shares. The common thread is that employees are not just wage earners but stakeholders, with a voice in decision-making and a direct benefit from the company’s success.
And it works. Employee-owned businesses are more stable, productive, and resilient during economic downturns. When people have a real stake in their workplace, they don’t just punch the clock—they innovate, they problem-solve, and they take care of their business because it’s theirs.
One of the best examples of this is Mondragon Corporation, a massive network of worker-owned cooperatives in Spain’s Basque Country. Founded in 1956, Mondragon has over 80,000 worker-owners across more than 100 cooperative businesses. Decisions are made democratically, profits are shared equitably, and instead of layoffs during crises, workers are shifted to different roles. Unlike traditional corporations, where CEOs cut jobs to protect shareholder value, Mondragon protects people.
The United States has its own examples. Publix Super Markets, one of the country’s largest grocery chains, is employee-owned and consistently ranks high for worker satisfaction. W.L. Gore & Associates, the makers of Gore-Tex, operates on a team-based structure where employees share responsibility and decision-making power. King Arthur Baking Company, a 100% employee-owned business, has been thriving for over 230 years. These aren’t niche businesses; they’re proof that employee ownership scales.
The economic impact is undeniable. Employee-owned companies are 25% more likely to stay in business than their traditionally owned counterparts. ESOP participants have higher retirement savings and greater financial security, reducing wealth inequality. Worker-owned businesses are more productive, with participatory management leading to higher efficiency and engagement. And wealth inequality remains one of the defining economic issues of our time. In the United States, the racial wealth gap is even starker, with the median white household holding nearly ten times the wealth of the median Black household. Employee ownership is one of the few proven ways to close this gap, giving workers direct equity in the businesses they sustain.
Argentina offers a striking example of worker ownership as a response to economic collapse. During the country’s 2001 financial crisis, rather than allowing their workplaces to be shuttered, workers took over failing factories, restarted production, and transformed collapsing businesses into thriving cooperatives. The movement became known as the “recovered factories” (fábricas recuperadas), proving that employee ownership isn’t just a good idea in stable times—it’s a lifeline during a time of crisis.
If you’ve ever worked a job where you had zero control, where bad decisions from the top rained down on you like some kind of Kafkaesque nightmare, you already know the psychological damage traditional corporate structures inflict. Employee ownership offers autonomy, dignity, and a say in decisions that affect your livelihood. When people are treated like humans instead of profit-generating assets, they thrive. Employee-owned businesses report higher job satisfaction, lower stress levels, and greater engagement. Job security isn’t dictated by the whims of investors, and workers feel more invested in their company’s success when they know they’ll share in the benefits.
If employee ownership is so effective, why isn’t every business doing it? Part of the problem is lack of awareness. Many business owners simply don’t know how to transition their companies into employee-owned enterprises. Financing is another barrier. Worker buyouts require capital, and traditional banks often don’t understand cooperative models. And, of course, corporate resistance plays a role. Executives and shareholders aren’t eager to give up their concentrated power. But these are solvable problems. Policies that encourage employee ownership—tax incentives for selling to workers, public loan funds for worker buyouts, and cooperative business education—can break down these barriers.
Some countries are already leading the way. Italy’s Marcora Law allows workers to use unemployment benefits as capital to buy out failing businesses. France’s SCOP model provides legal and financial support for worker co-ops. The UK’s Employee Ownership Trust (EOT) model gives tax incentives to business owners who transition to worker ownership. In the United States, the Main Street Employee Ownership Act of 2018 made it easier for small businesses to become worker-owned, but more support is needed to make employee ownership the norm rather than the exception.
This isn’t just about making workplaces fairer—it’s about restructuring power itself. Traditional corporations operate on a feudal model: a small ruling class of executives and investors dictates terms while the majority of workers have no say. Employee ownership is economic democracy. It redistributes power and wealth in ways that strengthen the economy rather than destabilize it.
Imagine if Amazon, instead of making Jeff Bezos rich, was owned by its workers. Or if gig workers weren’t scraping by, but instead owned the platforms they work on. Imagine if wealth wasn’t concentrated, but shared equitably among those who create it. It’s a choice that societies can prioritize with law.
Therefore, under Folklaw:
Employee ownership shall be promoted through tax incentives, financial support, and legal frameworks that make transitioning to worker-owned businesses accessible. Business owners will receive incentives to sell to employees during succession planning, preventing unnecessary closures and consolidations. Public loans and cooperative banks will provide capital for worker buyouts.
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