Participation and productivity: a comparison of worker cooperatives and conventional firms in the plywood industry

Article Abstract:

The question of whether workers' participation in a firm's decisionmaking process results in productivity growth was examined in worker-owned plywood mills. The main issue was whether worker-owned mills are more productive than conventionally owned mills. Research on input-output ratios of plywood mills in the Pacific Northwest suggest that worker participation results in neither significant efficiency gains nor efficiency losses. Cooperative mills behave differently from conventional mills when faced with adverse conditions. A comment on and general discussion of the article are also included, along with the author's response.

Plywood & Veneer, Veneer, Plywood, and Engineered Wood Product Manufacturing, Participatory management, Labor productivity

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The objectives of worker cooperatives

Article Abstract:

Empirical data on 11 plywood cooperatives and 21 conventional plywood companies in Washington state from 1968-86 allowed estimation of the parameters of a general objective function and suggested that the cooperatives' objectives included earnings, hours, and employment. In a special case where the organizations' rents described the objectives, the cooperatives were more concerned with employment and less with net earnings.

Management

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The behavior of worker cooperatives: the plywood companies of the Pacific Northwest

Article Abstract:

The largest worker-owned plywood-manufacturing companies were studied to determine the way in which cooperatives responded to changes in the economic environment and to determine the profitability of cooperative membership. The results indicated that cooperatives were more likely to make adjustments in wages rather than employment. Share-price data indicated that membership in cooperatives was very profitable.

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