Co-op Law
Resources for Worker Cooperatives
Co-op Law
Resources for Worker Cooperatives

International Cooperative Law

According to the International Cooperative Alliance, at least 12% of people worldwide are members of one of the three million cooperatives that exist around the globe. These cooperatives operate across diverse economic sectors, proving themselves to be both resilient and empowering. While deeply rooted in local communities, cooperatives strive to extend their economic and social benefits globally. Despite their widespread impact, gathering comprehensive data on international cooperatives is tricky because every country has its own cooperative laws and method of reporting data. Here is just a glimpse into the dense international cooperative ecosystem.

Global Directories

Co-op Global Directory & Map– by Indentity .coop

The World Cooperative Monitor –  by the International Cooperative Alliance and European Research Institute on Cooperative and Social Enterprises (Euricse)

The International Organisation of Industrial and Service Cooperatives

Africa

African Co-op Directory from ProdAfrica Business Directory

Ethiopia: The Mekelle Prison Project– In Mekelle, a town in north Ethiopia, the Prison Administration has initiated program which as lead to the creation of 31 cooperatives that provide decent work for prison inmates and released prisoners.

Argentina

Cooperativa Kbrones– textiles cooperative formed in 2010 by inmates of the Gorina prison.

Australia

Australian Co-op Directory from Business Council of Co-operatives and Mutuals

Brazil

COOSTAFE – Cooperativa Social de Trabalho Arte Feminina Empreendedora- an arts and crafts co-op formed in 2014 by inmates of the Ananindeua women’s prison in Belem do Pará.

Canada

Canadian Worker Co-operative Directory from The Canadian Worker Co-operative Federation

Chile

ESPACIO MANDELA– formed in 2016, the Mandela Cooperative was established to sell products made in workshops focused on skill-building and literacy, and to offer psychological support. This cooperative also provides support to inmates upon their release.

Costa Rica

El Instituto Nacional de Fomento Cooperativo (INFOCOOP)- a public institution in charge of promoting and developing cooperatives in Costa Rica

According to the International Cooperative Alliance, the first Costa Rican cooperative regulation dates back to 1943, when the first Labour Code was enacted, a regulation was included (Art. 262) which declared cooperatives “as one of the most effective means of contributing to the sustainability and development of popular culture and Costa Rican democracy”. 

Here is the National Report of Costa Rica Cooperatives created by the International Cooperative Alliance.

Dominican Republic

Legal Cooperative Framework Analysis Within the ICA-EU Partnership- National Report for the Dominican Republic

France

France has one of the most well-developed cooperative networks in the world, boasting nearly 2,000 registered worker cooperatives providing nearly 41,000 jobs

French law recognizes two distinct legal entities for cooperatives: 

1. one specifically for worker cooperatives, and
2. another designed for multi-stakeholder cooperatives and based on the Italian solidarity cooperative model.

SCOP (Société Coopérative et Participative)– Cooperative and participatory society is a distinct legal entity designed for worker cooperatives under Law No. 47-1775 of 10 September 1947. 

Noteworthy characteristics of a SCOP include:

  • Worker control: Workers must have at least 51% of the capital, and 65% of the votes;
  • Indivisible reserves: A minimum of 15% of surpluses must be placed in reserves that are permanently owned by the co-operative
  • Tax incentives: SCOPs do not have to pay the professional tax, which is 1.5% to 2.5% of revenues; income on worker shares is exempt from income taxes.
  • Reinvestment: There is a mandatory reinvestment of 0.42% of revenue to finance the larger worker co-op movement. These reinvestment fees are distributed between federations supporting worker co-ops and other cooperative finance tools.
 
SCIC (Société Coopérative d’Intérêt Collectif)–  Cooperative Society of Collective Interest, is a unique legal entity designed for multi-stakeholder co-operatives whose purpose is the “production and provision of goods and services that are a matter of social utility.” More details on SCICs can be found here.

Italy

Iran

The Democratic Republic of the Congo

Palestine

Puerto Rico

Cooperativa de Servicios ARIGOS– formed in 2003 by inmates of the Guayama

prison in the South of Puerto Rico with the governor’s support.

South Africa

Uruguay

United Kingdom

The Co-operative Group is the UK’s largest mutual business owned by nearly 8 million members.