Most firms don’t arise as the result of a group of people getting together with a blank slate as to how to.organise themselves; they start as one or two people who found a firm, which they continue to manage , hiring employees as they go along. Such firms are hierarchical because of the unequal status of the founders and hirelings, not because they are better … and cooperatives are scarce because of the lack of a route to.them.
My personal experience is that unions and co-ops tend to shift compensation to those with seniority and those involved with corporate politics instead of the skilled, productive, and competent ones. This then causes more time and energy to be spent on corporate politics and drives out the most productive employees.
I’ve seen this happen in capitalist corporations, too. In either case, the people who decide on compensation can increase their compensation with no regard to their own productivity. Indeed under capitalism, the owner ’s right to profit is based solely on ownership, not on any input.
Most firms don’t arise as the result of a group of people getting together with a blank slate as to how to.organise themselves; they start as one or two people who found a firm, which they continue to manage , hiring employees as they go along. Such firms are hierarchical because of the unequal status of the founders and hirelings, not because they are better … and cooperatives are scarce because of the lack of a route to.them.
I’ve seen this happen in capitalist corporations, too. In either case, the people who decide on compensation can increase their compensation with no regard to their own productivity. Indeed under capitalism, the owner ’s right to profit is based solely on ownership, not on any input.