When a workers' cooperative works: The case of Kerala Dinesh Beedi

An article presents a case study of a large cooperative in South India that has worked well for a long time. The cooperative illustrates, among other things, that worker control and worker democracy are not necessarily inconsistent with the degree of hierarchy and delegation that may be essential to effective operation. The cooperative has been able to compete despite paying wages and benefits that are dramatically higher than those paid by its competitors, while at the same time providing far better working conditions. Part of the explanation for its success is good fortune at its inception in attracting effective, honest, and dedicated managers and, subsequently, in avoiding government involvement and in being able to ignore cumbersome and unsuitable legal rules. Perhaps more important is the workplace culture and the ability to harness forms of mutual monitoring not available to competitors.