Associated work in a cooperative is neither dependent work nor selfemployed work

Abstract

The celebration of the 100th anniversary of the ILO’s Cooperatives Unit sparked interest in reviewing the progress made by this institution in relation to the recognition and promotion of worker cooperatives. To this end, the Promotion of Cooperatives Recommendation (2002) and the Guidelines concerning statistics of Cooperatives (2018) were taken as the focus of study. From the analysis of both documents, the conclusion was drawn that although the former calls for the recognition of cooperatives in the terms established by the ICA, and for their promotion by States, establishing a legal framework favourable to them and compatible with their nature as self-managed enterprises, the fact is that associated work is still not recognised as a mode of work distinct from dependent work (wage-based) and self-employed(individual) work. This lack of recognition does not correspond to the recommendations of the ICA (2005) claiming that “the relationship of the worker-member with their cooperative should be considered as distinct from that of conventional wage-based dependent work and self-employed work”. The lack of recognition is often attributed to the modest size of these cooperatives and their possible use to circumvent the application of labour law. However, as we have shown, the former cannot be proven, and the latter is not sufficient reason to ignore or prohibit them, since there are other means to combat fake cooperatives. The lack of a contractual relationship between the worker-member and the cooperative is not a weakness but a strength and is the result of having a specific legal type for the cooperative, as opposed to other countries such as France or Italy which, because they lack such a type, are incorporated as Public Limited Companies or Limited Liability Companies, and subsequently hire their members so that they can work in their company.

Employee-owned firms in France

“…This is also the case for CAE entrepreneurs. In this, French law differs from Spanish law, for example, which recognizes a specific status of associated labour (see Fajardo, 2021).…”

Care cooperatives in Uruguay, Argentina and Chile; a look at their hinderers and opportunities to achieve development

“…Cooperatives have a long-standing historical presence, dating back to the late nineteenth century, and have experienced notable growth throughout the twentieth century in Latin America (Coque Martínez, 2002). Today, they remain a significant form of workers' organization, characterized by unique attributes that empower laborers to effectively navigate the challenges posed by the current labor market contexts (Dzembrowski, 2018;Arrieta et al, 2022;Fajardo, 2022). These cooperative structures serve as pivotal hubs for individuals with shared needs and interests (Arrieta, 2019).…”

“…Last but not least, utilizing the services provided by cooperatives can significantly improve the well-being of its members (Ma & Abdulai, 2016;Liu et al, 2022). Cooperatives share certain traits but are structured differently depending on the social and economic environments in which they are formed, as well as the national regulatory frameworks (Fajardo, 2022). For example, the evidence shows that while some countries like Spain have endowed cooperatives with specific legal frameworks providing them with their organizational models, other countries, like France or Italy, have more comprehensive regulatory frameworks that do not specifically include the concept of cooperatives and with the law that permits the formation of this sort of organization through other legal figures (Fajardo, 2022).…”