Democratic Decision Making

Democratic Enterprise: Ethical business for the 21st century Co-operative Education Trust Scotland

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The Dilemma

TO PAY OR NOT TO PAY?

The Situation

You are all members of Glasgow Motorcycle Co-operative, a worker co-operative that specialises in the sale of high-end motorbikes and relevant accessories. You have been operating profitably for 6 years now and have recently hired new members. Some of you, those members who have been at the co-operative since it was established, have been complaining that the employee pay structure is unfair.

The Situation (2)

The current pay structure of the company is based on equality i.e. everyone is paid the same. Some of the members want to move to a pay structure that is based on the length of time you have been a member of the co-operative. An extraordinary meeting of the membership has been called and there is to be a vote on this issue.

The Decision

Change the pay structure so that you are paid more that longer you have been working for the co-operative.

OR

Keep the pay structure the way it is – equal pay for all.

The Rules

One vote per member (democratic)

Flat hierarchy (no management)

Debate for 5/6 minutes, at which point you can continue to debate or make your decision

Consider

What is the best decision for the membership as a whole?

What is the fairest decision?

Discussion

Majority Consensus

Issues

Benefits

Some Thoughts

A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.

(Everyone should be on the same page?)

Conclusion

Both decision making processes were DEMOCRATIC but are dissimilar in terms of equity (fairness).

Difference between a democratic process and shares-based process.

Democracy means equality in decision making, NOT in outcomes.