Structuring Firms to Benefit Low-Income Workers: An Employee Ownership Case Study

This chapter and case study examine how and which structured elements of an employee-owned business contribute to building the economic security and asset wealth of the lowest-wage and skilled employees of the firm. It paves the way for greater understanding about how intentionally structured workplaces can address wealth inequality and economic security through income and non-income opportunity systems. The study draws upon qualitative interviews with four members of management, two plant managers, and 12 low-income employee-owners. Company documents and confidential employee data were provided for direct research analysis. Interviews took place at company locations, and covered employees from all shifts. Employee ownership structures provide an important tool for advancing policy support and management practices to rebuild the wealth building benefits of work for low-income workers. To ensure confidentiality, the study is anonymized and does not directly draw on the worker-owner interviews. This limits the opportunity to demonstrate the effect of structure on workforce; nonetheless, the empirical data tell an important story. Expanding wealth inequality and economic precarity among low- and moderate-income workers has raised broad debates about how shifts in the structure of work, through new business, capital, and ownership structures, may be contributing to these social problems. The employee benefits of employee ownership are not fully studied. This case contributes to understanding how employee ownership may reduce gender and racial wealth gaps, build family well-being, and become a model for structuring opportunity for those traditionally left out of the economic mainstream.