Scott Bader Commonwealth
Description
Jeremy Brannon:
"In 1921 there was an experiment in England called the Scott Bader Commonwealth. An entity was founded, but it was slightly different from the ones we are used to. This one had limitations put on it BY ITSELF, not a state.
When the company was chartered, several items were critical in its constitution's creation:
- A size limitation of 350 workers. If it grows beyond that, a new enterprise is founded upon these principles.
- A Maximum salary no greater than 7 times the lowest salary, regardless of age, sex, race, etc.
- The workers function as partners, not employees (i.e., no dictatorial hierarchy)
- The board of directors is responsible to the workers and the workers have the right to appoint and dismiss directors as they see fit via a general membership assembly.
- 60% of the net profits are retained for taxes and self-finance (investment in capital, resources, etc), the remaining 40% to be divided into 2 halves: 1/2 to workers as bonuses, the other 1/2 to outside charities or public works.
- none of the products of the commonwealth are to be sold for the purposes of war.
With these six items, you have the foundation for a non-monopoly cooperative that operates on a partial-capitalist (via use of markets) and partial-socialist (through worker control) system that can expand indefinitely as many small companies.
350 is not an arbitrary number. 350 people is assumed to be around the maximum number of people that you can know fairly well without having a massive system where no one knows anyone else (e.g., MNCs). This allows the workers to be slightly empowered by retaining some knowledge of who they are appointing to leadership positions.
The maximim salary of 7 times the minimum has a purpose as well. First, it limits the class division to a mere factor of 7, not infinity, or rather the limit of the value of resources exploited. Second, it serves a capitalist drive to attain more by gradation of the wage. Third, it doesn't erode class solidarity in the way our current system does, where the sky is the limit.
That every worker is a partner or member in the commonwealth dictates a method of avoiding illegitimate authority within the workplace that scatters creativity, turns people into drones, and alienates workers in the workplace. Removing the power imbalance and classist division further strengthens solidarity between workers, raising morale and making a more fulfilling atmosphere." (http://open.salon.com/blog/jeremy_brannon/2009/06/27/common_ownership_scott_bader_commonwealth - dead link)
Discussion
Contrary to the implication of the article "Scott Bader was founded in 1921 and conventionally managed for 30 years."[1] It was given by the owners into worker control in 1951, re-established on Quaker principles, and still exists as a company.