Editing Cooperative (section)

=== Stability of contracts ===
The formation of cooperatives has been used many times to create jobs in economically depressed sites. The communalization of wealth in poor areas often allows them to make the first investment in capital, which allows them to set the cooperative and start having benefits, thus producing an inflow of wealth in the community, which then is redistributed within the members of the cooperatives. This scheme of using cooperatives to create wealth and job opportunities in depressed areas has been famously used, for example, by the [[Mondragon Corporation]], which has provided long term stable jobs for the population of [[Mondragon, Spain|Mondragon (Euskadi)]] since the mid 50s.

The focus that cooperatives have in protecting jobs is reflected in research. Hanson and Prushinkaya have shown that, in the US, turnover rates are lower in WC than in CF (the turnover rate is the percentage of employees leaving a company within a certain period of time).<ref name=":0" /> Jobs at workers' cooperatives tend to be longer term.<ref name=":2">{{Cite web |title=First Global Report on "Cooperatives and Employment" – CICOPA |url=https://www.cicopa.coop/publications/cooperatives-and-employment-first-global-report/ |access-date=2023-07-22 |website=www.cicopa.coop|date=19 November 2014 }}</ref>

There are several explanations for this: higher compensation and wages for workers; higher job satisfaction; greater adaptability to crisis and economic difficulties, etc.

Research shows that WC show higher adaptability to crisis and economic hardships than CF.<ref name=":3">{{Cite journal |last1=Cristini |first1=Annalisa |last2=Grasseni |first2=Mara |last3=Signori |first3=Silvana |date=15 July 2023 |title=Can worker cooperatives stabilize employment and remain financially sound during a prolonged recession? |url=https://www.tandfonline.com/doi/full/10.1080/00036846.2022.2118963 |journal=Applied Economics |language=en |volume=55 |issue=33 |pages=3863–3883 |doi=10.1080/00036846.2022.2118963 |s2cid=252503792 |issn=0003-6846}}</ref> During negative demand shocks, WCs contain employment drop and allow a greater downward wage adjustment<ref name=":3" /> (the workers themselves decided to lower their own wages to keep the jobs). Another adaptability mechanism is the mutual support between WCs.<ref name=":4">Corcoran, H.; Wilson, D. (2010). The Worker Co-operative Movements in Italy, Mondragon and France: Context, Success Factors and Lessons. Canadian Worker Cooperative Federation Fédération Canadienne des Coopératives de Travail</ref> The case of Cooperativa Mondragón is paradigmatic in this sense: during the 80s, some cooperatives were experiencing financial difficulties, and Mondragon redeployed workers in the struggling co-operatives to ones that were better off.<ref name=":4" /> Those who were not redeployed were given income assistance that equaled 80% of their salary.<ref name=":4" /> The central control structure of Mondragon allowed for this to happen. This would have been unlikely to happen in unorganized and autonomous co-operatives.<ref name=":4" /> This same scheme to save employment prevented [[Fagor]] cooperative workers from losing their jobs when Fagor went bankrupt: they were relocated to other cooperatives of the Mondragon group.<ref name=":4" />