Editing Cooperative (section)

=== Redistribution of losses ===
In case that a cooperative experiences a loss, there are alternatives to handle them in the most efficient way possible.<ref name=":11" />

==== Make use of the "cushion funds" ====
If a cooperative has had profits at some point, it should have some savings, which it can use in times of economic losses. In this way, they can absorb the losses simply with the money they already had, not having to affect neither wages, employment, or stocks.<ref name=":11" />

==== Allocate the losses to the members ====
This is one of the most common ways to allocate the losses. Making this decision involves the workers deliberating through the stablished democratic mechanisms on how are the losses going to be distributed among membership.<ref name=":11" />

We have already seen that, in times of economical hardships, cooperatives are more willing to reduce their wages rather than reduce employment, whereas conventional firms would rather fire some people and keep the same wages for the rest of them.<ref name=":1"/>