Plebeian Cooperativism: Reconciling Workplace Democracy with the Iron Law of Oligarchy

Worker cooperatives are often lauded as the ideal institutional form of workplace democracy. While the traditional firm subjects workers to hierarchical authority, cooperatives establish workers as owners and managers of their own venture. However, since 1911 Robert Michels popularised the phrase of an “iron law of oligarchy” to argue how nominally democratic institutions, like worker cooperatives, often fall back into hierarchical patterns. I claim that this criticism against workplace democracy is based on a misreading of Michels’ philosophy and a misrepresentation of today’s empirical research on cooperative management. Both present worker cooperatives as hybrid institutions torn between oligarchic and democratic pulls. By counterbalancing tendencies towards a concentration of power at the top with countervailing institutions that help rank-and-file workers contest managerial decision-making, worker cooperatives can safeguard themselves against degeneration and the iron law of oligarchy. This proposal of instituting workplace democracy through constant anti-hierarchical conflict, I call “plebeian cooperativism.”