A wave of US business owners is selling their companies to employees, turning to a co-operative model that has long been championed in the UK. The trend, which has seen thousands of firms transfer ownership to workers over the past year, is being hailed by unions and labour advocates as a blueprint for tackling wage stagnation and regional inequality.
In cities from Philadelphia to Portland, owners approaching retirement are choosing to sell to staff rather than to private equity or corporate buyers. The result is a patchwork of employee-owned businesses, from bakeries to manufacturers, where profits are shared and decisions are made collectively. The movement has gained traction as owners seek to preserve their legacy and workers demand a greater stake in the companies they run.
At the heart of this shift is the UK‘s John Lewis Partnership, the employee-owned retail giant that has inspired co-operative structures worldwide. British experts on worker ownership have been called in to advise US firms on how to transition. “What we’re seeing is a quiet revolution,” said Sarah Jenkins, Economy & Labour Reporter. “For decades, the American dream was about owning your own business. Now it’s about owning it together.”
John Lewis has operated as a partnership since 1929, with all 80,000 staff holding a stake and a say in company governance. Its model has been adapted by UK co-ops like Suma Wholefoods and the Riverford Organic Farmers, which have proven that worker ownership can thrive in competitive markets. The US adoption comes as a response to rising inequality and a growing distrust of corporate hierarchies.
Unions in the US have welcomed the trend, arguing that it protects jobs and wages in an era of buyouts and closures. The United Steelworkers union has partnered with the worker-owned co-op network to facilitate sales. “This is about putting power back where it belongs – with the people who do the work,” said a union spokesperson.
Economists point out that employee-owned firms tend to be more resilient during downturns. A study by the National Bureau of Economic Research found that co-ops are less likely to lay off workers and more likely to invest in training. For owners, selling to staff can also be financially advantageous, as they avoid the premiums demanded by private equity and retain a sense of community purpose.
Critics, however, warn that employee ownership is not a silver bullet. Some co-ops have struggled with governance and access to capital, and worker-owners can be reluctant to make tough decisions. Yet the US trend shows no signs of slowing. Last year, the number of employee-owned businesses in America rose by 15%, with sales worth billions of dollars.
The UK government has also taken note. It recently announced a review of co-operative legislation, aiming to remove barriers for companies seeking to transfer ownership. Labour MPs have called for tax breaks to encourage more firms to follow suit.
For workers like Maria, a line operator at a recently co-opted factory in Ohio, the change has been transformative. “We used to worry about the boss selling to some faceless corporation,” she said. “Now we own the place. It’s our future we’re building.” As the movement gains momentum, the US may be learning a lesson from the UK: that shared ownership is not just a feel-good ideal, but a practical model for a fairer economy.
