When Paul Copperwaite decided to sell his manufacturing firm in Huddersfield, he did not turn to a private equity buyer or a trade sale. Instead, he chose to pass ownership to his 120 employees. The result: a worker-owned cooperative that has thrived while many of its competitors have struggled.
Copperwaite, who founded Precision Components in 1986, said the decision was driven by a desire to protect jobs and the local community. “I didn’t want to sell to someone who would strip the assets and move production abroad,” he told me. “The workers here have built this company. It felt right that they should benefit from its success.”
The process took two years and involved setting up an employee ownership trust. The trust now holds a majority stake, and workers elect representatives to the board. Profits are shared among staff, and decision-making is more democratic. Turnover has risen by 15% since the transition, and staff turnover has fallen sharply.
For Copperwaite, the move was not without risk. He took a below-market price for the business and spent time convincing banks and suppliers that the model could work. But he insists that the long-term benefits outweigh the short-term costs. “When workers have a stake, they care more. They suggest improvements. They want the company to succeed.”
His story is part of a wider trend. The number of employee-owned businesses in the UK has doubled in the past decade, according to the Employee Ownership Association. These firms now contribute over £30 billion to the economy. They are often more resilient during downturns and pay higher wages on average.
Yet the model remains niche. Critics argue that employee ownership can lead to slow decision-making and a lack of strategic focus. But supporters point to success stories like John Lewis Partnership and Arup. For small and medium-sized firms, the cooperative structure can be a way to preserve a legacy and reward loyalty.
Copperwaite’s advice for other business owners? “Don’t be afraid of letting go. If you trust your staff, they will repay that trust. It’s not just about doing good; it’s about doing good business.”
In a era of regional inequality and stagnant wages, his story offers a different path. A path where the profits of industry stay in the hands of those who produce them. And where the local economy, rather than distant shareholders, reaps the rewards.
