As the Latrobe Valley gradually steps away from its coal-powered past, the question on everyone’s mind is: what comes next for local jobs? One surprising answer could lie in a model that’s been around for over a century—worker cooperatives.
Wait, What’s a Worker Co-op?
Imagine working somewhere you’re not just an employee, but an owner too. That’s the basic idea of a worker cooperative. Instead of being run by a CEO or shareholders, a worker co-op is owned and democratically managed by its workers. Everyone chips in by buying a share, and in return, they get a say in decisions and a cut of the profits.
These businesses don’t exist to make rich people richer—they’re designed to keep the rewards of work within the workforce itself. It’s a bottom-up approach where each worker gets one vote, no matter their job title.
A Blast from the Past, with a Future?
This isn’t some quaint idea from the past. In Spain, the Mondragon Corporation is living proof that co-ops can thrive—even in the thick of global capitalism. Starting out in the 1950s, Mondragon now includes nearly 100 cooperatives and even its own university and credit union.
But while Spain has made it work, Australia hasn’t quite cracked the code. Worker co-ops here saw a bit of a boom in the 1980s, especially as a response to factory closures or economic downturns. A few popped up—like the Electronic Service Centre in Sydney and Abrasiflex in NSW—but most didn’t last past the early 2000s.
Enter Earthworker: A Green Reboot
Things might be changing though. One of the most exciting examples in Australia is the Earthworker network, born out of conversations between unionists and environmentalists. The big idea? Create jobs that are both sustainable and secure.
Earthworker became an official cooperative in 2011, but the roots go back much further. It’s based in Victoria’s Latrobe Valley—long the heart of coal power in the state. Their flagship venture, Earthworker Energy, makes hot water tanks and solar hot water systems out of Morwell. The goal is simple but powerful: help the local community shift from coal jobs to green jobs without leaving workers behind.
Earthworker also includes other cooperatives like Earthworker Construction and Earthworker Smart Energy, although they’re all relatively small. One co-op, Redgum Cleaning, had to shut its doors in 2023 due to staff shortages and pandemic-related challenges—a reminder that this model, while promising, is far from foolproof.
Tough Model, Tough Conditions
There’s no sugar-coating it—running a worker co-op in Australia isn’t easy. Money is tight, and traditional banks often don’t quite get the model. That means workers often have to invest their own savings to get things off the ground, which can be risky. Some may even be tempted to turn successful co-ops into private businesses for bigger profits.
Even unions, oddly enough, have had mixed feelings. Some union leaders worry that co-ops could undercut wages or make unions feel redundant.
Still, There’s Hope
Despite the hurdles, Earthworker offers a glimpse of what could be possible. Instead of a single co-op trying to do it all, they’re building a network—sharing skills, resources, and a long-term vision for sustainable jobs. It’s not about quick fixes or short-term wins. It’s about reshaping the local economy, one co-op at a time.
In a world of rising inequality and climate crisis, worker cooperatives like Earthworker might just offer a way forward—where the jobs of the future are not only green, but fair and democratic too.
