Why this work matters
Our economy is ready for an upgrade
The Challenge: Absence of equitable business model
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Our island economy needs a new approach. Today’s economy is dominated by business models that focus on maximizing profits for one or two owners, while paying workers the lowest wage possible. Business models in Guam are not equitable, meaning most profits generated by the hard labor of the workers do not go back to the workers but go to the top owners or shareholders of the company, which tend to get locked into savings, shares, and/or excess assets, ultimately creating a large wealth and income inequality. This type of business model dominating the economy is un-healthy, un-sustainable, and does not provide the necessary relief that workers of the community desperately need.
Our solution: Counter with equitable business models
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We believe that workers need an equal share of the profits they worked hard to produce. We believe equitable business models such as employee-owned and purpose-driven businesses are the most effective way to give workers the ability to deliberate, discuss, and decide what happens at their workplace and what happens to the profits they all worked hard to create. An economy dominated by employee-owned and purpose-driven business have the power to create an economy that works for all. A recent study from National Center for Employee Ownership, shows that “employee-owned business….are more productive, grow faster, and are less likely to go out of business.” It goes further to say, “broad-based employee ownership help to preserve businesses and sustain quality jobs….it can also bring democracy to the workplace.” The same report also states that “employee-owners have higher wages and net worth, receive better workplace benefits, and are less likely to lose jobs during a downturn compared with workers who do not have an ownership stake in their place of employment.” We need to have an economy with more equitable business models such as cooperatives to help balance our economy in a way that works more for the workers and their communities.
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Co-operative companies increase job quality, invest locally and have demonstrable positive impact on job creation, and on business retention. Job stability is also dramatically higher, given lower employee turnover rates. These impacts are deepest in companies with 100% employee ownership and democratic employee governance.
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