Learning from Cooperatives to Strengthen Economic Bicameralism

Bicameral firms can generate societal benefits both directly, by granting representatives of labor investors voice in shaping firm decision-making, and more indirectly, by serving as a transition phase from capital investor-owned firms to worker cooperatives. However, there is room to augment these benefits by leveraging insights from research on cooperatives. This article draws lessons from three types of cooperatives-traditional worker cooperatives, multistakeholder cooperatives, and union cooperatives-to help refine Ferreras's proposal for bicameral firms. First, bicameral firms should offer labor investors more opportunities to participate in firm governance and hold their representatives to account. Second, they should create robust channels for other stakeholders to influence firm decision-making. Third, they should carefully delineate the role of labor unions vis-a-vis the Chamber of Representatives of the Labour Investors. These refinements will better position bicameral firms to achieve their direct benefits and facilitate subsequent transitions to worker cooperatives.