What Happens When the Workers Become Owners

Dear Fellow Vermonter,

At a time when many workers feel like cogs in a machine, we should be proud that Vermont is helping to lead the country in employee ownership, worker co-ops, and other alternatives to corporate ownership.

Study after study has shown that employee ownership increases employment, productivity, sales, and wages in the United States. This is in large part because employee-owned businesses boost employee morale, dedication, creativity, and productivity, as workers share in profits and have more control over their own work lives. Not only that, but research has found worker ownership can also help decrease gender and racial wealth disparities, and increase savings.

A great example is Vermont’s locally-owned and locally-operated Switchback Brewing Company.

Founded in 2002 by partners Bill Cherry and Jeff Neiblum, Switchback Brewing served its first pint at Ake’s Place in Burlington that same year. Switchback made its first hire in 2003 and in 2017 turned ownership of the brewery over to its employees. Now 100% employee owned via an Employee Stock Ownership Plan (ESOP), Switchback is the first Vermont brewery to operate under this structure.

We went behind the scenes at Switchback to learn more about their decision to become the first 100% employee-owned brewery in Vermont. I hope you’ll watch the video below to learn more:

In 2019, about 25 million workers already owned some stock in the company where they worked. Today, more than 10,000 companies representing millions of workers across the country use an employee-ownership model. There are more than 50 employee-owned companies headquartered in Vermont, including well-known local names like Switchback, King Arthur Baking Company, Gardener’s Supply Company, and Chroma Technology.

Workers deserve an ownership stake in the companies they work for, a say in the decisions that impact their lives, and a fair share of the profits that their work makes possible. By giving workers a seat at the table, like Switchback did, we can start to create an economy that works for all of us, not just the wealthy few. If you want to learn more about worker ownership in Vermont, and how you can take part, visit the Vermont Employee Ownership Center, at www.veoc.org or 802-338-7448.

I know there are many other local businesses out there that are important to our communities and deserve celebrating. Click here to tell us about a business that you love and why it’s important to your community.

Sincerely,