Resistance to Change: The Influence of Social Networks on the Conversion of a Privately-Owned Unionized Business to a Worker Cooperative

Abstract

This study analyses the impact of social networks upon the conversion of a privately-owned construction firm in central Canada to a worker cooperative based on Mondragon by-laws. The conversion was undertaken by the president and co-owner of the privately-owned company, Conco, in 1987, and the study was done four years later.

The four construction unions representing the trades-people resisted the conversion. In the beginning the cooperative consisted only of management. Gradually, it has expanded to include the office staff, but only a small minority of trades-people became involved. This phenomenon is analysed in terms of social networking theory.

The main findings were: (1) employees at Conco interpreted information and formed attitudes through social networks in which they participated; (2) identification with one's network was accentuated by a lack of trust with those in the opposing network; and (3) given the lack of trust, people turned to key players in their network for information and turned to others within their networks to compare ideas and opinions.

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