Are you familiar with employee cooperatives? The existence of this cooperative as a form of support for employees from the government. Establishment of employee cooperatives as facilities for workers, especially in financial terms.
Then, what are the benefits of employee cooperatives? The following is a complete explanation of the meaning, purpose, and workings of an employee cooperative.
Definition of Employee Cooperative
Employee cooperatives are cooperatives that exist in a company, consisting of members and administrators who come from the company’s employees. Just like cooperatives in general, employee cooperatives (Kopkar) also apply the principle of kinship.
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Kopkar is open, meaning that there is no coercion and all employees may join a Kopkar as long as they are still employed at the company. The cooperative form also runs independently, even though it is under the auspices of the company.
In addition, kopkar must also have a legal entity and be officially registered. The activities of kopkar are usually in the field of services, sales, and savings and loan services for members of the cooperative.
Based on Law Number 25 of 1992 Article 15, cooperative types are divided into two, namely primary and secondary cooperatives. Kopkar is included in the category of primary cooperatives, because the form of cooperatives comes from a group of people with the same vision and mission in the same area.
The Purpose and Role of Cooperatives for Employees
The purpose of the formation of employee cooperatives is as a forum to contribute to the welfare and help develop the economic level of employees who are members of the cooperative.
The role of cooperatives can also provide employee productivity that cannot be provided by companies. The existence of cooperatives makes companies and employees each benefit.
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The following are some of the roles of employee cooperatives, including:
- Improving social welfare by building the economic potential of members and the general public.
- Play an active role in improving the quality of life of the members.
- Strengthening the economic system as a basis for resilience and strength of the foundation of the national economy.
- Developing and realizing a better national economy, through joint business activities based on economic democracy and the principle of kinship.
How Employee Cooperatives Work
The workings of employee cooperatives are based on cooperative principles, including:
- Distribution of the remaining business results fairly and in proportion to the amount of business services of each member.
- Independent.
- Democratic management.
- Cooperative education.
- Membership is voluntary and open.
- Cooperation between other employee cooperatives.
- Remuneration is limited to capital.
If the employee cooperative refers to a savings and loan cooperative, then the way the cooperative works is by paying contributions and regular installments from members. The working method of this kopkar must also be in accordance with the original purpose when it was formed and through the approval of all members.
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Employee Cooperative Benefits
Employee cooperatives have various benefits, both material and non-material. The following are the benefits of employee cooperatives, including:
1. Planning Finances Well
The benefit of being a kopkar member is being able to manage finances well. Many employees are still not able to manage finances so that the monthly salary runs out in a short time.
However, now you can use access to earlier salaries flexibly to meet your needs without having a special budget from the company.
2. Add Organizational Experience
Employee cooperatives can also be an organizational forum for members. As a member, you can add friends and experience to join the organization.
3. Helping Other Employees
When you deposit funds in a kopkar, you also participate in developing cooperative capital. This is very useful for members who want to borrow money from cooperatives.
There are things to keep in mind that kopkar only provide employee loans in the form of money for urgent needs. Kopkar will also not give priority to members for consumptive needs.
4. Gain Profit
Well, another benefit is obtaining profits in the form of residual business results (SHU). The distribution of SHU will be determined at the annual member meeting (RAT) and accepted according to cooperative policies within the company.
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5. Become a Company Partner
The company can invite the cooperation of kopkar managers to manage the company canteen or the needs of employees in the work environment.
Well, that’s a review regarding employee cooperatives. Through Mekari, managing your business is easier, faster and more automated.