SOCIEDADES LABORALES

Armandina Vogel

Seminar:
"Uprooting World Poverty: A job for business?"
Prof. Dr. iur. Jens Lowitzsch

Introduction
A

"Sociedad Laboral" or worker-owned

company is a specific form of corporation in
Spain
Inexpensive to set up. It is majority-owned by
its permanent employees
Based on stock ownership and able to contain
non-employee capital
Companies may be founded as SLs or convert
from being conventional companies to SLs.
SL and conventional corporations are treated
equally (despite SLs more equitable
distribution of wealth)

Core Rules
Workers

must own more than 50% of the

company's shares.
No single owner may own more than 1/3 of the
company's shares (except for public or non-profit
organizations, which may own up to 49%).
Non-owners may not work more than 25% of the
hours worked by worker-owners in companies
with fewer than 25 employee shareholders.
Non-owners may not work more than 15% of the
hours worked by worker-owners in companies
with more than 25 employee shareholders.

History
Spanish

Constitution promotes EFP

Sociedades Laborales were created to preserve jobs
during the 1973 Oil Crisis
In 1986, the first law regulating Sociedades Laborales
was passed. It only allowed SALs (Sociedad Annima
Laboral) or Worker-Owned Public Limited Companies
In 1997, the current legislation created SLLs (Sociedad
Limitada Laboral) or Limited Liability Worker-Owned
Companies.
SLLs required only 3,000 starting capital, compared to
60,000 for SALs
The new incorporation form (SLL) provided the flexibility
needed for start-ups and SMEs
It also allowed receiving unemployment compensation
upfront as a lump-sum to capitalize a SL.

Sociedades Laborales in December 2011

No. of companies 13,465

12%

88%

SAL (Public
Limited Liability)
SLL (Limited
Liability)

Sociedades Laborales in December 2011

No. of Employed Workers 74,438

27%

73%

SAL (Public
Limited Liability)
SLL (Limited
Liability)

Sociedades Laborales
No. of workers according to company size 2010
16,000

14,574

14,000
12,000

10,935

10,000
8,000
6,000
4,000
2,000
0

2,217
1,077

237

71

27

10

Source: Own elaboration bas ed on data from http://www.meys s.es/estadisticas /ANUARIO2010/LAB/lab06.xls, http://www.meyss.es/estadisticas/ANUARIO2010/LAB/lab06_top_EXCEL.htm

Main Concepts
Flexibility
Management

democracy
Motivation of workers
Continued learning
Information transparency
Great communication.

SLs as part of the Social

Economy
Spain

categorizes SLs as part of their "Social

Economy" because it shares the following
common principles:
Predominance of human over economic interests
Solidarity within the organization as well as with
society
Sharing of profits
Democratic organization

This

classification has also proved detrimental

to its reputation
They are productive economic companies

Economic Sectors

Agriculture

2%
25%

Industry
Construction

59%
14%

Services