TL;DR Co-ops aren’t immune to a toxic workplace environment. Here are 7 signs and a practical shift to healthy power—clear roles, real accountability, consent-based decisions, and psychological safety—so decisions stick and people thrive.
“Why does my co-op have a toxic workplace environment? We own it together! We can build the workplace of our dreams!”
Members of many co-ops sense that something is wrong—but they may not yet have the words to describe the root cause. They see the dysfunction, frustration, and stagnation in their co-op, but often attribute it to individual personalities, lack of effort, or simply the inherent difficulty of cooperation.
In reality, these struggles are symptoms of a deeper problem: toxic power and the myths about power that disempower everyone.
The co-op was meant to be different. A place where work is meaningful, decisions are fair, and no one has to “play politics” just to be heard. But something isn’t working. Why? Because most of us have inherited toxic patterns of power from conventional workplaces, governments, and schools. These patterns are a toxic workplace culture that determines how power works. Even in cooperatives, those patterns show up in ways we don’t always recognize.
7 signs of a toxic work environment in Co-ops
The symptoms worker co-op members experience are not random—they are all expressions of toxic power. When we don’t challenge the old myths about power, even a democratic workplace will have problems:
1. Fear-driven control vs. avoidance of power – In some cases, a small group dominates decision-making, silencing dissent and creating resentment. In others, power is avoided entirely, leading to indecision, stagnation, and passive-aggressive behaviour.
2. Overwhelm and burnout – Without clear roles and processes, decisions take forever, meetings drain energy, and responsibility is unevenly distributed. People feel trapped between doing everything themselves or watching things fall apart.
3. A culture of blame and defensiveness – When decisions lack transparency, people don’t trust each other. Conflict becomes personal. Instead of working together to solve problems, members focus on who’s at fault.
4. The illusion of equality masking hidden power structures – Just because there are no formal bosses doesn’t mean power isn’t being exercised. There are hidden hierarchies. Without clear agreements, informal hierarchies emerge—favouring those who are louder, more confident, or more willing to push their agenda. And people don’t want to talk about them, because “we are a co-op, we are equal!”
5. Decisions that don’t stick – Endless discussions, unclear follow-through, and a lack of accountability lead to the same issues being debated over and over without resolution.
6. Disempowered workers – When power is misunderstood or feared, members hesitate to take initiative. They wait for permission or withdraw from participation altogether.
7. Financial and operational instability – Without effective decision-making, strategic planning, and financial transparency, the co-op struggles to maintain long-term sustainability.
The Real Problem: Toxic Power and Myths About Power
These dysfunctions aren’t inevitable. They are the direct result of toxic power—power exercised in ways that disempower or harm others (and ultimately, the whole group). Toxic power thrives when we believe harmful myths, such as:
• “If everyone has power, there will be chaos.” → Reality: Healthy power requires structure—clear agreements and shared decision-making tools.
• “To get things done, someone has to take charge and make the tough calls.” → Reality: Collective intelligence is more effective than individual control when structured well.
• “Democracy means everyone gets an equal say on everything.” → Reality: Decision-making works best when people have authority in the areas they know best, with clear feedback loops.
• “We should trust people to figure things out without rules.” → Reality: Structure isn’t the enemy—when done well, it protects people from the worst forms of toxic power.
Breaking the Cycle: A Shift to Healthy Power
The good news? These patterns can be unlearned. Healthy power—power that enables everyone to be effective and engaged—is not just possible, it’s essential for a thriving worker cooperative.
How?
Use a delegation structure that guarantees mutual influence, with clearly defined roles, two-way flows of delegates between teams, and meetings where everyone talks and everyone listens.
Switch roles when needed, and make roles small enough that people can hand them off without “constructive dismissal”. Have apprentices and mentors, and let the apprentices step up. Don’t let people become the exclusive owners of key roles.
Focus more on letting people pause the process or opt out when things are broken, rather than forcing or tricking people into staying in. Then use that signal to fix what’s broken! Put effort into supporting psychological safety in conversations about what doesn’t work.
Worker co-ops don’t need to accept burnout, dysfunction, or endless conflict as the price of democracy. By shifting from toxic power struggles to systems of shared, structured, and transparent power, cooperatives can become the workplaces they were meant to be.
What’s Next?
In our next posts, we’ll explore how co-ops can move beyond toxic power, replacing dysfunction with psychological safety, clear decision-making, and power structures that work for everyone. Stay tuned!
Frequently Asked Questions
A toxic workplace environment is any environment that reduces the power (ability for people to accomplish their goals) or well-being of people in the environment. This often comes from the structure of the workplace and the culture of the workplace more than from the individuals involved.
When members of cooperatives complain about their workplaces, they often talk about similar issues: In-group / out-group dynamics where a small clique makes most key decisions, disempowered workers who feel they can’t take responsibility, blame and defensiveness, overwhelm and burnout, decisions that don’t stick, and financial and operational instability.
People make short term decisions to protect themselves or meet their goals, using their sense of “how things are done” or “how the game is played”. “The game” in this case comes from the dysfunctional larger culture.
There will always be differences in power between people. To make this healthy, you need three elements: make power circular (where people influence one another) rather than linear or “flat”; make power fluid (where people step into roles of authority and influence when their abilities match the needs of the system) rather than frozen (where people ‘own’ powerful roles regardless of the needs of the system or their abilities); make power consensual (where people can opt in and opt out, explicitly delegating authority) rather than coercive or hidden.
Further reading
- Emotional Intelligence in Leadership: Why Integrity Matters Most. When EI isn’t grounded in integrity, it turns into better manipulation. This piece shows how to anchor leadership in wholeness. Read the full article: https://afairersociety.com/emotional-intelligence-and-integrity-in-leadership/
- Understanding Healthy Power: An Introduction. Healthy Power is a transformative concept that calls for a shift in how power is exercised and perceived in organisations and communities. Read the full article: https://afairersociety.com/healthy-power-in-organisations/
- Ready to replace toxic power with healthy power? Try PowerUP to make power circular, fluid, and consensual—so decisions actually stick. PowerUp for co-ops
Nathaniel Whitestone is a governance expert, OD/OT consultant, executive coach, and angel investor, committed to fostering Healthy Power in organizations. He thrives on unraveling complex systems, guiding leaders to innovate with integrity and playful revolution. His passion lies in seeding societal transformation towards empowerment and fairness.