AbstractWorkers' co-operatives in Poland grew after the second world war and provided employment in rural areas and for disadvantaged groups such as women and the disabled.The dominant view is that workers play an insignificant role in policy making in socialist states even in workers' co-operatives. However, this article shows that the members have more control over decision making than workers in state owned firms. Information flow is also easier and the work force is better motivated because they share in the losses and surpluses.The preliminary evidence indicates that the economy of Polish co-operatives results in higher technical efficiency and less dispersion of incomes.