[r_smart]

There's nothing that precludes people from creating employee owned companies now. Where I live there are several of them, and there's the possibility that the one I work at is going to transition to that.

If they don't exist in large numbers now, I'd have to think there's something about them that makes them struggle to be viable. Human nature most likely.

[matt4077]

Every German company with more than 500 employees is required to have 1/3 of board members elected by the employees. Above 2000 employees it's 1/2. For these, and smaller companies as well, there are more requirements to allow participation in the decision-making process "on the ground".

It's hard to measure the effects, but it's generally thought to have at least lead to less-bitter labor conflicts, because there's constant communication between the parties.