CYCLE shops - even in York, the cycling city - have had to pedal hard to survive the steep economic slopes in the bad times and pressure from huge competition in the good times.

Some sturdy independents like the 96-year-old Russells Cycles at Toft Green have been vanquished.

Yet York Cycleworks cruises steadily on after 20 years. And the reason? It has organised itself economically in a way that harks back full circle - or in this case full cycle - to good old values

The Lawrence Street firm is an old-fashioned registered workers' co-operative, what one of its directors Sara Robin describes as "an involving and creative form of ownership" and therefore a fascinating candidate for the ultimate title in the Evening Press Business Awards 2000.

The firm, known for its expertise in providing bespoke cycles and its involvement in cycling in the city in general, has its own successful race team, a popular a website with 70,000 hits per month and publishes a regular seasonal newsletter.

Sara helped start the business in 1980 with initial capital of £1,000 in short-term small loans from about 20 cycling enthusiasts. It specialised in repairs and hiring out second hand reconditioned bikes - and from day one it was busy, with all loans repaid within a year.

Today, having taken over the premises next door, it has a staff of seven cycling enthusiasts who in order to qualify for full co-operative membership will have needed to have worked for the shop for a year and be chosen by a twice-yearly co-operative meeting.

Sara says: "Probably one of the most important factors in our success has been the quality of our staff. The workers' co-operative structure means that everyone is involved with the business and sees its success as vital to their own future.

"We have also had a policy of employing cycle enthusiasts of all types so that whatever our customer is interested in there will be a member of staff who is equally enthusiastic. Staff training has been a priority and has included a number of courses provided by ACT, the Association of Cycle Traders."

As part of its staff development programme the group plans to ensure that all its staff are qualified mechanics through the ACT tech scheme.

The big difference between York Cycleworks and other enterprises is that it ranks its ethos as being equally important to profits - and through its staff the two are intertwined.

Sara, for instance, is secretary of the York Cycle Campaign; mechanic Andy Manson carries his enthusiasm for mountain biking into an interest in lightweight commuter bikes; Martyn Miller has an encyclopaedic knowledge of cycle parts, their weights and interchangeability and is fascinated by the newest, most exotic bikes available; Chris Hayes has an unrivalled personal collection, ranging from mountain bikes, folding bikes and a top-quality road bike, and a unicycle on which he is a whiz.

Then there is mechanic Mark Daniels who claims to be one of the fastest and best wheel builders in the district and oversees the running of the York Cycleworks race team. Sandra Delf, the newest co-op member is a cycle-tourer, tandem rider and long-term member of the Cyclists Touring Club who has toured India and the UK.

Sara says: "We are a profitable business and could perhaps be more profitable if we avoided the less lucrative services of providing special tyres or handlebars and special repairs, but biking is what we are about."

PICTURE: Sara Robin, one of the directors at York Cycleworks, a workers' co-operative which is bucking the commercial trend