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Embrace the Cooperative Movement
In the midst of mounting economic insecurity, fueled by widespread unemployment, foreclosures and budget cuts, many are seeking alternative models to business as usual. From community gardens to bartering networks, grassroots efforts are sprouting up across the country. One pillar of the trend is an international institution with over 160 years of experience in local, sustainable economic development: a cooperative.
Since the mid-1800s, cooperatives have promoted a people-centered model that sets them apart from conventional businesses. Unlike traditional corporations, which are owned and controlled by outside shareholders, cooperatives are businesses owned and democratically controlled by their members — the people who use their services or buy their goods.
Co-ops exist in a variety of forms in countless industries across the U.S. and around the world. United on the basis of member-ownership and democratic control — generally following the decision-making principle of "one-member, one-vote" — co-ops have a range of ownership structures. In whatever form they take, however, surveys repeatedly demonstrate that consumers rate co-ops as more trustworthy than investor-owned corporations.
In the U.S. alone, the model has been embraced by more than 130 million members, served by over 29,000 cooperatives operating in nearly all sectors of the economy.
Cooperatives play a vital role in local economic development, helping people improve their lives through jobs and access to goods and services. The demonstrated benefits have sparked growing interest in the cooperative movement worldwide.
In light of the economic crisis, many people have embraced worker cooperatives as an effective pathway out of poverty. Owned and controlled by the people who work in the business, worker co-ops have an impressive track record of providing stable jobs with asset-building potential, higher wages, a deeper connection to the local community and an array of personal and professional development opportunities.
Worker cooperatives often operate on the basis of a "triple bottom line," measuring success not simply by the money they earn, but by the well-being of their workers; their sustainability as a business; and their contribution to the community and the environment. Cooperatives have served as a foundation for growth of the green economy, where worker-owned businesses operate primarily in labor-intensive sectors such as recycling, solar installation, landscaping, green cleaning and deconstruction.
In Austin, Third Coast Workers for Cooperation, a cooperative development center dedicated to building worker-owned green businesses with low-income communities, is working with a group of low-income women to establish Yo Mamas Catering Co-op, a worker-owned catering business.
"We wanted jobs that would provide a good living for ourselves and our families," says Sylvia Barrios of Yo Mamas. "We've spent a lot of time working for other people. ... Now we want more control over our lives and we think Austin is ready for more worker-run businesses."
Indeed, Austin has its share of notable worker-run businesses: Ecology Action, a recycling center in downtown; Tribe Creative Agency, an advertising agency focused on the "Common Good"; and the Black Star Co-op, a worker-managed, consumer-owned brew pub.
As one of the more noteworthy cities for socially and environmentally responsible local businesses, Austin is ripe for more growth in the cooperative sector. Socially and environmentally responsible practices are not just a trend within cooperatives — it's just how they work. That's the cooperative difference.
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9 Comments so far
Show AllIn 19th century America, labor unions, most notably the Knights of Labor, were in the business of setting up workers' co-ops. The best result of a strike was for workers to take over the business as a co-op. The ultimate ideal of these unions was to set up a nation wide "Co-operative Commonwealth."
(See John Curl's "For All the People: Uncovering the Hidden History of Cooperation, Cooperative Movements, and Communalism in America."
We need a new union movement in the US today which will follow those in Venezuela and Argentina in working towards democratic workers' control.
"We need a new union movement in the US today"
or how about a cooperative movement?
Regardless, as capitalism continues to fail and pressures mount, it may be inevitable that we start moving away from dependence and towards self-reliance.
Hello Cicero,
The union movement and the co-op movement should be MERGED or, at the very least, closely allied. That is what happened under the Knights of Labor in the 1880's before they were persecuted out of existence and replaced by the safe AFL.
Also, check out ... www.jasecon.org/ ... "Just Alternatives for a Sustainable Economy." Great linked articles about the co-op movement, AND its links to labor.
The other arm of the labor activism involved in worker-cooperative ownership is, of course, Anarcho-Syndicalism, as advoated by the IWW - the Industrial Workers of the World.
Hi SaboCat,
Yes, that's true. But the only time that I'm aware of that the Wobblies actually created co-ops was during the Seattle and Washington State general strike of 1919. When the whole regional economy came to a halt, strikers took over many businesses and ran them as co-ops for survival - briefly. If the IWW instituted workers' co-ops as a matter daily life, as the Knights did, I haven't read about it; although of course there's a lot I haven't read.
The expectation of the anarcho-syndicalists of the day was that One Big Union would hold One Big Strike, and then take over. THEN there would be co-ops everywhere, and universal co-operation.
Since Americans today, to say the least, have a lot to learn about co-operation, we can't rely on an apocalyptic transformation. Instead we have to experiment on a day by day basis; setting up all kinds of communal institutions to see which ones work, and which will be most attractive to our neighbors. Since we know that the mass media won't spread our ideas, we can only teach co-operation by the power of example.
Yes - this would be a good time to start worker owned coops and we hope to find people who will make our consumer friendly tempeh which has proved a tremendous success in the "meat and potato" midwest for nine years - just imagine how that would go on the coasts.
http://www.makethebesttempeh.org
Nice article. Those of us who have been involved in food co-ops for years understand these principles. I eat from our local food co-op, and I drink the brew from an Oregon worker owned brewery [when I'm not making my own]. It is a viable answer to mega-food, and korporations.
I'm exploring the idea that nonprofit corporations have the potential to edge into the for profit corporate market share. However, those with 501(c)3 status aren't supposed to engage in commercial activities as the primary source of funds (per my reading). Does anyone else know of nonprofit corporations operating primarily as a commercial entity? Such an organization could operate as a business but would not be tax-exempt, at least as I understand Section 501(c)3. Or am I wrong about this?
This model (there is an example like this in Minnesota that uses its profits to provide community grants, tax exempt status unknown) has advantages and disadvantages to co-ops, and would most sensibly work alongside them for the common good but might be more amenable to building a movement that could counter corporate power.
Any thoughts, suggestions, or corrections are welcome.
You may wish to look into the "Newman's Own" brand as to how they are structured. Also, I believe a non-profit organization may be able to have a commercial subsidiary to fund its non-profit arm. New York's Public Theatre comes to mind; 'Chorus Line" was developed by the Public Theatre (non-profit) and then moved to Broadway, then generated great profits that could be plowed back into the Public Theatre. The term "non-profit" does not mean that it can't make money; it just means that its revenues are used to run the organization, but that any accrued profits cannot be distributed to individuals.