The Cooperative Model for Work and Development A108180 Trade Union Policies for Decent Work Generation for Young Workers Turin 16 to 27 February 2015 The Cooperative Model for Work and Development

Some Basic Facts Some worldwide numbers: 1 billion people are members of cooperatives (50% of the world’s population and 3 times more than individual shareholders in companies and other investor-owned enterprises) Active in all countries. International Cooperative Movements represent 800 million members (more than the total population of Europe) Africa - 40% of households belong to a cooperative US – more than 100 million members (40% of the population)

Continues… Financial cooperatives - serve 857 million people (13% of world’s population) Job creation Provide 100 million jobs around the world. EU - provide 2.3 million jobs. Securing livelihoods Secure the livelihood of 3 billion people (half the world’s population.)

Continues… Proven success Highly successful business model; Global driver of economic growth; 2005 - 2010 cooperatives worldwide outperformed publicly listed companies on market share gains (e.g. insurance, food retail, pharmacy, healthcare, business services , education and housing sectors); 2010 - 300 largest cooperatives had combined annual turnover of $2 trillion

ILO Mandate Cooperative Mandate in ILO Constitution since 1919 ILO participation in interagency coordination on cooperatives since1969 ILO Recommendation 193 on <<The Promotion of Cooperatives>> to increased awareness and understanding of cooperative model of enterprise Appropriate policy and legislation and its application Cooperative education in national curricula Statistical information

What is a Cooperative? The definition of a co-operative ‘An autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise.’ (ILO Recommendation 193 on the Promotion of Cooperatives, 2002)

Classification of Cooperatives Credit Cooperative – promotes thrift among its members and credit funds in order to grant loans for production Consumer Cooperative – the primary purpose is to procure and distribute commodities to members and non-members Producer Cooperative – undertakes joint production whether agricultural or industrial Marketing Cooperative – engages in the supply of production inputs to members, and markets their products Service Cooperative – engages in medical and dental care, hospitalization, insurance, housing, labour, electric lights and power, communication and other services Multi-purpose Cooperative – combines 2 or more of the business activities of these different types of cooperatives, e.g. credit lending and production, production and provision of goods and services, etc.

Unique Cooperative Values Self-help Self-responsibility Democracy Equality Equity Solidarity Honesty, openness, social responsibility and caring for others

The Seven Cooperative Principles 1st Principle: Voluntary and open membership. Cooperatives are voluntary organizations open to all people able to use its services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

Continues… 2nd Principle: Democratic Member Control Controlled and managed by members Equal participation on a ‘one person one vote basis’ Participation not dependent on: Extent of membership interest Financial status Race, gender, cultural or social background or any other discriminating criterion Voting rights depend on number of shares Number of shares depends on existing wealth and financial means. Maintenance of majority control Structures Separation of ownership / membership and control / management

Continues… 3rd Principle: Member Economic Participation Members contribute equally to, and democratically control, the capital of the cooperative. This benefits members in proportion to the business they conduct with the cooperative rather than on the capital invested. Primary aim of the cooperative is to meet members’ needs Economic needs - aim to maximise return for individual members rather than make profits for the co-operative itself Equitable participation in economic returns The financial workings of a co-operative: Transactions by the co-operative – transactions with members /outside 3rd parties The concept of ‘surplus’ The concept of ‘patronage payments’

Continues… 4th Principle: Autonomy and Independence Autonomous, self-help organisations controlled by members. 5th Principle: Education, Training and Information Provide education and training for members, representatives and employees Play an important role in raising community awareness of co-operation. 6th Principle: Co-operation amongst Co-operatives Co-operation with other co-operatives in local, regional, national & int’l structures. 7th Principle: Concern for Community Work for sustainable community development

Advantages of Cooperatives General strengths and benefits Flexible - can be used in diverse sectors and regions, for a wide range of purposes, by groups of all sizes Can simultaneously meet a number of socio-economic needs ‘Cooperatives are a reminder to the international community that it is possible to pursue both economic viability and social responsibility.’ UN Secretary General Ban Ki-moon

Continues… Comparatively more resilient to economic downturns Have long-term sustainability Give marginalized and disadvantaged groups access to work and markets, mobilisation and ‘voice’ Responsive, innovative  and dynamic

Continues… Reduce market failures and stabilise the economy Contributions to employment and economic growth Reduce market failures and stabilise the economy Improve market access and competiveness for individual members through pooling of resources Help balance market participation and wealth distribution Keep the production of goods and services close to the needs of the people they serve  

Continues… Long-term view rather than short-term profit Create jobs, increase sustainable employment and protect incomes Provide a different kind of work: directly incentivise and reward individual effort benefits of a cooperative environment generate knowledge and skills + act as schools of entrepreneurship and management

Continues… Enterprises with a difference The cooperative organizational model and the decent work paradigm are based on common values: Fair wages Secure jobs Social protection Voice and participation Equality of opportunity

Continues… Sustainable enterprises Stability and longevity of enterprises; Rooted in community, do not delocalize to lower wages; Contribute to community development especially in rural areas; Tried and tested model

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