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Published byCody Marsh Modified over 9 years ago
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Why we need them and how to create them Worker Cooperatives are the game changer we need to take back control of our economy from the 1% WORKER COOPERATIVES
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DEFINITION A worker cooperative is a small business that is owned and operated by the people that work there and no one else*. * This means that there are no external investors or separate management layer. DEFINITION
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Different types of cooperatives and collectives Worker Cooperatives Consumer Cooperatives (REI Inc.) Housing Cooperatives (LA Eco Village) Marketing Cooperatives (Sunkist) Agricultural Cooperatives (CA Cheese) ESOP (Employee Share Ownership Program) Kibbutz (Collective farming communities) Artists Collectives and other types of collectives Different types of cooperatives and collectives
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A Cooperatively owned business is not necessarily a worker cooperative: The staff of a consumer cooperatives do not own the store The members who own the store do not work there The staff of a consumer cooperative do not make the business decisions Very often there are labor issues at consumer cooperatives A Cooperatively owned business is not necessarily a worker cooperative:
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Why is this important ? Corporations consume workers in the same manner as they consume resources Externalizing costs for pollution as well as labor To create ever greater profits for external investors who do none of the work Why is this important ?
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In A Worker Cooperative : The benefit created by the worker cooperative belongs to the workers who produced it Surplus (what is called profit in a corporate model) is distributed to the workers All business decisions are made democratically by the people that do the work In A Worker Cooperative:
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Benefits to community and environment Workers in a Worker Cooperative, like all small business, live work and play in the local community They pay taxes into the local tax pool They buy products and services for their business They spend their pay checks locally, helping other small businesses They buy a home and improve it, improving the neighborhoods they live in They coach their children’s soccer team or volunteer in their local community As residents in the local community, they share the environment and an interest in protecting it Benefits to community and Environment
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History of Worker Cooperatives Starting in the 1830 s, worker cooperatives were formed by Knights of Labor in 19 th century America, including hat makers, bakers, and garment workers and were designed to "cope with the evils of unbridled capitalism and the insecurities of wage labor". Knights of Labor The Populist Movement of the late 1800 s created financial an agricultural coomperatives Mondragon in the Basque region of Spain has 120 worker cooperatives and has been in business over 80 years* The Emilia-Romagna Region in Italy is made up of worker cooperatives* *Both are more economically stable and are more prosperous regions in their respective countries History of Worker Cooperatives
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First you need decide what type of business you would like to create plus find others who would like to go into business with you Next you need to write a business plan. These are very specific documents describing how the business will operate, potential costs and profits Next write your Constitution and By-Law so you can register your company (“Incorporate”) with the state. Next apply for all permits and licensing Then you can apply for business loans and funding you need to start your business with, Buy equipment plus secure a location and sign a lease Steps to creating a Worker Cooperative
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Money Money Money Each Worker/Cooperator will have a financial stake in the business but it can be financed over time The first funding source is always the “ Three F “ Funding: “Friends, Family and Fools” Worker Ownership Fund - National loan fund specifically for worker cooperatives NCB - National Cooperative Bank LEAF - Local Enterprise Assistance Fund: the only national fund that focuses its investment on worker cooperatives, in business since 1982. Money Money Money
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Next Steps We need to form an INCUBATOR: a community organization that assists people in forming worker cooperatives We need expertise: lawyers, entrepreneurs, fund raisers, administrative experts and organizers We need to find people who want to go into business for themselves as worker cooperatives Training may be needed in basic business practices like bookkeeping, payroll, and taxes Next Steps
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Support Organizations US Federation of Worker Cooperatives http://www.USWorker.coop http://www.USWorker.coop National Cooperative Business Association http://www.ncba.coophttp://www.ncba.coop California Center for Cooperative Development http://www.cccd.coop http://www.cccd.coop Arizmendi Association of Bakeries http://arizmendi.coop http://arizmendi.coop Network of Bay Area Worker Cooperatives http://www.nobawc.org http://www.nobawc.org Mondragon http://www.mondragon- corporation.com/ENG.aspxhttp://www.mondragon- corporation.com/ENG.aspx Support Organizations
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Websites and Contact Information American.coop is all about Worker Cooperatives in the USA OccupyJobs,org is my web site which has links to this and many other resources THIS WAY OUT : A Step by Step Guide to Setting Up a Worker Cooperative: a Video from Mighty Small Films http://www.youtube.com/watch?v=a0g4Z8hhqDg&feature=yout u.be http://www.youtube.com/watch?v=a0g4Z8hhqDg&feature=yout u.be Evergreen Project in Cleveland video http://www.youtube.com/watch?v=Gt_ZHUDhKjshttp://www.youtube.com/watch?v=Gt_ZHUDhKjs THE TAKE - The story of Argentina's occupied and recovered workplaces http://thetake.org/ My contact information: Dr Lisabeth Ryder Email: liz@redwire.us and cell 510-326-2541liz@redwire.us Websites and Contact Information
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