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

2. 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)

3. 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.)

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

5. 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

6. 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)

7. 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.

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

9. 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.

10. 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

11. 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’

12. 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

13. 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

14. 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

15. 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  

16. 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

17. 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

18. 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

19. THANK YOU