{"id":1137,"date":"2014-06-29T18:08:03","date_gmt":"2014-06-29T16:08:03","guid":{"rendered":"http:\/\/kpnet.dk\/blogs\/?p=1137"},"modified":"2014-06-29T20:25:50","modified_gmt":"2014-06-29T18:25:50","slug":"worker-owner-cooperatives-take-root-in-the-us","status":"publish","type":"post","link":"https:\/\/kpnet.dk\/blogs\/ron-ridenour\/worker-owner-cooperatives-take-root-in-the-us","title":{"rendered":"Worker-owner cooperatives take root in the US"},"content":{"rendered":"<p><a href=\"http:\/\/kpnet.dk\/blogs\/wp-content\/uploads\/2014\/06\/ATR-WFU_Womenleadership-cropped602x240.jpg\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1146\" data-permalink=\"https:\/\/kpnet.dk\/blogs\/ron-ridenour\/worker-owner-cooperatives-take-root-in-the-us\/atr-wfu_womenleadership-cropped602x240\" data-orig-file=\"https:\/\/kpnet.dk\/blogs\/wp-content\/uploads\/2014\/06\/ATR-WFU_Womenleadership-cropped602x240.jpg\" data-orig-size=\"602,240\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;}\" data-image-title=\"ATR WFU_Womenleadership-cropped602x240\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/kpnet.dk\/blogs\/wp-content\/uploads\/2014\/06\/ATR-WFU_Womenleadership-cropped602x240.jpg\" class=\"aligncenter size-full wp-image-1146\" src=\"http:\/\/kpnet.dk\/blogs\/wp-content\/uploads\/2014\/06\/ATR-WFU_Womenleadership-cropped602x240.jpg\" alt=\"ATR WFU_Womenleadership-cropped602x240\" width=\"602\" height=\"240\" srcset=\"https:\/\/kpnet.dk\/blogs\/wp-content\/uploads\/2014\/06\/ATR-WFU_Womenleadership-cropped602x240.jpg 602w, https:\/\/kpnet.dk\/blogs\/wp-content\/uploads\/2014\/06\/ATR-WFU_Womenleadership-cropped602x240-300x119.jpg 300w\" sizes=\"auto, (max-width: 602px) 100vw, 602px\" \/><\/a><\/p>\n<p><em>Af Ron Ridenour<\/em><\/p>\n<p>People before Profit\u2014the slogan for production cooperatives\u2014is an option even in the United States. Within the past decade, three forms of worker-owned and\/or managed types of organizing work places are now functioning. The most democratic structure, one that could potentially transform the economy from profiteering greed to meeting everyone\u2019s needs, is the worker-ownership cooperative.<\/p>\n<p>Out of 5.7 million firms in the United States, the Census Bureau considers that fewer than 300 are worker-owned cooperatives, but they are growing.The major coalition of worker-owner cooperatives is the United States Federation of Worker Cooperatives, which just celebrated its first 10-years. The USFWC has 100 member firms with 1600 individual worker-owners.<\/p>\n<p>The national grassroots membership organization\u2019s mission is, \u201cto create a thriving cooperative movement through the development of stable and empowering jobs and worker-ownership. We advance worker-owned, -managed, and -governed workplaces through cooperative education, advocacy and development.\u201d <a href=\"http:\/\/www.usworker.coop\/\">http:\/\/www.usworker.coop\/<\/a><\/p>\n<p><!--more-->They pay themselves a living wage and decide how to use profits. The range of incomes is 6 to 1. In the conventional economy, the federal minimum wage is $7.25 an hour, or about $15,000 a year. Several million workers earn less than that, even under half that. There is no maximum earning. Currently the top 100 CEOs earn between $18,717,013 (Stephen A. Roell of Johnson Controls Inc.) and $78,440,657 (Lawrence Ellison of The Oracle Corporation)\u2014the latter sum translates to 5000 times that of the federal minimum wage earner.<br \/>\n<a href=\"http:\/\/www.aflcio.org\/Corporate-Watch\/Paywatch-2014\/100-Highest-Paid-CEOs\">http:\/\/www.aflcio.org\/Corporate-Watch\/Paywatch-2014\/100-Highest-Paid-CEOs<\/a><\/p>\n<p>The US is the world\u2019s most unequal nation. The top 1% has a combined net worth that is more than triple the net worth of the other 99% combined. The bottom 40% own less than nothing, because they are sinking in debt, according to Wolff, E.N., \u201cThe asset price meltdown and the wealth of the middle class\u201d National Bureau of Economic Research Working Paper 18559 (2012).<\/p>\n<p>USFWC members connect benefits to each other and to the larger cooperative, and they support economic justice movements.\u00a0 The Federation provides training and organizing work to reach other workers across the nation. It is led by a 100% member-elected board of directors, numerous member committees and working groups, and a three-person staff.<\/p>\n<p>Federation executive director Melissa Hoover was interviewed by John Duda of <a href=\"http:\/\/www.community-wealth.org\/\">www.community-wealth.org<\/a>, on December 5, 2013. She spoke about how worker-cooperatives function.<\/p>\n<p>When conversion of ownership occurs the new buying owners \u201cneed to have a strong culture of trust and participation, and some understanding of the business, which is not always the case. And even when there is a strong culture of trust, it can still be challenging to understand and implement effective cooperative governance, participatory management, shared decision-making. We just don\u2019t learn those things in school and don\u2019t practice them through most parts of our adult life.\u201d<\/p>\n<p>Other coop networks can be found at: <a href=\"http:\/\/www.usworker.coop\/get-involved\/regional-networks\">http:\/\/www.usworker.coop\/get-involved\/regional-networks<\/a>.<br \/>\nHere is info about how to start one: <a href=\"http:\/\/itsoureconomy.us\/2013\/04\/worker-co-op-startup-guides\/\">http:\/\/itsoureconomy.us\/2013\/04\/worker-co-op-startup-guides\/<\/a><\/p>\n<p><strong>Ohio<\/strong><strong> is a major user of worker-owned companies<\/strong><\/p>\n<p>The Evergreen Cooperative Initiative in Cleveland was launched in 2008 just as the economic crises set in. It seeks to cause an economic breakthrough in Cleveland. \u201cRather than a trickle down strategy, it focuses on economic inclusion and building a local economy from the ground up; rather than offering public subsidy to induce corporations to bring what often are low-wage jobs into the city, the Evergreen strategy is catalyzing new businesses that are owned by their employees.\u201d <a href=\"http:\/\/evergreencooperatives.com\/about\/evergreen-story\/\">http:\/\/evergreencooperatives.com\/about\/evergreen-story\/<\/a><\/p>\n<p>Original funds came from a working group of Cleveland-based institutions: \u201cThe Cleveland Foundation, the Cleveland Clinic, University Hospitals, Case Western Reserve University, and the municipal government. The Evergreen Cooperative Initiative is working to create living wage jobs in six low-income neighborhoods (43,000 residents with a median household income below $18,500) in an area known as Greater University Circle (GUC).\u201d<\/p>\n<p>They are experimenting with \u201cinnovative models of job creation, wealth building, and sustainability,\u201d using local people. Many had been part of the 40% unemployed. Worker-owners earn a living wage and build equity in the firms as owners of the business.<\/p>\n<p>\u201cAll of the Evergreen Cooperatives have a shared business philosophy. Our guiding corporate principles include:<\/p>\n<ul>\n<li>Transform neighborhoods \u2013 one person, one business at a time<\/li>\n<li>Demand excellence and continuous improvement from our entire team<\/li>\n<li>Build nimble, results oriented, sustainable businesses<\/li>\n<li>Conduct business ethically and with integrity<\/li>\n<li>Use earth friendly practices in every business, every day<\/li>\n<li>Create innovative business solutions with our customers<\/li>\n<li>Build strong businesses through strategic planning, education, and professional development<\/li>\n<li>Delight the customer at all times\u201d<\/li>\n<\/ul>\n<p>Evergreen Cooperatives currently operate three employee-owned enterprises: Evergreen Energy Solutions, started in 2008, installs solar panels and provides energy efficiency services; Evergreen Cooperative Laundry, started in 2009, is an industrial laundry serving institutional customers; and Green City Growers Cooperative, started in 2013, is an urban organic farm.<\/p>\n<p>The organic farm\u2019s first greenhouse is hydroponic based\u2014growing plants using mineral nutrient\u00a0solutions, in water, without soil\u2014and is computer controlled. They use no pesticides or fertilizers. The 1.3 hectare greenhouse is growing three million heads of lettuce and 300,000 pounds of herbs annually. Distribution to local markets, institutions and restaurants is guaranteed within 48 hours of harvest.<\/p>\n<p>Its 30 employee-owners decide who to hire (one becomes an owner after six months on the job if voted in), and where profits should go\u2014one percent of which goes back into the neighborhoods.<\/p>\n<p>When inaugurated in 2013, Mayor Frank Jackson of Cleveland said that this grower cooperative shows the way for \u201ctransforming our economy into a sustainable economy\u201d. Worker-owners hope this will be a model for the nation.<\/p>\n<p>One young worker-owner said, \u201cWe feel like we\u2019re on a mission.\u201d Others speak of, \u201cworking harder and happier because it is ours, and we deliver to our neighbors.\u201d<\/p>\n<p>The Evergreen model is spreading around Ohio and beyond. Even some conservatives can see its practical benefits: a positive role in local economic development, bringing those who participate out of poverty, providing decent goods and services more affordable to the community.<\/p>\n<p>\u201cShift Change\u201d is a documentary about worker cooperatives in the United States and Mondrag\u00f3n. It is the latest of a score of documentaries made by Mark Dworken and Melissa Young.<\/p>\n<p>One quotation from a participant is revealing.<\/p>\n<p>\u201dI\u2019ve worked at large corporations where there\u2019s a huge hierarchy. It takes a lot of energy to operate in an environment like that. We put our energy towards our product and projects.\u201d<\/p>\n<p>\u201cShift Change\u201d will be broadcast on US public television PBS from July 1. It should eventually be possible to buy it.<\/p>\n<p><strong><br \/>\nCollective Bargaining and worker-ownership<\/strong><\/p>\n<p>In 2009, the United Steelworkers International Union (USW), North America\u2019s largest industrial union with 1.2 million active and retired members, joined with Spain\u2019s Mondrag\u00f3n and Kent State University\u2019s Ohio Employee-Ownership Center (OEOC) to bring the successful Mondrag\u00f3n model to the US.<\/p>\n<p>Mondrag\u00f3n is the world\u2019s largest workers\u2019 co-op. It was founded in 1956, and has enterprises in some 40 countries. At its peak, Mondrag\u00f3n in Spain had 100,000 worker-owners in 120 companies with collective annual sales of $25 billion. Because of some recent closures\u2014due to great global competitiveness especially in China and India where workers receive low incomes that undermine decent wages\u2014there are now about 80,000 members in 85 Spanish companies.<br \/>\nThe new alliance of the steelworkers union, Mondrag\u00f3n and OEOC is a unique ownership scheme that includes collective bargaining with those who finance enterprises. .<\/p>\n<p>\u201cOEOC brings to the effort 25 years of institutional expertise in the development of employee-owned businesses. The collaboration with the USW was announced in the national media in 2009, and in 2012 the three organizations followed up with the release of a how-to guide called `Sustainable Jobs, Sustainable Communities: The Union Co-op Model\u00b4&#8221;, wrote John Clay <a href=\"http:\/\/www.usw.org\/union\/featured-projects\/co-ops-resources-and-updates\">http:\/\/www.usw.org\/union\/featured-projects\/co-ops-resources-and-updates<\/a><\/p>\n<p>Clay continued: \u201cThey promote union co-ops as a solution to several deficiencies of the US workplace,\u201d such as: \u201clack of democracy, wage disparity between highest- and lowest-paid employees, and job insecurity.<\/p>\n<p>\u201cSome also hope these micro-level solutions might someday transform the US political economy at the macro level, helping solve problems like the growing wealthdisparity between the 1 percent and the 99 percent,\u201d which strains democracy, is stagnating for the US workforce, and causes community instability.<\/p>\n<p>About one dozen projects in food growing, distribution, retail cooperatives, and renovating commercial buildings are currently underway in several major cities, such as Cleveland, Cincinnati, Pittsburgh, New York, Seattle, and Denver.<\/p>\n<p>Some studies suggest that less than one million persons are organized in partial or total worker-owned companies, that is, less than one percent of the work force in the US. About 10,000 of those are the total worker-owner coops.<br \/>\nGar Alperovitz, a political economist and historian, author of the recent book, \u201cWhat Then Must We Do\u201d, and co-founder of Democracy Collaborative, is optimistic about this movement.<\/p>\n<p>\u201cThis is the most important time in American history since the 1770s revolution,\u201d he told \u201cThe Real News\u201d reporter Paul Jay, on January 27, 2014. He said that the experience of Mondrag\u00f3n shows that worker ownership can go to large scale but will not transform society or the economy alone. <a href=\"http:\/\/therealnews.com\/t2\/index.php?option=com_content&amp;task=view&amp;id=31&amp;Itemid=74&amp;jumival=11382\">http:\/\/therealnews.com\/t2\/index.php?option=com_content&amp;task=view&amp;id=31&amp;Itemid=74&amp;jumival=11382<\/a><\/p>\n<p>Alperovitz pointed out that life in the Basque communities where Mondrag\u00f3n operates is better for the people there, with virtually no unemployment. Those recently laid off receive two years of pay and benefits from their own insurance companies. He said these production cooperatives could be part of a new planned economy but they must connect with politics.<\/p>\n<p>Alperovitz gives General Motors as an example. He said that when GM collapses again, as he predicts it will, instead of it simply being nationalized and bailed out with tax money while continuing to operate as a private company with traditional profits and wages, it should be transformed into a transportation company with planning aimed at the good of the people, and its owners should be its workers.<\/p>\n<p>\u201cDemocratic economic planning needs political democratic planning, that is, public decision-making, public control,\u201d he concluded.<\/p>\n<p><strong>Employee Stock Ownership Plan<\/strong><\/p>\n<p>Four decades ago, Congress approved a less potentially transforming form of democratic enterprise known as Employee Stock Ownership Plan (ESOP). It became law in 1974 at a time of oil price crises, the Viet Nam war and Watergate. ESOP was viewed as a concession to great popular discontent. It offered tax incentives to companies to establish ESOPs, and a bit to banks to lend set-up funds.<\/p>\n<p>\u201cCongress should again encourage a cut for workers,\u201d writes <strong>Gerald E. Scorse, <\/strong><strong>who<\/strong><em>helped pass the bill requiring basic reporting for capital gains.\u00a0<a href=\"http:\/\/www.truth-out.org\/author\/itemlist\/user\/45043\">http:\/\/www.truth-out.org\/author\/itemlist\/user\/45043<\/a>.<\/em><\/p>\n<p>Before they were stopped, an estimated 10,300 corporations with ESOPs and similar plans were founded, with \u201cabout 10 million workers and almost a trillion dollars in total market value\u2026.about 3,000 closely held companies are majority or 100% owned by their employees; about 3,000 are 30% to 51% owned; and the rest have ownership ranging from about 5% to 30%,\u201d Scorse wrote.<\/p>\n<p>\u201cEmployee equity is part of the culture at companies of all sizes\u2026Equity takes various forms: stock ownership, profit-sharing, gain-sharing (e.g., setting goals and reaping rewards for meeting them), stock grants, and stock options. The key is that all boats rise, not just the yachts&#8230;America needs more \u2018citizen\u2019s shares\u2019 in 2014.\u201d<\/p>\n<p>The intent of the ESOPs was to establish \u201cpeoples\u2019 capitalism\u201d, with employees as owners of stock in their companies. \u201cThe use of the term \u2018employee-owned\u2019 is odd since the employees typically do not have voting rights attached to their stock like regular stockholders; those voting rights are held by a trust set up to manage their funds, ostensibly to safeguard the employees\u2019 interests,\u201d asserts Bernard Marszalek, a former member of Inkworks, a worker-managed, union-affiliated firm in Berkeley. <a href=\"http:\/\/dissidentvoice.org\/2012\/06\/worker-co-operatives-and-democracy-part-2\/\">http:\/\/dissidentvoice.org\/2012\/06\/worker-co-operatives-and-democracy-part-2\/<\/a><\/p>\n<p>Nevertheless, the various forms of worker-ownerships, including ESOP, last longer than conventional owner-over-worker firms. &#8220;Effects of ESOP Adoption and Employee Ownership,&#8221; a study by Steven Freeman of the University of Pennsylvania, surveyed 30 years of research and found, &#8220;not only that employee-owned firms are more profitable and productive, but that they also survive longer.&#8221;<\/p>\n<p>In my brief research about these three ownership structures\u2014two of which are basically new, or renewed, phenomena in the US\u2014no one utters the big taboo term, socialism. While collective ownership is basically democratic and allows greater fulfillment for producers, they do not alter the marked-based economy, which is still profit-oriented, is unequal, and is brutally aggressive towards other countries and the planet.<\/p>\n<p>Nevertheless, traditional capitalist production relationships are seriously questioned by increasing numbers of workers and even some local politicians. And the only self-declared socialist Senator, Bernie Sanders of Vermont, is a strong advocate of structural change. He seeks federal legislation that would make ESOPs possible once again for workers, who could also then obtain reasonable loans, in order to start ESOPs and expand those already existing.<\/p>\n<p>This movement is reform oriented for the moment, but it has a revolutionary potential, especially as it advances in a unique political climate, in which the vast majority of citizens opine that they are opposed to warring in Syria and Iraq. The federal government is treading more cautiously than ever and has not acted in its usual juggernaut manner, yet. But when it does it may be confronted by angry masses, clamoring to end the wars and insist upon building an economy that puts people before profits.<\/p>\n<p>In Denmark, there are only a handful of small worker-ownership enterprises, such as: Svanholm\u2019s ecological farm, and a building trades firm in Copenhagen. It would be worthwhile for socialists, communists, anarchists here to look into what is going on in the United States with new worker-ownership production.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Af Ron Ridenour People before Profit\u2014the slogan for production cooperatives\u2014is an option even in the United States. Within the past decade, three forms of worker-owned and\/or managed types of organizing work places are now functioning. The most democratic structure, one that could potentially transform the economy from profiteering greed to meeting everyone\u2019s needs, is the &hellip; <a href=\"https:\/\/kpnet.dk\/blogs\/ron-ridenour\/worker-owner-cooperatives-take-root-in-the-us\" class=\"more-link\">L\u00e6s videre <span class=\"screen-reader-text\">Worker-owner cooperatives take root in the US<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5],"tags":[],"class_list":["post-1137","post","type-post","status-publish","format-standard","hentry","category-blogs"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p451d4-il","_links":{"self":[{"href":"https:\/\/kpnet.dk\/blogs\/wp-json\/wp\/v2\/posts\/1137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kpnet.dk\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kpnet.dk\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kpnet.dk\/blogs\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/kpnet.dk\/blogs\/wp-json\/wp\/v2\/comments?post=1137"}],"version-history":[{"count":7,"href":"https:\/\/kpnet.dk\/blogs\/wp-json\/wp\/v2\/posts\/1137\/revisions"}],"predecessor-version":[{"id":1148,"href":"https:\/\/kpnet.dk\/blogs\/wp-json\/wp\/v2\/posts\/1137\/revisions\/1148"}],"wp:attachment":[{"href":"https:\/\/kpnet.dk\/blogs\/wp-json\/wp\/v2\/media?parent=1137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kpnet.dk\/blogs\/wp-json\/wp\/v2\/categories?post=1137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kpnet.dk\/blogs\/wp-json\/wp\/v2\/tags?post=1137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}