Cooperatives Over Corporations
We're being told by today's High Priests of Conventional Wisdom that everyone and everything in our economic cosmos necessarily revolves around one dazzling star: the corporation.
This heavenly institution, the HPCW explain, has such financial and political mass that it is the optimal force for organizing and directing our society's economic affairs, including the terms of employment and production. While other forces are in play (workers, consumers, the environment, communities and so forth), they are subordinate to the superior gravitational pull of the corporate order. Profits, executive equanimity and a healthy Wall Street pulse rate are naturally the economy's foremost concerns.
How nice. For the wealthy few. Not nice for the rest of us, though. We're presently seeing the effect of this enthronement of self-serving corporate elites. Millions of Americans are out of work, underemployed and tumbling from the middle class down toward poverty. Yet excessively paid and pampered CEOs (recently rebranded as "job creators" by fawning GOP politicians) are idly sitting on some $2 trillion in cash, refusing to put that enormous pile of money to work on job creation.
The Powers That Be keep us tethered to this unjust system of plutocratic rule only by constantly ballyhooing it as a divine perpetual wealth machine that showers manna on America. Any tampering with the hierarchical control of the finely tuned machinery of trickle-down corporate capitalism, they warn, will cause a collapse and crush American prosperity.
Ha! Prosperity for whom? The corporate order itself has come crashing down on the prosperity of America's workaday majority — and the people are no longer fooled about the system's "divinity." From the Wisconsin rebellion to the outing of the Koch brothers' efforts to impose their plutocratic regime on us, from the Occupy movement to the spreading grassroots campaign to get corporate cash out of our elections, we commoners have finally peeked behind the curtain to see the fraud being perpetrated by the wizards of wealth inequality.
Yet, tightly clutching their wealth, the wizards retort that the only alternative is the hellish horror of government control, screeching "socialist" at all critics to scare off any real change.
But wait. The choices for our country's rising forces of economic and political democracy are not limited to corporate or government control. There's another, much better way of organizing America's economic strength: The Cooperative Way.
Cooperatives can (and do) provide a deeply democratic, locally controlled, highly productive, efficient percolate up capitalism.
Co-ops are wholly in step with the values, character, spirit and history of the American people.
While socialism has been cast by the corporatists as a destroyer of our sainted free-enterprise system, the cooperative approach is not an -ism at all, but a democratic structure that literally frees the enterprise of the great majority of Americans — which is why the co-op movement is fast spreading throughout our country.
While it's rarely mentioned by the conventional media, completely missing in the political discourse, not considered by economic planners and chambers of commerce and not known by most of the public, there are 30,000 cooperatives in America (with 73,000 places of business). A 2009 survey by the University of Wisconsin's Center for Cooperatives (www.uwcc.wisc.edu) found that these energetic enterprises have 130 million members, registering $653 billion in sales and employing more than 2 million people.
There are several types of co-ops, including those owned by workers (there are 11,000 of these, with 13 million worker-owners). Also, there are cooperatives owned by consumers, producers, local businesses, artists and communities, as well as hybrids of those categories. They function in every sector of our economy — manufacturing, health care, transportation, banking, farming and food, media, massage, child care, funeral services, interpreting and translating services, advertising, home building, high tech, engineering, energy ... and even a strip club in San Francisco.
Co-op businesses do everything that a corporation can do, but with a democratic structure, an equitable sharing of income and a commitment to the common good of the community and future generations.
You might be surprised to learn that such national brand names as ACE Hardware, Best Western Hotels, Organic Valley, REI and True Value Hardware are organized as co-ops, rather than as corporations. The strength of the movement, however, is in the limitless number of local cooperatives flowering all across the country. From Union Cab of Madison (http://www.unioncab.com/) to KOOP Radio in Austin (http://www.koop.org/), from Evergreen Cooperatives in Cleveland (www.evergreencoop.com) to Circle Pines Center in Michigan (www.circlepinescenter.org), citizen co-ops are highly prized for their unique personalities, human scale, democratic values and community focus.
Cooperatives are a big, structural reform that ordinary Americans can implement right where they live, giving small groups a pragmatic and effective way to push back against the arrogance and avarice of the centralized, hierarchical corporate model. Not only do co-ops work economically, they also make people important again, offering real democratic participation and putting some "unity" back in "community."
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22 comments on "Cooperatives Over Corporations"
Very interesting diocissusn. The main point is that we need to stop thinking that we are shopping at Holy Foods , and all the products we buy there are coming from happy and better off farmers. Yes, that might be the case for some of them, but we still need to think a lot more on how to protect small holder farmers from the nuances of the trade market. We need fair food policies.
February 29, 2012 9:28pm
A map of the worker cooperatives in the United States is available here: http://www.american.coop/node/39To find cooperatives in all sectors, including credit unions and consumer and agricultural cooperatives, visit here: http://find.coop
February 24, 2012 10:59am
Nice article. This information needs to be more widely available; a list of co-ops is a step in that direction. Thanks also for the reference to the University of Wisconsin site. People first!
BTW, if you read Adam Smith's Wealth of Nations, he was opposed to the power of corporations. He would be appalled at the Citizen United decision allowing corporate super-funding without accountability. Spread the word......
February 24, 2012 10:22am
Worker Coops are more stable, have a higher survival rate, reinvest in the community, keep resources local, implement policies that are beneficial to the worker owners, implement best practices with regard to the environment (seeing as the workers families live there too), have little incentive to outsource, etc. etc. etc. There are endless structural reasons why they are better for the workers and the community (not to mention reasons of principle such as the right to have a say over your labor and its fruits). HOWEVER, it's not simply a Just Do It thing. Many dedicated people have put great efforts into building coops, and that's great. But in a nation of 200 million, getting "from here to there" is never just a matter of willpower. Right now the playing field is tipped in favor of corporate structures that benefit a small owner class. They get tax breaks, loan guarantees, investment incentives, and straight up subsidies and bailouts.
We need national economic policies that give a "preference for cooperatives". Even the famous Mondragon cooperatives, or the Italian coops of Emilia Romagna all started under policies (in Mondragon's case, a loophole) that were favorable to coops.
This is a political struggle. Many of us have spent many years of our lives showing how this model can work. 2012 is the year of the cooperative. It's time we move beyond "shop coop", to local, regional and national policies that favor them.
February 24, 2012 8:30am
Ditch your bank and join a financial cooperative (your local credit union)! Go to http://www.asmarterchoice.org/ to find a credit union that's right for you.
February 23, 2012 4:28am
They can have as many styles and flavors as they so decide on there own. Overall, some of the faults I've heard about them, would easily be worked out as they grow in number, while they compete with the Multinationals.
February 22, 2012 11:17pm
The cooperative movement fits like a glove with small towns if they start by opening a credit union and create a local currency with it. Progressively substituting imports by creating their own industries. Starting by being as self sufficient in food as possible, and finding ways to save in energy use. With that in motion the people involved in the cooperatives will come up with all kind of solutions and ideas. The most important thing is to get started. Just do it!!
February 22, 2012 11:17pm
The cooperative movement fits like a glove with small towns if they start by opening a credit union and create a local currency with it. Progressively substituting imports by creating their own industries. Starting by being as self sufficient in food as possible, and finding ways to save in energy use. With that in motion the people involved in the cooperatives will come up with all kind of solutions and ideas. The most important thing is to get started. Just do it!!
February 22, 2012 10:59pm
This is welcome news, and it comes from a man whose sympathies have reliably been with working people for decades. I shop at a supermarket that is organized as an ESOP, meaning that workers can acquire ownership shares in the company's equity on favorable terms. The prices at this market undercut the competition, the variety of foods on offer is excellent, and the employees are courteous and helpful. I don't know enough yet about the intricacies of co-op organization, and I take note of Radracer's informed criticism of this approach, but it does seem as though ESOP employees can build up a sizable retirement nest egg (and do) much more easily than workers in a standard corporation.
February 22, 2012 10:39pm
Check out the Mondragon co-ops in Spain. they have been around since the early 20th Century and are quite large, and diverse. Check out a book by White on the Mondragon Co-ops as well.
Neil Leighton
February 22, 2012 10:50pm
The problem is that, at present, co-ops come in all kinds of flavors and colors. One particular "co-op" frequently mentioned is the company that embraces the ESOP. What is almost always left unsaid is that the ESOP gives workers only a small stake in the company and no say in the running of it.
Another type is the farmers' co-op which is a co-op only for the farm owner and not usually for his/her employees (consider the sorry example of Ruby Ridge Dairy in NW WA). A farmers' co-op was a wonderful thing when the family farm predominated. In an industrialized farming world, it is of little value to anyone other than a few farm owners, who like any other business owner may be virtuous or heinous.
Still another is the consumer co-op like REI, Costco or Sam's Club that offer little to nothing to their employees. These are not, to my mind, real co-ops because they are co-ops only for the owner few, the 1 or 2%. They are little more than gimmicks to keep consumers from shopping elsewhere, to keep them from demanding competitive practices (consider Costco's expenditure of $22 million to buy an election giving them and other large stores the right to sell hard liquor in WA and their unwillingness to price gasoline in WA at less than the prevailing rate). Their business practices are largely indistinguishable from any other corporation.
A real co-op is owned by and run by its people, all of them. Worker-owned and -managed co-ops have been showing the way for all, who are willing to look, for decades, generations and in some few cases centuries.
Mondragon, in the Basque region of Spain and the Italian co-ops have been extraordinarily successful intergenerationally and internationally. This means of organizing a business enterprise is far more efficient, healthy, responsible, ethical, productive and innovative than the typical corporation.
The worker-owned and -managed co-op is the wave of the future and the absolutely essential element in bringing democracy to the workplace.
February 22, 2012 9:49pm
I am a proud member of Food Conspiracy Co-op in Tucson AZ. Our member ship has grown 24% this year! The store carries all organic produce, much of it grown locally. They give back to the community by awarding grants to local organizations, members vote on who to give the grants to. Been a member since the '80s can't say enough good things about them.Also a credit union member growing alternative to banks, let's not forget about credit unions Jim.
February 22, 2012 9:14pm
Yes of course people can band together and organize some part of their economic life for the better. I remember my great grandfather,a civil engineer, doing the ground work and organizing the local farmers into building a co- opertive sawmill to meet their needs and the local community's for lumber.
As Mr Hightower states the great thing about co-ops is that they're democratic in function. Power to the Co- Ops.
February 23, 2012 12:26pm
Thank you, Jim, for reminding us. Just trying to survive, we tend to adopt a myopic view of life and can hardly imagine that there might be better ways of living in community. I'd forgotten about the farming cooperatives that rural community organizers throughout the south and southwest helped start back in the 60s-70s. Do any still exist? And what about artists colonies, intentional communities, purchasing co-ops...
February 22, 2012 6:16pm
Glad to see this article, and I hope all will take a look at http://shiftchange.org about a documentary in process about worker owned and run cooperatives. Preview soon to be posted.
February 22, 2012 4:47pm
We work with cooperatives so much in India, Bangladesh, all developing countries, but totally neglect news of them in USA. Maybe some think these are just for poor people. I work in the water resources sector in developing countries. Thanks for starting news of this, and do try to get it in influential newspapers and TV.
February 22, 2012 4:14pm
Do Co-ops incorporate? Are they corporations just like other corporations?
Do Co-ops create and sell new products?
I went to myace.com and saw no mention of co-operative. I can buy a franchise though. Why do you say Ace Hardware is a co-operative?
February 29, 2012 9:30pm
See: http://www.acehardware.com/corp/index.jsp?page=faq
"As a retailer-owned cooperative, Ace Hardware is wholly owned by its independently operated store owners. No shares of stock in the corporation are publicly traded. Rather, when retailers affiliate with Ace, they purchase shares of company stock, which gives them voting rights in the cooperative. This is their investment in the company."
February 22, 2012 2:54pm
Based on plain empirical evidence, cooperatives will soon be the only means of commerce left to we 99%ers. The logic is compelling and I LOVE making a planto coexist peacefully to the exclusion of the corporations who continue to plan our eminent demise. We the people just dont figure into their plans for their futures. If we have to, we can do ANYTHING! Thanks Jim for pointing out some very successful coops who should be getting all our business.
February 22, 2012 2:06pm
Coops are better than corporations, but not all are created equal, as far as democratic control for workers is concerned. Check out http://nobawc.org/ and http://www.usworker.coop for the gold standard.
February 22, 2012 2:03pm
List more names of co-ops so we can do more business with them.
February 22, 2012 2:11pm
SF Bay Area worker coops: http://www.nobawc.org/article.php?id=56
US Federation of Worker Coops members: http://www.usworker.coop/about/memberlist
New York worker coops: http://www.nycworker.coop/worker_coops/
Valley Alliance members: http://valleyworker.org/members/