The Workers' Paradise

May 14, 2012

Take Wisconsin Back? Create Real Jobs

Filed under: Society — Tags: , — John McNamara @ 8:27 am

This morning, while listening to the news, I heard a report in which Paul Ryan, the conservative US Representative from Janesville, urged his fellow Republicans to work hard and “take back” Wisconsin in the Gubernatorial and Senate recall elections on June 5th. I found this quite odd since the Republican party currently controls the Senate, the Assembly and the Governor’s office. In fact, it is the actions of the dominant party of Wisconsin that has caused the recall election.

I am watching the race from a far. It will be a flurry of activity, no doubt. While I understand that the incumbent governor has raised over $13 million from out of state and the Democratic challenger, Milwaukee Mayor Tom Barrett has barely $1 million on hand, I can hope that there will actually be a discussion. My advice to the challenger? Take a cue from Mayor Paul Soglin. Start championing the cooperative community of Wisconsin as the real job creators.

Co-operative jobs are, simply, better jobs. They will stay in Wisconsin. They will be sustainable over the long term. The cooperative model can even help provide services to the communities. Presuming that the Affordable Care and Patient Protection Act survives the US Supreme Court, cooperatives will be the most sustainable and effective model of health care delivery.

The State needs to do more to help cooperatives move forward.

  • Allow workers to pool their unemployment benefits in a lump sum to start a worker cooperatives;
  • Help workers buy out companies in crisis (crisis due to not being profitable enough) or to allow the current owners to retire without losing their retirement to Capital Gains taxes.
  • Examine educational options such as Ed Visions in Minnesota as a means of a true overhaul of the k-12 school system.

Co-operators exist throughout Wisconsin. A message pushing the co-operative model will find a lot more support than Mayor Barrett might think. It might even encourage people who normally vote Republican to cross over. It is time to start a new chapter in Wisconsin’s progressive history. A candidate in this recall race who embraces the core values of co-operatives will also find that they are embracing the core values of many Wisconsinites and the historical beliefs of small “r” republicans and small “d” democrats.

The GOP leadership, such as it is these days, wants to take Wisconsin back to a place that most of us really don’t want to live. It is also a place that really never existed in the United States. The GOP race to the bottom for the vast majority of the citizens while their wealthy benefactors receive a blank check needs to be aborted.

We don’t need a welfare state for any group. We need a community that believes in sustainably, mutual self-help, and self-responsibility. I think that message, through the co-operative model, crosses party boundaries. I hope that Tom Barrett gets it.

October 17, 2011

We Need New Laws

Filed under: Movement — Tags: , , , , — John McNamara @ 12:37 pm

Over the weekend, I wrote my Assembly Representative, Mark Pocan. The last time that the Democrats held the majority, Rep. Pocan co-chaired the powerful Joint Committee on Finance. Of course, today, his party is in the minority of a very partisan Assembly whose Speaker is planning a run for the US Senate.

In any even, this was my letter:

Rep Pocan,

I would like to meet with you to discuss the possibility of drafting bi-partisan bill to assist workers in Wisconsin to create their own jobs. Specifically, I would like to see Wisconsin follow a successful model in Spain.

My basic proposal would be to allow workers who become unemployed to elect to receive their entire unemployment insurance benefit in one lump sum provided that at least 80% of it is invested into a worker owned enterprise under Chapter 185 of the Wisconsin State Statutes (Cooperatives).

This could have a dramatic effect on the state’s unemployed and even provide an added incentive for owners to sell to their workers (as the IRS Section 1042 provides a means for owners to avoid capital gains tax if they sell to their workers). It is clearly a bipartisan proposal as it would create jobs with an entrepreneurial spirit. Rather than forcing workers already stressed about their ability to make ends meet to jump through a lot of hoops, this law would allow them to either join an existing worker coop or join with other unemployed workers and create their own cooperative.

2012 is the International Year of the Cooperative and this could become model legislation in the United States. The cooperative movement offers real change and hope to the nation’s working men and women. As a 23 year member of Union Cab of Madison, I have seen first hand how our cooperative has humanized our industry in Madison and literally allow people to drive themselves out of poverty.

John

I might add that this also has a benefit in that worker cooperatives don’t leave. They won’t move to another state. That means, of course, the the State gets to keep all of that start-up capital circulating in Wisconsin. These are real jobs that will be here for a very long time (I read somewhere that the average lifespan of a cooperative is about 60 years compared to under 10 for most businesses). In the Basque region of Spain, roughly 30-40 non-Mondragon worker cooperatives start each year. Mondragon connected coops are sprout at the rate of about 20-30 a year. Imagine what would happen to Wisconsin’s economy if we started creating even 40 worker cooperatives a year? Solving local problems and providing local employment?

We wouldn’t need the “Cleveland Model” or well meaning hand-outs. We can create a Wisconsin model of bootstrapping using the existing unemployment insurance program. As this idea develops, I will continue to write about it. If you live in Wisconsin and think that this is a good idea, write your Assembly Representative or State Senator.

April 11, 2011

Progressives Should Embrace Co-operatives

Filed under: Movement — Tags: , , — John McNamara @ 7:00 am

I was asked to speak to the Wisconsin Wave last Saturday. I missed my first chance, because I thought that I was supposed to speak at the part of the rally in front of Wisconsin Manufacturers and Commerce building (a trade organization that pushes a corporatist agenda in the state). I didn’t have anything prepared, but this is what I remember saying:

“I work for Union Cab of Madison, a worker co-operative and I also serve as President of the US Federation of Worker Co-operatives. The US Federation of Worker Co-operatives is a trade organization but we are nothing like the Wisconsin Manufacturers of Corruption. Our Federation ‘envisions a democratic society in which workers are in control of the management, governance and ownership of their places of work. Workplaces will uphold the values of empowerment, equity, dignity and mutual respect for all workers without discrimination. Workplaces will offer long-term stable jobs, a living wage and the opportunity for ownership for every worker.’ We believe in building a democratic economy.

We know that we need a better economy. However, we don’t need to invent it. A better economic model already exists. It is called co-operation. The International Co-operative Movement has over 800 million members of co-operatives and credit unions. One in three people in the United States, Canada, and the UK are members or either a co-operative or a credit union. Theses are people who have chosen to put their neighbors and community over profits. It is the only economic movement that has an international set of values, ethics and principles. These values are familiar to all of us who believe in a just society: mutual self-help, self-responsibility, democracy, equality, equity and solidarity. This economic movement also believes in openness, honesty, caring for others and social responsibility. Isn’t this the sort of economy that we want?

Why do we need to build this economy? Voting can only take us so far. We need to keep working on the recall, and the recount, but we need to recognize the limitations of voting. I’ve been voting since 1982, in every election, two years after the “Reagan Revolution”. It seems to me that voting has been little more than an organized retreat. We need to move forward. The reality is that as long as the commanding heights of the economy (energy, food production, communication, information, and transportation) are controlled by investor-owned, profit-driven enterprises, our government institutions will always be under attack. We need to seize the commanding heights of our economy through people driven enterprises–co-operatives.

We need to start now. On Monday, if you aren’t a member of a credit union, move your money out of the bank and join a credit union. Start shopping at co-ops as much as you can. Quit participating in their economy and make our economy the first choice. Let’s start building our economic movement now!

I know that this seems daunting. We are dispersed and the corporations are huge and powerful. However, and I will end with this, as I was walking down the hill just know, I was thinking of what happened in Spain. Shortly after the civil war, a young priest was on death row. The Pope told Franco that he had to quit killing priests, so they sent this young priest to a small industrial town in the foothills of the Pyrenness presumably to never be heard from again. When this priest got there, he found a town divided by class. The children of the workers had no school. Only the bosses kids got to go to school. He went to the bosses and asked them to let the worker’s kids go to school. They said “No. The schools are for our children.” This priest then began collecting pesos from the workers–whatever they could spare–and established a school for the children of the workers. 12 years later, five of those children went to University. When they returned, they went to work as engineers in the factories. They came back to the priest and said, “our work has no value, we want our work to be in line with the values that you taught us”. Those five workers and the priest started ULGOR Co-operative. Today, it is known as Mondragon Co-operative. It employs 180,000 worker owners. It has its own Social Security system, its own Kindergarten through University educational system and produces one-third of the Gross Domestic Product for the Basque region of Spain!

If five college kids and a priest can do this under the Iron Heel of Franco, then what can we do?!

If five college kids and a priest can fundamentally change their economy, then so can we. We need to say, ‘Yes We Can!’”

I tend to be a little somewhat of an introvert, but I was glad that I spoke. As I was getting ready and thinking of what to say, I kept remembering Mother Jones’ admonition to “speak even if your voice shakes!” I hope that people reading this will take some action. For instance, those of you with web domains could easily move your host to a co-operative host, as I do. Electric Embers would be happy to host your domain. Ask you co-op to start using the .coop domain suffix. It does cost a little more, but it helps promote co-operatives world wide and provides a strong brand.

April 4, 2011

Wisconsin Co-operators Need to Vote on April 5th

Filed under: Uncategorized — Tags: , , — John McNamara @ 4:28 pm

Tomorrow, people who live in Dane County and believe in co-operatives have 3 great reasons to vote tomorrow.

The first is JoAnne Kluppenburg who is running for Supreme Court–she will provide a better balance on the court by being an independent judge who considers the law, not the politics. File this vote under the Co-operative Principle of Autonomy and Independence.

The second is Joe Parisi for County Executive. I haven’t said much about Joe because I consider his race a slam dunk. However, he is known for being an effective manager and has committed himself to defending Dane County against the onslaught of the Corporatist attack. He also was a drummer for what I consider to be Madison’s best band in the 1980′s Honor Among Thieves.

The third is a county-wide referendum seeking to amend the US Constitution to correct the mistake of Citizens United. Corporations, like Co-operatives, are not people. Our government must be based on the rule of humans, not capital.

For those of us in Madison, we have two more reasons to vote tomorrow.

Paul Soglin is running for Mayor. He has promised to rebuild Madison’s economy with co-operatives as part of the mix. He has even proposed a City-wide Co-operative conference to assist the City planners and administrators to engage with the area co-operatives.

A city referendum to seek an amendment to the US Constitution similar to the County referendum.

For those of us in the 6th District, we have the opportunity to re-elect Marsha Rummel. In addition to her ability to facilitate the discussion in a very vocal (and somewhat contrarian district), she is also the manager of Rainbow Bookstore Co-operative. She is the only member of the Common Council who truly understands co-operatives inside and out.

Regardless of the outcome, however, we have to continue to push our agenda. Electoral politics only goes so far. Elected officials exist to ratify the consensus of the community, we need to build that consensus. Co-operators need to vote tomorrow and then stay engaged. Make co-operation a force. Demand that our economy mirror our values. Vote, then agitate!

February 9, 2011

Madison Mayoral Candidates Discussing Worker Cooperatives: Let’s Turn Talk Into Action

Filed under: Movement — Tags: , , — Fred Schepartz @ 5:47 pm

It appears that worker cooperatives may become an issue in this spring’s mayoral election in Madison, Wisconsin. Incumbent David Cieslewicz is blogging about a community-wide effort to facilitate the forming of worker cooperatives. Challenger and two-time former mayor Paul Soglin (the so-called Red Mayor) is blogging about it as well.

As a longtime worker/owner at Union Cab Cooperative here in Madison, I applaud both candidates for bringing up this issue. I’ve written about this before, that worker cooperatives could be a way to save our economy both by putting people back to work and getting back in the business of manufacturing things that people would want to buy. And of course, these would be safe, humane and sustainable workplaces more interested in serving the community than maximizing profit.

But let’s not be naive. This discussion comes in the context of a political campaign. It could be a lot of bloviating, just a lot of hot air that has no meaning once the last ballot is counted. Still, it could make for great discourse that could have real, concrete results but it is up to us. We need to get involved in this discussion to ensure that it has real focus to it. And once the election is over, we need to maintain pressure on whoever is elected to turn words to action.

On the treadmill at the East YMCA, it suddenly occurred to me that the best way to achieve this goal would be to propose something concrete, so we can have a real topic to discuss.

Here it is: I propose that the City of Madison establish the Madtown Worker Cooperative Incubation Center. And I know the perfect place: Union Corners on the east side of Madison. For those not familiar with Madison, Union Corners was where Rayovac had a manufacturing plant before corporate flew down south. A local developer had big plans for the site, but the financing fell through. Now it’s the most infamous blight in town. There have been various alternatives plans for the site, but none have come to fruition. Most recently, the city has proposed buying the land in order to be able to make sure that there’s at least a little rhyme and reason when it is eventually parceled off.

Union Corners is a good sized piece of property, and it’s certainly big enough for several small business. I propose that those businesses all be worker cooperatives, and that the city use its resources to help facilitate the formation of these new worker cooperatives.

First, the city should purchase and then develop the property in a simple but functional manner by erecting versatile structures and providing surface parking (along with ample green space as well).

Second, the city can establish a fund to provide seed money for these new business. The city would contribute to the fund, but would also solicit grants from the state and the feds, as well as the private sector.

Third, the city should participate in a community-wide effort to create a super-structure for MWCIC. This entity would oversee the creation of new worker cooperatives by approving viable proposals, facilitating funding and providing assistance in the formation of these new businesses. More importantly, however, this entity would do outreach in the community to let people know about the opportunities presented by MWCIC. Eventually, this entity would become an overall governing body for all MWCIC members. Down the road, MWCIC would buy the Union Corners property, but only if the city declares it as a Tax Incremental Finance district thus making it exempt from property taxes until its strong enough to contribute to the city’s tax base.

But MWCIC cannot merely be a collection of businesses that are housed on the same tract of land. There would need to be space for people to meet, confer and socialize. Also, within MWCIC there needs to be something I would call the Worker Cooperative Training Institute, which would do exactly what its name indicates. Obviously, MWCIC would attract people with previous cooperative experience. That’s all fine and good, but it’s probably even more important that member cooperatives include people with little or no previous experience with cooperatives so they would have an opportunity to learn how cooperatives can enhance and improve their lives.

The training institute would serve an important function and would give worker/owners the tools to be able to run their own cooperatives. In addition, the WCTI could eventually branch out and train worker cooperative members from all over the country and perhaps all over the world.

Another important institution for MWCIC would be the Workers Cooperative Credit Union. This credit union could be formed as a collaborative effort among the various local credit unions. The WCCU itself would be a worker cooperative. It could handle the financing of the various worker cooperatives at MWCIC, as well as the banking needs of member cooperatives and their worker-owners.

But what kind of worker cooperatives should there be at MWCIC? The answer is obvious: whatever kinds of worker cooperatives people can imagine, producing any and every kind of good and service. Get interested people together and talking, and they can come up with some of the most amazing and creative ideas. The only restriction is our collective imagination.

What are some of the great American products that are no longer made in America? We could make those at MWCIC. We could certainly create the Madtown Worker Cooperative brand, which could be recognizable from coast to coast.

Or another idea: one great resource in the Madison area is organic produce. A worker cooperative could perhaps make use of this produce to create various food products. MWC pickled vegetables. MWC liver pate. Again, the only limit is our imagination.

MWCIC is a win-win for everyone. It would create jobs where people would feel empowered. It would improve the city’s tax base and make use of Madison’s worst blighted area. In addition, it would represent a major step forward in the American worker cooperative movement. With Madison’s great progressive tradition, it seems logical for Madison to lead the way.

October 12, 2009

#7 Democracy

By nature of writing on worker co-operatives, I have touched on the subject of democracy countless times. It is the foundation of co-operation. It is part of the definition, the values and the principles. If we could only use one word to describe co-operation, it would be democracy (which is I think that Michael Moore almost had it right when presented the choice between capitalism and democracy). Of course, the word “democracy” can be co-opted. Nobel Laureate Milton Friedman often claimed that capitalism, in its pure form without government intervention, was the purest form of democracy as people could “vote” on every transaction and the power of their vote was equal to their significance to the economy. For that reason alone, co-operators need to understand and defend democracy as a definition, a value and a principle.

The founding pioneers of Rochdale included a large number of Charterists. They were fighting for Universal Suffrage—the vote. They saw co-operation as a backdoor method of achieving property for working people. Once they owned a share of stock, they could argue for the right to vote as an owner of property. They truly believed in the concept of “one man, one vote” and that if everyone had a vote, they would create a shining city on a hill and usher in an era of peace and prosperity.

It didn’t quite work out that way, though. It underestimated the power structure and its ability to manipulate, obfuscate, and control the process. Here is a sad and cynical take on democracy from Ghana:

The movie does make a point: democracy is expensive. The lack of democracy is even more expensive. I often hear members complain of the cost of democracy–it tight economic times, it can be seen as an unnecessary expense–a competitive disadvantage even. That is false logic, however. Democracy pays for itself by creating a loyal and dedicated workforce that has a vested interest in the success of the company. The money spent on committee time, member forum, and meetings easily gets made up by the ability of the co-operative to survive tough economic times without layoffs or even financial losses.  Of course, this film focuses on the electoral democracy, rather than participatory democracy. Electoral democracy is only one aspect of a truly democratic process. I get into this argument quite often in Madison, which is a town dominated by pols. People often see democracy as the right of the people to vote an idea (or person) up or down. I see democracy as the process of creating the idea. It may be that being in Madison causes people to have a negative view of democracy and not see the real democracy that takes place when they can attend a forum and denounce the cost of the forum!

In our co-operatives, we need to be mindful of the democratic functions. For worker co-operatives, this means flattening hierarchy whenever possible. We need to move away from the “Big Man” theory of history and governance and consider, instead, that leaders get created by the movement that created them. If you have a leader who is manipulative and counter-productive, it is likely that the people who elected them gravitate to that type of leadership. The problem is one of culture, not votes.

The question, then, becomes “How do we create a participatory democratic culture?” The answer isn’t that simple. Part of it involves the culture of the organization, the culture of the industry, the region of the of the world, and generation of the workers. It really gets incredibly complicated which is likely the reason for focusing on voting. Voting is simple. Everyone can understand it. Complex ideas distill into simple yes and no questions. Business can move at the speed of business not at the speed of everyone’s comfort level.

This video offers a great perspective:

It is up to us, the members of worker co-operatives to define democracy within our generation, accept that the next generation will want something different, and create an evolutionary culture that honors knowledge, history and change.

As the shibboleth of the co-operative movement, democracy needs advocates and we must accept the role of stewards. We need to develop democratic cultures and processes that honor the individual and the community. Sometimes this will mean supporting the decision our co-operative makes even if we know it is doomed to failure—helping it to succeed against that fear—and being present, without admonition,  to find new solutions if it does. Ultimately, it is about educating our membership and creating a sense of openness that allows members to really control their co-operative free of silent or hidden cliques. For those of us who have been in the movement for a while, we need to remember how it was when we were the new kids with the great ideas that nobody wanted to hear. Democracy means, in part, to have the courage to change the culture and accept the voices of others even if we disagree.

I accidentally wrote on the values out of sequence. Democracy should have been posted prior to equality. The authors of the Identity statement certainly chose the order of the values carefully. Equity follows Equality for a specific reason. Likewise, democracy follows the more individual values of self-help and self-responsibility. As equity is a check on equality, democracy is a check on the individual. This, again, shows the inter-relatedness of the values (and the principles).

Next Week: Solidarity—the last, but not least, of the six values.

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