The Workers' Paradise

July 19, 2010

Worker Co-ops and Workers, Unity vs. Cliques

Filed under: Human Relations — Tags: , — John McNamara @ 11:24 am

How do we, as a movement, create a different organizational structure that creates synergy out of our differences? More importantly, how do we create a culture that overturns the worst lessons learned in the dominant paradigm?

To me, the Human Relations in a worker co-operative should be dedicated to the full human development of the individual as part of the overall community of the world. We should be borrowing the good things from our dominant culture and subverting or destroying the bad things. While it might be fair to argue over what is “good” or “bad”, we have a touchstone to rely upon. The Statement on the Co-operative Identity and the Mondragon Principles provide the cultural map required for co-operatives to engage their members and the community. We have to activate our concern for community in a way that humanizes our co-operatives and creates societies that truly deviate from the dog-eat-dog normality.

The first time that I heard the word “clique” was in 10th grade, I thought that my classmate said “click”. He was talking about all the cliques in our high school and how annoying they were. I thought this meant that kids had started “clicking” their tongues or something! I am glad that I didn’t start “clicking” to fit in! Of course, that is part of the socialization process in our culture. We create “the other” and then join groups based on not being “them” but on being “us”. My high school class only had 82 students and we still subdivided into three large groups and several smaller cliques.

Our willingness to self-divide and identify “us” verses “them” continues unabated in our society. Politicians (professional and otherwise) have long used this to achieve and maintain power. Corporations have used this to divide and conquer worker movements.

How do we use cliques in our co-operatives?

If we allow them to exist (and I imagine it would be impossible to banish them), how do we prevent the worst aspects of them (elitism, personality cults, discrimination, harassment and bullying) from destroying our co-operative ethos and the value of mutual self-help and solidarity? In my mind, I find the nature of cliques and sub-groups to be counter-productive and even the internal enemy of worker co-operatives. Ultimately cliques gain their power from destroying the social cohesion of a co-operative. I imagine that there are all sorts of self-esteem issues and personality types wrapped up into this.

In some co-ops, it may be easy to diffuse since the business is small, exists in one place, and everyone essentially works the same hours (think Cheeseboard). The “clique” essentially becomes the rather homogeneous group of members. However, in a large spread-out organization (like home care co-ops, taxi co-ops, or other organizations), members may be distributed across time and space to the point that workers might not even recognize each other as members of the same business. How do we work to overcome cliques in co-operatives where the membership might never meet the majority of the members due to work schedules?

I don’t really have a great answer for that question. I think, however, the key will always be in the values. Openness and honesty must be central to our work lives. I think, too, that we need to create a culture that doesn’t encourage one group of workers to be thought of as more important than another. We have to make equality and equity a reality in our co-operatives. At some level, it become an issue of individuals standing up and defending the values and principles of co-operatives. When we hear a member discredit another member (or work group within the co-operative) we need to risk our own popularity to explain why that idea (creating the “other”) is non-co-operative and even a danger to themselves (after all, they may become “the other” one day).

I imagine that co-operatives that have regular meetings and social events of the membership (on a daily or weekly basis) probably do better; however, that isn’t always practical and may pose problems in a 24 hour workplace.  The larger point, is that we can’t sit back and expect social cohesion to simply happen. As the co-operative grows and ages, the level of cohesion will change with it. In chemistry, the saying is that like attracts like (or that might be “like dissolves like”), so the job of a larger co-operative will be to help its membership see the similarities in all of the members of the co-operative. These similarities, of course, are the human qualities and desires that we all share. The idea shouldn’t be to build loyalty on a shift-by-shift basis (as a typical HR group might do), but on our humanity and co-operative membership.

A worker co-operators, we have an obligation to treat ourselves better than the bosses would treat the workers in their employment. When we act worse than our competitors in how we treat each other, we not only fail to honor each other, we fail the worker co-operative movement and the larger co-operative movement. We must institutionalize methods to help members unlearn the bad habits of the traditional workplace and learn the value of social cohesion with everyone in the co-operative. We need to eschew the cliques within our organization and see the co-operative (and its stakeholders) as our society. We need to create peer support structures within our co-operatives to develop and promote our solidarity with each other as members and teach other co-operatives how to do it.

Ghandi famously encourage us to be the change that we want to see. Worker co-operatives have an obligation to present a better option in how the company treats its workers and how its workers treat each other.

March 15, 2010

CICOPA: General Characteristics of a Worker Co-operative

Filed under: Movement,World Declaration — Tags: , , , , — John McNamara @ 4:39 pm

If you are a member of a worker co-operative, as defined in the World Declaration on Worker Co-operatives, then CICOPA considers you a “proponent of one of the most advanced, fair and dignifying modalities of labour relations, generation and distribution of wealth, and democratization of ownership and of the economy”.

Heady stuff!

The Statement on the Declaration begins with a discussion of six General Characteristics that leads up to the actual Declaration. They are, in a nutshell:

  1. Humanity has consistently sought a qualitative improvement in the way that it organizes work with a steady progress towards labor relationships that are more fair and dignified.
  2. There are three modals of work:
    1. Self-employment
    2. Wage earners
    3. Worker ownership, in which work and management are carried out jointly
  3. Worker Co-operatives are the highest level of worker development in the present world. They are based on the values and principles of the Statement on the Co-operative Identity (adopted by the ICA in 1995 and supported by the ILO’s Promotion of Co-operatives 193/2002).
  4. Worker Co-operatives commit to being governed by the Identity Statement. In addition, they accept the additional definitions of this Declaration in order to further the worker co-operative model and differentiate it from the other types of co-operation. This will improve grow the movement while preventing deviations and abuses.
  5. The Declaration is necessary to allow the co-operative movement and the world to focus on the importance of worker co-operatives.
  6. The Declaration encourages co-operatives from all sectors to provide membership status to their workers and grant recognition to human work.

In some ways, this is a “shot across the bow” for the fake worker co-ops. These co-ops are really employer co-ops. Usually it is a partnership of a few who then sub-let to “independent contractors” who are not offered membership. This is most common in taxicab companies. It is a shell game used to avoid tax burdens and, in some cases, labor law.

The general characteristics also take a bold step in proclaiming in a very subtle way the old Wobblies motto: “Labor Creates All Wealth!” The Declaration encourages all co-operatives to respect their workers, to treat them as a significant stakeholder group and to create a membership class for them. This is very radical in co-op circles (at least US circles). Most Ag co-ops in the US do not allow members to work for the store. Consumer co-ops often only allow one or two workers (who might also be members) to serve on their boards. Usually, that service comes with a browbeating to ensure that they vote against their class. One consumer co-op that I know takes great pains to lecture their worker members to “think like an owner, not an employee”. As if the “employees” do not have a vested interest in the success of the consumer co-operative!

Quebec is a hot bed of worker co-operation. Therefore, it should come as no surprise that the work being developed there follows this concept. In Quebec, the work has been laid to create the “New Co-operative Paradigm”. I can tell you that this discussion was the most popular of the St. Mary’s MMCCU program for my cohort. Its creator, Daniel Coté speaks at length about the need to develop social cohesion within a co-operative. A key part of his paradigm utilizes the value of Solidarity. Specifically, he sees the core success of the co-operative of the future as the solidarity between the worker and the consumer (by which I mean the consumer, the farmer, the housing consumer, and financial consumer).

The World Declaration on worker Co-operatives may not be the US Declaration of Independence, however, it does present a challenge. It presents a challenge to all worker co-operatives to examine how they operate. It challenges the fake worker co-ops, that are really employer co-operatives to own up to the falsehoods. It encourages all co-operatives to honor their workers, the people who actually produce the wealth and the benefits that the members enjoy.

Next Week: Basic Characteristics

January 25, 2010

#20 Payment Solidarity

Filed under: Identity Statement Series — Tags: , , , , , , — John McNamara @ 1:50 pm

The Mondragon Co-operatives maintain the concept of wage solidarity. From the beginning, the ratio of the highest paid position (manager) and the lowest paid (new worker) was locked at 3:1. In the 80’s this changed and today there are some positions that earn a 6:1 ratio and one (the CEO of the International MCC) who receives 9:1. Even with the tripling of the upper end of the ratio, it is still a far cry from the 150 or even 300:1 ratios that modern stock corporations tend to employ.

What interests me about this principle (and I think that it should be in the Identity Statement as well), is that Mondragon expresses the co-operative value of solidarity. It puts solidarity into the operations of the co-operative.

The language of Mondragon follows:

“The Mondragon Co-operative Experience proclaims sufficient and solidarity remuneration to be a basic principle in its management, expressed in the following terms:

a) Sufficient, in accordance with the possibilities of the Co-operative

b) Solidarity, in the following specific spheres:

  1. a. Internal. Materialised, amongst other aspect, in the existence of a differential, based on solidarity, in payment for work.
  2. b. External. Materialised in the criteria that average internal payment levels are equivalent to those of salaried workers in the area, unless the wage policy in this area is obviously insufficient.”

Note that the principle calls upon the worker co-operative to either ensure that its workers receive the prevailing wage or, if that wage is too low, become the wage leader in their industry and area. The prevailing wage must be at least a living wage*  for the community.

The principle of pay solidarity helps flatten the hierarchy in worker co-operatives. The pay differentials are kept small as a means of valuing all work performed to help the co-operative succeed as well as valuing all workers in the co-operative from the very new to the very senior. This principle helps to deflate the ego within the co-operative. Is someone with 30 years in the co-operative worth more as a worker? In some senses, the  experience and knowledge of the industry that comes with 30 years of work can be vital to the success of the organization, but is it worth them being paid 30 times the pay of a new hire?

Does someone who manages the marketing of the co-operative do more to create wealth (by getting customers) than front-line workers? Should that ability earn more than others?

These are very real questions for worker co-operatives and they are questions which can cause a lot of divisiveness. The way that the worker co-operative addresses these issues can dramatically effect the co-operative to enable it to succeed or cause it to fail.

Does a flat compensation system (everyone gets the same pay regardless of their job duties) encourage good management or cause the people who have management skills to seek employment elsewhere? Does a staggered system of seniority and pay levels create an aristocracy within the co-operative?

It is important for worker co-operatives to find the right balance based on their industry and their internal culture. It probably needs to be revisited from time-to-time. One aspect, in thinking about payment solidarity, should be leadership development. If the compensation levels are set too low, then the co-op will likely become a training center for its competitors or other businesses. If it is set too high, the co-operative may create a rift between the high bracket managers and the low bracket workers. Creating an “us vs. them” mentality can only lead to failure of the co-operative.

To truly maintain solidarity in payment, co-operatives must employ measures to develop leadership among their own ranks. When we need to hire managers from outside, who know the industry, we risk a lot. The culture of a worker co-operative can be destroyed by outside management who bring the attitudes of the traditional corporations with them. I’ve seen this up-close and personal and also from a far. Good Vibrations recently demutualized (becoming a standard ESOP) after hiring outside management (and changing the pay ratio to do so). Now, I am sure that the decisions to demutualize were very complicated (and it was a unanimous vote of the membership); however, it was clear that the culture of the organization changed after they increased their pay ratio in order to hire a manager from the mail order industry.

Of course, once we develop management, we also will need to compete with the outside world to keep them. Thus, our development programs must be based on two concepts: the management needs of the industry and the management needs of the co-operative. Whether our management has a traditional hierarchy or done through committee and semi-autonomous collectives, these two concepts need to be part of the discussion. With this in mind, it can be easier to develop a payment solidarity plan that recognizes a member’s experience, knowledge and commitment while also ensuring that the  “floor” for workers (whether by position or seniority) remains suited to a living wage for the community. This is the opposite of the corporations who figure out the senior management pay and stockholder dividends first and then use what is left over for the workers.

From Don José María Arizmendiaretta, “Solidarity is not just a theoretical proclamation, but something that should be put into practice and made manifest, willingly accepting the limitations of team work and of association, since this is the way to enable people to help each other.” (as reported by José María Ormaechea in his book The Mondragon Cooperative Experience)

This marks the end of the Mondragon diversion. I have called these four principles the “worker co-operative user principles”. These four principles should, in my opinion, be part of the Co-operative Identity. Co-operatives, regardless of the sector, require people to do work to benefit the users. Because of this, co-operatives should see the worker as a primary stakeholder and create means for the worker to truly benefit from their experience in the co-operative. I will even go so far as to argue that all co-operatives should either have a membership class for the workers or actively promote the unionization of their workers. Co-operatives must avoid exploitation. If we believe in Fair Trade for farmers producing coffee, chocolate, sugar and the like, then we must also believe in fair trade for the laborers who get those products on the shelf.

*what is a “living wage”? Madison, WI sets their definition as 120% of the poverty threshold for a family of four (currently $11.21/hour). Dane County arbitrarily declared it to be $8.70/hour. I think that worker co-operatives should work on this definition. I think that it should be a wage that allows a family to experience security with regards to nutrition, housing, health, education, clothing and socialization. This number will vary based on the community. I don’t think that it needs to mean a single-income home, but it should mean that someone can take care of themselves and their dependents at a basic level. Probably a topic for another post. . . .

Next: the 4th Principle—Autonomy and Independence

December 19, 2009

Neo-Syndicalism: A Path Toward Reimagining Socialism

Filed under: Movement — Tags: , , , , , , — Fred Schepartz @ 6:27 pm

In Barbara Ehrenreichs groundbreaking essay, “Reimagining Socialism,” which appeared recently in The Nation, she states that we on the Left need a plan, but we don’t have a plan.

Well, I have a plan, albeit a small one.

My plan is something I like to call Neo-Syndicalism. This may sound familiar to longtime Mobius readers; I have written about this before.

Just to quickly review, Neo-Syndicalism, like Classical Syndicalism, is the notion that we can change society through economic means rather than political means. In terms of Classical Syndicalism, this is most elegantly expressed in the old IWW slogan, “one big union, one big strike.”

Neo-Syndicalism takes an updated, more pragmatic, and perhaps more cynical approach in that we acknowledge that perhaps we can’t overthrow the Capitalist system. However, within the Capitalist system we can create liberated zones through organisms like worker cooperatives, collectives, and other forms of worker-owned businesses, along with economic alternatives such as fair trade, community supported agriculture, and, in general, sustainability.

Essentially, this is about building our own economy brick by brick.

The movement, the plan, is out there. It just doesn’t know it, at least not yet. That is why I have given it a name. Giving a movement a name pulls together diffusive elements and helps provide a conduit for people with different interests to work together toward a common goal.

Or to put it another way, if you are involved in an activity that falls under my heading of Neo-Syndicalism, you are doing something greater and more significant than you realize. You should take this understanding, talk to the other members of your group, and discuss your work in this greater context. You should network with other groups that do the same thing your group does. And then you should network with groups you may not have much in common with if these groups share the strategy of Neo-Syndicalism.

It’s about building our own economy brick by brick.

In these desperate times, there’s interesting and radical things going on. Last year in Chicago, workers at Republic Windows and Doors staged a sit-in after the company was forced to close when the bank, which had received TARP funds, refused to extend a line of credit to allow the company to continue production. The worker’s refusal to let the plant close was rewarded. Another company came and in bought the plant thus saving a few hundred jobs.

In Latin America, there have been numerous instances where factories abandoned by the companies that owned them have been taken over by the workers. As one worker commented, the company came into our community, took our subsidies, took our tax breaks and then left. We are claiming ownership.

My favorite story is in France, there have been instances of boss-napping. Of course, the French being the French were rather civilized about the whole thing. While holding bosses as they waited for corporations to consider their demands, they stuffed the bosses with moules et frites.

I remember way back in 1979, when I first moved here to Madison, Wisconsin, to attend the University of Wisconsin. Somebody handed me a copy of the very last issue of the radical newspaper Takeover. I remember the slogan: “Are you going to take orders or are you going to take over?”

Granted, I’ve always found the sentiment a bit simplistic, but in this case, I think it’s quite apt. I look at the shuttered GM plant in Janesville, and all I can think is “are you going to take orders or are you going to take over?”

These corporations are afforded the same rights as individual human beings. We give them tax breaks. We give them tax subsidies. We give them tons and tons of public money so they can come into our communities to provide jobs. In these harsh economic times, we give them stimulus money so they can stay in business and continue to provide jobs.

And then they close. They either simply shut their doors or they move to other countries.

As far as I’m concerned, the GM plant in Janesville belongs to the people of Janesville. They should take over the plant and run it as a worker-owned cooperative or perhaps as a community-owned cooperative of some sort. They could produce anything they want, though perhaps it might make the most sense if they produced cars. Perhaps they could contract with one of the surviving auto companies. Or maybe they could actually start their own auto manufacturing company. Or maybe they could take over Saturn once GM officially discontinues that line.

One might think, automakers designing cars? Ridiculous?

Well, of course they’d hire design engineers and whatever brain power they need, but just imagine what kind of cars such a plant would produce when the workers who produce the vehicles and drive the vehicles actually have a say in the design of the vehicles. Gee, they might actually be vehicles people want to drive!

And yes, I do understand this is a pipe dream without a massive infusion of cash. After all, as a character in The Right Stuff says, “No bucks, no Buck Rogers.”

If the government can bail out the banks and the auto companies, they can provide money to facilitate the formation of worker-owned-and-operated cooperatives at abandoned manufacturing plants. This would comprise a real economic stimulus package. It would save and create jobs. It would be great for the communities that die long, slow, painful deaths when a manufacturing plant closes.

And it would help get us back into the business of building stuff the world wants to buy.

The Obama Administration should call for an initiative to provide grants and low interest loans to abandoned workers who want to form worker cooperatives. In fact, the Obama Administration should encourage abandoned workers to take over shuttered manufacturing plants.

Of course, there’s a chicken/egg aspect to this. Workers should view this tactic strategically, that if more and more workers take over abandoned manufacturing plants, it could be a way to force the Obama Administration to take positive action. We saw this during the FDR Administration, and it’s equally true now: radical change comes from the bottom up. Remember, FDR himself said, “Make me.” Obama has pretty much implied the same thing, urging people to organize, to basically give him political cover to be able to move in stronger directions.

But let’s make one thing perfectly clear: Neo-Syndicalism is not merely a tactic to push government into a more radical direction. It’s a strategy. Again, it’s about rebuilding our economy, brick by brick. It’s about telling the corporatocracy that we will no longer play their little reindeer games, that we can find a path toward a real and lasting prosperity without them.
Neo-Syndicalism is just a term I came up with, but as I’ve said time and time again, words have great power. What we’re talking about is defining a movement that’s out there, working hard and doing good work. By identifying this as a movement, we create a synergy that will make it stronger through greater numbers and more comprehensive exchanges of information and, in general, people power.

October 19, 2009

#7 Solidarity

Solidarity, to me one of the most beautiful words in the English language, is not simply a cooperative value. It is a human value. To have a discussion about this value involves talking about so much more than the cooperative world, or of purchasing at the cooperative store. It involves talking about the key quality that creates societies and communities.

Of course, the first thing that must come to mind, upon hearing the word Solidarity, is the great labor anthem of the 19th Century that gave rise to the Industrial Workers of the World, the Congress of Industrial Organizations, and Solidarnosc. Solidarity is a key part of other movements, specifically, the labor movement. The polish workers of Gdansk chose Solidarity to name their union because it is the hallmark of the labor movement from the days of the Knights of Labor to the democratic resistance in fascist Europe to the battles of the anti-imperialist movements of Latin America, the Middle East, and Africa. It is about loyalty and the United Front.

Solidarity is a human value. It is what has allowed us to survive as a species. Sadly, upon achieving survival, we created economic systems that discourage solidarity and actively attack it through greed and avarice. A wonderful series called Ishmael and My Ishmael by Daniel Quinn discusses some of these concepts in human philosophical development. In her work, The Shock Doctrine, Naomi Klein discusses how the fascists of South America (led by the Chicago Boys and Nobel Laureates Milton Friedman and Henry Kissinger) specifically attacked solidarity as a means to break the resistance to their new economy. Solidarity is the anti-thesis of ne0-liberals. It runs absolutely counter to the anti-value of self-interest expressed by Adam Smith, Milton Friedman and, to a lesser extent, Jeffrey Sachs.

Solidarity is a major part of the human experience, so nailing down its meaning can be quite difficult.

One of my favorite songs from my youth, Solidarity by Black Uhuru, explores this value:

“Everybody wants the same thing don’t they,
Everybody wants a happy end
They wanna to see the game on Saturday,
They wanna be somebody’s friend.
Everybody wants to work for a living
Everybody wants their children warm
Everybody wants to be forgiven
They want shelter from the storm.
Look at me, I aint your enemy
We walk on common ground
We don’t need to fight each other
What we need, what we need
Solidarity.”

Solidarity is friendship within the community, within the society. A mentor of mine, Tom Webb, program manager for the Masters of Management: Co-operatives and Credit Unions, recently made this comment on the nature of friendship: Friends are people who can be relied upon. They care about you and you care about them. Friends forgive each other when they ‘mess up’ or lapse into human folly. You know each other’s true worth. You know where they stand and as time progresses you even can imagine with some accuracy what they might say in the face of some event. It is with friends that some of the best things in life are done. If you are truly fortunate in life you get to work with friends.

Solidarity is about something bigger than the needs of an individual. It is about experiencing the rites of friendship not only with the individuals that we determine to be our “friends” but also with our fellow travelers or in the case of the identity statement, the group of people who, along with us, voluntarily choose to associate to support our common culture, aspirations, and needs.

The Background Paper on the identity statement talks about solidarity as follows:

“The last operational value is “solidarity”. This value has a long and hallowed history within the international movement. within co-operatives, this value ensures that co-operative action is not just a disguised form of limited self-interest. A co-operative s more than an association of members; it is also a collectivity. Members have the responsibility to ensure that all members are treated as fairly as possible.; that the general interest is always kept in mind; that there is a consistent effort to deal fairly with employees (be they members or not), as well as with no-members associated with the co-operative.

Solidarity also means that the co-operative has a responsibility for the collective interest of its members. In particular, to some extent, it represents financial and social assets belonging to the group; assets that are the result of joint energies and participation. In that sense, the solidarity value draws attention to the fact that the co-operatives are more than just associations of individuals; they are affirmations of collective strength and mutual responsibility.

Further, “solidarity” means that co-operates and co-operatives stand together. They aspires to the creation of a united co-operative movement, locally, nationally, regionally and internationally. They co-operative in every practical way to provide members with the best quality goods and services at the lowest prices. They work together to present a common face to the public an too governments. they accept that there is a commonality among all co-operatives regardless of their diverse purposes and their difference contexts.

Finally, it d to be emphasized that the solidarity is the very cause and consequence of self-help and mutual help, two of the fundamental concepts at the heart of co-operative philosophy. It is this philosophy which distinguishes co-operatives from other forms of economic organization. In some countries, the concepts of self-help and mutual help have been ignored by governments, and co-operatives have been organized through government initiative, sponsorship and financial assistance; the unfortunate result is movements controlled and managed by governments. It is essential, therefore , the at  the solidarity of co-operators and co-operatives, based on self-help and mutual responsibility, be understood and respected, particularly in developing countries, but in industrially-developed countries as well. “

It is hard to add to the the background paper. Certainly, Solidarity does not mean turning a blind eye to the actions of friends or allies. It does mean keeping the discussion of those actions inside the cooperative community. For a worker co-op, Solidarity means that we honor each other (and express solidarity) by focusing our discussions and arguments in pursuit of the greater good for the co-operative. This means making our agendas and personal interests public to those in our co-ops. It means examining our own actions and positions to determine if we would still support it if we were an uninterested outsider. It means, to some extent, publicly supporting the co-operative–not complaining about our issues when elsewhere (coffee shops, taverns, and the like). It means accepting the decision of the group (blocking consensus only in extreme situations).

Ultimately, solidarity is the recognition that a community requires more than one person’s viewpoint to be heard and agreed upon. It requires more than one bloc or segment. It is a mosaic or a Mandela of people’s cultural, social, political and personal histories. When we join a co-operative, we are choosing a specific team. We are choosing to be part of something bigger than ourselves. With that membership and choice comes the responsibility of making ourselves subservient to the whole. This might run counter to some people’s ideas of individuality–that is fine. For them, the majority of the economic world has been built around the promotion of the individual and they should feel free to explore it. For those of us who believe that our economic world should express our humanity, solidarity is a value that shines bright and baths all of us in its glorious light.

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