Worker Co-ops & the Labour Movement: Canadian Perspectives July 31, 2009 Pittsburgh Presented by: Hazel Corcoran
COMMON GROUND § § Economic Democracy Wealth Shared vs. Wealth Concentrated People before Profit History of shared projects in Canada up until the 1970 s
Divergent Paths 1970 - Present § The redefining of “Liberal Capitalism” and the forces of global corporatism. § Larger Co-operatives become business-centric and focused on being competitive within their markets. (Retail Consumer Co-ops, Credit Unions). Some disappear. § Labour Unions under attack - changing legislation – offshore manufacturing –Flight of Capital – Declining Membership
Divergent Paths 1970 - Present § From common ground to indifference § Collective bargaining experience in larger Coops § Lack of a common table (National Labour – Co -operative Committee, ceased in 1970 s) § The loss of our collective history § Fighting separate battles separately
Current Economic Situation § § Financial crisis & recession Forestry & other resource industries Manufacturing industries Retiring owners
Western Labour / Worker Co-op Council § Original meeting – Saskatoon, September, 2006 § 20 + attendees including union members, Canadian Labour Congress reps, worker coop activists, OEOC, Lynn Williams
WLWCC Outcome of meeting: Formation of WLWCC; Better shared understanding. WLWCC PURPOSE The purpose of the Council is to facilitate collaboration between labour and worker co-op activists and to improve conditions for workers in the Western region by promoting and facilitating worker ownership, primarily through worker co-ops.
WLWCC COUNCIL MEMBERSHIP The Council is comprised of members from the four Western provinces who represent the labour or worker co-op movements. Additionally, resource people (including John Logue) provide support and mentorship to the Council. Membership is voluntary and without remuneration.
WLWCC MANDATE (1) The mandate of the Council is: To build the capacity to respond where unionized employees want to explore buying out a business as a worker cooperative or other type of employee-owned enterprise due to business succession or a crisis situation;
WLWCC MANDATE (2) To provide a common table on issues important to both the worker co-op and labour sectors, such as joint lobbying and mutual support for worker co-operative and/or unionized businesses;
WLWCC MANDATE (3) To do outreach and to provide two-way learning opportunities between the worker co-op and labour sectors;
WLWCC MANDATE (4) To provide workshops on topics specific to this mandate, including financing tools for conversions and other subjects as identified;
WLWCC MANDATE (5) To coordinate the response to opportunities, including assembling a skilled team to respond quickly to crisis situations involving unionized employees in Manitoba, Saskatchewan, Alberta, and BC.
WLWCC § Steering Committee with monthly meetings by teleconference § Formalized terms of reference § Drafted & distributed brochure § Have made worker co-op presentations at labour schools and several District Labour Councils § Held Seminar on Financing, Sept 2007 in Edmonton: Tom Croft (Steel Valley Authority), David Levi (Growthworks)
Labour-Coops Workshop Nov, 2008, Winnipeg § Canadian Co-op Association leadership met with Canadian Labour Congress leadership. § Much interest shown in not only the WLWCC but also the possibility of reviving the NLCC § Common ground seen for working people, many different areas: new co-op development, crosspollination, labour activists running for CU & coop boards, etc.
Spring 2009 § Sought & received funding to create resource materials: § Completed research into legal, financial and taxation aspects of worker buy-outs in Canada § Created curriculum for labour schools, & guides: www. coopzone. coop/buyout_guides
What Next? § Opportunity identification § Facilitating conversions § In process of incorporating WLWCC as a non-profit co-operative § Seeking funding to hire a first staff person
Steps in the Buy-Out Process § Educate the supporters of the buyout. § Establish a buyout association - (future Co-op). § Do a pre-feasibility assessment. § Conduct a feasibility study. § Develop a Business Plan.
Steps in the Buy-Out Process § Negotiate the purchase and create the structure for the new employee-owned co-operative. § Arrange financing. § Close the deal with the seller.
WLWCC Brochure: www. coopzone. coop/Labour. And. Coops WLWCC Guides: www. coopzone. coop/buyout_guides
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