Worker Co-ops the Labour Movement November 13

Worker Co-ops & the Labour Movement November 13, 2008 Winnipeg Presented by: Hazel Corcoran, & April Bourgeois

Outline § Background § Western Labour Worker Co-op Council § What next?

Introductions § Who I am § Why I am here § What I expect to get out of this Workshop

COMMON GROUND § § § Economic Democracy Common Good VS Individual Welfare Wealth Shared VS wealth Concentrated People before profit “Harmonize the interests of labour and capital”

Divergent Paths 1970 - Present § The redefining of “Liberal Capitalism”, neoconservatism and the forces of global corporatism. § Larger Co-operatives become business centric and focused on being competitive within their markets. (Retail 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) § The loss of our collective history § Fighting separate battles separately

The Wheel Comes Round § Impacts of global corporatism come home to roost § The Rust Belt – manufacturing moved to locations with lower labour standards § Rise of Sweatshops § Rise of the service sector (Mc. Jobs) § Rural Decline – Death of one industry towns § Globalization holding down Canadian union wages - Conference Board of Canada

Current Economic Situation § § Forestry & other resource industries Manufacturing industries Spin-offs Retiring owners

Western Labour/Worker Co-op Council § Original meeting – Saskatoon, September 16 & 17, 2006 § 20+ attendees including union members, provincial labour federation staff, CLC reps, CVWC, SCA and CSC staff

WLWCC § Outcomes of the meeting § Formation of WLWCC § Better understanding of the place of Worker Co -ops within the Co-op Sector § Better understanding of labour issues as they relate to worker ownership § Knowledge of the OEOC model and success factors required

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.

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 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 (Steering committee designed – AFL printed) § Made worker co-op presentations at labour schools (AFL), booth at AFL Convention, and several District Labour Councils § Held Seminar on Financing, Sept 2007 in Edmonton.

WLWCC Financing Seminar § David Levi of Growth. Works, has committed to provide support to the Council as it moves forward. Growth. Works offers regionally based retail venture capital funds across Canada, & manages funds with a total of over $800 million in assets. § Heartland Network has encouraged responsible pension capital investments and helped bring attention to a broader universe of worker-friendly investment strategies.

WLWCC Financing Seminar § Tom Croft emphasized the importance of early knowledge of potential opportunities for employee buyouts: the earlier the workers’ intervention, the higher the likelihood of success. § In the US, tens of thousands of living-wage jobs have been saved and created using Heartland strategies.

Labour-Coops Workshop Nov 12, 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.

What Next § Complete the research into legal, financial and taxation aspects of worker buy-outs § Create curriculum for labour schools § Make presentations like this § Opportunity identification § Labour-initiated (need the awareness/promotion piece to be working) § Facilitating conversions

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.

QUESTIONS? DISCUSSION?