the united states federation of worker cooperatives ( usfwc ) is a federation of worker cooperatives in the united states .

usfwc was founded at the u.s. conference of democratic workplaces in minneapolis , minnesota in may 2004 .

the federation was sponsored by the cooperative foundation in addition to other cooperative support organizations .

it was created partly in response to growing regional organizing among united states worker cooperatives and to foster the sharing of information and resources between national gatherings .

102 2009 _ dawson et al _ united states federation of worker cooperatives . doc
united states federation of worker cooperatives is a
national grassroots membership organization for worker cooperatives
founded in may of 2004 at the us conference of democratic workplaces .
the united states federation of worker cooperatives is the national grassroots membership organization for worker cooperatives . its membership also includes democratic workplaces , cooperative , developers and organizations that support worker cooperatives .
the worker cooperative sector in the united states is represented by the us federation of worker cooperatives ( urltoken ) and an international apex organization , cicopa ( urltoken ) , represents the global worker cooperative community .
u . s . federation of worker cooperatives – farther . faster . together .
the u . s . federation of worker cooperatives is pleased to . . .
“the mission of the united states federation of worker cooperatives is to create stable and empowering jobs and worker - ownership through the development of a thriving cooperative movement . we advance worker - owned , - managed , and - governed workplaces through cooperative education , advocacy and development . ”
the united states federation of worker cooperatives ( usfwc ) is the national grassroots membership organization for worker cooperatives . our mission is to build a thriving cooperative movement of stable , empowering jobs through worker - ownership . we advance worker - owned , - managed , and - governed workplaces through cooperative education , advocacy and development .
over the summer of 2011 , the group decided to formalize by adopting an official website , affiliating with the united states federation of worker cooperatives , and establishing a board structure . in march 2014 , the board incorporated as a membership not - for - profit business association—and formalized its membership structure to further align with the united states federation of worker cooperatives . in december 2014 , the irs awarded nyc nowc with its 501 ( c ) ( 6 ) tax - exempt status .
the majority of worker cooperatives in the united states are small businesses , with between 5 and 50 workers , but there are a few notable larger enterprises with between 150 and 500 workers . the largest worker cooperative in the united states is cooperative home care associates ( chca ) , a home care agency with over 2 , 000 workers based in the bronx , new york .
the united states federation of worker cooperatives is a national grassroots membership organization of and for worker cooperatives , other democratic workplaces , and the organizations that support the growth and continued development of worker cooperatives . we were founded in 2004 , the result of several years of organizing on the part of worker cooperatives and regional groups from around the country . our members are workplaces of all sizes and a broad variety of industries , from across the country , and our member workplaces comprise more than 1300 individual workers .
using data from our most recent annual census of worker cooperatives , we estimate that there are over 500 democratic workplaces in the united states , employing over 8 , 000 people and generating over $ 400 million in annual revenues .
the united states federation of worker cooperatives was founded at the u . s . conference of democratic workplaces in minneapolis , may 2004 . the conference elected a board and settled on an outline of the defining characteristics of the organization and its membership . in the two years since then , the elected board has been busy sorting out a structure , building a foundation and exploring possible directions for the federation .
the federation made history in 2005 when it joined cicopa , the international worker cooperative organization , making it the first time that the united states was represented in this world body . joining cicopa was the second highest priority of the conference with 20 votes . the first , with 21 votes , was creating group health care insurance benefits for worker cooperatives .
melissa hoover is executive director of the us federation of worker cooperatives . lillian “beadsie” woo is a senior associate at the annie e . casey foundation in baltimore .
ms . brockway has been working directly as a national speaker for the united states department of housing and urban development to train and work with the agencies to provide the successful development of homeownership opportunities .
united states federation of worker cooperatives ( usfwc ) history founded in 2004 by u . s . conference of democratic workplaces services offered purpose created to allow easier sharing of information between previously existing us worker cooperatives location has had meetings in . . . - new york ( 06 ) - new orleans ( 08 ) - madison ( 09 ) - san francisco ( 10 ) - austin ( 11 ) - boston ( 12 )
there is no uniform cooperative code in the united states , and definitions and incorporation guidelines vary from state to state . as a result , worker cooperatives can incorporate in a number of different ways . in states where there are cooperative incorporation codes , such as massachusetts and california , businesses can incorporate as worker cooperatives . in states where there are no such laws , a worker cooperative can incorporate as a c corporation , s corporation , llc , flexible purpose corporation , or any other corporate form , as long as the company meets the minimum requirements of operating as a worker cooperative .
nationally , there are 300 “democratic” workplaces , collectively employing more than 3 , 500 people , according to the u . s . federation of worker cooperatives .
the entire cooperative sector in the united states is represented by the national cooperative business association ( urltoken ) . the international cooperative alliance provides a cooperative definition , list of values , and principles on its website : urltoken .
the proposed structure for the federation is six membership classes : worker cooperatives , local and regional networks , other democratic workplaces , cooperative developers , associates , and individuals .
worker - owned cooperatives are rare in the united states , but in spain , where they are much more established , they’re often followed closely by a whole community . one study looked at the retail chain eroski , which has both worker - run and traditional stores , and found that the worker - run eroski stores grew “sales significantly faster” than those not run by workers .
the nyc network of worker cooperatives is dedicated to sharing and cultivating the educational , financial and technical resources of its members and supporting the growth of worker cooperatives for social and economic justice . we offer assistance to existing and new worker cooperatives in all communities within the new york city metropolitan area , with a focus on the development of cooperatives within marginalized communities .
the institute was created by the us federation of worker cooperatives ( usfwc ) to expand worker ownership in a movement that is adequately supported , effective , and strategically directed . our work ensures that our growth is rooted in worker cooperatives themselves at the same time as it reaches new communities most directly affected by inequality .
regional organizations include the network of bay area worker cooperatives ( nobawc ) , the eastern conference for workplace democracy , federation of workplace democracies , minnesota , ( fwd minnesota ) , south sound cooperatives in olympia , worker owned and run cooperative network ( worc’n ) of boston , the portland alliance of worker collectives , and others that are just getting off the ground .
melissa hoover is the executive director of the united states federation of worker cooperatives and a founding director of the democracy at work institute , the nonprofit education and training organization for worker cooperatives . for five years , melissa also worked with the arizmendi association of cooperatives in the san francisco bay area as a cooperative developer , helping start two new worker cooperatives and providing training and support in financial management for all arizmendi cooperatives . prior to that she worked as a consultant with worker cooperatives and other small businesses on setting up good financial systems . melissa got her start in cooperatives at inkworks press in berkeley and served as part of the management group there . she currently serves on the board of directors of the northcountry cooperative development fund and the ica group in boston . melissa holds a b . a . in history from stanford university , where she lived in a housing cooperative and did independent research on immigrant women’s contributions to the us cooperative movement of the 1920s and 1930s .
legal forms the corporate form for cooperatives varies . in states where there are cooperative incorporation statutes , businesses can incorporate as worker cooperatives . in states where there are no such statutes , democratic workplaces can take a variety of forms : s or c corporations , llcs , etc . whatever its incorporation status , a worker cooperative must create , in policy and practice , mechanisms for workers to make the decisions that affect the functioning and governance of the business .
a worker cooperative is a business that is owned and controlled by its workers , who constitute the members of the cooperative . the two central characteristics of worker cooperatives are :
types of businesses worker - owned business and democratic workplaces exist across the country , with the greatest concentrations in the northeast , the west coast and the upper midwest . the vast majority of worker cooperatives in the united states are small businesses , with a few notable larger enterprises . many are concentrated in the retail and service sectors . there are also well - established worker cooperatives in manufacturing and the skilled trades . traditionally there has been a strong cooperative presence in food production , processing and and sales . in the past ten years , we have also seen the growth of worker cooperatives in the technology sector and home care .
it is true that the cooperative economy is strong and in some cases better developed in other parts of the world , and that worker cooperatives have grown to be influential actors in the economies of spain and italy , in particular . however , cooperatives also have a long history here in the united states , from farmers coming together in agricultural cooperatives to the rural electrics wiring the countryside to the earliest worker cooperatives that emerged from artisans’ guilds and labor unions . cooperatives happen anywhere people come together to meet their needs – the cooperative form is international , flexible , and adapts to the conditions in which it emerges . we see concentrations of worker cooperatives in parts of the world where there is governmental and policy support for the cooperative form . there is great potential for cooperative development in general and worker cooperative development in particular to make cooperatives a larger part of the u . s . economy in the coming decades .
one perennial criticism of worker co - ops is that they can’t afford the high - flying talent that would help them innovate . but not every company needs to innovate . many just need to mop floors , sling burgers or clean linens . and it is usually those companies whose workers struggle most . “we’re not trying to create an amazon that pays jeff bezos to do what he does , ” says melissa hoover , the executive director of the united states federation of worker cooperatives . “we’re trying to remove jeff bezos from the equation and have everyone else make a little more money . ”
this past weekend , june 23 - 25 , three c4 tech & design members traveled to boston to attend the biennial united states federation of worker cooperatives ( usfwc ) 2012 conference and the daylong intensive on cooperative development . anna boyer , david boss , and jason want spent the three days sharing information with other cooperators representing businesses , cooperative alliances , and cooperative development organizations . we all came away from the conference with a better understanding of and commitment to the seven co - operative principles , found at the uswfc website :
in austin alone , there are worker - owned green cleaning cooperatives and collectively - run thrift stores , worker - run brewpubs and worker - owned internet hosting cooperatives . taxi drivers , threatened by uber and lyft , are talking about starting a taxi cooperative .
as of january 2014 , just 23 worker - owned co - ops existed in new york , of which only chca employed more than 70 people . nationwide , according to data from the u . s . federation of worker cooperatives , roughly 300 worker - owned cooperatives average 11 workers each . lack of public awareness and funding , as well as a weak support system , holds co - ops back , researchers say , and cumbersome city paperwork doesn’t help .
what would it take for worker cooperatives to rapidly develop in the united states and are these conditions realistic ? a panel discussion - january 11th , 2015 david hammer , executive director , the ica group melissa hoover , executive director , democracy at work institute ariana levinson , university of louisville louis d . brandeis school of law christopher michael , nycnowc erik olsen , university of missouri at kansas city department of economics joyce rothschild - whitt , virginia polytechnic institute and state university school of public and international affairs
“we’re hoping that at least a third of the 300 - 400 worker cooperatives in the country that we know of join the federation and build a formidable and representative worker cooperative movement in this country , ” said usfwc staff person melissa hoover . “the time is ripe for workers to have input into and control of our economic lives . ”
many worker - owned cooperatives operate by consensus , meaning that the objections of one worker can scuttle plans . when black star first opened , some workers wanted to wear uniforms to distinguish themselves from patrons . one worker , dana curtis , strenuously objected .
legal tools for worker cooperatives and the sharing economy - february 5th and 6th from 9am - 5pm in new york city .
worker cooperatives exist across the country , with the greatest concentrations in the northeast , the west coast and the upper midwest .
administered by the federation of protestant welfare agencies ( fpwa ) , the city’s new funds will go to 10 nonprofits ( among them , green worker cooperatives and the center for family life ) . the groups must create “234 jobs in worker cooperative businesses , reach 920 cooperative entrepreneurs , provide for the start up of 28 new worker cooperative small businesses , and [ assist ] another 20 existing co - ops . ”
to address these concerns , the federation board discounted dues for any co - op that already pays dues to a regional organization . in addition , the regional membership category is a member by virtue of their work organizing other cooperatives .
“we have to pay dues ( to cicopa ) , and dues will be an important part of the grassroots fundraising mechanism of the federation , so we hope that people will donate as much as they can to cover our work and to help us meet our obligations , ” said omar freilla , of green worker cooperatives in the bronx .
to ensure that cooperative member - owners and workers from 100 % worker - owned esops wield the most power in the federation , votes are weighted . the votes of worker - owners and regional / local networks would count as three votes . these include cooperative developers that are organized as worker cooperatives . the vote of other democratic workplaces – 51 percent owned esops and other organizations count as two vote , and associate members count as one .
definition a co - operative is an autonomous association of persons united voluntarily to meet their common economic , social , and cultural needs and aspirations through a jointly - owned and democratically - controlled enterprise .
the blockbuster economics book of the season , thomas piketty’s “capital in the twenty - first century , ” argues that the great equalizing decades following world war ii , which brought on the rise of the middle class in the united states , were but a historical anomaly . armed with centuries of data , piketty says the rich are going to continue to gobble up a greater share of income , and our current system will do nothing to reverse that trend .
linda brockway is currently the treasurer of the national association of housing cooperatives , inc . , and has served on the board of directors since october 2000 .
in a worker co - op , the workers own the business and decide what to do with the profits ( as opposed to consumer co - ops , which are typically stores owned by members who shop at a discount ) . historically , worker co - ops have held the most appeal when things seem most perilous for laborers . the present is no exception . and yet , despite their ability to empower workers , co - ops remain largely relegated to boutique status in the united states .
ms . brockway is the president of economic consultants for housing opportunities , inc . economic consultants for housing opportunities , inc . ( echo , inc . ) is a full service homeownership / economic development consulting firm that works with residents , housing authorities , cooperatives , city governments , county governments , non - profit organizations , financial institutions , united states department of housing and urban development , and other organizations to develop strategic plans , self sufficiency programs , welfare reform programs , economic development , homeownership programs and other self sustaining programs for low income families to support the development of affordable housing , including the development of housing cooperatives .
worker cooperatives are values - driven businesses that put worker and community benefit at the core of their purpose . in contrast to traditional companies , worker members at worker cooperatives participate in the profits , oversight , and often management of the enterprise using democratic practices . the model has proven to be an effective tool for creating and maintaining sustainable , dignified jobs ; generating wealth ; improving the quality of life of workers ; and promoting community and local economic development , particularly for people who lack access to business ownership or sustainable work options .
in worker cooperatives , decision - making is democratic , so each worker has one vote , and policies can’t be determined by an investor whose only priority is profit . ( most profit - minded investors probably wouldn’t touch a worker cooperative with a ten - foot pole anyway . )
the board , elected at that conference , has been working since then to build a foundation for the federation and to plan ways to carry out a prioritized list of member mandates .
we will be using the us federation of worker co - operatives ( usfwc ) as the example to examine the larger question of “authority versus liberty” ; of which authority can be defined as a federation where co - operatives are members of a larger organization and therefore limiting individuals control over certain aspects and decisions ; and of which liberty can be defined as the autonomy of individual co - operatives and their members to control their fate . by way of comparison , we will briefly look at some us worker co - op networks as well as similar networks in other countries and co - op sectors – specifically canadian credit union networks and the masters of co - operative management program .
there are many different types of cooperatives . there are consumer cooperatives , which are owned and governed by customers ( such as new york city’s park slope food coop ) ; producer cooperatives , which are owned and controlled by independent producers ( such as florida’s natural growers ) ; multi - stakeholder cooperatives , which are democratically governed by workers , consumers , and producers , or some combination thereof ; and there are worker cooperatives like red rabbit , austin’s donut co - op , which are equally owned and democratically governed by workers .
editor’s note : on the eve of the first official membership meeting and second annual conference of the us federation of worker cooperatives ( usfwc ) taking place in new york city from october 13 - 15 , we asked melissa hover , the first usfwc staff person to review the accomplishments of the new organization and its future plans . hoover has been a cooperative activist nearly all of her working life and is currently a collective member at inkworks press , a worker - owned and - managed print shop which serves the bay area progressive community .
why are cooperatives more common in other countries than in the u . s . ?
today , blue hawk serves 231 members with 1 , 270 branches in 49 states representing over $ 6 billion in sales . rapidly , blue hawk has become the largest purchasing entity in the hvacr industry .
thank you and congratulations to the founding members of the us federation ! we expect membership to double ( at least ) in the rest of 2006 . for an application and explanations of membership and dues , see the
how to join
section of our website at : urltoken incorporation
“there is no greater medicine for apathy and feelings of living on the edges of society than to see your own work and your voice make a difference , ” says a report on co - ops by the federation of protestant welfare agencies in new york .
after 17 years as a home health aide at cooperative home care associates ( chca ) , the largest worker - owned co - op in the united states , ramos recently celebrated her daughter’s college graduation . she’s paying half of her son’s tuition at a catholic school , and she’s a worker - owner in a business where she enjoys flexible hours , steady earnings , health and dental insurance , plus an annual share in the profits . she’s not rich , she says , “but i’m financially independent . i belong to a union , and i have a chance to make a difference . ”
this year , the democracy at work institute is working with the national center for employee ownership ( nceo ) to offer a day on worker cooperatives at the employee ownership conference , including workshops and conversations on the uses and practices of worker cooperatives as well as developments in the field . worker cooperative experts will address a range of topics relevant to the larger employee ownership field such as ownership transitions , policy initiatives , capital access , and employee education . ( learn more
the new york city network of worker cooperatives was founded by a community of local worker - members , labor organizers , developers , lawyers , and academics on december 18 , 2009 during the 5th annual sister mary geraldine symposium , entitled
fair work : building and strengthening ties within the worker - owner cooperative community in new york city .
the symposium was organized by the center for family life in sunset park and hosted at the cuny murphy institute for worker education and labor studies . sitting in a large circle , over 50 individuals and organizations voted unanimously to establish a new organization dedicated to promoting worker cooperatives in new york city .
cooperatives are businesses owned and controlled by their members on the basis of one member , one vote . given enough time , worker - owned cooperatives tend to increase wages and improve working conditions , and advocates say a local co - op generally stays where it’s founded and acts as a leadership - building force .
we are continuing negotiations with the national organizers alliance ( noa ) to offer our members a pension benefit through the noa . we are also researching the possibility of health benefits and post - retirement medical benefits for usfwc members . directory of worker cooperatives
even as the number of worker cooperative continues to grow , the access to capital remains one of the major hurdles for startups and growth - oriented cooperatives . at democracy at work institute , we are interested in supporting worker - owners and cooperative developers to seek out positions on the boards of lending institutions and build their capacity to be effective . one of the barriers to participating on boards in general , but in particular of cdfis and other lending institutions for many worker - owners and cooperative developers , has been the lack of experience and knowledge of board governance and financial management .
this $ 1 . 2 million won’t end poverty , but it’s a step in the right direction , says christopher michael of the new york city network of worker cooperatives . “we have all the raw ingredients of a successful policy initiative : engaged groups , a bit of a track record and support in the city council…
a collective is a general term for groups where management decisions are made democratically , usually by some form of consensus . the term can apply to businesses , nonprofits , or volunteer groups , including worker cooperatives . collectives are often organizations that do not have ownership buy - in or profit - sharing . cooperative is a more formal term signifying that the entity is a member - benefit organization designed to meet community needs , with economic participation and democratic governance by members . in addition to worker cooperatives , which are found in many industries and sectors across the economy , there are also sector - specific cooperative forms , such as housing cooperatives , agricultural producer cooperatives , consumer cooperatives , and credit unions .
any business can be a worker - owned and - controlled business . worker co - ops have been successful in many different sectors and industries . some examples are :
benefits cooperatives are the only form of business centered around membership , and member and community benefit is at the core of the cooperative model . worker cooperative businesses are owned and run by their members , the people who work in them , and they operate for the benefit of these members .
the organizing conference took place may , 2004 at the university of minneapolis and was attended by more than 100 participants , most of them members of worker cooperatives and other democratic workplaces such as 100 % worked - owned employee stock ownership plans , democratically - run nonprofit businesses and volunteer organizations .
founding organizations included the center for family life in sunset park , green worker cooperatives , the community development project of urban justice center , fordham law school , national domestic workers alliance , lsa family health service (
the little sisters
) , workers justice project––and worker cooperatives cooperative home care associates , sí se puede , beyond care , colors , the sharing place , and third root community health center .
legal professionals , accountants , and community development organizations are invited to a two - day workshop on legal structures and strategies for cooperative development and sustainable local economies . this workshop will have a special emphasis on worker cooperatives , freelancer - owned cooperatives , land trusts , and alternative capital structures .
financing is an especially difficult proposition for worker cooperatives . by definition , every worker - owner has an equal vote and gets an equal share of profits . this is not appealing to investors who would choose a company because they want to get a big return on their investment or because they want to take control .
new york city is going—in a big way—for worker - owned cooperatives . inspired by the model of chca and prodded by a new network of co - op members and enthusiasts , mayor bill de blasio and the new york city council allocated $ 1 . 2 million to support worker cooperatives in 2015’s budget . according to the democracy at work institute , new york’s investment in co - ops is the largest by any u . s . city government to date .
“we think of local networks and regional organizations as partners , ” said board member kirsten marshall , of rainbow grocery cooperative in san francisco . she said that when the idea of a federation was first talked about , a concern of many local co - ops was of the national organization taking funds away from the locals . also , people were concerned that local organizing remains the priority .
worker cooperatives are not new , but they’re seeing new life as progressive - minded employees seek out remedies for the nation’s growing economic inequality . worker cooperatives are equally owned and governed by employees , who also earn money from the profits of their labor . there are no ceos here making multi - million dollar salaries while workers receive minimum wage . nor are there ceos with decades of experience and education to successfully guide the company through the up and downs of the dog - eat - dog business world .
the federation is currently working on incorporation , negotiating a pension plan , researching post - retirement benefits , and is working out finding insurance coverage . board members expect to have more concrete information by the october conference .
ms . brockway has also spoken for the national association of housing cooperatives , midwest association of housing cooperatives , the national association of housing and redevelopment officials , ncba , and numerous local associations . ms . brockway has also worked to develop the governance training course , mortgage pay off course and strategic planning courses , which are offered by nahc .
throughout its five - year history , nyc nowc has been an entirely volunteer - run organization . recently , thanks to funding from new york city council , nyc nowc has been able to provide additional direct services to worker cooperatives in new york city—with a special focus on engaging worker cooperative service providers to provide marketing , website , bookkeeping , and digital media services to the nyc worker cooperative business community . finally , nyc nowc also provides pro bono legal services to nyc ' s worker cooperative businesses .
this january , as a new mayor ( who ran on combating inequality ) and a progressive majority of the city council were taking office , the federation’s report inspired councilmember maria del carmen arroyo to think about co‑ops . “a bulb went off , ” she said .
community benefits are clear too . successful worker cooperatives tend to create long - term stable jobs , enact sustainable business practices , and develop linkages among different parts of the social economy . worker - owned businesses have not only a direct stake in the local environment but the power to decide to do business in a way that is sustainable for us all . the worker cooperative movement is increasingly recognized as part of the larger movement for sustainability and a new economy based on people’s needs .
harvey served as a professor and agribusiness extension specialist serving cooperatives for 10 years at oregon state university ; he was a senior officer of the spokane bank for cooperatives for 10 years ; and for the past 24 years has advised cooperatives of all types and sizes as an independent certified management consultant . for over 30 years , he served as a faculty member of the executive institute for northwest cooperatives ( an annual board training event for directors of cooperatives ) . this year the 12 - member co - op ceo focus group he founded celebrated its 20th anniversary coming together to exchange ideas and perspectives . and , this past january he launched an annual director - training course for pacific - northwest co - op directors and management that was well attended .
since its founding in 2009 , nyc nowc has primarily served as a co - marketing service for all of new york city ' s worker cooperative businesses—and to promote visibility and understanding of workplace democracy as a principle of corporate governance . over the last several years , nyc nowc has also engaged in lobbying at the city and state level—to establish public funding for worker cooperative business development and to pass legislation for the worker cooperative business community . in addition , nyc nowc organizes the annual nyc worker cooperative conference .
anna boyer represented c4 as a worker cooperative and the us south region as usfwc regional board member . she was excited to connect with the many worker cooperatives and cooperative developers attending the conference from the south . anna ' s says ,
i was excited to see the involvement of many new cooperators . at the same time , i noticed the evolution of ideas from previous conferences maturing into actionable steps to grow our community .
she was re - elected by the usfwc membership to another 2 - year term where she will continue to support worker cooperatives throughout the south region . next month , anna will continue connecting with cooperatives in the south at the coop econ on july 27 - 29 in epes , alabama .
lance has been an active participant at the ncba annual conferences for purchasing cooperatives and has served on past advisory councils .
with their emphasis on people before profit , creating community , and equitable compensation and participation , worker cooperatives are a concrete example of using business as a force for social good . additionally , a large percentage of existing cooperatives in the u . s . were specifically developed to meet the needs of people who lack access to business ownership or even sustainable work options . as a result , worker cooperatives can be defined as social enterprises and are often associated with larger movements , including the new economy movement ( which is also referred to as the alternative economy , the fourth sector , or the social sector economy ) , the solidarity economy , as well as various causes from immigration rights to labor rights .
cooperatives have a long history as a way for working people to create good , dignified jobs that they control , particularly for people who lack access to business ownership or even stable work options . organizations undertaking economic development to build wealth in poor communities and communities of color have used worker cooperatives as a powerful vehicle for addressing economic inequality . worker cooperatives have been shown to provide better working conditions and wages for typically low - wage work , and to increase household wealth for low - income workers . worker cooperatives can also play an important role in building movements for economic justice and social change . as institutions where real democracy is practiced on a day to day basis , they are a model for the empowerment we will need to create the change we envision . as economic engines , they meet material needs , anchoring capital and jobs in communities .
as a membership and advocacy organization , we connect worker cooperative members to benefits , to each other and to the larger cooperative and economic justice movements . we amplify our members’ voices to advocate for worker cooperatives at the local , state and national level . we provide consulting and technical assistance to cooperatives old and new . and through the education , training and organizing work of our partner organization , the democracy at work institute , we are committed to ensuring cooperative business ownership reaches those who need it the most .
cleaning ladies in the san francisco area and home - care workers in new york have banded to pool resources as worker - owners of profitable enterprises . white - collar workers are getting involved , too : one of the most successful cooperatives is isthmus engineering , a wisconsin firm where engineers bought the company from its owner .
support for full - fledged co - ops has inched into the mainstream as communities have grown weary of waiting for private investors to create good jobs — or sick of watching them take jobs away . in cleveland in 2009 , hospitals and a university gave seed money to a new group of businesses , the evergreen cooperatives , and now contract with them for laundry , energy retrofits and fresh produce . last month , a government commission in wales announced that “conventional approaches to economic development” were insufficient ; it needed cooperatives . that same month , the new york city council held a hearing called “worker cooperatives — is this a model that can lift families out of poverty ? ”
joe marraffino is the co - director of the cooperative conversions program at the democracy at work institute . joe was the finance manager for the 12 , 000 member greenstar cooperative market in ithaca , new york . previously he was a worker - owner of arizmendi bakery in san francisco and worked as a business developer for the arizmendi association of cooperatives to help launch two new worker - owned bakeries . joe was a founding member of the of the new york cooperative network and the democracy at work network . he has a ma from the new college of california in culture , ecology , and sustainable community .
we are currently building an online document library , which will include models and sample documents from worker cooperatives , as well as step - by - step help with incorporation , conversion , and establishing democratic ownership and management practices . looking ahead
in this webinar , democracy at work institute and project equity discussed approaches to generate new types of business ownership and creating ecosystems that support worker ownership on a broader scale . the session covered opportunities and strategies to develop or expand networks for worker - owned businesses and advance economic progress for our communities . two of the nation’s leading civil rights organizations , which are members of the asset building policy network , also discuss the implications of the worker ownership movement within their respective organizations and local affiliate networks .
erbin crowell serves as executive director of the neighboring food co - op association , a regional federation of food co - ops and start - up initiatives in new england . for over a decade he was a member of equal exchange , continuing his career in co - ops with the cooperative fund of new england , the cooperative development institute , and the valley alliance of worker co - ops . erbin has taught courses on the co - operative movement at the universities of connecticut and massachusetts , serves on the board of the new england farmers union and is a founding board member of the valley co - operative business association , a regional , cross - sector federation of co - ops and credit unions . he received his master in management : co - operatives & credit unions from st . mary’s university in nova scotia , thanks to a scholarship from the national co - operative bank ( ncb ) . erbin lives in western massachusetts with his partner kristin and their son elias . he may be contacted at
for four years , aaron dawson has held the elected position of board member for equal exchange , a fair trade massachusetts worker co - op with over 150 employees , 125 co - op members and almost a 30 year history of growth , fair trade and democratic practice . he also held the elected position of worker owner coordinator for equal exchange for two years . additionally , he has served on the board of the us federation of worker co - ops for four years and completed his masters in management , co - operatives and credit unions at st . mary’s university in halifax , canada . aaron has been at equal exchange for thirteen years , where he is a customer service manager . involvement in worker co - ops runs in aaron ' s family . his father , steven dawson , is a co - founder of the ica group , an employee ownership consulting firm and helped to set up cooperative home care associates in new york city .
the board and staff are looking forward to the general membership meeting at the upcoming conference as an important point in the growth of the federation : there we will review the bylaws , create structures for effective member participation , take on new projects , and set a direction for the federation over the next few years . we hope all members can send a voting representative ( or several ! ) to the conference and meeting , and we are committed to helping make that possible . our work as a vibrant , powerful grassroots organization is just getting started .
tim brings extensive experience in worker cooperatives to cccd’s board . he is an attorney and a founder of the arizmendi association of cooperatives , a cooperative composed of nine member businesses : six bakeries , a landscape design - build cooperative , a general contractor , and a technical support collective . as part of the association’s development & support cooperative , tim participates in writing business plans , raising start - up capital , and training workers in democratic business management ; he also serves as in - house legal counsel . tim serves other cooperatives as an attorney as organizational trainer / consultant . tim completed his undergraduate studies at the university of michigan and his law degree from uc hastings college in san francisco . he lives at a housing cooperative in oakland .
our federation represents nearly 200 business and organizational members representing 6 , 000 workers across the country . we organize through local cooperative networks while building power with national and international partners to advance an agenda for economic justice rooted in community - based , shared ownership .
dues are payable financially on a sliding scale and by voluntary contribution of labor . the lowest financial request is $ 50 but can go as high as $ 5 , 000 for workplaces with gross profits in the millions . workplaces without income could work at a rate of $ 25 an hour helping with administrative tasks and collaborating on organizing with the federation .
the democracy at work institute advances the worker cooperative field in order to create a fairer economy and better jobs .
our federation is led by a 100 % member - elected board of directors , member councils , and a small but mighty staff with offices in oakland , ca and philadelphia , pa . annual membership dues are our primary funding source , supplemented by small grants , consulting and program contracts , and individual contributions .
arroyo , incoming chair of the community development committee , represents a south bronx district that’s still one of the poorest in the nation , even after years of “development . ” national retailers , attracted by tax breaks , typically pay low wages and squeeze out local businesses . partly in response , the bronx is also home to an array of co‑ops , from the large chca to the small green worker cooperatives , which incubates local green businesses .
among the co - op members who testified was yadira fragoso , whose wages rose to $ 25 an hour—up from $ 6 . 25—after becoming a worker - owner at si se puede , a cleaning co - op incubated by the brooklyn - based center for family life . translation at the hearing was provided by caracol , an interpreters’ cooperative mentored by green worker cooperatives .
just last month , the un declared 2012 the international year of cooperatives . it’s urging governments worldwide to collaborate with the co - op movement to reduce poverty and create more productive societies .
although the term employee - owned can be used to describe many different business structures ( including worker cooperatives ) , it is most commonly used to describe companies with an employee stock ownership plan ( esop ) . an esop is a federally governed benefit plan ( like a 401 ( k ) or profit sharing plan ) that can be used to share an ownership stake with employees . while an esop company can be 100 % owned by its employees and operate according to worker cooperative principles , very few esop companies currently qualify as worker cooperatives . the national center for employee ownership has extensive resources on esops available on their website , urltoken .
many people think of co - ops as the hippie - dippy grocery store that sells organic goods . in fact , a 2009 study by the university of wisconsin center for cooperatives found more than 29 , 000 cooperatives in the us , which make $ 500 billion in annual revenue , support 853 , 000 people , and pay $ 25 billion in wages and benefits . they include national firms such as credit unions , and local businesses such as the alvarado street bakery in petaluma , calif . , or the evergreen cooperative laundry in cleveland . [ editors note : the original version of this essay misstated the number of workers supported by cooperatives . ]
a multi - stakeholder cooperative is a cooperative that has more than one class of members . for example , a grocery store might have consumer members and worker members . the different classes of members might have different rights to participate in the surplus ( or profits ) of the company , and different roles in decision - making . multi - stakeholder cooperatives can come in many different forms and structure the business in a variety of ways . a recent trend is the development of multi - stakeholder food coops in local food systems .
prior to blue hawk , lance spent five years working with other purchasing cooperatives , four as vice president of amarok , formerly a drywall distribution co - op , and one as recruitment manager for three cooperatives : amarok , nemeon ( a roofing distribution co - op ) , and yaya ! bike ( now part of the bike cooperative ) . this experience provided him with invaluable knowledge of the cooperative business model and the benefits it affords independent business owners .
as a think - and - do - tank , the institute brings on - the - ground experience with cooperative business to a birds - eye view of the national stage . we develop standards and leaders , gather models and best practices , coordinate existing resources , and advocate for worker cooperatives as a community economic development strategy .
since microbreweries are capital intensive , 4th tap set up a separate llc for investors , which john stecker , one of the co - founders , says will give investors a competitive return but also protects the integrity of the worker co - op . it also secured a small business loan from the small business administration , which stecker believes is the first worker cooperative in the nation to receive an sba loan . ( the sba says it does not track loans to cooperatives , and could not confirm . )
but this was a very time - intensive process . when every worker is an equal owner , a worker - owner with bad credit can scuttle a loan . red rabbit , the donut company , is trying to raise $ 15 , 000 to open a retail location , and is considering going to kickstarter because of the challenges of getting traditional financing .
burley’s transition to a private business after being a cooperative for so many years raised the question of whether cooperatives could really compete in the private market . but sociologist joel schoening looked more deeply into the fall of burley , and came to a different conclusion . in interviews with burley members , he found that burley had hired too many people who didn’t buy into the idea of a worker co - op , rendering the structure unworkable .
communication is key to working together and making good decisions . this webinar is meant to help worker - owners unearth strategies and structures to promote intentional , robust communication throughout their workplace . you will hear how successful cooperatives support and encourage meaningful cooperative - wide participation , make information accessible , and educate their worker - owners to do their best work . together as a group , we will identify what communication systems you already have and how to build off of that .
the newest worker cooperative in austin is a microbrewery called 4th tap , set to open later this summer in a renovated office park .
the training is an effort to support worker - owners and cooperative developers interested in a professional and leadership development opportunity , in particular becoming prepared to serve on the board of a lending institution .
the membership call comes 10 months from the second annual usfwc conference planned for oct . 15 - 17 at the institute for worker education and labor studies at the city university of new york .
still , curtis , a one - time union organizer , says she’d choose the worker - run structure over a traditional hierarchy any day .
in addition to their economic and governance participation , worker - owners often manage the day - to - day operations through various management structures .
ana martina is the membership director of the us federation of worker cooperatives . born and raised in mexico city , her work with community media took her to california and arizona where she collaborated with different independent media outlets . once she moved to philadelphia , she served as the technical director of the prometheus radio project supporting communities and organizations across the country in their efforts to access community owned media . from 2011 to 2014 ana martina helped organize the spanish speaker network gathering at the allied media conference celebrated in detroit . in 2014 ana was invited to join the rhizomatica project where she helped install mobile phone networks owned by autonomous indigenous communities in oaxaca , mexico . early spring 2016 , she moved back to philadelphia where she lives now with her partner and 21 month old toddler . back in her community now , she is working towards the creation of a bilingual media tech coop radicante media .