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the long term replacement of capitalism--an economy which socializes costs and privatizes benefits--with an economy of democratic cooperation

n economy is an ecosystem, a cyclical whole that includes processes of creation (the "original production" of natural resources by geological, biological, and energetic forces), production (human transformation of resources into goods and services), exchange, consumption (perhaps more appropriately called "use"), the processing of waste, and the recycling of surplus (sometimes called "investment").

The worker coop movement must work to build broader alliances, holistic economic and social visions, and contribute to the creation of not only more worker coops, but a transformative social movement capable of changing the culture and economy--the "social ecosystem"--in which worker coops struggle to exist.

Operating successfully in a capitalist market, worker coops can support movements for social and economic transformation

a cooperative solidarity economy

Worker cooperatives are a particular--and effective--structure for democratically organizing the production of goods and the provision of services.

link these interventions together--at every point of the economic cycle

But even a solidarity economy movement cannot succeed without being intimately linked to broader social change work. It is our connections with the work of anti-racism, feminism, queer liberation, environmental justice, ecological sustainablility, immigrant's rights, counter-recruitment and peace advocacy, labor organizing, grassroots community development, and other movements for cultural and insitutional change that will generate the collective power and momentum needed to effect long-term transformation and generate widespread, committed support for worker cooperatives as economic and social-change insitutions.

Indeed, to create conditions under which their success is increasingly possible, worker cooperatives must work to generate, sustain and support institutions at all other points of the economic cycle.

constructing reliable markets

for goods and services produced by worker cooperatives.

from a passive place of "entering markets" to an active place of constructing them

What does this "movement building" look like?

the creation of a shared story and through this, the development of long-term solidarity between worker cooperatives and other groups working for democratic, community-based economies such as local currencies, consumer cooperatives, housing coops and intentional communities, economic justice advocacy groups, neighborhood associations, local food system projects and more

solidarity economy

Further examples from the solidarity economy movement outside of the U.S. abound. I delve into some of these more deeply in GEO's recent collaborative issue with Dollars and Sense (see Ethan Miller, "Other Economies Are Possible".)

We must, instead, work to transform the very terms of the economic game.

Green Worker Cooperatives

Red Emma's

Wooden Shoe Books

Electric Embers

Riseup

Gaiahost Collective

Brattleboro Tech Collective

pioneers of cross-sector movement-building

it is the work that we as cooperators must embrace if we choose to believe that another economy, and another world, is possible

The extent of the tools we can offer comes down to the success of this crowdfunding campaign.If we get the money to develop the technology, then projects going through incubation can offer supporters black chain agreements and in turn offer payment contingent of future events.  This is a big deal.

When the announcement to close the plant was made, the workers were told that their jobs would be terminated immediately, and that they would not be given their contractually obligated backpay or severance

The workers decided to occupy the factory in protest, and the community came out in extraordinary numbers to support them. See the Michael Moore Short about it.

The workers and the community won enough of this struggle to get the money that was owed to them. A new green construction company, Serious Energy, took control of the factory and partially reopened it.

Serious Energy's business plan, which only involved the windows factory in a tertiary role, never functioned

The plan to start a new worker owned cooperative business began.

The workers called in help in the form of the United Electrical Workers Union, whom had been with them since the beginning, The Working World, which had worked with dozens of worker controlled factories in Latin America, and the Center for Workplace Democracy, a new organization in Chicago dedicated to supporting worker control.

we have decided to call it New Era, as we hope it will be an inspiration

Everyone can participate in building the economy we all want

no one should be treated as temporary or just raw material for someone else's business.

We have built the highest quality windows ever made in Chicago, ones that are soundproof and extremely energy efficient, meaning they are both green and save money. Our windows will be the best on the market at prices no one can beat.

More resources on the formation of New Era Windows Cooperative   New Era Windows, The Working World  Grand Opening of Worker-Owned Factory, As Former Republic Windows Workers Launch New Era Windows Cooperative, United Electrical Workers Worker Co-op New Era Windows Opens For Business, CommunityWealth.org Republic Windows Opens New Era for Coops in Chicago, Race, Poverty, and the Environment New Era Windows Cooperative Is Open for Business in Chicago,The Nation Chicago Workers Open New Cooperatively Owned Factory Five Years After Republic Windows Occupation, Democracy Now Window makers start manufacturing cooperative in Chicago, ABC News Former Republic Windows Employees Start Their Own Factory, CBS News

Video and Radio

the salaries of chief executives rising by more than 300 times than that of the average US worker

USA

ichest 1% (not including capital gains) equals that of the bottom 90%

“Citizens know that the establishment has either lied to them or been totally incompetent. They feel that the economic system is rigged. They have lost trust in government and in the fairness of the political and economic system.”

I believe we can construct a world where the economy performs better for all, based on solidarity”.

“Some governments cut down on social security to grow GDP,” he said, “but the really important aspect is well-being. People actually feel better when they co-operate rather than being selfish.”

“There is going to be volatility, and co-ops are better able to manage risks than the private sector,”

Asked how much co-operatives could achieve while surviving in competitive markets, Prof Stiglitz warned that they “cannot ignore the laws of the economy”.

government regulation

t isn’t just the issue of government vs private sector.”

Managerial pay has increased prodigiously; income inequality has sharpened, affecting women and marginalized communities most acutely, and trillion of dollars of individual wealth have been tucked away in tax havens. Beyond that, there has been a general shift away from direct employment, leaving more and more workers vulnerable to stalled worker rights, as well as declining wages and benefits.

the Web has not made good on its cyber-utopian promises of democracy or social well-being; the rise of the digital commons and practices of peer production, while profoundly important, has not succeeded in generating business models that can deliver livelihoods for practitioners.

highly concentrated ownership of robots seems the likely outcome

financing and legal support

Platform co-ops have emerged in areas like child care, art, journalism, transportation, social media, and food.

it is time to determine in which sector this business model works best

public policy

centralization of data and platforms ownership

The fairer digital economy we need is already emerging everywhere around us.

VAWC recently launched an inter­cooperative loan fund. Through the fund, members tithe 5% of profits to help one another and to invest in new co­op ventures.

Even though only 1% of the cooperatives in the United States are worker owned, their organizing success has recently made them a focal point in the struggle for economic justice. Indeed, Occupy Wall Street participants launched a worker-run co-op print shop in Brooklyn called OccuCopy.

Guided by cooperative principle number six, which promotes cooperation amongst cooperatives, partnerships between co­ops were easily realized. They multiplied and soon turned to regional alliances, which snowballed into national networks.

Inspired by the Mondragon cooperative network, the Valley Alliance of Worker Cooperatives (VAWC) came together in Western Massachusetts in 2005. The group first met at the U.S. Federation of Worker Cooperatives Eastern Conference on Workplace Democracy, and they are a direct result of national networks crystallizing at the regional level. What sets VAWC apart is a strategy of co­op-led development. The organization helps start­up or transitioning co­ops get their footing; they provide technical assistance to their membership in the form of skill­sharing and professional guidance.

The organization is structured as a worker co­op, and operates by consensus with a membership comprised of representatives from other worker co­ops.

information and resources according to the membership’s needs, such as meeting facilitation, or research into health plans

VAWC enjoys an exceptionally cooperative cultural context in the Pioneer Valley, where there is a strong desire for economic democracy, and a history of collective management.

A similarly rich cooperative culture exists across the country, in the San Francisco Bay Area, where the Network of Bay Area Worker Cooperatives, or NoBAWC (pronounced "no boss"), is a hub for the region, literally centralized within 30 minutes of each member organization.

A stunningly large network—nearly one out of every five U.S. worker co­ops are part of NoBAWC —most member co­ops are in Oakland, San Francisco, and Berkeley. Like other membership organizations, NoBAWC grew out of a need to collaborate and share best practices amongst like­-minded organizations.

The members now share resources and incentivize collaboration by offering each other reduced rates on their goods and services.

As the first and primary national hub, the United States Federation of Worker Cooperatives (USFWC) brings together the full array of players within this movement. After many years of organizing, they were incorporated in 2004 to provide support to their membership, as well as educational outreach to the public. A small organization with a two­-person staff, USFWC’s extensive work to promote cooperation puts them in the center of a dynamic movement.

regular conferences and events

As many look for ways out of the capitalist morass of boom­-bust cycles, worker cooperatives have taken center stage. Cooperatives are democratic enterprises where both ownership and decision­-making power are democratically shared. As a result, they keep money and power in the hands of the community.

USFWC capably handles a membership representing over 1,300 workers

the Democracy At Work Network (DAWN), a peer adviser system

The co­op movement is gaining steam, drawing from new energies and a renewed interest in the model. All movements have these periods of acceleration, times when opportunity comes knocking at every turn. Typically, such are the times when reflection is most needed, because new dynamics can dramatically change the situation.

David Morgan is a worker-owner at the Toolbox for Education and Social Action, a worker-owned cooperative created to democratize education and the economy while furthering the cooperative movement. The Toolbox designs curriculum and next-generation resources for learning, such as Co-opoly: The Game of Cooperatives."

Entrepreneurs could sidestep the VCs by turning to a “swarm” of small investors — and maybe supplant the entire VC system. By the end of the summer, he’d raised more than a million dollars in cryptocurrency. The legality of the model is uncertain,

High hopes for a liberating Internet have devolved into the dominance of a few mega-companies and the NSA’s watchful algorithms. Platforms entice users to draw their communities into an apparently free and open commons, only to gradually enclose it by tweaking terms of service, diluting privacy, or charging fees for essential features.

Facebook started flocking to Ello

The line between workers and customers has never been so blurry. Online platforms depend on their users

looking for ways to build platforms of their own.

VC-backed sharing economy companies like Airbnb and Uber have caused trouble for legacy industries, but gone is the illusion that they are doing it with actual sharing.

OuiShare, which connects sharing-economy entrepreneurs around the world

it’s becoming clear that ownership matters as much as ever.

Loomio is now being used by governments, organizations, and schools; a significant portion of the current usage comes from Spain’s ascendant political party, Podemos.

new kinds of ownership the new norm. There are cooperatives, networks of freelancers, cryptocurrencies, and countless hacks in between.

aspire toward an economy, and an Internet, that is more fully ours.

Jeremy Rifkin, a futurist to CEOs and governments, contends that the Internet-of-things and 3-D printers are ushering in a “zero marginal cost society” in which the “collaborative commons” will be more competitive than extractive corporations.

People are recognizing that doing business differently will require changing who gets to own what.

form of ownership

Cooperative intelligence

Occupy’s kind of direct democracy and made it available to the world in the form of an app — Loomio

It’s a worker-owned cooperative that produces open-source software to help people practice consensus — though they prefer the term “collaboration” — about decisions that affect their lives.

Enspiral, an “open value network” of freelancers and social enterprises devoted to mutual support and the common good.

Rather than giving up on ownership, people are looking for a different way of practicing it.

The worker cooperative is an old model that’s attracting new interest among the swelling precariat masses

Co-ops help ensure that the people who contribute to and depend on an enterprise keep control and keep profits

multi-stakeholder cooperative — one in which not just workers or consumers are voting members, but several such groups at once

“It’s more about hacking an existing legal status and making these hacks work.”

Sensorica pays workers for their contributions to the product. Unlike Sovolve, they participate in the company democratically. Everything from revenues to internal criticism is out in the open, wiki-style, for insiders and outsiders alike to see.

Only one device has been sold

Bitcoin

makes possible decentralized autonomous organizations, or DAOs,

The most ambitious successor to Bitcoin, Ethereum,

to develop decentralized social networks,

even an entirely new Internet

Swarm’s competition makes it hard not to notice the inequalities built into the models vying to disrupt the status quo. Bitcoin’s micro-economy holds the dubious distinction of being more unequal than the global economy as a whole. On a sharing platform, who owns, and who just rents? In an economy of cooperatives, who gets to be a member, and who gets left out?

Sooner or later, transforming a system of gross inequality and concentrated wealth will require more than isolated experiments at the fringes — it will require capturing that wealth and redirecting its flows. This recognition has been built into some of the most significant efforts under the banner of the so-called “new economy” movement. They’re often offline, but that makes them no less innovative.

connecting them to large anchor institutions in their communities; hospitals and universities with deep pockets can help a new enterprise become viable much more quickly than it can on its own

Government is an important source of support, too. Perhaps more than some go-it-aloners in tech culture might like to admit, a new economy will need new public policies

The early followers Francis of Assisi at first sought to do away with property altogether

There are many ways to own. Simply giving up on ownership, however, will mean that those who actually do own the tools that we rely on to share will control them.

changing what owning means altogether.

And we learned an important lesson: internal democracy doesn’t work without a true community.

the dream was abundance

we started calling the Internet “the Electronic Indies.”

In Iberian history, “the Indies” was the name of the new territories, of the New World discovered by Columbus and soon conceived of, because of its abundance, as the “original paradise.”

In 2001, Juan Urrutia had published his well-known essay “Networks of people, the Internet, and the Logic of Abundance” in the theoretical magazine Ekonomiaz. Distributed networks appeared as the basis of new P2P relationships and an ever-growing diversity

But we didn’t have money

We began to write, and on the seventh of October, 2002, el Correo de las Indias [the Indies Mail] was born, with Bitácora de las Indias [Log of the Indies] in the masthead.

The blog was the way we found our clients, but, more importantly over time, the current indianos.

The business would be the economic structure of the community we were creating, and as such, would have all of the the sources of wealth and income; we would not have — and still don’t have — savings, properties, or personal clients. The cooperative is our community savings and the only owner of all that we enjoy.

In short: economically, we’re closer to a kibbutz than to the big cooperatives at Mondragon.

Understanding the power of network topologies was our principal point of differentiation, both in theory –in dialogue or as cyberactivists — and also in the market.

Later, each cooperative in the group strengthened the model. Today, the consulting business is the group’s main source of financing. And creating and organizing new cooperatives and businesses constitutes our principal activity.

The reaction of Stuttgart workers to the destruction of public services and the perversion of co-determination indicates that austerity measures are coming slap-bang up against the legacy of two periods of democratic and egalitarian reform. The first is post-war reconstruction, including the welfare state. The second is the system of co-determination, which was strengthened in response to rebellions in the 60s and 70s. However, the resistance now, in Stuttgart as elsewhere in Europe, is not simply over the erosion of the institutions created in these periods of reform – after all, that erosion has been taking place for at least a decade. It is a profound and uncertain clash of cultures, expectations and increasingly activities, shaped by these periods of reform and rebellion, across generations. People’s expectations, or at least sense of legitimate claims, are for cultural equality as well as moves toward economic equality, and for meaningful and dignified work to match the decades of expansion of higher education.

There are also the spreading networks of autonomous hackers and geeks creating open, non-proprietorial, software and therefore effectively creating a key part of the infrastructure of today’s society as a digital commons

They all involve forms of labour which cannot be understood in the same terms as the conventional wage contract

nd the list also includes trade unionists who are taking on the role of organising for the common good in defence, or for the improvement of public services, or to push their company towards climate jobs.

All kinds of co-ops, cultural and social centres have emerged or been strengthened by these combinations of refusal and creation.

What this variety of activity has in common is that it is based on collaborative forms of creativity

and more recently ‘The coming of the commons’

can the public sector be transformed in a democratic, open and egalitarian direction against the forces of marketisation? If so, it can be a major economic player, especially in urban centres, with considerable bargaining power as contractor, as employer, and as trend-setter and creator of new communicative infrastructure.

The spread of information, knowledge and communication technologies not only enables theoretical expertise and practical knowledge to be shared on a previously unimaginable scale, but also creates tools for co-operation and self-managed co‐ordination of the most complex, multi-actor, transnational processes.

They illustrate ways in which labour could be self-organised, on the basis of social values underlying its purpose, use or context.

What would it mean to think about industrial policies not so much in terms of the goal of nudging the private sector to invest, but more in terms of how to release, develop and extend the creativity of labour in its broadest sense?

How to expand and strengthen ‘productive democracy’? How to enhance the capacities of those whose ‘only’ means of production is their creative potential – and the social co-operation through which they can develop and realise this potential?

First, it’s come from the kinds of challenges that the trade union movement is facing in defending jobs in manufacturing as well as public services.

The second sphere for the rethinking of labour has been through the renewal of the co-operative movement. And a third development is the powerful and ambiguous trend opened up by the new technology towards new kinds of collaboration is the peer to peer, distributed productions and the digital commons, as referred to earlier. This ‘sphere’ is not separate: it could expand both the transformative power of workers already rethinking labour in conventional employment, and the scale and reach of co-operatives.

One increasingly significant context of convergence is over ‘climate jobs’. We’ve noted already the growth of co‐operatives creating and distributing renewable energy. The ravages of climate change are leading some trade unionists to demand that workers, whether currently unemployed or employed in high-carbon industries, be allowed to deploy their know-how to manufacture wind turbines, solar water heaters and other parts of the infrastructure of a low-carbon economy.

Another potential focal point for the mutual reinforcement of different forms of productive democracy is cities.

All these developments also illustrate the significance of democracy – transparency, participatory decision- making, the recognition of and means of sharing plural sources of knowledge – as a source of productivity, a base for a new economics.

The implication of my argument here is that policymakers now need to work on how to support the economic creativity of millions of people, whether in existing workplaces or working precariously outside the formal labour market. At present these capacities are being wasted.

They need specific forms of support, some of it from the state, and some of it from organisations that share or could be persuaded to share their goals. These could include the trade unions, the co-operative movement, some parts of the church, foundations, and the growing experiments in crowdfunding, democratically controlled loan funds and so on.

As far as existing workplaces are concerned, we need states to not only restore and extend rights that protect trade unions in their struggles over wages and conditions, but also to give workers rights to control the purpose of their labour: for example, a legal prohibition on closures or redundancies without alternatives being publicly explored, and in the case of large companies, public inquiries at which alternatives would be presented. Labour is a commons – it should not be wasted. We need a new kind of ‘industrial strategy’ – one designed to support the creation of value that is not only monetary and requires autonomy from the pressures of the labour market. These should include a basic ‘citizen’s income’ (see page 34). Shorter working hours would be another measure that would serve a similar end.

We also need a regional policy that gives real support to cities as hubs of economic development, through direct public employment, and through support for co-ops involving regional banks. These could learn from the operations of the Mondragon bank and become a source of support and co‐ordination to networks of co-ops and other collaborative means of nurturing and realising the creativity of labour, rather than operating as banks of the traditional kind.

These are mere illustrations of industrial policies which recognise the capacities of generations shaped by expectations of cultural as well as political and economic equality. To realise these capacities as a resource for a new model of economic development requires rebuilding the distributional gains of the welfare state – but it also requires going further than that. We need to create not simply full employment, but the conditions by which people can creatively collaborate to meet the needs of a changing society and a precarious planet.