English

This report will provide historical evidence and current empirical evidence that proves that the cooperative model of enterprise survives crisis, but more importantly that it is a sustainable form of enterprise able to withstand crisis, maintaining the livelihoods of the communities in which they operate. It will further suggest ways in which the ILO can strengthen its activity in the promotion of cooperatives as a means to address the current crisis and avert future crisis.

Many cooperative studies scholars and co-op practitioners believe that successful cooperative businesses create wealth and help their members accumulate wealth and/or assets. Individual asset building or wealth accumulation is assumed to be an outcome from cooperative ownership, in addition to individual and community benefits such as job creation, education and training, income generation, affordable quality products, social capital development, and economic stability.

In the 28 years since Congress established Employee Stock Ownership Plans (ESOPs), over 10,000 U.S. companies have adopted and maintained ESOPs—dozens of studies have evaluated the effects of ESOP on company performance. After reviewing the research literature, Dr. Douglas Kruse concluded: “25 years of research shows that employee ownership often leads to higher-performing workplaces and better compensation and work lives for employees.” Study 1 (below) indicates that this “ownership effect” averages 2 to 3% per year on a variety of measures.

One key rationale for the creation of ESOP law in 1974 was to share wealth with the workers who helped create wealth. Today, many companies use the wealth sharing aspect of their ESOPs as an effective retention and recruitment tool. But just how effective a means of distributing wealth are ESOPs? Two studies, one conducted in Washington State and one in Massachusetts, have looked at the wealth consequences of ESOPs.

By means of qualitative analysis, this paper examines the organisational cultures underlying three worker cooperatives in the San Francisco Bay Area. 20 workers were interviewed and the transcripts were subsequently analysed along Edgar Schein's cultural framework. The findings show that overall the culture of these worker cooperatives is people-centred: the wellbeing of the workers comes first and the concern for making a profit comes only second.

By emphasizing wealth creation, communities can not only cultivate streams of income, but also build wealth. Through collectively owned and democratically governed assets, communities can build wealth. Economic development policy and practice should emphasize wealth creation. Employee ownership, through worker cooperatives is one way to build wealth. But worker cooperatives are rare in the United States; this is because there is not a supportive cooperative ecosystem.

This PowerPoint outlines the recommendations for item #107, which is the full masters thesis on building cooperative infrastructure in New York City based on Quebec's ecosystem

This dissertation addresses key questions raised in Human Geography and Economic Geography concerning scale and the production of space, alternative economic geographies and co-operative economic development. It is the product of a five year ethnographic investigation with cooperative enterprises in Western Massachusetts and the broader Connecticut River Valley of Western New England.

Cooperative development efforts over the last 25 years have been largely inspired by, and modeled on, the Mondragon experience in the Basque region of Spain. None of these efforts has achieved nearly the success of Mondragon, which stabilized and dramatically developed a regional economy through the creation and growth of a diverse set of industrial worker and supportive secondary cooperatives. US efforts in cooperative development have typically replicated some aspects of the Mondragon model but ignored others.

[Excerpt] Toward the end of my time with Equal Exchange, I came into contact with members of the co-ops that make up the Valley Alliance of Worker Co-ops (VAWC). I was impressed by the tradition of collective management among these co-ops and the manner in which they had come together to begin developing a network of mutual support in their region. The number and diversity of the enterprises represented in the network was very different from my experience of worker co-ops as isolated enterprises.