Cooperative Roots and Branches

Cooperative Roots and Branches A Grass-Roots Seminar bySteve Dubb and David WalkerFor Interested Members of theTakoma Park – Silver Spring Co-op2011

? ? ? ? ? Cooperative Fundamentals Cooperative Roots and Branches What is a Co-op ? Every Cooperative and Every Cooperator Has an Answer.

Cooperative Fundamentals Cooperative Roots and Branches Takoma Park – Silver Spring Cooperative, Incorporated is a cooperative and a for-profit Maryland corporation.

Cooperative Fundamentals Cooperative Roots and Branches A Corporation is a form of legal entity. A Cooperative is a form of economic enterprise.

Cooperative Fundamentals Cooperative Roots and Branches Self-Help: the Greatest Good for the Greatest Number Cooperatives exist for a purpose, not a profit. Cooperatives exist because their users and owners need them to exist. Cooperatives serve economic functions that other competitors do not deliver. Cooperatives create jobs, pay taxes and provide goods and services to owners.

Customers Owners Workers Communities Cooperative Fundamentals Cooperative Roots and Branches Cooperatives are Open, Voluntary and Democratically-Controlled. Cooperatives serve multiple stakeholders: Owners, Workers, Customers and Communities.

Cooperative Fundamentals Cooperative Roots and Branches Cooperatives balance divergent or conflicting interests. Cooperatives Promote Fair Business, Fair Pricing and Fair Labor Practices.

Cooperative Fundamentals Cooperative Roots and Branches Consumer cooperatives operate at the retail level to provide goods and services for end users. TPSS Co-op is a consumer cooperative owned by its users.

Cooperative Fundamentals Cooperative Roots and Branches MISSION STATEMENT Takoma Park-Silver Spring Co-op promotes healthful living by offering wholesome food, high quality products, and community resources in clean, friendly cooperative grocery stores – that you can own. VISION We are the peoples’ choice for food and community. GUIDING PRINCIPLES We believe in supporting individual and community health and well-being We believe in operating all businesses for the benefit of the community, society and the planet We believe in treating people fairly, equitably, and respectfully in all human relationships We believe in people having a say in the issues affecting their lives We believe in educating people about the issues that affect their lives

Rochdale Pioneers Cooperative Roots and Branches “Self-Help by the People” Lancashire, 1844: A Pioneering Case Study

Rochdale Pioneers Cooperative Roots and Branches Textiles In Victorian England: A Global Industry in Revolution Rapid Technological Change Rising Productivity Falling Prices for Goods Produced Capitalism’s Creative Destruction Boom – Bust – Boom – Busted! Economic Mobility Up and Down Social Tumult Conflict and Confrontation

Rochdale Pioneers Cooperative Roots and Branches Community in Transition Rapid Growth in Rochdale

Rochdale Pioneers Cooperative Roots and Branches The “Hungry Forties” Truck Shops Workers paid in tokens redeemable only at company stores: High prices, poor product choice, low-quality goods. Labour Strife Trade unionism flares and fizzles: “a complicated system of payments was agreed in Rochdale. Known as the Statement Price it was settled in 1824. However, from that point on, wages entered a downward spiral that sparked-off a series of strikes and other labour actions.” Falling wages “By the time the dreadful winter of 1841 hit, the Rochdale workers were trying to cope on one-third of the average wage for working people. Strikes broke out again in August of 1842.”

Rochdale Pioneers Cooperative Roots and Branches Dissenters, Free Thinkers and New Philosophies Dr. William King Publisher of The Co-operator “He saw a Co-operative store as central to a process that would provide the working-class with an opportunity to help themselves.” A National Charter Universal (male) sufferage Annual Parliaments Vote by (secret) ballot Abolition of property qualifications for M. P.'s Payment of M. P.'s Equal Electoral Districts Robert Owen “Villages of Co-operation” “Co-operative Commonwealth”

Rochdale Pioneers Cooperative Roots and Branches 15 August 1844 The Rochdale Society of Equitable Pioneers is Established 28 Cooperative Pioneers Capitalizing at £1 Each Some members were able to pay their capital in a lump sum. Many others had to subscribe, paying twopence per share weekly.

Rochdale Pioneers Cooperative Roots and Branches

Rochdale Pioneers Cooperative Roots and Branches 21 December 1844: The Equitable Pioneers Open Their Cooperative Store at 31 Toad Lane.

Rochdale Pioneers Cooperative Roots and Branches Initial Inventory Was Limited to Flour, Oatmeal, Sugar, Butter and Tallow Candles.

Rochdale Pioneers Cooperative Roots and Branches The Rochdale Principles The present Co-operative Movement does not intend to meddle with the various religious or political differences which are now arising in society but by a common bond, namely that of self interest, to join together the means, the energies, and the talents of all for the common benefit of each. Hence, resolved: • (1) That capital should be of their own providing and bear a fixed rate of interest. • (2) That only the purest provisions procurable should be supplied to members. • (3) That full weight and measure should be given. • (4) That market prices should be charged and no credit given nor asked. • (5) That profits should be divided pro rata upon the amount of purchases made by each member. • That the principle of ‘one member – one vote’ should obtain in government • and the equality of the sexes in membership. • (7) That the management should be in the hands of officers and committee elected periodically. • (8) That a definite percentage of profits should be allocated to education. • (9) That frequent statements and balance sheets should be presented to members.

Rochdale Pioneers Cooperative Roots and Branches Profit and Surplus: “The Divi” The Rochdale Pioneers knew they had to make a profit on store operations. Their Laws and Principles defined how the profit would be used: All operating expenses must be paid promptly, including workers and suppliers. Principle 4 That market prices should be charged and no credit given nor asked.

Rochdale Pioneers Cooperative Roots and Branches Profit and Surplus: “The Divi” The Rochdale Pioneers knew they had to make a profit on store operations. Their Laws and Principles defined how the profit would be used: Members were paid a fair return on their invested capital. All shares were paid the same fixed rate of return, but different members owned differing number of shares. Principle 1 That capital should be of their own providing and bear a fixed rate of interest.

Rochdale Pioneers Cooperative Roots and Branches Profit and Surplus: “The Divi” The Rochdale Pioneers knew they had to make a profit on store operations. Their Laws and Principles defined how the profit would be used: Adequate capital was reserved and retained to expand and develop their business. Preamble by a common bond, namely that of self interest, to join together the means, the energies, and the talents of all for the common benefit of each. & Principle 1 That capital should be of their own providing and bear a fixed rate of interest.

Rochdale Pioneers Cooperative Roots and Branches Profit and Surplus: “The Divi” The Rochdale Pioneers knew they had to make a profit on store operations. Their Laws and Principles defined how the profit would be used: 1% of the profit was devoted to education of the membership. Principle 8 That a definite percentage of profits should be allocated to education.

Rochdale Pioneers Cooperative Roots and Branches Profit and Surplus: “The Divi” The Rochdale Pioneers knew they had to make a profit on store operations. Their Laws and Principles defined how the profit would be used: After attending to all such cooperative needs, any remaining profits were surplus. Surplus profits were distributed to the membership in the form of a dividend: “The Divi”, paid in proportion to each member’s purchases at the cooperative. Principle 5 That profits should be divided pro rata upon the amount of purchases made by each member.

Rochdale Pioneers Cooperative Roots and Branches The Rochdale Pioneers were successful. Their business grew, expanded and diversified. The Rochdale Cooperative opened other stores, warehouses and factories. With other UK cooperatives, the Pioneers created the Cooperative Wholesale Society (CWS) to produce and distribute reasonably-priced consumer goods and staples.

Rochdale Pioneers Cooperative Roots and Branches Building on Success: UK Cooperatives Today The Rochdale Pioneers and the Cooperative Wholesale Society merged with other co-ops to form The Cooperative Group, a vast network of consumer and producer cooperatives in the United Kingdom. The UK Cooperative Group is the world’s largest consumer-owned business with 4.5 million members and 123,000 employees. The original store at 31 Toad Lane in Rochdale is now the Rochdale Pioneers Museum

Statement on the Co-operative Identity Cooperative Roots and Branches International Co-operative Alliance Statement on the Co-operative Identity Definition A Cooperative 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. Values Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. In the tradition of their founders, Cooperative members believe in the ethical values of honesty, openness, social responsibility, and caring for others. Principles The Cooperative Principles are guidelines by which Cooperatives put their values into practice.

Statement on the Co-operative Identity Cooperative Roots and Branches International Co-operative Alliance Co-operative Principles, 1995 1st Principle: Voluntary & Open Membership Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of members, without gender, social, racial, political, or religious discrimination.

Statement on the Co-operative Identity Cooperative Roots and Branches International Co-operative Alliance Co-operative Principles, 1995 2nd Principle: Democratic Member Control Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women servicing as elected representatives are accountable to the membership. In primary Cooperatives members have equal voting rights (one member, one vote), and Cooperatives on other levels are also organized in a democratic manner.

Statement on the Co-operative Identity Cooperative Roots and Branches International Co-operative Alliance Co-operative Principles, 1995 3rd Principle: Member Economic Participation Members contribute equitably to, and democratically control, the capital of their Cooperative. At least part of that capital is usually the common property of the Cooperative. Members usually receive limited compensa-tion, if any, on capital subscribed as a condition of membership. Members may allocate surpluses for any of the following purposes: developing their Cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.

Statement on the Co-operative Identity Cooperative Roots and Branches International Co-operative Alliance Co-operative Principles, 1995 4th Principle: Autonomy & Independence Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their Cooperative autonomy.

Statement on the Co-operative Identity Cooperative Roots and Branches International Co-operative Alliance Co-operative Principles, 1995 5th Principle: Education, Training & Information Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their Cooperatives. They inform the general public – particularly young people and opinion leaders – about the nature and benefits of cooperation.

Statement on the Co-operative Identity Cooperative Roots and Branches International Co-operative Alliance Co-operative Principles, 1995 6th Principle: Cooperation among Cooperatives Cooperatives service their members most effectively and strengthen the Cooperative movement by working together through local, national, and international structures.

Statement on the Co-operative Identity Cooperative Roots and Branches International Co-operative Alliance Co-operative Principles, 1995 7th Principle: Concern for Community Cooperatives work for the sustainable development of their communities through policies approved by their members.

The Scope of Cooperation Cooperative Roots and Branches 30,000 American Cooperatives 73,000 Places of Business Economic Impact of U.S. Co-ops: Assets $ 3 Trillion Revenues $ 654 Billion Wages & Benefits $ 75 Billion 2 Million Jobs

Worker Co-ops The Scope of Cooperation Cooperative Roots and Branches Co-ops In the Twenty-First Century Operating Locally, Co-operating Globally Types of Co-ops Co-op types vary by ownership. Producer Co-ops Consumer Co-ops Purchasing Co-ops

The Scope of Cooperation Cooperative Roots and Branches Co-ops In the Twenty-First Century Operating Locally, Co-operating Globally Economic Sectors of Co-ops Co-op sectors vary by markets served. Agriculture & Fisheries Insurance Banking & Credit Retail & Wholesale Health Services Housing Travel Industry Utilities

The Co-op Difference Cooperative Roots and Branches The Co-op Difference Comparing Capitalism and Cooperation Corporate Value Cooperative Value Maximize profit to shareholders. Fair return to member-owners. Must grow to expand market share. Key criterion is service to members. Competition/Aggression. Cooperation among Cooperatives. Solidarity. Key principle is constant education of membership. Amorality. Hierarchy. Democracy. Quantitative decisions. Qualitative decisions.

The Co-op Difference Cooperative Roots and Branches The Co-op Difference Comparing Capitalism and Cooperation Corporate Value Cooperative Value Workers paid less than value of labor. Fairness is core value. Respect for autonomy is a core principle. Depersonalized. Corporation can exist anywhere. Co-op is a local creation. Not tied to specific place, a corporation can move anywhere. Concern for community is a core co-op principle. Concern for ecology is a common focus of Cooperatives. Nature is a factor of production. Homogenization Heterogeneity/ Diversity.

Cooperative Involvement Cooperative Roots and Branches Deepen Your Involvement in TPSS Co-op Join a Co-op committee. Help govern and guide the Co-op into the future. Now active: Membership Committee, Finance Committee, and Expansion Task Force Volunteer at public events.Make the Co-op visible in the community at Earth Day (April), Jazz Fest (June), 4th of July parade, or the Takoma Festival (Oct). Participate in community events at the stores. Support Story Time, membership meetings or member education. Take part in Advisory Groups and Partake in Food Tastings! Write for the Co-op. Be a contributor to the newsletter or website. Photography is also a very helpful skill! Do research for the Co-op. Help the Co-op gather information, conduct surveys and learn the best practices of other co-ops, so we can become even better! Help with Outreach.Be a representative of the Co-op in the community.

? ? ? ? ? Cooperative Fundamentals Cooperative Roots and Branches What is a Co-op ? What Do You Think Now?

Cooperative Roots and Branches Thank You For Attending.Get Involved – Be Cooperative!

Cooperative Roots and Branches