Co-operativesWorkshop

Jarra Hicks, Ann Apps & Sidsel Grimstad

Gloucester Sustainable Futures Convention March 2019

“Nothingtrulyvaluablecanbeachievedexceptbytheunselfishcooperation

ofmanyindividuals.”AlbertEinstein

WorkshopOverview

1.   Whatarecooperatives&howaretheydifferent?

2.   History&currentstatusworldwide3.   Cooptypes&examples

4.   Whatmakescoopspowerful?

5.   Designyourowncoop!

https://www.youtube.com/watch?v=90FL_bBE4mw

Introduction

•   Co-operatives–arebothabusinessmodelandasocialmovement.

•   Almosteverycountryrecognisesco-operativesasasocial-economicmodelthatcanimprovethelivesandeconomicwellbeingofitsmembers.

•   Theyaredemocraticorganisationsownedandcontrolledbyandfortheirmembers,whomaybeworkers,users,customers,residents,etc..

•   Theyarebasedonthevaluesofself-help,mutualresponsibility,democracy,equityandsolidarity.

Cooperativeprinciples

Coopsacrosstheworldoperateaccordingtosharedprinciplesof:

1.   Openandvoluntarymembership

2.   Democraticmembercontrol(one-member,one-vote)

3.   Membereconomicparticipation

4.   Autonomyandindependence

5.   Education,trainingandinformation

6.   Cooperationamongco-operatives

7.   Concernforcommunity

Cooperativebusinessmodels

•   Weshouldstartbythinkingaboutco-operativesasabalancedmodel.

•   Thebalanceliesatthemidpointbetweenpurelysociali.e.a‘notforprofit’andapurelycommercialor‘forprofit’business

•   Whilethemodelcanaccommodatebothextremes–itoperatesatanoptimumwhenithasbothaneconomicandsocialoutput.

Wheredidcoopscomefrom?

•   Co-operativesoccurnaturallyinmostsocieties.

•   Co-operativesintheUKandEuropewereaspontaneousresponsetotheworsteffectsoftheindustrialrevolution.

•   IntheUKmostco-operativeswereconsumerco-operatives.InIrelandandNorthernEuropeagriculturalco-operativesandcreditunionsflourished

•   InFranceandSpain–workerco-operativeshavealonghistory.

Wheredidcoopscomefrom?

•   Theco-opprinciplesandtheinternationalmovementhasitsoriginintheUKwiththeRochdalePioneersin1844.

•   TheRochdaleco-opwasaconsumerco-opandrebateswereissuestomembersaccordingtouse.

•   TheRochdaleprinciplesincludeddemocraticgovernance,openmembership(womenincluded),ideologicalneutralityandprovidedbotheconomicandsocialbenefitstotheirmembers.

Wheredidcoopscomefrom?

•   Australiawasanearlyadopter-AustralianMutualProvidentSocietyofNSWinSydneyin1849.

•   InterestinglytheminersfromtheUKbroughttheco-opideatotheHunterValleyandtheNewcastleSuburbanCo-opSociety“theStore”wasmodelledonitsUKcounterpart.

•   Otherfamousco-opsincludedWesfarmerswhichlaterstartedCBH,Australia’slargestco-op

•   Norcoisoneofthefewdairyprocessingco-opsleft,butacoupleofnewoneshavestarted.

CurrentstatusofCooperatives–Global•   TheInternationalCo-operativeAlliance(ICA)istheworlds

oldestglobalpeakbody(est1895beforeUN).

•   ItcontinuestoworkwiththeILOandUNtopromotetheco-operativemodelworldwide:

•   Renewedinterestinco-opsnowdueto:

-Globalinequalityandlackofglobalgovernance

-   Environmentalissuesandclimatechangethreats

Currentglobalstatisticsforco-operatives

•   1billioncooperativemembersin3millioncooperatives.

•   12%oftheglobalpopulationisamemberofaco-op.

•   280millionpeople=10%oftheworld’semployed.

•   Co-operativemodelissurprisinglypopular–someinterestingstatisticsfromaroundtheglobe:

•   HousinginScandinavia;ElectricityinruralUS;CreditunionsinNorthAmerica;

Currentstatusofco-operatives–Australia•   ComparedtomostcountriesAustraliahasasmalland

shrinkingco-opsector(why?)

•   Itdoeshaveastrongmutualsector(e.g.creditunionsandindustryownedsuperannuation,healthinsurance)–so8outof10peopledobelongtomemberownedorganisationseg.NRMA.

•   Butwedoseearenewedinterestinco-operativesolutionsforemergingareassuchasrenewableenergy,publicsectorservices(health,agedcare,disabilityservices),andhousing.

•   BUT–lackofknowledgeandresourcesaboutco-ops

Whoherehasbeeninvolvedinaco-operative?

TypesofCooperatives

a.   Distributing(for-profit)cooperativeb.   Non-distributing(not-for-profit)cooperative

Types: •   Worker’s cooperatives

e.g. Community Power Agency •   Producer cooperatives

e.g. Norco •   Buyer’s cooperatives

e.g. Alfalfa House Food Coop

•   Credit Unions e.g. Bank Australia, Greater

•   Housing Cooperative e.g. South Hobart Co-housing Coop

Co-operativeexamples

https://www.youtube.com/watch?v=UasyTMXhQZ0

Thecooperativeadvantage

•   Agilitywiththenotionofmember-value(comparedtoprofits)increasesresilience.Didyouknow?

•   Co-opsaremuchlesslikelytofailthaninvestor-ownedfirms.

•   USdatashowsthat60–80%ofinvestor-ownedfirmsfailaftertheirfirstyearwhereasonly10%ofco-opsfailtheirfirstyear.

•   Afterfiveyearsonly5%ofinvestor-ownedfirmsremainactive,whereasnearly90%ofco-opsarestilloperating

Theco-operativeadvantage

•   Democraticdecision-makingandbottom-upsocialinnovation

•   Accountabletomembersandmembers’localcommunity

•   Collaborationwithotherco-opsprovidesstrengthandinnovation

•   Educationofmembersisparamounttogainthesebenefits

Smallgroups:

Begindesigningyourownco-op!

Thank you!

Jarra@cpagency.org.au www.cpagency.org.au

Ann.apps@newcastle.edu.au

Sidsel.Grimstad@newcastle.edu.au https://www.newcastle.edu.au/degrees/graduate-certificate-co-operatives-management-organisation