Worker Co-ops & the Labour Movement: Canadian Perspectives

Worker Co-ops & the Labour Movement: Canadian Perspectives July 31, 2009 Pittsburgh Presented by: Hazel Corcoran

COMMON GROUND • Economic Democracy • Wealth Shared vs. Wealth Concentrated • People before Profit • History of shared projects in Canada up until the 1970s

Divergent Paths 1970 - Present • The redefining of “Liberal Capitalism” and the forces of global corporatism. • Larger Co-operatives become business-centric and focused on being competitive within their markets. (Retail Consumer Co-ops, Credit Unions). Some disappear. • Labour Unions under attack - changing legislation – offshore manufacturing –Flight of Capital – Declining Membership

Divergent Paths 1970 - Present • From common ground to indifference • Collective bargaining experience in larger Co-ops • Lack of a common table (National Labour – Co-operative Committee, ceased in 1970s) • The loss of our collective history • Fighting separate battles separately

Current Economic Situation • Financial crisis & recession • Forestry & other resource industries • Manufacturing industries • Retiring owners

Western Labour / Worker Co-op Council • Original meeting – Saskatoon, September, 2006 • 20 + attendees including union members, Canadian Labour Congress reps, worker co-op activists, OEOC, Lynn Williams

WLWCC Outcome of meeting: Formation of WLWCC; Better shared understanding. WLWCC PURPOSE The purpose of the Council is to facilitate collaboration between labour and worker co-op activists and to improve conditions for workers in the Western region by promoting and facilitating worker ownership, primarily through worker co-ops.

WLWCC COUNCIL MEMBERSHIP The Council is comprised of members from the four Western provinces who represent the labour or worker co-op movements. Additionally, resource people (including John Logue) provide support and mentorship to the Council. Membership is voluntary and without remuneration.

WLWCC MANDATE (1) The mandate of the Council is: To build the capacity to respond where unionized employees want to explore buying out a business as a worker co-operative or other type of employee-owned enterprise due to business succession or a crisis situation;

WLWCC MANDATE (2) To provide a common table on issues important to both the worker co-op and labour sectors, such as joint lobbying and mutual support for worker co-operative and/or unionized businesses;

WLWCC MANDATE (3) To do outreach and to provide two-way learning opportunities between the worker co-op and labour sectors;

WLWCC MANDATE (4) To provide workshops on topics specific to this mandate, including financing tools for conversions and other subjects as identified;

WLWCC MANDATE (5) To coordinate the response to opportunities, including assembling a skilled team to respond quickly to crisis situations involving unionized employees in Manitoba, Saskatchewan, Alberta, and BC.

WLWCC • Steering Committee with monthly meetings by teleconference • Formalized terms of reference • Drafted & distributed brochure • Have made worker co-op presentations at labour schools and several District Labour Councils • Held Seminar on Financing, Sept 2007 in Edmonton: Tom Croft (Steel Valley Authority), David Levi (Growthworks)

Labour-Coops Workshop Nov, 2008, Winnipeg • Canadian Co-op Association leadership met with Canadian Labour Congress leadership. • Much interest shown in not only the WLWCC but also the possibility of reviving the NLCC • Common ground seen for working people, many different areas: new co-op development, cross-pollination, labour activists running for CU & co-op boards, etc.

Spring 2009 • Sought & received funding to create resource materials: • Completed research into legal, financial and taxation aspects of worker buy-outs in Canada • Created curriculum for labour schools, & guides: www.coopzone.coop/buyout_guides

What Next? • Opportunity identification • Facilitating conversions • In process of incorporating WLWCC as a non-profit co-operative • Seeking funding to hire a first staff person

Steps in the Buy-Out Process • Educate the supporters of the buyout. • Establish a buyout association - (future Co-op). • Do a pre-feasibility assessment. • Conduct a feasibility study. • Develop a Business Plan.

Steps in the Buy-Out Process • Negotiate the purchase and create the structure for the new employee-owned co-operative. • Arrange financing. • Close the deal with the seller.

WLWCC Brochure: www.coopzone.coop/LabourAndCoops WLWCC Guides: www.coopzone.coop/buyout_guides

Worker Co-ops & the Labour Movement: Canadian Perspectives