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Co-operative Potential in the Global Arena

Co-operative Potential in the Global Arena. Progress Based on Principles. John McNamara. Accounts Manager Union Cab & 2nd year student in MMCCU program at St. Mary’s University 18 years in Worker Cooperative Movement 8 years on board of directors

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Co-operative Potential in the Global Arena

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  1. Co-operative Potential in the Global Arena Progress Based on Principles

  2. John McNamara • Accounts Manager Union Cab & 2nd year student in MMCCU program at St. Mary’s University • 18 years in Worker Cooperative Movement • 8 years on board of directors • Worker Ownership Fund Board for Northcountry Development Fund • Alternate Director for US Federation of Worker Cooperatives

  3. 2006 Good and the Bad • US Federation of Worker Cooperatives • Successful conference • Admitted to CICOPA • Worker Ownership Fund Created • Good Vibrations goes ESOP • Mifflin St. Cooperative ceases operations • Burley Bicycle demutualizes

  4. Burley Design Cooperative • Formed in 1978 • Road bikes • Bike trailers • Expanded in ‘96 • ‘03-’05: three years of losses

  5. US Bicycle Industry • Schwinn dominated market until mid-70s • Jobs moved overseas • As companies sought cheaper labor, companies consolidated • Rise of Trek

  6. Greg Le Mond • First American to win Tour de France (1986) • 3 time winner, Tour de France

  7. Lance Armstrong • 7 time winner, Tour de France • US Postal Service Corporate Sponsor of US Team • Trek official bicycle of the US Postal Service Team

  8. Global Coops-Equal Exchange • Fair Trade Pioneer • Cooperative Circle • Unique Financing • Community Marketing

  9. Global Coops-Mondragon • Point of No Return • Committed to competing • Made tough decisions to protect jobs at home • Traditional FDI model

  10. Global Coops-Sunkist • Sunkist formed in 1893 to protect citrus farmers against predatory wholesalers • 6,500 members in California and Arizona • Marketing cooperative that licenses name as well as markets

  11. Multi-National Cooperative?

  12. A Living Wage? • Arbitrary Definitions • What makes a living wage • Food security • Housing security • Education • Society • Why it is important to global cooperation

  13. Principles--Member Economic Participation • Member Economic Participation • Membership Fee • Equity

  14. Principles-Democratic Control • Setting work rules • Electing leaders • Management development • Representation at higher levels

  15. Principles-Autonomy and Independence • Equal participation • Protection from majority • Right to secede • Responsibility to whole

  16. Role of Parent Board Strategic Planning Marketing Production Goals Hiring/Oversight of CEO and local managers Budget Participation with national/international federations and networks. Role of Local Board Local budget (including local sources of income) Work rules Production schedules Input into hiring of local managers and CEO Participation with local/regional networks Governance

  17. Concerns • Western Influence • Language barriers • Cultural differences • International Codes and Standards • Commitment to the Identity Statement

  18. Going Forward • Need to educate workers in all countries • Need to improve/create cooperative laws • Role of US Federation to aid cooperatives in planning • Need to develop and expand ability of worker cooperatives access to capital • Need to create culture of planning.

  19. Will It Work? • Lessons from Global cooperation • Fair Trade Branding • Coop Int’l Brand

  20. “The present, however splendid it might be, bears the seeds of its own ruin if it becomes separated from the future.” Don José Maria Arizmendiarrieta

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