Worker Co-ops in Progressivism

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by

Maya Green

Historical Context and Evolution

Worker cooperatives trace their origins to the 19th century, with Rochdale, England often cited as the birthplace in 1844. The Rochdale Pioneers established principles like democratic control and economic participation of members that remain foundational today.

As the world industrialized and globalized, cooperatives offered an alternative to traditional labor structures. They gained renewed interest in regions affected by rapid economic shifts, providing a way to keep communities at the heart of business. In the United States, cooperative formation often spiked during economic downturns, offering a response to unemployment and discrimination.

While cooperatives embody ideals of fair distribution of power and profits, they face challenges in a capitalist system. The Mondragon cooperative in Spain, which grew under Franco's dictatorship, demonstrates the potential scale and impact of the cooperative model.

Globalization has presented both challenges and opportunities for cooperatives, including the potential for cross-border collaboration. In today's world, cooperative movements offer an alternative to profit-driven global economic trends, standing as evidence that workers and communities can have a meaningful stake in business ownership and decision-making.

A historical representation of the Rochdale Pioneers' cooperative store in 19th century England

The Relationship Between Trade Unions and Workers' Cooperatives

Trade unions globally face an acute decline, with U.S. private sector union membership down to just 7%. This crisis forces existential questions about the future of the labor movement. Unions struggle to protect workers against rampant capitalism and can no longer function as the motor of progressive political campaigns or push for "liberal redistributive strategies" – forcing them into "uncharted territories".

The reasons for this decline are well-researched:

  • Partially cyclical, determined by business cycles
  • More permanent technological and spatial fixes like offshoring and automation
  • New forms of employment in the platform economy

While unions face external pressures, they also bear some blame for not adapting effectively. There's a tendency to focus on "fortifying myths" that frame both successes and failures in comfortable, self-aggrandizing terms.

This overlooks the immense growth of the cooperative sector, which is 'organizing' workers in the platform economy in a totally different way – bringing decent pay and conditions, workplace democracy, and formal employment. Efforts to find innovative pathways to union revitalization usually miss this entirely.

A diverse group of worker-owners engaged in a democratic decision-making process in a modern office setting

Different Strategies, Similar Goals

While trade unions and cooperatives have almost the same goals and origins, they adopt different strategies:

  • Trade unions: Focus on improving conditions through collective bargaining, worker representation, and political lobbying
  • Workers cooperatives: Seek to improve conditions through democratic ownership and market competition

Trade unions typically raise three main concerns about cooperatives:

  1. "Worker cooperatives are a distraction from 'real' trade union work"
  2. "There's no role for a union in a democratic worker cooperative"
  3. "Worker cooperatives don't necessarily improve wages or conditions"

However, these concerns are largely unfounded and reconcilable. Collective bargaining and cooperative ownership are complementary, not contradictory strategies. Cooperatives can benefit from union representation, and unions can help prevent cooperative degeneration.

Representatives from a union and a worker cooperative shaking hands in front of a mixed workforce

Successful Models of Collaboration

Several examples demonstrate successful union-cooperative collaboration:

  • The Confédération des Syndicats Nationaux in Quebec established an investment bank financing cooperatives in strategic industries
  • The union-cooperative model developed by Mondragon and United Steelworkers provides a template for cooperatives with independent union representation
  • Our Harvest cooperative, organized by The United Food And Commercial Workers Union (UFCW)
  • Large-scale enterprises like Homeland Inc and Weirton Steel Plant

On a macro scale, unions can implement industry-level collective bargaining agreements into cooperatives, helping embed them in a broader social movement.

Workers from Mondragon and United Steelworkers collaborating in a modern industrial setting

Economic Performance and Worker Benefits

Contrary to concerns about self-exploitation, cooperatives often have a better economic record than traditional businesses. During the 2008 financial crash, the EU cooperative sector maintained full employment through temporary pay cuts and reduced hours, strengthening workers' positions overall.

"Combining a social vision with meeting everyday survival needs is one of the most effective forms of organizing workers that I have encountered because it adds a deeper layer of solidarity that is not just theory, but grounded in our concrete existence."

To tackle the threats facing organized labor, union-cooperative collaboration needs to move from the fringes to the mainstream of union strategy. This means developing a Social Solidarity Economy that can produce lasting gains for workers and their communities.

Workers in a cooperative discussing strategies during an economic downturn, with graphs showing stable employment

Moving forward requires trade unions and cooperatives to examine current on-the-ground successes and revive the idea of the cooperative commonwealth. By excavating their shared roots and embracing innovative collaboration, unions and cooperatives can forge a path towards a more equitable and democratic economic future.