August 3, 2014

OF COURSE ONE OF THE MAIN REASONS FOR THEM IS TO PREVENT UNIONIZATION:

When Workers Own Their Companies, Everyone Wins : How a very old economic model could help the new economy (Sean McElwee, 8/01/14, New Republic)

In 1921, the Olympia Veneer Company became the first worker-owned cooperative to produce plywood. By the early 1950s, nearly all of the plywood produced in the United States was manufactured by worker-owned cooperatives. Today, however, worker-owned cooperatives seem few and far between. Say "co-op" and most people think of Park Slope foodies or strictly guarded apartment buildings. Worker ownership may seem a relic of the past, but it could actually play a significant role in reviving the union movement, bolstering the green economy, and stemming the tide of deindustrialization. 

Today, there are only about 30,000 cooperatives, strictly defined, employing 856,000 workers in the United States. Most of these cooperatives are consumer cooperatives, owned by consumers, rather than workers. (Technically, cooperatives are defined by incorporation, ownership, and tax-filing status.) But about 47 percent of American workers participate in profit-sharing arrangements of some sort. Employee stock ownership plans (ESOPs), for instance, involve around 10 million workers and range from plans that are essentially cooperatives (in which workers have decision-making power) to plans in which workers have stock, but no ownership or decision-making power--these are essentially profit-sharing by a different name. Procter and Gamble, the twenty-seventh largest corporation in America is estimated to be 10 to 20 percent employee-owned. Among the Fortune 100, many companies have employee ownership plans, including Exxon Mobile, Chevron, ConocoPhillips, GM, Ford, Intel, UPS, Amazon, Coca-Cola, Cisco, and Morgan Stanley.

Against this backdrop, it's not so surprising that some are making the case for co-ops. Union leaders, in particular, argue that there is significant opportunity to expand the coop model by associating it more closely with unions. This make sense: Unions are looking for new allies and methods for increasing worker control, while cooperatives can benefit from the organizational skill and scalability of unions. Associating with coops would also allow the unions to extend their reach. While the union movement is concentrated in manufacturing, a recent study by Hilary Abell finds that 58 percent of cooperatives are in the retail and service sectors. "If you go back to the beginning of the labor movement," says activist Carl Davidson, "unions and cooperatives used to go together like bread and jelly."  [...]

The appeal of worker-ownership in the United States could even cross partisan lines. The two biggest supporters of ESOPs are the conservative Dana Rohrabacher and socialist Bernie Sanders. In 1999, they co-sponsored "The Employee Ownership Act of 1999" which would grant companies with a threshold of worker ownership an exemption from the federal income tax. Sadly, more recent cooperative bills have been primarily supported by liberals. But conservative policy wonks talk about an "ownership society," and cooperatives are an ideal way to promote ownership and responsibility. 

According to Democracy Collaborative, the world's largest 300 cooperatives together constitute the ninth largest national economy. America is a land of ownership and democracy--and yet these values are generally ignored in the workforce. Cooperatives can change that.

As an owner of my company why would I want the work rules and wage hikes that unions demand?
Posted by at August 3, 2014 9:00 AM
  
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