US Steelworkers and Worker-Owned Co-ops

Contrary to the claims of many, most unions (at least in the last 50 years) aren’t anti-capitalist. They’re more than happy to always be what one might call the "loyal opposition." As long as they’re outsiders they can rant and rave against management while always sounding pro-worker but never, ever, sounding like they opposed capitalism. Most unions are been quick to disavow any idea that the workers themselves should own and manage the shops and factories. The majority of unions are content with negotiating for better pay and more benefits. Sure, there are a few, like the International Workers of the World (IWW), that go beyond but they’re the exception and not the rule.

Finally, there now seems to be a change for one union.

In October of 2009 the United Steelworkers Union announced they were collaborating with the Mondragon Cooperative Corporation (MCC) of Spain to explore increasing the number of worker-owned cooperatives here in the US.
According to the USW International President Leo W. Gerard, “We see today's agreement as a historic first step towards making union co-ops a viable business model that can create good jobs, empower workers, and support communities in the United States and Canada.” He went on to say, “Too often we have seen Wall Street hollow out companies by draining their cash and assets and hollowing out communities by shedding jobs and shuttering plants. We need a new business model that invests in workers and invests in communities.”
(Source: SolidarityEconomy.Org)

The MCC President of Mondragron Internacional, Josu Ugarte, stated: “What we are announcing today represents a historic first--combining the world's largest industrial worker cooperative with one of the world's most progressive and forward-thinking manufacturing unions to work together so that our combined know-how and complimentary visions can transform manufacturing practices in North America. We feel inspired to take this step based on our common set of values with the Steelworkers who have proved time and again that the future belongs to those who connect vision and values to people and put all three first.”

There’s simply no way to predict what will come out of this collaboration. As I mentioned in my blog entry of March 30th there is also the Cleveland Model in which several cooperatives haven been formed. One can hope that maybe, just maybe, that collaboration between MCC and the USW along with the Cleveland Model are examples that the dream of an economic democracy is starting to become more than just a dream.

2012

“The end of the world as we know it and I feel fine.” R.E.M.

Forget all the reports about the world coming to an end in 2012. What everyone should be taking note of is that back on December 21, 2009 the UN declared 2012 to be “The International Year of Cooperatives.”

NEW YORK, 21 December (Department of Economic and Social Affairs) -- The United Nations General Assembly has declared 2012 as the International Year of Cooperatives, highlighting the contribution of cooperatives to socio-economic development. In adopting resolution 64/136 on 18 December, the Assembly noted that cooperatives impact poverty reduction, employment generation and social integration.

A cooperative is an autonomous voluntary association of people who unite to meet common economic, social and cultural needs and aspirations, through a jointly owned and democratically controlled enterprise. In general, they contribute to socio-economic development.

As self-help organizations that meet the needs of their members, cooperatives assist in generating employment and incomes throughout local communities. Cooperatives provide opportunities for social inclusion. In the informal economy, workers have formed shared service cooperatives and associations to assist in their self-employment. In rural areas, savings and credit cooperatives provide access to banking services that are lacking in many communities and finance the formation of small and micro businesses, promotes inclusive finance.

The cooperative sector worldwide has about 800 million members in over 100 countries and is estimated to account for more than 100 million jobs around the world. The strength and reach of cooperatives are illustrated in the following examples:

* Under the umbrella of the World Council of Credit Unions, 49,000 credit unions serve 177 million members in 96 countries, and 4,200 banks under the European Association of Cooperative Banks serve 149 million clients;

* Agricultural cooperatives account for 80 to 99 per cent of milk production in Norway, New Zealand and the United States; 71 per cent of fishery production in the Republic of Korea; and 40 per cent of agriculture in Brazil;

* Electric cooperatives play a key role in rural areas. In Bangladesh, rural electric cooperatives serve 28 million people. In the United States, 900 rural electric cooperatives serve 37 million people and own almost half of the electric distribution lines in the country.

International Years are declared by the United Nations to draw attention to major issues and encourage action. To commemorate the Year, regional conferences will raise awareness of cooperatives and seek ways to leverage their contribution to socio-economic development and foster regulatory frameworks. A research agenda will be proposed and Member States are to form national committees that will serve as focal points for the Year’s activities.

http://www.un.org/News/Press/docs/2009/dev2784.doc.htm

Leaving aside how generally impotent the UN is at achieving its goals one can’t help but hope that their declaration is a premonition of something great to come.