work together issue 2

Editorial

By Javier Salaberria,

President of CICOPA

The current crisis is impressive.

It is deep, long, and universal,

and it is affecting several differ-

ent countries and sectors around

the world. In our lives we have

already experienced several cri-

ses but there are probably none

that can be compared to this

one.

As the major supporters of capi-

talism would affirm, the eco-

nomic system needs crisis to re-

set its lost basic balance. The

origin of this is the engine of the

capitalistic system itself: profit.

Profit leads to the accumulation

and the irrational use of re-

sources, the overproduction of

goods and services, and it pro-

duces huge inequalities in the

distribution of the wealth.

The origin of the current eco-

nomic disaster came from the

excesses of the financial system.

The financial market’s omnipo-

tent power, its greed and infinite

egoism, led us into the abyss.

We often talk about globalisation

even if, at the moment, there is

no free movement of people and

goods, but only of financial ser-

Crisis: cooperative answers and opportunities

Effects of the

crisis on

cooperatives:

Survey among

CICOPA members

(page 3)

work together is a joint publication of

CICOPA and CECOP Europe

General coordination: Bruno Roelants

Editors: Olivier Biron and Antonio Amato

Proofreading of the English version: Adrian Yip & Hazel Corcoran (Canadian Worker Co-operatives Federation)

Graphic design: jcse

© CICOPA 2009

SUMMARY

Editorial 1

Intercontinental 3

Latin America 5

Europe 6

North America 16

Asia 17

Africa 14

August 2009 - Issue N° 2

The global information bulletin on cooperatives and worker-owned enterprises in industry, services and crafts

International Organisation of Industrial, Artisanal and Service

Producers’ Cooperatives

European Confederation of Worker Cooperatives, Social Cooperatives and Social and Participative Enterprises

Contact: Avenue Milcamps 105 BE-1030 Brussels

Phone: +(32) 2 543 10 33 Fax: +(32) 2 543 10 37

www.cicopa.coop www.cecop.coop

[email protected] [email protected]

Ivano Barberini,

the President of the

International

Cooperative Alliance

(ICA), has died

(page 4)

Argentina: The Constitutional Act of the National

Confederation of Worker Cooperatives has been

approved (page 5)

work together

(continued on next page)

vices and capital. The only globalised aspect of the

economy is the most powerful and irresponsible

financial market we have ever had. To whom does

it give account? Does anyone have the power to

judge the financial corporations and CEOs who

have led us to this situation? Governments stand

with no power to act, and there

are no international or global

control institutions. A lot of

people have hopes of deep

changes within the system, and

with no doubt some changes

will be made in order to in-

crease control. Nevertheless

these actions will not affect the

principles of the system. In

fact, while we talk about the

existence of “green shoots” in

the economic system of several countries, we can

easily find other countries -the usual ones - start-

ing again to talk about “turning back to the path”

of economic development.

This crisis is not just financial; it is fundamentally

affecting values. Capitalism should be rebuilt start-

ing from simple values, such as: the production of

useful goods and services; the economy of services

to persons; a fair distribution of wealth; a model of

development for spreading equality; and achieving

a real globalisation of economic, educational and

social achievements. Too much for the capitalist

system!

With no doubt, the downturn is affecting us in all

the productive sectors: agriculture, industry, ser-

vices… But it seems that the crisis has not affected

our cooperatives and cooperative financial institu-

tions as much as expected,

which goes to show that there

is something that the traditional

financial and political institu-

tions should learn from us.

We must practice and dig

deeper into our principles and values: the centrality

of people and workers; the instrumental value of

capital; economic democracy; solidarity, service

and commitment to the community; the impor-

tance of education… and definitively; the social re-

sponsibility of our enterprises.

We should also take advantage of the opportunities

present during times of crisis to gain society’s con-

fidence, especially in regards to worker coopera-

tives. Although we consider ourselves entitled to

support and empowerment from the public powers,

we have adopted the “help yourself” mentality from

the first moment our cooperatives came into be-

ing. It is indisputable that we have already shown

resilience in tough times by keeping work places

functional.

Not only do our existing enter-

prises survive, but we re-launch

disappeared or (almost) bank-

rupt enterprises as well. There

are many examples of these

kinds of actions, but there is no

better example than the

“recovered” enterprises in Ar-

gentina and Brazil.

Unemployment - truly global-

ised - will generate imperious

need of jobs for a mass of peo-

ple and the cooperative model has always been

ready to respond effectively to this need. We must

activate our organisations to support the creation

of new cooperatives that are economically viable.

Finally, to face the dominant model of competition

and its principles of relentless war, supreme ego-

ism, and the possibility of destruction of the com-

petitor, we have to develop our best intercoopera-

tion strain, assuming that they will not renounce

their stay in the marketplace.

First of all, in the cooperative associations’ field, we

should plan for the creation of federations and con-

federations, both at the national and international

levels. We just had a wonderful achievement of this

strategy in Argentina where recently the existing

federations of worker cooperatives founded a Con-

federation (congratulations for your excellent and

tenacious work, friends). At the

same time, the intercooperation

among enterprises is essential,

and I do believe that this is the

21st century’s challenge for the

cooperative movement. Being

cooperatives means to “help each other”. We will

win all together.

It is during the hard moments that we can demon-

strate the value and utility of our people and insti-

tutions; it is a good moment for the best among

us, and a good opportunity for cooperatives and

their members. Society is waiting for our decisive

support and it will appreciate the cooperative

movement for this. ◊

Crisis: cooperative answers and opportunities(continued from page 1)

Editorial by Javier Salaberria, President of CICOPA

“It is during the hard

moments that we can

demonstrate the value

and utility of our people

and institutions; it is a

good moment for the

best among us... ”

“We must practice and

dig deeper into our prin-

ciples and values... ”

WORK TOGETHER - ISSUE N° 2 - AUGUST 2009 2

I N T E R C O N T I N E N T A L

Since October 2008, the global financial crisis has led to

the bankruptcy of many financial institutions in the USA

and in European countries, and is threatening the global

financial system. Concerned by the current economic crisis

and its serious challenges for employment, sustainability

of the enterprises and social cohesion, CICOPA (directly,

and through its regional organisation CECOP-CICOPA

Europe for European concerns) has launched in March

2008 a consultation among its members in order to have a

better idea of the effects of the crisis on the affiliated en-

terprises. We have taken as time reference for the consul-

tation the last quarter of 2008 up to now. Members in 18

countries (Brazil, Bulgaria, Canada, China, Colombia, Den-

mark, Estonia, Finland, France, Italy, Japan, Poland, Ro-

mania, Slovakia, South Korea, Spain, UK and USA) have

responded to the survey. Here are the main conclusions of

our analysis.

IN EUROPE

All of the consulted European countries report a down-

turn in production and sale of their activities during the

last semester of 2008 and this is gradually worsening.

SMEs and young cooperatives are the most affected. The

most concerned sectors are: building, construction and

textile sectors, as well as the service sector related to

persons. In turn, Italian social cooperatives report good

economic performance in 2008 and no significant reduc-

tion in production, nor turnover compared to previous

years.

Generally, all the enterprises encountered difficulties in

accessing credit from traditional banks and report late

payments from public authorities, whereas cooperatives

banks are reportedly not tightening their loans as drasti-

cally.

In spite of the difficulties, the number of job losses

among European members is quite limited thanks to both

external measures - Italy and France indicate the possi-

bility for enterprises to introduce social security cushions

like part-time jobs and redundancy funds – and internal

measures - UK reports that worker-cooperatives are less

likely to reduce jobs as they privilege forms of pay-cuts

among their members rather than making workers re-

dundant. In a number of cooperatives, members decided

to not distribute 2008 surpluses. In the Mondragon coop-

erative group, worker-members of cooperatives with dif-

ficulties have been re-deployed in other enterprises of

the group, a measure that had not been used, at least on

a significant scale, over the last two decades. On the

other hand, CECOP-CICOPA Europe members do not indi-

cate any significant closures among their affiliated coop-

eratives so far.

Meanwhile, we observe that conventional enterprises

restructured by workers in cooperatives are on the in-

crease, and are expected to increase even more in the

near future.

Nevertheless, considering that the worse is still to come,

our members plan to adopt measures to help their enter-

prises face the crisis: training activities for both workers

and managers; chain production restructuring; coopera-

tion with the cooperative credit system in order to ensure

a better access to credit; support the access to govern-

mental and EU programs; etc. In this context, micro-

measures are not sufficient, and CECOP-CICOPA Europe

members are also asking their national governments to

set up simultaneous measures for an efficient recovery:

reduction of tax rates in order to boost potential invest-

ments; increase in public spending for the most con-

cerned sectors; better access to credit and reduction of

late payments; measures supporting export; and special

development programs for the cooperative sector in or-

der to support the creation of new cooperative societies.

AND THE REST OF THE WORLD

Consulted members in the USA, Canada, Brazil, China

and South Korea report a downturn in production and

sales. The affected sectors are various as well: the USA

report negative effects in the construction sector as well

as in the catering industry; Canada (Quebec) in the for-

estry sector; in Brazil the most affected sectors are those

of metal-mechanical industry and recycling; in China the

export-oriented sectors. In Japan and Colombia, the ser-

vices sector was hit, and Colombia also reports some

negative consequences in the textile and clothing indus-

try sectors.

Similar trend as in Europe: job losses are almost non-

existent (only Brazil reports some), but some internal

adaptation measures have been put in place, such as

reducing hours or cutting wages. Only the USA reported

closings among affiliated enterprises (homebuilders sec-

tor, which started in 2007 with the housing market crisis,

new closings are anticipated in early 2010).

Like in Europe, members unanimously reported difficul-

ties in accessing credit from traditional banks, and in par-

ticular, access to start-up credit and lines of cash flow for

currently operating cooperatives. South Korea, the USA,

and Colombia mention the same problems for coopera-

tive banks. Differently from Europe, anyone is reporting

late payment problems from public authorities. Neverthe-

less, Colombia complains about reduction of public con-

tracts with worker cooperatives in some regions.

Non-European members are generally less sceptical

about the future. Even if the majority of them expect

more difficulties to come, some countries see the crisis


Effects of the crisis on cooperatives

Survey among CICOPA members By Diana Dovgan and Valentina Amadori, CECOP-CICOPA Europe


as an opportunity to consolidate their activities

(Colombia). Brazil even reports some recovery indicators.

Specific measures are being put in place by members to

face the crisis, that mainly concern access to finance,

such as a worker ownership fund for loans (USA), and

increasing the equity capital ratio through improving ac-

count balances (Japan). Colombia is promoting better

cooperation between cooperatives in order to improve

their production and benefits. Even if some governments

have already set up measures to foster the recovery -

such as in South Korea where the government has de-

cided to spend 60% of its annual budget in the first half

of the year in order to promote job creation and to en-

courage economic activities; or in Brazil where the gov-

ernment is trying to increase access to credit with new

credit lines and resources geared toward both investment

and working capital and towards private consumption –

members are conscious that more efforts need to be

done. They have all asked their governments to put tax

reduction measures in place, to facilitate access to credit

system and guarantee funds, and make public markets

more accessible for cooperatives. Some specific initia-

tives in favour of cooperative SMEs are being requested

in the USA and Colombia (simplification of administrative

procedures). Japan asked for emergency employment

measures to prevent unemployment. Colombia suggests

financial support for restructuring activities (production

diversification, etc.), as well as measures to promote and

facilitate the creation and development of enterprises in

newly competitive sectors (information and communica-

tion technologies) or in agro-industry in rural areas.

WHY ARE OUR ENTERPRISES MORE RESILIENT?

The relative resilience of our enterprises to the ongoing

crisis can be explained through the very nature of worker

and social cooperatives, and in particular the strength of

worker ownership. Cooperatives are characterized by a

special labour relationship where workers-owners hold

sovereignty in entrepreneurial decisions and are fully

responsible for the choices they make. We know that

increases in productivity and competitiveness, today ex-

tremely necessary to face the challenges coming from

the financial global crisis, may come from the level in

which workers, who are not merely interested in a finan-

cial participation, can really participate in the decision-

making process of the enterprises.

Being member-based, our enterprises do not delocalize,

and generally manage to keep jobs and economic activi-

ties locally, thus providing an important component of

labour security to their workforce. Moreover, worker and

social cooperatives have been able to develop fundamen-

tal skills, like their capacity to modernize their products,

services or production processes, and their capacity to

substantially modify their production lines or services.

This capacity to combine flexibility and security, to adapt

to change when preserving jobs and their local roots, is

probably their main strength. Mutualised support institu-

tions, in particular financial instruments, also play a ma-

jor role in facing the current difficulties.

The full CICOPA report on crisis is available on our web-

site at http://www.cicopa.coop/public_docs/

RaportCriseEN.pdf .

The death of the ICA’s President Ivano Barberini on the 6th of May represents

the loss of one of the most significant actors whom the Italian and international

movements have ever known. During his presidency, the ICA underwent a deep

strategic and structural reform, in which sectoral organisations as ours acquired

a larger impact than in the past.

Italian President Giorgio Napolitano reflected on the death of President Barberini

with these words: “With his death we have lost a central representative of the

Italian cooperative movement, one who struggled passionately for social civil

progress and for peace”.

Barberini was born in Modena in 1939. He cultivated his passion for the coop-

erative movement even before becoming an important voice in economic, social, and management research.

He was director of Coop Modena and President of Coop Italia. From 1978 to 1996 he was President of Coop,

National Cooperative Association of Consumers, and from 1990 to 1996 President of Eurocoop, the European

Confederation of Consumers Cooperatives. From 1996 to 2002, Barberini was president of the National Asso-

ciation of Cooperatives and Mutuals. As of 2001 he was President of the International Cooperative Alliance.

Since 2003 he presided over the Institute of International Research Archives on Disarmament. Founded in

1982, this research centre is dedicated to disarmament, peace and international security issues.

His career and his great commitment reflect the passion that Barberini had for the cooperative movement. His

friend Rita Levi Montalcini, a senator and famous scientist, wrote in a comment to one of Barberini’s latest

publications, that the cooperative represents the enterprise which is most able to manage the problems of our

times, acting as a driving force based on two fundamental social principles: solidarity and development. ◊

Ivano Barberini, the President of the

International Cooperative Alliance (ICA), has died



he Constitutional Act of the National Confed-

eration of Worker Cooperatives of the Repub-

lic of Argentina was signed on Saturday, May 30th,

2009, in the head office of FECOOTRA, in La Plata.

More than 20 Federations participated in this his-

torical moment for worker cooperatives.

This event represents a stepping-stone for worker

cooperatives in Argentina. The National Confedera-

tion will be an important instrument of representa-

tion, and will be able to reach deeper levels of inte-

gration inside the cooperative movement. It’s aim

is to have an impact not only in public policy, but

also in the production system and in the national

political agenda. It is important for the cooperative

system in Argentina to reach such a level of integra-

tion in other sectors and with other organisations active in social economy.

The social economy in Argentina currently represents 8.2% of GDP, but to have real effects on society and to

sustain more equity it will be important to reach our goal of 20% of the national economy. This would indicate

that the social enterprises would be in a position to fight for greater equity. ◊

Argentina

The Constitutional Act of the National Confederation

of Worker Cooperatives has been approved By Antonio Amato, CECOP-CICOPA Europe

PHOTO: FACTA

T

ocial Economy has become a pillar of the Ecuadorian

economy. The Latin American country is going through

a process of transformation with the recently enacted Consti-

tution which recognises social economy to be on par with the

capitalist economy and public economy. This is an important

declaration that puts Ecuador at the leading edge on the

continent.

In the new Constitution cooperatives play a key role as an

instrument for economic and social promotion, for social pro-

tection and development. Programs for social and economic

development have been designed and will also be managed

with the participation of the organisations of ‘campesinos’,

the representatives of ethnic minorities and with the contri-

bution and sustainability of cooperatives banks.

Jeannette Sanchez, the Ecuadorian ministry for economic

participation, was invited to the ‘Festival dell’Economia,’ an international round table which takes place every May

in Trento, and on that occasion she said “ We believe that cooperation and solidarity are the tools to promote

development and growth in our country”. ◊

Ecuador

Social Economy for Ecuador By Antonio Amato, CECOP-CICOPA Europe

L A T I N A M E R I C A

S

Jeanette Sánchez, ministry for economic participation


E U R O P E

1. Erasmus: Desiderius Erasmus Roterodamus, also know as Erasmus of Rotter-

dam, was a Dutch Renaissance Humanist, Christian theologian, and a great trav-

eller. He was active in several universities of Europe, including Paris, Leuven,

Cambridge and Basel.

2. Erasmus: The Erasmus Programme is a European student exchange pro-

gramme that was established in 1987, which allows university students to spend a part of their academic ca-

reer abroad. To this day, around 1.7 millions of students have been part of the exchange programme.

3. Erasmus: Erasmus for Young Entrepreneurs, the new European exchange programme aimed at helping

new entrepreneurs acquire relevant skills for managing a SME (Small or Medium-sized Enterprise) by spend-

ing time in another EU country.

In order to promote European values and create the European spirit of the citizens, the European Commission

launched the famous exchange programme in the late 80s. The experiment was a success, and in 20 years

almost 2 million students have spent part of their academic careers abroad. It is undoubted that the word

Erasmus means different things for everyone: exchange, intercultural dimension, study, and a lot more.

What’s New? A few months ago, the DG Enterprise of the European Commission launched a new pilot pro-

gramme in the field of mobility: Erasmus for Young Entrepreneurs. This initiative has the aim of offering new

entrepreneurs the opportunity to learn from new experiences, exchange knowledge, facilitate the search for

new partners, create new networks among SMEs, and to find out more about opportunities in other EU coun-

tries. The first phase of the programme will realise 900 exchanges between young entrepreneurs and host

enterprises. The cooperative movement is part of this programme and CoopErasmus is one of the 20 Euro-

pean Consortia created to manage exchange opportunities in cooperatives of several European Countries. Co-

opErasmus is composed of eight partner organisations from six different European Countries.

How does the programme work? Seems simple: interested young entrepreneurs have to register through

the programme’s website (http://www.erasmus-entrepreneurs.eu) and they have to choose one of the coordi-

nating organisations to submit an exchange project. The co-ordinating organisation has the role to select the

submitted projects and to co-ordinate the exchange with the host enterprises (and cooperatives!).

There are already some unexpected outcomes of the initiative: The cooperative movement has sur-

prised some of the bodies that are part of the pilot programme. During the preparatory activities for the 20

consortia that are running the programme, some of the organisations found that the cooperative model is an

interesting and unforeseen alternative to traditional enterprises. Some of the universities, research bodies,

and local administration that are also working on the programme, sincerely affirm that they are surprised and

interested in the cooperative model as an important alternative, and a valid opportunity.

Of course cooperatives are not always well known, and sometimes they are seen mainly as charity actors, or

they are not easily seen as economic actors. This is an excellent opportunity to show that cooperatives are

enterprises and workers are entrepreneurs!

Social and worker cooperatives can host young entrepreneurs in the framework of this pilot project. Young

cooperators can have the chance to be Erasmus Entrepreneurs. New social and worker cooperatives can be

found taking part in this experience.

CoopErasmus can be the way to do it!

European Union

Young Cooperators? Time for Erasmus! By Valerio Pellirossi, CECOP-CICOPA Europe

For more information about CoopErasmus: [email protected]


onfcooperative, one of the main Ital-

ian cooperative organisations, cele-

brated its ninetieth birthday during the gen-

eral assembly that was held in Rome on

May 26th. More than 1,000 people took

part in this event including important repre-

sentatives of the social, political, and eco-

nomical life in Italy. Representatives of the

Government, such as the Ministers of State

Tremonti (Minister of the Economy and Fi-

nance), Sacconi (Minister of Labour Policy),

and others took part in the meeting. In his

message, the Confcooperative President

Luigi Marino described the goals achieved

and the future challenges for the coopera-

tive movement.

Confcooperative represents a system of

20,000 enterprises with 506,000 workers

and an aggregate turnover of 62 billion Euros. More than half of those enterprises are in our cooperative sector

(industry and service, social cooperatives), providing 75% of the total number of jobs. It has doubled its economic

weight in the last ten years and is still growing during the present crisis, but worrying alarms are coming up mainly

in the southern regions of Italy. Credit crunches and late payments by the public administrations are other issues to

be solved coming out of the crisis. One of the strongest points emphasised by Luigi Marino is that the cooperative

movement is growing as a whole, but an especially strong growth has been registered in social and worker coopera-

tives. Because a large portion of new cooperatives are constituted by new Italian citizens and new immigrants, the

cooperative enterprises are playing a key role for social cohesion and integration.

President Marino underlined the key role of cooperative enterprises as a tool to lead out of the crisis, but new and

wide European and International rules are needed to bring the financing and the economy closer to reality. “A little

less of profits but a little more jobs” was the slogan launched by President Marino during the meeting, and it was

well received by Cardinal Bagnasco, who talked about cooperative enterprises as an instrument not only for eco-

nomic achievement, but also for human growth.

Italy

A little less profits but a little more jobs By Antonio Amato, CECOP-CICOPA Europe

SECTOR AFFILIATED

ENTERPRISES MEMBERS WORKERS

TURN OVER (in million €)

Housing 2.692 167.620 976 3.100

Agricultural and Food Industry 3.620 497.570 65.540 25.517

Consumption and distribution 669 283.100 9.790 9.130

Culture Tourism and Sport 1.438 323.218 14.329 562

Industry and Services 5.234 248.659 187.991 9.500

Mutuals / Services to Credit 178 292.200 1.011 128

Fishing 474 13.171 7.880 465

Social 5.179 199.214 184.025 4.590

Cooperative Credit 432 940.000 35.000 8.801

TOTAL 19.916 2.964.752 506.542 61.793

*

**

* Interest, proceeds, commissions income.

** In May 2009 cooperative enterprises affiliated went over the threshold of 20.000 units, registering a total of 20.050 enterprises.

FIGURES OF THE CONFCOOPERATIVE’S SYSTEM - 31.12.2008

C


“A little less profits but a little more jobs” was

your slogan from Confcooperative’s general as-

sembly.

This tough international crisis is putting us to the test,

but we are sticking it out thanks to our DNA which is

bringing us fewer profits but it is helping us to defend

jobs. Our cooperative enterprises are close to the real

economy, and we are convinced that finance and the

market should not be left alone or interfere with choices

of mutuality. It is for this reason that our enterprises

asked for economic aid for unemployment for less than

1% of our staff, the Banks of Cooperative Credit actually

growing in jobs, and annual turnover rate (118 billions

€, +11.3) is three times more than the banks and credit

sector average. In this way the Banks of Cooperative

Credit are sustaining families and the SME. They are

doing what banks should do: assuring financial oxygen.

You emphasised the impetuous growth of worker

and social cooperatives. How do you explain this

phenomenon at the present moment, and what

does it mean for the cooperative movement in It-

aly?

This cycle of growth is usually given by the anti-cyclical

nature of the cooperative economy. To explain this cycle

of growth we need to consider the structure of this econ-

omy. The cooperative solution is fitting in sectors as ser-

vices for enterprises, especially in urban areas, in the

new intellectual jobs, in services for people and families,

and in the new networks of welfare.

How do you consider the quality

of jobs provided by worker coop-

eratives and social cooperatives

in terms of sustainability and

quality of the participation?

Cooperation is the best tool for eco-

nomic democracy, because it allows

social and economic emancipation of

the person. In worker and B type social cooperatives,

cooperation reaches its peak as far as valuing the mem-

ber is concerned: indeed, the worker-members become

their own employers.

Can you tell us about cases of enterprises in crisis

or without heirs that have been converted into co-

operatives?

There are many examples. I am thinking about the Cirio

De Rica’s buyout process held by Conserve Italia. Our

food farming cooperative plays an irreplaceable role in

the Italian agricultural system. Italian cooperatives are

active in every sector and are some of the best brands

that fall under “Made in Italy”. Valuing of local territory

and of local products are the big challenges pursued by

our agricultural cooperatives and by hundreds of mem-

bers.

What does the European Union lack in order to be-

come a political actor pro-active in development?

Political initiative. A reformed and influential political

soul is needed to manage its economic nature. We have

the Europe of the euro, but we don’t have the Europe of

the policy. We need a policy with a long distance view,

active, not controlled by technocracy and bureaucracy,

with the ability to stop the speeding of neoliberalism. We

are adding to the disarray provoked by the excess of

neoliberalism over the economic and financial world:

failure of the banks, unemployment, growing deficit,

crisis of production. We have to pay attention to the ef-

fects in the energy and agriculture sectors that could

cause nightmares of darkness and

hunger. Economic development and

demographic growth go together for

half of the global population. The

growing query on food production has

been concentrated on agriculture.

According to the recent FAO data,

over one billion of people are under-

fed; one sixth of the global popula-

tion. An alarming consideration is that malnutrition has

become a problem for 15 million people living in devel-

oped countries.

Where are the potentials and gaps in the coopera-

tive movement in Europe? Do you have any advice

for an organisation such as CECOP?

The cooperative movement in Europe understood, even

before the member States, the importance of the Euro-

pean public affairs conducted in Brussels. Decisions

made in Brussels have a direct effect on cooperatives

and SME in Italy, France, Spain, Germany, Holland, etc.

The challenge for the cooperative movement in Europe

is, and it will be even more, to anticipate the events,

and to understand the needs of the associated enter-

prises guaranteeing the best representation: working

today while thinking of tomorrow. ◊

Interview of Luigi Marino, president of Confcooperative

“Cooperation is the best

tool for economic

democracy, because it

allows social and

economic emancipation

of the person”


There were fewer worker coop-

eratives created in 2008 than in

previous years. The economic

crisis has touched the growth of

cooperative movement, which

created 1.7% fewer enterprises

than in 2007. The corresponding

data have been registered by

the Spanish Confederation of

Worker Cooperatives (COCETA),

and presented during the annual

meeting in Murcia.

espite the negative data, the

figures concerning worker coop-

eratives are better than the business

corporations, which registered a loss

of enterprises of 7%. Furthermore, in

Spain, worker cooperatives increased

the employment rate by 0.12%, in

comparison to the total amount of

employment.

“This crisis is not affecting coopera-

tives in the same way as the major-

ity of enterprises, [because] it is a

financial crisis”, said Juan Antonio

Pedreño, who was re-elected as

President of COCETA during the as-

sembly. He continued, “This moment

is showing a crisis of values and, on

this field, cooperatives have the ad-

vantage because our model is based

on the values that drive our enter-

prises”.

Presently, 18,625 worker coopera-

tives exist in the country that em-

ploys 300,000 people (members and

non-member workers). It represents

1.64% of people working in Spain.

The largest type of existing coopera-

tives in the country is worker coop-

eratives, followed by housing coop-

eratives (3,200), and transport coop-

eratives (2,400).

One of the most important features

emerging from the data on worker

cooperatives in 2008, and which also

repeats itself in the history of coop-

eration, is that the majority of people

working in these enterprises are

members, and the remaining 20%

have an open-ended contract. The

data also implies that in the course

of the previous years, two main

characteristics are differentiating

worker cooperatives: their size is

smaller and they have an increasing

presence in the service sector.

Women’s and immigrant

employment

One of the main aspects of worker

cooperatives is linked to women’s

employment. According to the analy-

sis of the Labour and Immigration

Ministry, the percentage of women in

cooperatives (worker cooperatives,

agriculture, housing, consumer, edu-

cation, maritime, decrit, transport,

and services) is higher among work-

ers who have a fixed-term contact

than those who have an open-ended

contact. However, this trend is the

opposite for worker cooperatives as

the members and consequently, the

leaders, represent 73.7% of women

who work in the company.

On the other hand, 39.4% is the per-

centage of women who have a

managerial role and is much higher

than in other entrepreneurial forms.

Another relevant consideration is

that increasing interest in coopera-

tives has been demonstrated by im-

migrants. As in 2007, 10% of people

creating cooperatives in Spain came

from abroad. In 2008 and 2009, CO-

CETA had been making efforts to

improve the environment for its en-

terprises finding financial agree-

ments and acting for the support

from autonomous communities for

the awarding of financial aid to coop-

eratives. Pedreño assures that gov-

ernment, financial institutions, coop-

eratives enterprises, and social econ-

omy enterprises will share this re-

sponsiblity.

“Despite the negative

data, the figures

concerning worker

cooperatives are better

than the business

corporations... ”

Spain

Worker Cooperatives facing the economic crisis By COCETA

For more information:

COCETA Communications Department

[email protected] | www.coceta.coop

Italy:

Remembering the cooperators

Confcooperative and Federcasse remember the trag-

edy of the plane crash in which Italian cooperators lost

their lives.

Giovanni Battista Lenzi, Luigi Zortea and Rino Zan-

donai, were active in Brazil in several projects of devel-

opment. They were coming back from their missions on

board Air France flight 447 from Rio de Janeiro when it

fell over the Atlantic Ocean on the 31st of May 2009.

D

The European conference on

Social Economy took place in

Prague from April 16th –

18th in Prague. It was organ-

ized by SCMVD, the Czech

Union of production coopera-

tives, and also a CECOP

member, in collaboration

with the Confederation of

Employers and Entrepre-

neurs’ Associations, and with

the Ministry of Labour and

Social Affairs.

he conference, which took

place in the framework of

the Czech Presidency of the

Council of the European Union,

has been strengthened by the

participation of Czech and Euro-

pean politicians such as Vladimir

Spidla, EU Commissioner for em-

ployment social affairs and equal

opportunities, who opened the

conference. He emphasised that

the European Commission gives great importance to

enterprises with social vocation; these enterprises pro-

mote social protection and, especially in the context of

the present crisis, they represent a potential for new

jobs in Europe.

The opening session was an occasion for describing the

good practice experiences of two cooperatives. The

first one, ERGOTEP, is a social cooperative, founded in

2003, which includes disabled people by creating jobs

adapted to their competences and capabilities (http://

www.ergotep.cz). The founders are disabled people and

the cooperative has a sheltered workshop statute. The

second cooperative experience presented was the

Grand Magasin (http://legrandmagasin.coopseurope

.coop). This space is used for exhibitions and sales in

Berlin, and is dedicated to products made by European

worker cooperatives.

The speakers underlined the uniqueness of social econ-

omy enterprises as vanguards of great potential for the

creation and preservation of durable jobs. Above all,

there is the capacity of these enterprises to face the

global economic crisis. These social economy actors

asked for better recognition of the characteristics of

their enterprises, for their contribution to social cohe-

sion, for their creation of durable jobs, and for their

battle against global warming. A concrete demonstra-

tion of this capacity of the cooperative movement has

been made by Iain McDonald, the general director of

the International Cooperative Alliance, who has de-

scribed the case of the list Global300 which shows the

important role played in the economy by cooperative

enterprises at national and global levels (http://

www.global300.coop).

The conclusions and all the material from the confer-

ence are available on http://www.seconference.cz/

zaver.html. ◊

Vladimír Špidla - EU Commissioner for Employment, Social Affairs

and Equal Opportunities – at the opening of the conference


Czech Republic

International European Conference on the Social Economy and Social Enterprise in Prague

By Olivier Biron, CECOP-CICOPA Europe

T


n Slovakia, the inclusion of disabled people into

the working process in worker cooperatives has

existed since the very beginning of their history. The

first cooperatives employing disabled people were cre-

ated after the First World War, and larger development

came in the 50‘s and 60‘s. Their further development

was influenced by various changes, which occurred ei-

ther in legislative, or in the systematic solutions. At the

present time, which is marked by a large uncertainty in

many sectors of the economy, those entities that em-

ploy disabled people are specifically facing the risk of

the market policy. Therefore, it is very significant to

perceive these issues from the perspectives of both

disabled workers, and employers who are also, to some

extent, disadvantaged. It is important to draw the at-

tention of state administration officials to the need for

an active solution of employment for disadvantaged

people. The Awards to the best employers of disabled

people is one of the actions aiming to give more visibil-

ity to those who have adopted an active approach to

solve those problems.

This activity, held at the end of March in the premises

of Coop Product Slovakia, was organised by the Asso-

ciation of Disabled People Employers of which Coop

Product Slovakia is a member. During this festive

event, Mr. Dusan Caplovic, Deputy Prime Minister of

the Government of the Slovak Republic for Knowledge-

Based Society, European Affairs, Human Rights and

Minorities took part. In his speech, he said that in addi-

tion to providing and guaranteeing the right to work to

disabled people, the most important thing for them is

to have a real possibility of being employed. Before the

presentation of the award, Mr. Caplovic met Ms. Iveta

Chmelova, the chairwoman of the umbrella organisa-

tion of producer cooperatives and Mr. Pavel Siroky, the

Vice-President of the Association of Disabled People

Employers who gave more information about the objec-

tives and mission of this organisation.

Based on achievements in the economic and social

fields, the Award was open to several employers.

Among the award winners, there were 4 producer coop-

eratives: Okrasa ,from the city of Cadca, Rozkvet pro-

ducer cooperative from Banska Bystrica, Doza - pro-

ducer cooperative from Sobrance, and Univerzal, pro-

ducer cooperative of disabled people from Piestany.

The festive event was also the occasion to present a

cultural programme prepared by the members of the

Association of Mentally Disabled People of Vranov and

Toplou. ◊

Slovakia

Award to the Best Employers of Disabled People By Helena Capova, Coop Product Slovakia

t is a widely recognised matter of fact that the

“cooperative world” has responded better to the cur-

rent economic downturn than many of the other economic

models. This does not mean that the crisis is not affecting

us as the recent consultation among, CECOP members

confirmed. Cooperatives are making a strong effort to

overcome this critical situation with a common objective:

to maintain the current level of employment, and respond

positively to the economic challenges. In a recent speech,

the president of the European Commission, Jose Manuel

Barroso, recognised that “cooperative businesses that

have stayed faithful to cooperative values and principles,

and the cooperative banks which rely on members’ funds

and are controlled by local people have generally been

able to resist the crisis very well”.

The crisis, however, could provide more than challenges to

“our world”. In fact, an unexpected opportunity could be

hidden in the crisis itself. We are talking about

“cooperativisation”. In countries like Spain, France, Italy,

as well as Argentina, Brazil, and others, cooperativisation

is a concrete solution to the bankruptcy of “traditional en-

terprises”, and the consequent loss of jobs is already a

reality. The cooperative model can be used to react

against the crisis. There are many experiences in those

countries that tell us about workers who decided to be-

come owners of the enterprise that was hiring them, or

about existing cooperatives that buy enterprises in crisis

with the aim of transforming them into worker coopera-

tives. These new cooperative enterprises often set up net-

works to consolidate the production system, and efficiently

manage the interaction between demand and supply.

The cooperative model is attracting more and more atten-

tion. Recently Corriere della Sera, one of the main Italian

newspapers, put the light on the “cooperative world” in

several articles. In the most recent article, published on

May 15th 2009, it affirmed that workers are the concrete

solution to this crisis, and reported two new stories of en-

terprises in danger that were bought by the workers.

I

I

Germany / Italy

Cooperatives: a solution to the crisis? By Valerio Pellirossi, CECOP-CICOPA Europe



Towards a German support system to

“cooperativisation”

The “cooperativisation system” in Italy is now the object of

study. A German delegation of experts and jurists recently

organised a visit to Italy to study the Marcora law, the

Italian law supporting the cooperativisation of enterprises

in crisis. The law was approved during the 80’s in order to

support the transmission of ownership of enterprises in

crisis to the workers as an answer to the economic crisis

that the country was facing at that time. Today the system

is still active. CFI, an institution founded by the three Ital-

ian confederations of cooperatives, Confcooperative,

Legacoop and AGCI, provides concrete support and advi-

sory services, as well as part of the share capital to the

workers who want to become owners of their enterprise in

crisis. The idea of the study visit came from professor

Clarita Müller Plantenberg, who has been active since the

early 90’s in research, studies, and dissemination in the

field the social economy in Germany. It all started when

CECOP helped Prof. Müller Plantenberg organise a first

field visit to Italy with her students three years ago. The

objective of this visit was clear and concrete: draft a Mar-

cora law for Germany and lobby for it. That was why the

German group was hosted by CFI, and which explained the

law and the support measures provided by CFI to the

workers in detail.

The group also visited four Italian worker cooperatives

created with the help of CFI and the Marcora law. The re-

action of the group was deeply positive: “this action is un-

doubtedly meaningful and powerful…” affirmed Giuliana

Giorgi, expert and interpreter for the group, “…and the

outcome is clear: we enable the workers to keep their jobs

and to become protagonists. When an enterprise closes

down for bankruptcy, it is more than a badly managed or

inefficient body leaving space to more efficient or stronger

enterprises, as the neo-liberal point of view has it. Em-

ployees are losing their jobs. There is a loss for the whole

environment and the identity of the territory. There are

problems related to the economic activities connected to

the failing enterprise. There are expenses disbursed by the

state and the welfare system, which, in the end, are paid

by all the citizens!” She also affirmed “The state can

choose between spending money on unemployment bene-

fits and insurance, or using funds in order to enable work-

ers to keep their jobs and to produce and, at the same

time, become owners of the enterprise”.

The experts and jurists of the group did not waste time:

the German version of the Marcora law was written and

presented on May 27th. Now, the German group is plan-

ning to lobby the institutions and, at the same time, is

planning several initiatives to explain to citizens the mean-

ing and power of cooperativisation. Events and seminars

will take place this summer in Germany with this objective,

e.g. the summer social economy academy that will be held

in Karlsruhe. The CFI will be supporting this initiative. ◊

Business leaders within coopera-

tives believe the time is right to

push the ‘Cooperative Advantage’,

a survey conducted by Coopera-

tivesUK has revealed. Chief execu-

tives of top cooperative busi-

nesses (representing an annual

turnover of some £11.6 billion)

also think the sector should work

more closely with mutuals and

other likeminded organisations to

actively promote their business

models.

86% of respondents to the Coopera-

tive Business Confidence Survey

agreed that there has never been a

better time to promote the values and

principles of cooperatives which in-

clude democratic control, joint owner-

ship, concern for the community, and

care for the environment. The results

of the survey, completed by chief ex-

ecutives of the businesses in the Co-

operative UK 100, the annual ranking

of the UK’s largest cooperative enter-

prises, show that there is a strong

belief that the ethos of the cooperative

movement will provide an advantage

compared to other forms of business.

In addition, 87% of respondents

thought the time was right for the co-

operative movement to work closely

with the mutual sector to promote

their comparable business models.

Many think that the current financial

climate offers a real opportunity for

the cooperative economy: 66% ex-

pected cooperatives to become more

competitive and 73% agreed that co-

operatives were better placed to re-

spond to the downturn because of a

long term view of the development of

their business. The survey showed

that the views of cooperative sector

leaders were broadly in line with other

predictions for the UK economy – an

expectation that the recession and

unemployment will be problems for

the next three years and that more

businesses will fall into administra-

tion. On the whole, the mood of re-

spondents was generally positive

about the future. 73% didn’t expect to

lose competitiveness or market share

due to the economic downturn and, of

those that did, 40% felt that it would

have no significant impact on their

cooperative’s financial position.

Dame Pauline Green, Chief Executive

of CooperativesUK, said: “This Business

Confidence Survey has provided a

valuable insight into the views of the

largest cooperatives in the UK at the

current time. The results confirm what

we thought – that there’s a good deal

of confidence in the cooperative model

and a strong belief in the cooperative

advantage as a sustainable, trusted

and socially responsible form of busi-

ness.” ◊

United Kingdom

The time is right to promote the ‘Cooperative Advantage’ By CooperativesUK

For more information: http://www.cooperatives-uk.coop


Amanda Garzia learned that the state of coop-

eratives in Malta is set to improve in the near

future as Koperattivi Malta plans to bring about

change in public perception of cooperatives.

After the recent collapse of the financial systems

knocked the lid off capitalism, it was difficult to imag-

ine a business model that was not caught up in a tan-

gle of greed and exploitation. A close look at coopera-

tive principles reveals a commitment towards the ideal

of social justice that serves to mitigate the scale of

wrongdoings that were exposed in the last few

months.

The theme for this year’s International Cooperatives

Day was ‘Driving Global Recovery Through Coopera-

tives’. It points to a system that has always distanced

itself from the idea that profit takes precedence over

people. Back in 1932, the International Cooperative

Alliance decided to invite cooperatives worldwide to

celebrate their very own day on an annual basis. From

then on, the first Saturday of every July, was chosen

to be that day.

Ray Cassar, chief executive officer

of Koperattivi Malta, explains that

the well-being of members always

comes before the need to generate

profit. “This is, indeed, a basic prin-

ciple which guides our way of get-

ting work done. In a cooperative, a

member is safe in the knowledge

that he or she is in a one-for-all

and all-for-one type of enterprise.

The implication is that safeguarding

jobs is a priority even in situations

where doing so means that little or

no profit will be made”.(…)

In Malta, there are about 60 cooperatives, 40 of which

are highly active. These include the traditional coops

in agriculture and fisheries. Other sectors include

transport, tourism, fair trade, health and community

services-restoration, archaeology, media, manage-

ment, and marketing consultancy. While the activity is

spread over a variety of areas, the actual number of

businesses is relatively small considering the popular-

ity of cooperatives in other European countries. (…)

The state of cooperatives in Malta is set to improve on

a number of counts in the near future as Koperattivi

Malta plans to bring about change in the way their op-

erations are perceived by the public. “We are seeking

to promote a deeper understanding and appreciation

of the cooperative model”.

Mr Cassar believes that the public’s perception of the

way cooperatives do business is based on sketchy im-

pressions. Cooperatives themselves

may have contributed to this by

their tendency to be inward-

looking. This, added to the fact that

Mediterranean people are perhaps

less inclined to be team players

than others, goes a long way to

explain why the cooperative is not

so popular on the island despite the

potential in so many sectors.

Because of Malta’s aging popula-

tion, cooperatives can, for example,

run a viable operation by expanding

and providing services in the areas of care-giving,

health, insurance, and waste management. They can

also encourage female participation in the workforce

because of the cooperative philosophy that offers

equal opportunities to all. Two years ago, Koperattivi

Malta named its first female president, Rosette Thake.

Studies and training courses are being carried out with

the aim of assessing and assisting the start-up of co-

operatives on the local scene. Koperattivi Malta would

like to encourage people to understand that theirs is a

valid business concept that holds a lot of potential,

Uniting and serving cooperatives

The Times Weekender (The Times Malta), 4 July 2009 (extracts)

Ray Cassar, CEO of Kooperattivi Malta

In the press: Malta On International Cooperatives Day (4 July 2009), the Times Malta focused on cooperatives CICOPA member Koperattivi

Malta in its weekend edition. This is an opportunity to learn more about the current business model on the island. Excerpts…


“The overall perform-

ance of cooperatives

during the crisis will,

undoubtedly, bolster lo-

cal effort to present the

model as a feasible alter-

native to other ways of

doing business.”

The Cooperative movement in Tanzania, under

the umbrella organization of the Tanzania Federa-

tion of Cooperatives, is now benefiting from the

Challenge Fund (CF) provided under the Coopera-

tive Facility for Africa (CoopAFRICA) program.

ith nine member countries, the CoopAFRICA Project

has enhanced members of the Tanzania Federa-

tions of Cooperatives Ltd to become modern coopera-

tive societies.

The project has already benefited many cooperative

societies, enterprises, and companies in the country.

The Dunduliza Network, being among the Challenge

Fund beneficiary cooperatives in the country, has man-

aged to use the fund to raise the company’s liquidity to

about TSh. 2.5 billion with 38 small society members.

The project has enabled the organization to implement

an Interconnection System in the Dunduliza SACCOS

Network, making it the model society among coopera-

tives in the country.

CoopAFRICA is aimed at helping people cooperate in their

efforts on reducing poverty as well as mitigating differ-

ent developmental challenges such as unemployment,

social security, and lack of facilities. Working along the

eastern and southern regions of the Saharan desert

under the Co-operative Development Program,

CoopAFRICA collaborated with the Tanzania Federation of

Co-operatives Ltd at bringing to the achievement of the

Millennium Development Goals in the country, promot-

ing decent work in Tanzania by promoting self-help ini-

tiatives, mutual assistance in communities and cross-

border exchanges through the cooperative approach.

The Cooperative Facility for Africa, commonly known as

CoopAFRICA, is a program that facilitates cooperatives in

Africa. It is a professional program that is largely

sponsored by UK Department for International Devel-

opment (DFID), aiming at raising development of coop-

erative movements in Africa. Its headquarters is at ILO

offices in Dar es Salaam Tanzania. ◊

Tanzania

Cooperative Facility for Africa: Generous help for Cooperatives in Tanzania to cooperate out of poverty

By TFC, the Tanzanian Federation of Cooperatives

W


A F R I C A

particularly in sectors that have not, as yet, been

taken into consideration.

One of the training initiatives offers members the

opportunity to travel abroad. It can prove to be a

learning experience that benefits both hosts and visi-

tors. While members must gauge their compatibility

with each other, this does not mean that differences

are in any way looked down upon.

The overall performance of cooperatives during the

crisis will, undoubtedly, bolster local effort to present

the model as a feasible alternative to other ways of

doing business. In a country where people are often

heard saying “Kuntent ften, kuntent Kulhadd” (which

means sarcastically: “if I am satisfied, then every-

body is”), it is normal to ask aloud whether we are

ready to welcome the brand of team spirit which

makes the cooperative so unique.

Whether or not we can go from a do-as-I-please

cheekiness to a higher acuity remains to be seen,

and is challenge to be tackled head-on.

Reproduced with the kind permission of Times Malta

International Day of Cooperatives:

"Driving Global Recovery through Cooperatives"

This year, the International Cooperatives Day was celebrated

worldwide on 4 July 2009, and focused on the fact that coop-eratives are enterprises that contribute effectively to global economic recovery in respect of the cooperative values and

principles that guide their operations.

The role of cooperatives in economic, social, and cultural de-

velopment is recognized by the United Nations. In resolution 47/90 of 16 December 1992, the General Assembly proclaims

"the first Saturday of July 1995 to be International Day of Cooperatives, marking the centenary of the establishment of the International Cooperative Alliance, and it considers the

possibility of observing an international day of cooperatives in future years .”

In its message for this International Cooperatives Day, the International Cooperative Alliance (ICA) highlighted the re-sults of a recent study commissioned to the ICA by the Inter-

national Labour Organisation (ILO)1. It shows that good per-formances can be registered in every sector where coopera-

tive enterprises are active. More people are choosing the co-operative form of enterprise to respond to the new economic

realities. The success of cooperatives is measured not only on their capacity to serve economically the member’s needs, but also on the social and cultural aid that cooperative enter-

prises project on the social life returning social cohesion, and social equity to members and communities.

Sources: http://www.un.org/esa/socdev/social/intldays/IntlCoops/

and http://www.ica.coop/activit ies/idc/2009.html

To read the full article, go on http://ww.cecop.coop/public_docs/TimesMalta.pdf

ike any other business enterprise

in Africa, the development of the

cooperative movement has been seri-

ously affected by the prevalence of

HIV and AIDS. HIV and AIDS have

caused huge loss of income for mem-

bers and reduced membership, loss of

working hours, loss of knowledgeable

and skilled staff, reduced productivity

and raised the cost of living. Generally

the epidemic is negatively impacting

the capacity of cooperatives in Africa

to be economically and socially effec-

tive organizations.

To mitigate and minimize the impact

of HIV and AIDS in the cooperative

movement in Africa, ILO under the

CoopAFRICA programme is implementing a project that mobilizes cooperatives and CBOs to address HIV and

AIDS at their work places. The project aims to improve the living conditions and status of women and men

infected and affected by the HIV/AIDS who work in the sectors of the informal economy. The project strength-

ens the capacity of cooperatives to play both roles, as a channel for HIV/AIDS prevention initiatives, and as a

tool for impact mitigation.

The project has had tremendous success in Tanzania for its work at all levels of cooperative organizations,

both primary cooperative societies and cooperative umbrella organizations (Unions and Federations). In Tanza-

nia the project has collaborated with the Tanzania Federation of Cooperatives (TFC) to carry out educational

and Voluntary Counselling and Testing campaign during the long Cooperative Week, organized by TFC towards

the celebration of International Cooperative Day (ICD) in Mtwara region, south of Tanzania’s mainland.

About 414 people at the grounds and in

the surrounding communities went

through counseling and testing for HIV.

Among the 414 people who visited the

VCT at the ground 16 (3.8%) tested HIV

positive where women counted 10 (6.2%)

and 6 (2%) were men). Those who tested

positive were given post-testing counsel-

ling and necessary support for the CD4

testing and other information deemed

important for the new HIV/AIDS cases.

Brochures and other HIV/STI/TB educa-

tional materials were distributed at the

VCT tents, emphasizing the importance of

referring STI/HIV positive persons to clin-

ics/hospitals for follow-up and staging. ◊

Africa’s cooperative movement campaigns re: HIV/AIDS

Promotion of “Know your HIV Status” among Cooperative Members

By TFC, the Tanzanian Federation of Cooperatives


L

N O R T H A M E R I C A


Naomi Klein and Avi Lewis, Canadians

who made the film The Take in 2004

about worker takeovers in Argentina,

have recently written a blog posting

called “The Cure for Layoffs: Fire the

Boss!” [www.naomiklein.org/

articles/2009/05/cure-layoffs-fire-

boss]. In it they passionately make

the case for hostile worker takeovers

as a response to the economic cri-

sis. Although they mention worker

cooperatives generally, their focus is

on mainly on protests,

“bossnappings”, sit-ins and the like.

In response, Philosophy professor

Joseph Heath wrote an opinion piece

which appeared in at least four Cana-

dian daily newspapers entitled:

“Economics for lefties: Coops sound

great if you hate big corporations. Not

so great if you care about how they

work in real life”:

www.ottawacitizen.com/Business/

Economics+lefties/1633305/

story.html.

Professor Heath states that, "Klein

and Lewis, I must admit, make me a

bit crazy. … They blame problems on

totally fictitious causes, then recom-

mend solutions that are guaranteed

not to work. Like coops. … Coops are

not a ‘cure for layoffs.’ They cause

unemployment.”

As Gandhi said: “First they ignore

you, then they ridicule you, then they

fight you, then you win.” If we be-

lieve this, then we are 3/4s of the

way there! Of course in the coopera-

tive way, if “we” win, everybody

wins. The point would be to get away

from having winners and losers. It’s

about creating an economy in which

people matter more than profit; in

which we create an environment

where people are free to discover the

gifts that they bring to this world and

have a way to develop them and con-

tribute them to the common good.

There was a vociferous response to

Heath’s opinion piece by Canadian

cooperators through various letters to

the editor, with every point re-

futed. You can see some of these

letters printed as comments at the

bottom of the Ottawa Citizen site,

above; and also here:

www.ottawacitizen.com/Business/

topic.html?

t=Person&q=Joseph+Heath.

Unfortunately, Naomi Klein and Avi

Lewis have not included commentary

in their blog on the full scope of the

worker coop movement that has

arisen around the world. In Europe,

for example, there are approximately

50,000 worker coops with over 1.4

million worker-owners, and many are

manufacturing businesses. In the re-

gion in and around Mondragon, Spain,

where the economy is based on

worker cooperatives, there is lower

unemployment than in other regions

of Spain. CICOPA notes that “in

France alone, in 2007, there were 70

cases of business transfers to employ-

ees.” The European Parliament has

recently passed a resolution in favour

of the social economy, which supports

business transfer to cooperatives, 580

votes to 27 with 44 abstentions. The

success of worker cooperatives, espe-

cially in Europe demonstrates the

great potential there is for North

American workers.

In Canada, there is an exciting col-

laboration going on including the

Worker Coop and Labour Movements

as reported in the first issue of Work

Together, www.coopzone.coop/

worker , on p. 14. Similar efforts are

underway in the US, with a confer-

ence on labour solidarity and worker

coops planned for early August, 2009:

www.east.usworker.coop.

Avi Lewis has been very supportive of

cooperatives and spoke at the Cana-

dian Cooperative Association Con-

gress several years ago. He said,

“People are absolutely starving for

alternatives to our broken system.

But they aren’t getting them – they

don’t KNOW about them – and that’s

where cooperators will either seize

the moment, or watch history pass us

by. … It is, after all, when the market

fails that cooperatives have histori-

cally come to the rescue of communi-

ties, economic sectors, even whole

ways of life. …

“This is both a major challenge and a

huge opportunity for you as coopera-

tors right here in Canada. These sites

of creative resistance, of urgent

struggle and deep cooperation are

often not even on the radar…. They

need to be.”

We need to not only fix the economic

system, but to replace it with a coop-

erative one whose basic goal is to

meet human needs. It is time for

those with a shared belief in coopera-

tive values to act in concert for posi-

tive change. Surely there is a way to

write this story so that the worker

cooperative movement (even the

whole cooperative movement) is

championed as the needed response

to the global economic crisis – it can

be not only a story of good, but also a

great story.

Naomi Klein & Avi Lewis speak and

write with passion and eloquence. We

need the voices of Naomi Klein, Avi

Lewis, and other well-known com-

mentators in support of the worker

coop movement, including the nas-

cent labour/worker coop collabora-

tions in North America. We need their

influence to bring other voices of sup-

port to the cause, particularly at a

time when the corporate-controlled

media is spreading some misleading,

negative information about the

worker coop and broader coop move-

ments. We have an opportunity to

build momentum through the voices

of established social commentators to

the practical steps being taken by

activists working in the field. Then,

indeed, we may be more than 3/4s of

the way, according to Gandhi, to

overcoming our broken economic sys-

tem! ◊

Canada

Fire the Boss! The Only Path to Worker Ownership

& a New Cooperative Way? By Hazel Corcoran, CFWC


A S I A

The 70th Anniversary Celebra-

tion of the ICCIC (International

Committee for the Promotion of

Chinese Industrial Cooperatives

or the Gung Ho International

Committee) was held in the

Meeting Hall of the Former Resi-

dence of Soong Ching Ling in

Beijing on June 29th, 2009. The

ICCIC is an international non-

governmental organization that

aims to promote Chinese indus-

trial cooperatives.

ichael Crook, Vice-Chair of the

ICCIC, delivered an opening

speech at the ceremony. He wel-

comed the distinguished guests and

gave a brief history of the organization. He said he looked forward to a new era of the ICCIC with a mission of

furthering the establishment and development of cooperatives in China.

The attendees included Karen Carlson Loving, granddaughter of Lt. Col. Evans Carlson of the U.S. Marine Corps

and some members of Carlson's Raiders. Carlson was a military attaché at the U.S. embassy in China in the late

1930s. He chose "Gung Ho" as the motto for his elite battalion. By late 1942, it was widely adopted throughout

the Marine Corps as an expression of spirit and a "can do" attitude.

During the ceremony, the guests joined a chorus in singing the National Anthem of the People's Republic of

China, and guests from the United States sang the "The Marine Corps Hymn." Also at the ceremony, Carlson's

Raiders were presented with a silk banner for their dedication to spreading the Gung Ho spirit and motto "Work

Hard and Work Together."

Carl Worker, New Zealand's Ambassador to China; Isabel Crook, a consultant for the ICCIC; Tang Wensheng,

Vice-chair of the China Soong Ching Ling Foundation; and Xie Yuan, Director of the Chinese People's Association

for Friendship with Foreign Countries, attended the celebration ceremony. ◊

China

70th Anniversary Celebration of the ICCIC held in Beijing By Du Yintang, ICCIC

PHOTO: ICCIC

Background: The History of the ICCIC

The Gung Ho movement was started in 1937 in Shanghai by Rewi Alley of New Zealand and some other foreigners

together with a group of Chinese patriots as an industrial resistance movement against the Japanese who were sys-

tematically bombing Shanghai factories in order to bring China’s economy to its knees. The movement developed in

several provinces of the Chinese hinterland, producing badly needed civilian goods as well as supplies for the Chinese

army. At its peak in the early 1940s, the movement counted over 3,000 cooperatives across the country. To win sup-

port from abroad, and to collect funds for development and ensure the proper use of foreign aid, the ICCIC was

founded in Hong Kong in January 1939. A strong international movement of solidarity with Gung Ho developed, in

particular with the US, Canada, the UK, Australia and New Zealand. The movement also included training institutions,

which regrouped in 1944 in Shandan (Gansu province), where the children of cooperative members and war orphans

received training in various industrial skills. Soong Ching Ling was elected as honorary chairperson. The work of the

committee soon won support among the overseas Chinese and people worldwide.

It suspended its work in 1952 and was revived in 1987. Since that year, the ICCIC has supported a large number of

cooperatives in different provinces in China for training on cooperative principles, environment improvement and pov-

erty alleviation.

The success of ICCIC's projects has strengthened its ties with other cooperative organizations at home and abroad.

M


If you have any questions, suggestions or criticisms

about “Work Together”, please write to us at [email protected]

The conference on the ‘Enhanced Role of Cooperatives in Recovery from the Economic Crisis’ was

organized by ICA Asia Pacific in collaboration with the Cooperative League of Thailand, and the In-

dian Farmers Fertilizer Cooperative. The objective of the conference was to create a shared vision on

the scope and role of cooperatives in the global economic crisis, and to devise a common strategy to

reposition cooperatives as a significant alternative.

75 participants from cooperatives and gov-

ernments of 16 countries in the Asia pacific

region attended the conference.

The basis of deliberations was thematic

presentations made by experts from ICA

(the Director General, ICA and Secretary

General, CICOPA), top officials of successful

cooperatives, such as NACF, IFFCO, JCCU,

SNCF, AACCU, CPD, and government offi-

cials. The presentations focused on the im-

pressive track records of cooperatives that

had transformed the core cooperative val-

ues into cooperative practice.

The conference on the enhanced scope and

role of cooperatives in recovery from the

economic crisis drafted the following set of

recommendations:

1. Cooperatives should be geared to function in both conventional sectors, and innovative, non-conventional

sectors such as SMEs, health, education, technical professions, environment, special community services

and infrastructure, and local resource management with a medium- to long-term strategy truly in the spirit of

cooperative identity that ensures democratic controls and promotes indivisible reserves.

2. It would be a big move forward to invoke the interests of governments, both micro and macro level meas-

ures should be based on a strong partnership with governments at all administrative levels, supplemented with

greater visibility and hard edged information campaigns on cooperatives’ modesty and humble origins.

3. Government representatives must speak forcefully about cooperative advantages at UN Assemblies, and the

ICA system should be used to coordinate international level lobbying and networking with ICA members, multi-

lateral international organizations and the UN system.

4. Cooperatives, being community based, must be preferred and considered for spear-heading demonstrative

and replicable awareness campaigns, both at local and global levels on issues of global concerns, such as MDGs

(Millennium Development Goals) of the UN, global warming, HIV & AIDS, etc… in collaboration with other actors

in this field. ◊

Thailand

Enhanced Role of Cooperatives in Recovery from the Economic Crisis

Conference of 2, 3 & 4 July 2009 at Bangkok

By Rajiv I.D. Mehta, Deputy Regional Director, ICA Asia Pacific

work together is a periodical joint publication of CICOPA and CECOP Europe edited in English, French and Spanish - © CICOPA 2009

work together issue 2

Documents

financial system

social cooperatives

financial sercrisis

economic system

current crisis

financial corporations

capitalistic system

economic system