The Cooperative Movement is on the Rise

In Argentina, many factories have opted to pay all employees equal salaries, a decision made at a general meeting and by a democratic vote inclusive of all members. In other places, such as in Italy and Spain, two countries where the cooperative movement has solidified itself and shown blatant progress in the lives of all employees and the communities in which they operate, salaries are not always equal, although always equitable.

In Emilia-Romagna, for instance, one of the largest regions in Italy located at the North of the European Boot, the Cooperative Movement has helped the average per capita income to climb to 21,025 Euros, well above the national average of 16,315.

More importantly, despite a global trend, unemployment has continued to drop in parts of the world where cooperatives are the dominant part of the economy such as in both Emilia-Romagna and in the Basque Region of Spain where Mondragon operates (a Corporation/Federation of over 256 cooperatives employing over 83,000 workers).

“Spain has an economy in a complete and utter mess!” Corcoran exclaimed jubilantly. “And Mondragon is there, still struggling, because their sales are being challenged and so on, but they don’t have any unemployment! They just share the pains; everyone gets paid a little less and maybe gets less hours, but no one is thrown out!”

Similarly, in an essay by John Logue, Founder and Director of the Ohio Employee Ownership Center (OEOC) until his unfortunate death in 2009, it was found that in Emilia-Romagna, unemployment was at an “enviable 3% among the 10 richest of the European Union’s 122 regions.” As of 2011 it has climbed to 6%, which is still quite low. The region also remains the fourth largest Italian Exporter, and up to 30% of the region’s GDP comes from co-ops.

Making the case for the advancement of cooperatives in the U.S. and Canada, Earle pointed out that “the introduction of a cooperative into a traditional business ecosystem makes that system healthier…[by] pushing traditional employers to be more responsible and democratic with their workers.”

The idea is that once workers realize that there is indeed a better system available by which they can control and organize themselves and therefore assure economic stability, Bosses and Management will think twice before laying people off in order to boost their own bonuses. Therefore, he concluded, “I think there’s certainly nothing [about cooperatives] that is incompatible with the U.S. economy.”

Moreover, in stark contrast to the housing and general social situation in the United States, for instance, “housing co-ops and consumer co-ops are so numerous [in Emilia-Romagna] that they hold down prices, and most privatized social services are provided by employee co-ops (including 60% of home health care services),” Logue pointed out.

Community-focus is also incredible. In Argentina, cooperatives have not only worked in solidarity with one another, but have also subsidized and offered free products to charities, schools and community centers.

A testimony from one of the sisters of a worker-owner of the Brukman Recovered Factory seen in the La Toma movie declares that under corporate management, her sister was docked pay every time she missed work to go for cancer treatment. Under the workers’ management, she told the camera elatedly, they pay her every cent she is owed even when she is getting her treatment.

“This is the people we must support!” exclaimed the woman as she raised her fists and laughed for the camera.
The Spanish cooperative Mondragon goes as far as to offer supportive capital and services internationally.