Rochdale Cover

member benefits democratic The Meaning of Rochdale The Rochdale Pioneers and the Co-operative Principles B RETT F AIRBAIRN Occasional Paper Series autonomyeducation community participatio C ENTRE FOR THE S TUDY OF C O - OPERATIVES T HE M EANING OF R OCHDALE T HE M EANING OF R OCHDALE T HE R OCHDALE P IONEERS AND THE C O - OPERATIVE P RINCIPLES Brett Fairbairn Centre for the Study of Co-operativeS Copyright © 1994 Brett Fairbairn Centre for the Study of Co-operatives University of Saskatchewan All rights reserved. No part of this publication may be reproduced in any form or by any means without the prior written permission of the publisher. In the case of photocopying or other forms of re- prographic reproduction, please consult Access Copyright, the Canadian Copyright Licensing Agency, at 1–800–893–5777 . Cover design, editing and interior layout by Byron Henderson LIBRARY AND ARCHIVES CANADA CATALOGUING IN PUBLICATION Fairbairn, Brett, 1959 Meaning of Rochdale : the Rochdale pioneers and the co-operative principles (Occasional paper series ; #94.02 Includes bibliographical references ISBN 978–0–88880–317–7 1. Rochdale Equitable Pioneers’ Society — History 2. Rochdale system — History 3. Cooperation — England — Rochdale — History I. University of Saskatchewan. Centre for the Study of Co-operatives II . Title III . Occasional paper series (University of Saskatchewan. Centre for the Study of Co-operatives) ; #94.02 . HD3486.R63 F35 1994 Printed in Canada 11 12 13 / 10 9 8 Centre for the Study of Co-operatives 101 Diefenbaker Place University of Saskatchewan Saskatoon SK Canada S7N 5B8 Phone: (306) 966–8509 / Fax: (306) 966–8517 E-mail: [email protected] Website: http://www.usaskstudies.coop C ENTRE FOR THE S TUDY OF C O - OPERATIVES T ABLE OF C ONTENTS Symbols and Reality 1 P ART O NE : T HE H ISTORICAL R EALITY OF R OCHDALE 2 The Social and Political Context 2 The Founding of the Rochdale Pioneers 4 Structure of the Rochdale Society 7 Growth and Development of the Rochdale Pioneers 10 Growth, Institutionalization, and Changing Principles 13 P ART T WO : R OCHDALE AS S YMBOL AND M ODEL 17 International Influence 17 Constructing the Rochdale Principles (i) : The 1860 s and 1870 s 19 Constructing the Rochdale Principles (ii) : 1890 –1910 23 Constructing the Rochdale Principles (iii) : The 1930 s 24 Paul Lambert and the Rochdale Principles 29 Constructing the Rochdale Principles (iv) : The 1960 s 32 Practices, Rules, Principles, Values 35 Constructing the Rochdale Principles (v) : The 1990 s 36 O CCASIONAL P APERS S ERIES #94–02 VI C ONTENTS P ART T HREE : R OCHDALE P RINCIPLES AND N ORTH A MERICAN F ARM C O - OPERATIVES , C . 1880–1940 38 Farm Movements and Co-operative Ideas 39 Farm Groups and Co-operative Wholesaling in Canada, 1900–1930 40 Alternatives to Rochdale: Sapiro’s Pool Plan 44 The Great Depression and the Victory of the Rochdale Model 48 Conclusion 51 B IBLIOGRAPHY OF W ORKS C ITED 54 L IST OF P UBLICATIONS 56 C ENTRE FOR THE S TUDY OF C O - OPERATIVES C ENTRE FOR THE S TUDY OF C O - OPERATIVES HE CENTRE FOR THE STUDY OF CO-OPERATIVES is an interdisciplinary Tteaching and research institution located on the University of Saskatchewan campus in Saskatoon. Contract partners in the co-operative sector include Credit Union Central of Saskatchewan, Federated Co-operatives Ltd., Concentra Financial, and The Co-operators. The centre is also supported by the University of Saskatchewan, which not only houses our offices but provides in-kind contributions from a number of departments and units —the Johnson-Shoyama Graduate School of Public Policy, Manage ment and Marketing, and Sociology, among others — as well as financial assistance with operations and nonsalary expenditures. We acknowledge with gratitude the ongoing support of all our sponsoring organizations. The objectives of the Centre are: • to develop and offer university courses that provide an understanding of co-operative theory, principles, developments, structures, and legislation • to undertake original research into co-operatives • to publish co-operative research, both that of the Centre staff and of other researchers • to maintain a resource centre of materials that support the Centre’s teaching and research functions For more information about the Centre, please contact: Centre for the Study of Co-operatives 101 Diefenbaker Place University of Saskatchewan Saskatoon SK S7N 5B8 Phone: (306) 966–8509 / Fax: (306) 966–8517 E-mail: [email protected] Website: http://www.usaskstudies.coop Our publications are designed to disseminate and encourage the discussion of research conducted at, or under the auspices of, the Centre for the Study of Co-operatives. The views expressed constitute the opinions of the author, to whom any comments should be addressed. O CCASIONAL P APER S ERIES #94–02 This paper discusses a number of versions of the co-operative principles. The most recent variation appears on the facing page. It was adopted at the 1995 Congress and General Assembly of the International Co-operative Alliance, held in Manchester, England, to celebrate the alliance’s centenary. Recommended to the congress by the ICA board, the statement was the product of a lengthy process of consultation involving thousands of co- operators around the world. The process was chaired by Ian MacPherson, who prepared numerous drafts of the identity statement and its background paper in an effort to understand the state and needs of the co-operative movement at the end of the twentieth century. The statement was first published in Ian MacPherson’s Co-operative Principles for the 21 st Century (Geneva: International Co-operative Alliance, 1996 ). C ENTRE FOR THE S TUDY OF C O - OPERATIVES T HE ICA S TATEMENT ON THE C O - OPERATIVE I DENTITY Definition mon property of the co-operative. Members A co-operative is an autonomous association usually receive limited compensation, if any, of persons united voluntarily to meet their on capital subscribed as a condition of member - common economic, social, and cultural needs ship. Members allocate surpluses for any or all and aspirations through a jointly-owned and of the following purposes: developing their co- democratically-controlled enterprise. operative, possibly by setting up reserves, part Values of which at least would be indivisible; benefit- Co-operatives are based on the values of self- ing members in proportion to their transactions help, self-responsibility, democracy, equality, with the co-operative; and supporting other ac - equity, and solidarity. In the tradition of their tivities approved by the membership. founders, co-operative members believe in the Fourth Principle: ethical values of honesty, openness, social re - Autonomy and Independence sponsibility, and caring for others. Co-operatives are autonomous, self-help organi - Principles sations controlled by their members. If they The co-operative principles are guidelines enter into agreements with other organisations, by which co-operatives put their values into including governments, or raise capital from ex - practice. ternal sources, they do so on terms that ensure democratic control by their members and main - First Principle: tain their co-operative autonomy. Voluntary and Open Membership Co-operatives are voluntary organisations, open Fifth Principle: to all persons able to use their services and will - Education, Training, and Information ing to accept the responsibilities of membership, Co-operatives provide education and training without gender, social, racial, political, or reli - for their members, elected representatives, man - gious discrimination. agers, and employees so they can contribute Second Principle: effectively to the development of their co-opera- Democratic Member Control tives. They inform the general public—particu - Co-operatives are democratic organisations larly young people and opinion leaders—about controlled by their members, who actively par - the nature and benefits of co-operation. ticipate in setting their policies and making Sixth Principle: decisions. Men and women serving as elected representatives are accountable to the member - Co-operation among Co-operatives ship. In primary co-operatives, members have Co-operatives serve their members most effec - equal voting rights (one member, one vote) and tively and strengthen the co-operative move - co-operatives at other levels are also organised in ment by working together through local, na - a democratic manner. tional, regional, and international structures. Third Principle: Seventh Principle: Member Economic Participation Concern for Community Members contribute equitably to, and democra - Co-operatives work for the sustainable develop - tically control, the capital of their co-operative. ment of their communities through policies At least part of that capital is usually the com - approved by their members. The Meaning of Rochdale The Rochdale Pioneers and the Co-operative Principles by Brett Fairbairn Rochdale, England, is known by millions for one reason: a handful of labourers established a co-operative there in 1844 known as the Rochdale Society of Equitable Pioneers. That co-operative was adopted as the inspiration and model for a movement that now includes nearly 700 million people around the world. As this paper is being written, co-operators around the world are preparing to celebrate the 150th anniversary of its birth. But what did Rochdale mean? Why is it considered so important? Symbols and Reality Rochdale is part myth. There was also a concrete historical reality, accessible to us through documents and first-hand accounts and modern books that interpret those old sources. But entirely apart from the historical reality, Rochdale is a living, active symbol that influences understanding of co-operatives in countries around the world today. The myth of Rochdale has to do with twenty-eight impoverished weavers who started a shop in Toad Lane in 1844; a shop that became the first successful co-operative in the world; a co-operative that defined the principles for all later co-operatives to follow.

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