Summer 1989 3 ED TOR AL Learning from Our History

WORKER

The Voice .. ｾ＠ i:n of Economic Democracy o in Canada Summer bit -ｾｎａ＠ 1,IBRAR 1989 , BrIe. / / From yogurt to chip dip to sour cream to cottage cheese to butter to you.

When it comes to freshness, taste and downright goodness, you can always count on Gay Lea dairy products! ewe make the ｴｨｩｊｬｧｾ＠ you can count on. Gay Lea Foods Co-operative Limited is owned and controlled by Ontario Dairy Producers.

The vast majority of workers in the Western democracies lack even the most elementary voice in decisions that affect the business that employs them. PARTNERS IN ENTER'PRISE The Worker Ownership Phenomenon edited by Jack Quarter and George Melnyk

The current interest in new fonns of ownership of the economy stems from a number of sources: from worker buyouts to prevent plant shutdowns to workers' demands for self-expression and democratic control. The inability of established economic organizations to meet even traditional needs has led to the belief that worker ownership is "an idea whose time has come."

This book is about a fonn of business - the worker co-operative - in which workers are owners. The essays provide a record of the worker co-operative movement both as it stands at present and historically from the first experiments in the 1860s.

ISBN:O·921689·44·6 $16.95 '------1 BLACK ROSE BOOKS t------' CONTENTS DEPARTMENTS FEATURES

FORUM 5 LEITERS 16 Co-operation Among Social Investment Funds. By Ted Jackson ACROSS THE COUNTRY 6 P.E.I. • Nova Scotia' Newfoundland. Quebec' Ontario FORUM • Manitoba. Saskatchewan 18 The Lessons of History in • British Columbia Financing Co-operative Development. By Paul Derrick

AROUND THE WORLD 1 2 China' Nigeria' U.S.A. PROFILE • Israel. France 20 Cape Gael Associates Co-op. By Veronica Gillies SHOPTALK 14 The Problems of Success - Vancouver's CRS. Organized Labour Encouraged By Marty Frost 2 2 Worker Co-ops in the 19th Century. By Grant MacDonald

REVIEWS 35 David Dale of New Lanark and The Workers' Co-operative of New Developing Successful Worker Co-operatives 2 5 Ontario Was a Political Battleground in the 1930s. By Peter Vasiliadis

Worker Co-operatives in Quebec: 2 8 1865-1989. By Alain Bridault and Ginette Lafreniere

Skeptics About Worker Co-ops - 3 2 George Keen and the Co-operative Union of Canada: 1909-1945. By Ian MacPherson

NEXT ISSUE Women Take on Key Roles in the Movement.

Worker Co-op Summer 1989 3 ED TOR AL Learning from our history

Worker Co-op is an independ- This issue of the magazine is the second to focus on the his- ent quarterl y magazine produced and distributed by the tory of worker co-operatives in Canada. The first was pub- Worker Co-operative Net- lished in the Spring of 1987 (Volume 6, No.4). In an overview work of Canada. The French section is prepared by the Co- piece in that issue, Ian MacPherson made the case that his- operative de developpement torically the worker co-op movement failed to be embraced regional de Montreal-Laval. either by unionized workers or by co-operative activists. MAGAZINE STAFF Editor: Jack Quarter; Market- In searching for features for this current issue, I was ing/Business: Marty Donker- voort; Forum: Grant Mac- struck by how little historical work on co-operatives is being Donald ; Computing: Rikki Hor- done. A historical perspective is an essential ingredient in un- tian; Translation: Julia Berry, Rosemary Oliver. derstanding the present as well as reshaping the future. DONORS The history of worker co-operatives in Canada is very Co-op Atlantic, The CUMIS Group, CRS Workers' Co-op, much an exercise in recovering an organizational form that Gay Lea Foods Co-op Inc. Skilled Trades Co-operative Society Lim- functioned not just outside the Canadian mainstream, but ited, Universities and Colleges also outside the co-operative mainstream. That recovery Credit Union (Toronto) Ltd. Add your name to the Worker should include the subjective experience of the participants, Co-op donor box with a dona- the role of women and the many different and conflicting tion of $1 00 or more. CONTRIBUTORS points of view regarding strategies for development. Frank Adams, Amand Arsenault, In embarking on the current phase of developing worker Margret Asmuss, Myrna Barclay, Robert Briscoe, Judith Brown, co-operatives, it is important to appreciate the experiments Claude Carbonneau , Melanie Conn , Frank Driscoll , Veronica that started in the 1860s and have continued in spurts since Gillies, Norma Henderson , that time. Although current circumstances in Canada may be Jeremy Hull , George Melnyk, Dana Weber, Jim Winter. different than in the past, having an awareness of the dif- Indexed in the Alternative Press ficulties that have beset worker co-ops historically will assist Index, ISSN 0829-576X. Send subscriptions and back or- us today in dealing creatively with the problems that the ders to: Worker Co-op Maga- movement faces. zine, P.O. Box 101 , Station G, Toronto, Ontario M4M 3E8. Make cheques payable to: Grant MacDonald Wor ker Co-op Magazine. Individual Subscriptions: Canada Historical Features $17/yr. , $32/2 yrs .; U.S. $19/yr. , $36/2 yrs . ; Overseas $19/yr. , $36/ Editor 2 yrs.; Institutions $19/yr. , $36/2 yrs .; Bulk Subs (10-49): $15/yr. ; Bulk subs (50 + ): $14/yr. ; Back issues: $5.00 each. Send letters and submissions to Jack Quarter, Ontario Institute for Studies in Education, 252 Bloor Street West, Toronto, Ontario M5S I V6. Phone inquiries to Jack Quarter (41 6) 923-6641 , ext. 2576. Typesett ing. artwork. design. and printing and bindi ng by co-op and union labour at Our Times.

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-4 Summer 1989 Worker Co-op LETIERS Announcement for letters

Worker Co-op welcomes letters and conference information from its readers. Write to: Jack Quarter, Ontario Institute for Studies in Education, 252 Bloor Street W., Toronto, On- tario M5S IV6; (416) 923-6641, Ext. 2576. Greetings from the U.K.

We have chanced to see a copy of your Summer '88 issue of the Worker Co-op magazine. We were most impressed by the magazine as a whole, but the front-cover illustration was of particular interest to us. We are Lynn Murphy, Centre for a co-operative that specializes the Study of Co-operatives. in screenprinting designs on to Ieisurewear (t-shirts, etc.), and in the main for political and campaign groups. We thought you might be interested to learn that the t-shirt being worn by ｾｾ＠ the Zimbabwean co-op worker ｾｾ＠ was printed by us for Anti-Ap- Thank You =z::r; _ artheid Enterprises - another worker co-op. We are grateful to Lynn DSI WORKERS' ｾ＠ We extend our greetings to Murphy, who has given her C CO-OP the co-operative movement special touch to the design UPRISING BREADS BAKERY ｾ＠ throughout Canada, and wish and typesetting of the maga- HORIZON DISTRIBUTORS ｾ＠ you every success in the future. zine during this past year; Luc Labelle, who as editor of the HORIZON DISTRIBUTORS UPRISING BREADS BAKERY Yours faithfully, French section helped to 3450 Vanness Avenue 1697 Venables Street Peter Cham break down the barriers be- Vancouver. B. C. Vancouver. B. C. Robotnik 4 Stoney St. tween the two solitudes; and V5R 5A9 V5L 2H1 The Lace Market Louise Matchett, who has Telephone (604)439-7977 Telephone (604)254-5635 Nottingham United Kingdom kept a watchful eye on the NG1 1LG subscription list and the Phone: (0602)586243 finances . We wish them well with their future undertak- •••••••••••••• ings. We Agree •••••••••••••• SouIIWn NI1cI', Wom. ｾ＠ IMgu1nI Would roo "II:. 10 reoetv. WORKTEAM fltgul.t1y1 Fill In the form bek>w .nd mike tUf. Congratulations on an excellent Correction that you don't m6M eny I...... issue! SUBSCRIPTION RATES FOR 4 ISSUES OF WORKTEAM Airmail In the previous issue of the Fraternally, InctMc;tu.l, .nd Co-opt "00 Worker Co-op magazine, it David Mackenzie InatttuUonal ...00 "00 Asst. to National Director was stated that there have United Steelworkers been "about 100" worker buy- of America outs in Italy during the past NAME ... 234 Egllnton Ave. E. decade (p. 24). The correct ADDRESS ...... •...... •.... 7th Floor figure is 1,000 worker buy- Toronto, Ontario M4P 1 K7 outs. SEND SUBSCRIPTIONS TOI COROE, P.O. Bo .. 1895, GABORONe, aclTSWANA (416) 487-1571

Worker Co-op Summer 1989 5 ACROSS THE COUNTRY Chippin' away in P.E.1.

By Amand Arsenault Wellington - The Olde Barrel Potato Chip Co-operative is making new inroads in marketing its product in the Atlantic provinces. All of New Brunswick is covered with Nova Scotia being developed quite successfully. An occasional truckload is now going to Ottawa and Toronto with the possibility of distribution in P.E.I. Potato Chip Co- the eastern townships of Quebec operative at Urbainville. in the near future . tute of Woods Hole, Massachu- converted to a worker co-op in the Evangeline Credit Union in The co-operative presently has setts, as a self-contained bioshel- the future. the Acadian Region of P.E.I. 10 worker-owners with an addi- ter using the wind, the sun and or- The Ark is expected to attract tional eight people working the ganic techniques to produce up to 30,000 visitors and create Frank Driscoll is the manager of night shift. Olde Barrel is develop- chemical-free food in a self-con- 20 seasonal jobs when in full op- co-operative development at the ing new flavours that will be unique tained greenhouse. The original eration in June, 1990. Government of Prince Edward to the Maritime provinces. structure, built with federal funds Island. Box 2000. Charlotte- Sales for the co-operative's on provincially-owned land (a Co-operator promoted in town. P.E.I. CIA 7N8; (902) first year were slightly short of a beautiful, 130-acre peninsula in P.E.I. cabinet 306-4240. projected $1.25 million; second- eastern P.E.I.) was initially Charlottetown Leonce year sales are projected at $1.6 successful, but fell on hard times Bernard, P.E.I. 's minister respon- million . when money became scarce. sible for co-operative develop- Small boom in The co-op's seven-member ment, has been appointed Minister Les Grands Acadiens board, led by local credit-union of Community and Cultural Urbainville Les P'tits Nova Scotia manager Wayne Kane, approached Affairs. He retains Community Acadiens, a worker co-operative the province and ACOA, the feder- Economic Development (which in- By Veronica Gillies specializing in children's cloth- al regional development agency, cludes co-ops) from his former In Nova Scotia, several co-ops ing, is now producing an adult with a proposal that will see the Ministry of Industry. Bernard has are in the planning stages and line of fleece pants and T-shirts. property and building being leased also been assigned to the Fisheries four others have been incorporat- The co-operative, consisting of to the co-op on a long-term basis and Acquaculture Portfolio, as ed in the past few months. Here's five women, recently acquired for a nominal sum, while ACOA well as the chairmanship of the Ru- some information about them: two contracts to produce the adult will contribute up to $232,000 on a ral Development Board. This new lines. Business has been brisk 50150 matching basis. The co-op board will direct policies for devel- Going Places during 1989, and there is talk of has raised a $100,000 loan; about opment of rural communities. Workers Co-op bringing in a night shift to meet $50,000 in some job creation mon- Bernard is a long-time co- Halifax - This worker co- deadlines. ey from the Canada Employment operator and former manager of operative couldn't have picked a Commission; and a seed-capital more appropriate name. It has Amand Arsenault is manager of grant from the province. The end only been operating since March the Evangeline Regional Services result will be an education-tourist and already has enough contracts Centre, P.O. Box 58, Wellington attraction; a 6O-seat quality restau- to provide 15 of its 17 members Station, Prince Edward Island rant; I I rooms of accommodation; with full-time work doing paint- COB 2EO; (902) 854-3/31. and a class-one ocean swimming- ing, renovating, odd jobs and in- beach facility. The educational sulating. component of the complex called Valerie Carvery, a resident of Co-op Ark major the 'Interpretation' involves walk- Uniacke Square in Halifax. took ing trails, bird and seal watching as the initiative by organizing a tourist attraction well as the "Ark itself." There will meeting of 10 other people from be a section on how the community the area who told her they wanted By Frank Driscoll came together to create the co- to work . Thirty people showed Spry Point, Prince Edward Is- operative, and what it means to the up at a second meeting, and so far land - The Spry Point Co- local economy. the story is a happy one. operative Ltd ., a 40-member Since one of the objectives of community-based development the co-operative is to create jobs, Promise Land Forestry co-operative, has acquired the members will be able to work on The Honourable Leonce Services Co-op "Spry Point Ark ." The concept of the project. This opens the possi- of Port Bickerton - In April, "The Ark" was developed in the Bernard, P.E.I.'s Minister bility that the project could be Industry. Clifton Sangster. Mike Porter '70s by the New Alchemy Insti-

6 Summer 1989 Worker Co-op and Arnold Padolsky fonned their own silviculture worker co- operative in Guysborough Coun- ty. Encouraged by the success of Future Forestry Services Co-op of New Glasgow, another silviculture worker co-op, the men There was a good turnout called their new business and lots of optimism Promise Land Forestry Services following the Community Co-op to indicate their commit- Development Co-oper- ment to forest renewal. "We ative's Annual General worked under private company Meeting in April. Worker contractors, and we always did co-op representation on a good job," says Sangster. the Board of Directors was "Contractors don't pay workers increased dramatically at who make an extra effort any the meeting. more . money for doing a good Cape Gael Associates Co-op. Co-op tackles illiteracy ternative Learning Project". job. We finally said, 'Enough's The video is available from the Guysborough Mulgrave Supported by a team of Mulgrave enough!' " Innovations Project, Extension Road Theatre Co-op's next Road 's theatre professionals, the Department, St. Francis Xavier production will deal with the dif- five people hired for the 16-week The Green Butler University, Antigonish, N.S. ficult problems of illiteracy. But program will train as theatre Landscaping Co-op·· B2G ICO; (902) 867-5165 . none of Mulgrave Road's actors workers , develop a script and Richmond - People in the will perform in it. Instead, the create the play. The project will Richmond County/Strait area Worker co-op performers will be five people culminate in a tour of the play Ju- now have help keeping their support agency from northeastern Nova Scotia ly 4-14. grass green. The Green Butler Antigonish - After a good without any prior professional Landscaping co-op of St. Peter's turnout, there was an optimistic theatre experience. Veronica Gillies is Communica- incorporated as a worker co-op in feeling at the Nova Scotia Com- Mulgrave Road has received tions Assistant with the Innovations May. Members - Clair Rankin , munity Development Co- funding from Employment and Project, St. Francis of Xavier Ex- Charlie Williamson and Paul operative's Annual General Immigration Canada's Job De- tension, Antigonish, Nova Scotia Pate - do roto-tilling, laying Meeting. Representation on the velopment Program for this "AI- B2G ICO; (902) 867-5165. sod, commercial and residential Board of Directors changed landscaping and maintenance. ｾ＠ ...... ｾ＠ dramatically when worker co-op members were elected to fill four Mabou Wreath out of nine positions. Ron Grant, Makers Co-op · New Marititnes a member of Future Forestry Inverness - Some people in In- A Regional Magazine of Politics and Culture Services Co-op, was elected as verness County are getting into president of the Board of Direc- The independent regional the Christmas spirit early. The tors, making it the first time this hi-monthly that covers the four members of the new Mabou politics and culture of the position and CDC manager both Wreath Makers Co-operative are Maritimes from a fresh, have been filled by members of already planning for next year's alternate perspective. worker co-ops. Other worker co- busy Christmas season. They de- op members elected to the Board cided to fonn a worker co-op af- Ｗｾ＠ were Kathleen MacNearney, The ter participating in a course Greenhouse Co-op; Clifford In Canada $I5/ yr. Outside Canada $25/yr. • sponsored by the Incor Business White, Halifax Workers Co-op; Development Centre for local and Betty Crosby, Umbrella Co- Mail cheque or money order to: New Maritimes people interested in learning to op. A highlight of CDC's activi- Enfield, Nova Scotia make wreaths . Instead of making Now in its seventh year, New BON INa ties was assistance provided to plain balsam-fir wreaths this Maritimes has earned numer- Cape Care Co-operative in ous regional and national Name ______year, the women plan to decorate Sydney and other co-ops which them and market them directly to awards for investigative jour- Address have incorporated recently. nalism. These include the 1986 ------the consumer to increase profits. Manager, Peter Hough, repor- Goodwin's Award for Excel- ted that workshops on financial lence inAltemativeJournalism ------Educational Video management, marketing and and the more mainstream At- Antigonish - The Innovations lantic Journalism Award for membership policies were given Project is producing an educa- the year's best magazine ar- by the CDC to existing worker tional video about worker co-ops ticle in both 1986 and 1988. co-ops. Another positive devel- in Nova Scotia. The 20-minute New Maritimes comes from opment is the creation of a ven- the critical left, but without the production will focus on four ture-capital company that will dogma. worker co-ops - Future Forestry enable the CDC to give financial A unique adventure in radical Services Co-op, The Greenhouse support to worker co-ops. I.. L regionalism. WCI 'Q 6 Co-op, Constructors Co-op and ｾ＠ ...... ｾ＠

Worker Co-op Summer 1989 7 ACROSS THE COUNTRY New development the same percentage of shares in the company. The worker co-op policy in Quebec and the syndicate of worker co- ops each are guaranteed one By Claude Carbonneau·· member on the board of direc- (translated by tors. Rosemary Oliver) There are now five joint ven- Quebec City - In an effort to tures involving worker co- encourage the conversion of operatives in Quebec and three privately-owned companies to others are in the process of devel- worker co-operatives and also the opment. The SDC is very suppor- start-up of larger ventures than is tive of joint ventures for future M. Gerard D. Levesque, normal for worker co-operatives, investments involving wor!$.er Minlstre des Finances, la Societe de developpement des co-operati ves. Gouvernement du Quebec, cooperatives (SDC), the govern- and the Minister respon- ment agency that finances co- Tax policy changes sible for la Societe de operative development, is en- Quebec City - Until recently , developpement des coop- couraging "joint ventures," that worker co-operatives in Quebec eratives. is , arrangements in which a were forced by the Ministry of worker co-operative is often a Revenue to treat rebates to minority (though significant) members as if they were salary shareholder in its place of work, adjustments. Because of this, the but it also has an opportunity to co-ops and their members had to expand and to participate in an pay, on top of income tax, addi- LABouR/LE TRAVAIL important way in management. tional contributions to medical The prototype of the joint- insurance, pension funds, etc. JOURNAL OF CANADIAN REVUE D'ETIJDES venture approach was the revival In its last budget, the Quebec lABOUR STIJDlES OUVRIERES CANADIENNES of the closed saw mill in Sacre- Ministry of Finance stated that Coeur. Under this arrangement, a rebates will no longer be consid- SPECIAL INTRODUCTORY OFFERJOFFRE SPECIALE co-operative of the workers ered as salary, but simply as taxa- (UNISACO) owns one-third of ble income. For members, the While the supply lasts, new subscribers may purchase sets of the journal at a special bargain rate of $190.00. the venture and also is paid a change is not very significant. management fee . Another However, for the co-ops it will Avec tout nouvel abonnemeDt, l'aboDne peut aussi acquerir la serie complete worker co-op (BOISACO, speci- result in important savings which de la revue pour Ie prix modique de $190.00 aussi longtemps que DOS alizing in forestry) owns another should have an impact on their reserves de Dumeros anciens De SODt pas epuisees. third and the local community profitability. Subscribers Cor 1989 will ",celvt/Les abonnrs pout 1989 ",cevron!! owns one-third . The business is In its last budget, the Quebec in good health and profitable so government also modified the Labour/I.e Travail 23 (1989) far. Regime d'investissement coope- will include articles by James R. Conley, Mark Leier, Gordon Hale, Another interesting example is ratif (RIC). One hundred and Jeff Taylor, Carla Upsig-Mumme and Rita Roy. Normick Chambord, believed to twenty-five per cent of eligible Labour/I.e Travail 24 (1989) be the most modern sign- investments in the RIC are now will include articles by Jacques Ferland, ｍｩ｣ｨｾｬ･＠ Dagenais, Margaret E. McCallum production factory in North tax deductible. Until now, the de- DominiqueJean, Rennie Warburton, Nancy M. Forestell, and BarbaraJ. Cooper. America. Located in the Lac St. duction had been 100 per cent. Canada ForeigniEtranger Jean region among many of With this change, members of Quebec's forestry co-ops, the worker co-ops have gained the IndividuaVindividuei $15.00 $20.00 (u.S.) InstitutioDaVinstitution (U.S.) Chambord plant cost $60 mil- same tax treatment as Quebecers $20.00 $30.00 StudentJetudiant( e) who put their money in other in- lion. The shareholdings are divi- Retired/retraite $12.00 $17.00 (U.S.) ded as follows : a co-operative of vestment programs. Also, the Unemployed/sans-travail the workers owns 14.5 per cent; a Quebec Finance Minister has an- syndicate of seven forestry co- nounced a relaxing of the rules Complete sd of back issues (1976188) $190.00 operatives owns 14.5 per cent; regarding the withdrawal of Series complete de Labour/Le Trovai/ (1976188) $190.00 local investors own 20 per cent; funds invested in an RIC. MASICRCARD aceepled or Carte MASTERCARD ｡｣｣･ｰｬｾ･＠ ou and Normick Peron , a privately- Make Cheque payable co: Veuillez viser vaIn:: ｣ｨｾｱｵ･＠ j I'ordn:: du: Commillee on Canadian Labour History Lc Comite d'histoi n:: sur Ie lravail au Canada owned plywood company owns Claude Carbonneau is the History Depanment, Memorial University ｄｾｰ｡ｮｭ･ｮｴ＠ d 'hisloire, ｕｮｩｶ･ｾｪｬｴ＠ Memorial, the majority , 51 per cent. communications officer with fa Sl. John's, Newroundland, Canada, Ale 5S7 51 . John's, Nnd., Can3da, Ale 5S7 Within this arrangement exist- Societe de devefoppement des Articles arc abstraced and indexedILes articles soD! repertories dans: ing shareholders' are given the cooperatives, 430 Chemin Ste. America: IIlslory and Lire: AlLernalive Pnss Index: Arb and lIumanltlcs CU.llon Indu", right of first refusal if one of the Foy, Quebec City, Quebec GIS Canadian Pulodlul Indes: Currenl ConltnlslArts and lIumanlllcs: IIlSlorlcal Abstracts: lIuman Resource AMlnets: PAlS Bullelln: PAlS fofti.gD .... nguage Index: ｓ｡ｾ＠ Public Admin. stakeholders decides to sell some 215 ; (418) 687-9221 . IslraUOD Abstr.cb: Canadian MagadM Index.. or all of its shares. Also, in any expansion each stakeholder is guaranteed the right to maintain

8 Summer 1989 Worker Co-op ACROSS THE COUNTRY work. Daycare and consumer retail and the CCA Buyouts' Project) to Feedback wanted co-ops are being planned for Fogo study the feasibility of various Island, off the coast of Gander, options available to the workers, Ottawa - The Federal Govern- which already has a successful including a worker buyout. ment is proposing to allow individ- fishery co-op. That co-op, consist- Inglis's director of corporate and uals to capitalize a significant por- ing of 700 fish catchers and 400 industrial relations, John Utter, has tion of their unemployment insur- plant workers, received the 1988 poured cold water on the worker- ance entitlement under certain cir- "Newfoundland Export A ward" buyout option: "We're not interest- cumstances. And as a result of the for achieving $13 million of ex- ed in selling our technology to the recommendations in the Proposed ports ($11 million to the U.S. and workers." However, the president Strategy for the Development of $2 million in capel in sales to Ja- of the United Steelworkers local at Worker Co-operatives, the govern- pan). Inglis, Mike Hersh, still is keeping ment is prepared "to consider" Senior Development specialist all options open: allowing prospective members of at the Federation, Jim Winter, fore- "Ideally, we'd like there to be a worker co-ops to capitalize their sees Fogo as "the Mondragon of worker buyout. Ideally, we'd like benefits "on a group basis." Newfoundland. " to save 600 jobs. Ideally, we like to A consultation system is being make washing machines at the Tor- created which will review these For more information contact Jim onto plant. But we are open to any changes to U.I. policy, among oth- Winter, the Newfoundland and La- Toronto's Inglis plant will option that will preserve the workers. If you or your co-op have any brador Federation of Co-oper- close in November. ers' jobs for as long as possible." opinions on this proposal, please atives, The Co-operators Building, Inglis, a subsidiary of the Amer- contact the Co-op Secretariat, Sir Crosbie Place, P.O. Box 13369, ican corporation Whirlpool, made John Carling Building, Ottawa, Station A, St. John's, Newfound- be located north of Toronto (see a $2. I million profit on its Toronto Ontario KIA OC5; (613) 995- land AlB 4B7; (709) 726-9431. Worker Co-op, vol. 8, no. 2, p. 27). plant during the last fiscal year. 4787. Feedback can also be sent The products of the Manomin The plant closing is blamed on the through regional federations and group, like many other natural free-trade deal which phases out resource groups. Ontario Tidbits foods, are growing in popUlarity. over 10 years a 12.5 per cent tariff on appliances. Whirlpool is ex- By Judith Brown Time running out panding its operation in Clyde, Oh- Newfoundland Toronto - Delicious Desserts, a on Inglis workers io, to service the Canadian market. bakery in Toronto's trendy York- Toronto - Inglis has officially an- St. John's - The Newfoundland ville district, may soon be a worker nounced that its Toronto plant with Judith Brown is a doctoral student and Labrador Federation of Co-op- co-op. Workers at the bakery have 600 workers will close on Novem- in Community Psychology at The eratives' (NLFC) "Development expressed interest in a conversion ber 30 of this year, somewhat earli- Ontario Institutefor Studies in Edu- Fund" has made loans to the to a co-operative and have the super than was anticipated. The earlier cation, 252 Bloor St. w. , Toronto , Household Services Co-op of St. port of the current owners. The closing date puts extra pressure on Ontario M5S IV6; (416) 923- John's (a three-women cleaning results of the feasibility study, the union (United Steelworkers of 6641, L. 2576. Our thanks to Eth- co-op) and to the Bell Island Com- which is being financed through America) who with the support of an Phillips who has been doing the munity Development Co-operative the Innovations project, are antici- municipal and provincial govern- Ontario section ofAcross the Coun- for the creation of a worker co-op pated soon. ments had commissioned Peat try. bakery in this employment-starved Marwick (assisted by Co-op Work community off the coast of St. Political designs John's. The Fund has more than Blackbird Design, a worker-own- $500,000 of capital. Negotiations ed design and typesetting house, are underway with the Newfound- has recently secured a $16,000 land and Labrador Development loan from Bread and Roses Credit Corporation (a provincial govern- Union to update and computerize ---- CO-OPERATIVE TRUST ｾ＠ ment agency) to match the NLFC's operations. Blackbird has been op- LL COMPANY OF CANADA ｾＢ＠ contribution to the Fund and to se- erating as a co-op since March, cure a matching contribution from 1988. In addition to offering full an appropriate federal agency graphics services, the three- Serving Canadians (e.g., ACOA, CEIC). NLFC di- member team utilizes its resources rector, Glen Fitzpatrick, says "the to promote progressive social through plan is to do development work in change by supporting literacy partnership with the government, groups, anti-poverty and third Credit Unions with the govemment paying a por- world organizations. The workers and tion of the cost." are unionized under the Industrial Workers of the World. Co-operatives Down by the sea The Newfoundland and Labrador Nature's best SASKATOON· REGINA • VANCOUVER Federation of Co-operatives views Another wild-rice harvesting co- WINNIPEG. CALGARY. EDMONTON the rural areas ofthe province as the op, part of the Manomin group, is TORONTO .HALIFAX • OTTAWA • LONDON prime target for its development looking for funding for a start-up to

Worker Co-op Summer 1989 9 ACROSS THE COUNTRY views on co-operative capital for- the Canadian garment industry. Ministers Confer- mation and (2) an introduction to The project is tentatively called Manitoba Worker co-operative healthcare models. Toronto Sews. Coady Consulting ence will feature of Toronto is doing the pre- Co-op receives New co-op minister feasibility work. awards worker co-ops Winnipeg - Manitoba co- operatives are off to an early start CCA Buyout Project By Myrna Barclay Toronto/Winnipeg - A draft of By Dan Nicholson Ottawa - The fourth annual with their new Minister responsi- Souris --,- Souris River Communi- ble for co-operatives the research report has been com- Ministers/Co-operatives Confer- pleted. The report assesses the cations Co-operative, publishers of ence will be held October 19 and Honourable Ed Connery, Minis- the Souris Valley Echo, recently re- try of Consumer and Corporate strengths and weaknesses of the 20 in Montreal. The Ministers re- worker co-op buyout option and ceived two first-place awards 'for sponsible for co-operatives will Affairs. About one dozen co- its community newspaper. operators had a brief introductory makes recommendations for fa- be responding to a report, prepa- cilitating buyouts. The co-operative submitted red by their provincial officials, meeting with Connery, who has the year's ' best education story . Th.e ｾｲｯｪ･｣ｴＧｳ＠ advisory group that makes 25 recommendations only been in his new post since and was awarded first place in its April, 1989. The Minister was m Wmmpeg has hired a part-time for government action to assist co-ordinator to initiate technical class for its editorial page. The worker co-ops in Canada (see encouraged to attend the October presentation was made at the Conference and commit his gov- assistance for prospective worker Worker Co-op , Winter 1989). buyouts. The information pack- Manitoba Community News- Among the key recommen- ernment to the recommendations papers Association 's (MCNA) of the report on worker co-op de- ages produced by the project dations are: a special fund for the staff, Ethan Phillips and Louise annual Better Newspaper Com- promotion and development of velopment. petition. The Echo was rated The meeting was organized by Matchett in Toronto, should as- worker co-ops (including resource sist outreach efforts in Winnipeg. third overall in its class, third for groups) that would be accessible to the Manitoba Co-op Council. best special section, and third for CCA Directors, Ed Klassen and each province on a cost-shared ba- Myrna Barclay is the Director of typography (total visual appeal). sis with the federal government; a Charlie Swanson, were part of the co-op delegation as was Al Education and Development at capitalization program , including the Canadian Co-operative Asso- Heritage Award tax incentives and a co-operative Huffman, a member of the CCA The Echo also received a major Worker Co-op Committee. ciation, 400-275 Bank St ., Ot- investment fund; the right to use re- tawa, Ontario K2P 2L6; (613) heritage award for its work in sidual benefits in the unemploy- 238-671 1. She is responsible for preserving the traditional Gothic ment insurance account as start-up Garment workers study liaison with the worker co-op- typeface used by modern-day funds for a worker co-op; the ad- worker ownership erative sector. We 'd like to extend Hutterites. The Prix Manitoba vance payment of up to six months Toronto - The Worker Co-op- our appreCLatlOn to Albert Award was in recognition of the of unemployment insurance as a erative Buyout Project recently Chambers who has reported the Worker Co-op's achievement in loan for investment in a worker co- received a proposal from the In- national news for the magazine creating a typeface for use on op start-up; and making relevant ternational Ladies Garment for the past three years. We wish Macintosh computers. government legislation specific to Workers Union (ILGWU) to fund him well in his new endeavours. worker co-operatives. a pre-feasibility study. Manyec- From now to October, the onomists have forecast a loss of CCA Worker Co-op Advisory jobs in the Canadian garment and Need some help with Committee will be building sup- textiles industry because of the your organization's problems? port in the co-op sector for Free Trade deal. Unionized firms worker co-op development and in this sector are by far the most We have the busmess experience asking co-operatives for their as- vulnerable to the threat of a shut- and skills you need. sistance to encourage Ministers down . Therefore, the ILGWU, in to: (I) attend the October Confer- an effort to save as many jobs as COADY CONSULTING - ence and (2) to implement the possible, wants to investigate dif- accessible and affordable recommendations in the report. ferent options, including worker The other main Conference ownership, for stabilizing the un- management consultmg services topics are: (I) the co-op sector's ionized workforce and promoting With a SOCial conscience. For a copy of our statement of Bread & Roses capabilities and your free mltlal consultation - Credit Union call or write today. COADY CONSULTING Support the cooperative movement and help 88 Coady Ave. build alternatives by "banking for social change" Toronto, Ont. M4M 2Y8

Carrol Common, 348 Danforth Ave., Suile 211 (Chester sutlNay) 461·7882 (416) 778·4744

10 Summer 1989 Worker Co-op ACROSS THE COUNTRY The elegant, computer-gen- Conn and Shane Simpson which be marshalled from existing erated script is the most demand- Buyout brewing demonstrated the potential for programs and data banks, leaving ing project yet taken on by the such a centre. Simpson has also the centre free to concentrate on two-year-old co-operative. Says Saskatoon (Star-Phoenix) - been retained to develop an initial the unique requirements of con- Business Manager, James Employees at the Carling- business plan for the centre versions to worker ownership of Ritchie, "The typeface required a O' Keefe brewery in Saskatoon which has ambitions to extend its privately-owned businesses and lot of creativity and caring." The are considering a buyout follow- services beyond NWEDA's tra- start-ups of worker-owned enter- letters were created from samples ing the company's decision to ditional base in New Westmins- prises. provided by the New Dale Hut- close the 60-year-old plant. Car- ter. The Centre's services include: terite Colony in southwestern ling-O' Keefe is merging with To budget for the centre, which assisting worker-owned enter- Manitoba. In all, 60 characters Molson's. Two years ago the Simpson says is "front-end loa- prises in creating appropriate were scanned, adjusted and in- plant had 80 workers, but today ded," will total $500,000 over governance, membership train- corporated into the typeface. In only 44 remain in the bargaining three years, provided annual ing programs, pre-feasibility and order to accommodate modern unit (United Food and Commer- evaluations under the In- feasibi lity analyses, business additions, such as dollar signs, cial Workers, Local 346W), and novations program demonstrate planning and development assist- additional characters had to be there are just 27 active em- satisfactory progress and the an- ance. extrapolated from old ones. ployees. ticipated supplementary funding In addition to the Innovations Ritchie, and co-op members, Greg Kitz, a l4-year veteran of sources are accessed. Following funding, the Centre anticipates Blair Lindbloom and Eric Raine, the plant and vice-president of the three-year pilot phase, he en- generating revenue from a sliding have been working on the the union local , initiated the visions a transition in the control fee structure ranging from token Hutterite script, part-time, for al- buyout proposal together with of the Centre to representatives of amounts for low-income clients most a year. The Hutterites could co-worker, Don Elash. Accord- worker-owned businesses, the to substantial consulting fees for not use off-the-shelf German ing to Kitz, "there's more support Centre's community of interest union and government contracts. word processors because of the from the workers as their options and the Centre's staff. five-century-old diphthongs that dwindle." He adds that the union While the range of services For more information contact have been dropped from the mod- local is at this point "neutral. " proposed for the Centre is exten- Dana Weber, 3306 Findlay St., ern script. Although the Hut- A feasibility for the buyout sive, Simpson stresses the impor- #16, Vancouver, B.C. V5N 4E7; terites are gradually adjusting proposal is being prepared by tance of not re-inventing the (604) 873-2253. their spoken dialect to modern Lome Broten of Saskatoon man- wheel. Many information, edu- High German, they continue to agement consulting firm, Cham- cation and training resources can hold to their ancient spelling con- berlain, Broten, Orr and Co. It is ventions. This is particularly im- estimated that a buyout would portant in that their own literature cost $4-5 million of which the is entirely written in the older employees would be required to script. put up $500,000. The company's Computers have made their official position is that it would way into classrooms and day-to- "consider selling the plant," day operations on many Hutterite though Kitz is fearful that it simp- colonies. While the Co-op's ly "wants to close the plant and We can typeface has applications for eliminate competition." most Macintosh computer wrapup programs, it is in the field of For more information contact desktop publishing that the Greg Kitz, 134 Tobin Cr., Saska- greatest use is anticipated. toon, Saskatchewan S7 K 4N1 ; ALL your There are also plans to print a (306) 244-0/23. • 600-piece song-book as well as Insurance other traditional prayers and verses. B.C. gets worker needs Souris River Communications Cooperative will be marketing ownership centre the typeface, in conjunction with the New Dale Colony, in Canada By Dana Weber and the U.S. New Westminster - The New Westminster Economic Develop- o Dan Nicholson is a member of ment Association (NWEDA) has Souris River Communications received funding from the federal th90 Cooperative Ltd., Box 490, government's Innovations pro- co-OperatoIS gram to establish a resource Souris, Manitoba ROK 2CO; Insurance I Financial Services (204) 483-2335. The Co-op centre for worker-owned busi- works with computer-assisted nesses. print media and is the publisher NWEDA's proposal to In- "More than 300 offices across Canada to serve you! " of a weekly rural newspaper, the novations was based on an earlier Souris Valley Echo. study undertaken by Melanie

Worker Co-op Summer 1989 11 AROUND THE WORLD CHINA the Industrial Co-operative Asso- plant closings around America ciation of China to provide have joined ranks, calling them- Chinese testing worker-owners with technical as- selves the Federation for Indus- sistance and to formulate policy trial Retention and Renewal. worker owner- and needed legislation. Staff ex- At least 10 other local groups changes between ICA (U.S.) and are considering membership, ac- ship ICA of China are planned. He cording to Dan Swinney, director and other Chinese planners ex- of the Midwest Center for Labor By Frank Adams pect to visit Mondragon. Research , one of the Federation's Worker ownership is gaining In Beijing, Ellerman lectured founders. advocates in China, especially in on democratic worker ownership Founding members are: the the northern industrial city of at the Chinese Academy of Social Calumet Project for Industrial Shenyang, according to David Science. His paper on the same Jobs in East Chicago, Indiana; Ellerman, staff economist of the topic was published in Reform, a the Cleveland Coalition Against Industrial Co-operative Associa- leading journal on economics. Its Plant Closings; the Coalition of tion (ICA) in Somerville, Massa- editor, Jiang Yiwei, advocates Religious, University, Commu- chusetts. He was the guest for worker ownership. nity and Labor in Buffalo; three weeks of the Research Cen- "There is no corporate law of Hometowns Against Shutdowns ter for Rural Development of the ownership as we understand it ," in Freehold, New Jersey; the Illi- State Council of the People's Re- Ellerman said. "All financial nois Economic 'Crisis Network in public of China. transactions are bargained be- Chicago; the Interreligious Eco- Today, the city-level planning tween different levels of govern- nomic Crisis Organizing Net- commission is in the forefront of ment, either the production team , work in New York City; the China's economic reform drive. village, township, county, city, Labor/Community Coalition to Ellerman visited a state-owned, province or state, and so many Keep GMlVan Nuys Open in Los 6,OOO-worker factory which problems of ownership arise." Angeles; The Midwest Center for manufactures all sizes of trans- Labor Research in Chicago; the formers , including some three For more information, contact Minnesota Working Group on particular, unemployed universi- stories tall, destined for West David Ellerman or Frank Economic Dislocation in St. ty graduates, obtain loans from Germany. He learned that about Adams, ICA , 58 Day Street, Paul; the Oakland Plant Closing banks and establish joint busi- 300 Shenyang enterprises are ex- Suite 203, Somerville, MA Project in Oakland, California; nesses. Such businesses include perimenting with worker stock. 02144, U.S.A.; (617) 629- the Seattle Workers Center; garbage collecting, dry cleaning, An air compressor factory was 2700. Southerners for Economic Jus- grocery retailing, and so on. a leading example. Some 830 tice in Durham, North Carolina; These businesses usually have worker stockholders elect both a the Tennessee Industrial Reten- been very successful and also board of directors and managers NIGERIA tion Project in Chattanooga; Tri- have created linkages to the com- in secret balloting - one-person, State Conference on Steel in munity in which they are located. one-vote, regardless of how Pittsburgh and Cleveland; and Hard times bring Nigeria also has credit unions, much stock is worker owned. the Upper Ohio Valley Reindus- agricultural-marketing co-ops, Worker stock is a kind of profit- trialization Project. co-operative handicraft co-ops and collective sharing certificate paying an an- "We have now been a reactive farms. nual dividend ranging from three movement until now ," Swinney work Moji Ojo is a student from to 20 per cent on face value. said. "Through the Federation, Nigeria, doing doctoral studies Managers are nominated, El- By Moji Ojo grassroots campaigns can be giv- in Community Psychology at lerman said, and then campaign In Nigeria, many co-operative en more support while them- The Ontario Institute for for election. "It is a presidential arrangements are community- selves playing a greater role in Studies in Education (OISE), system as opposed to the usual based. One of the most common changing national policy." 252 Bloor St. Toronto , parliamentary system where the - the local work bee - is found w. , Additionally, the Federation Ontario M5S 1V6; (416) 923- board selects the manager." among farming communities. plans a national computer net- 6641, L. 2576. "I asked the chairman of the Community members work a work to exchange information board, who also happened to be piece of land belonging to a par- between projects, to hold region- head of the local Communist Par- ticular family. Then the group al conferences, to build support ty, what happens if the separately works another piece of land, and UNITED STATES for local efforts at preventing elected board disagrees with the this process continues until all of plant closings, and to provide ac- manager on an important issue? the farms are completed. For Plant closing tivist training. He looked at me and exclaimed, each workday, the family whose 'Checks and balances!'" Compa- land has been worked provides foes form na- ny managers said their enterprise meals for the group. For more information, contact had a range of worker education Austere times in the '80s have tional federation Dan Swinney, Midwest Center and participation programs. brought about an increase in an- for Labor Research, 341/ W. Luo Xiaopeng, an economist other form of co-operative ar- By Frank Adams Diversey Avenue, Chicago, IL with the Research Center who rangement. Groups of un- Fifteen grassroots organizations 60647. was Ellerman's host, is forming employed individuals and, in that have been separately fighting

12 Summer 1989 Worker Co-op AROUND THE WORLD ISRAEL Profile of the Kib- butz movement

As of year-end 1986, there were 269 kibbutzim in Israel with 126,700 members. During the last decade the kibbutz population has grown by about 20 per cent, the increase resulting primarily from natural reproduc- tion. Kibbutzim formed prior to 1935 are much larger (averaging 736 members) than those formed since 1967 (averaging 136 members). This is because the Israel's second largest ag- older kibbutzim are of three and ricultural cartons factory at fo ur generations whereas newer Kibbutz Ein Hamifratz. kibbutzim tend to be one and two generational. riencing financial difficulties months in advance of the initial For more information, contact Thirty per cent of the kibbutz - some quite serious. capitalization of a worker co- Jean-Marie Curtois, Director, popul ation is under 15 years of operative; the existence of pre- CGSCOP, Rue 37 Jean LeClere, age and 42 per cent is under 25. Data published by Yad Taben- ferential tendering arrangements Paris, France 75017; (Phone) Only nine per cent is over age 65, kin, Research and Documenta- for government contracts; tax 46278958. though the life expectancy of tion Centre, P.O. Ramal Efal, concessions; legislation to help members exceeds the norm for Israel 52960. capital formation; and establish- Alain Roy is research director Israel. ment of the "Delegation generale at the Co-op Secretariat, Sir Twenty-six per cent of the kib- de I'economie sociale" to moni- John Carling Building, Ottawa, butz labour force works in agri- FRANCE tor various government activities Ontario KiA OC5; (613) culture and fisheries (primary in- in the worker co-op sector. 995-4787. dustry) and 23 per cent in second- Worker co-ops ary industry. Secondary industry has become a mainstay of the kib- grow rapidly French worker co-operatives by sector of activity in butz economy contributing about 1986 $1. 6 billion (Cdn.) of sales in By Alain Roy No. of worker Average 1986. Twenty-seven per cent of The development of worker co- co-ops Employees size sales is from exports. There are a operatives in France is monitored Construction and wide range of industries, with by the Conjederation generale public works 507 14 ,737 29 heavy concentrations in plastics, des Societes cooperatives ouvri- Graphics and printing 117 2,634 22 metals , electronics, food eres de productions (CGSCOP) Metal working 175 5,199 30 processing, optical and pharma- which provides assistance in law, Other industries 169 5,927 35 ceutical supplies, and textiles. member training, finance, busi- Services 390 5,500 14 More recently, there has been a ness planning, accounting, man- Total 1,358 33,997 25 considerable investment in tour- agement and technology transfer. Source: CGSCOP, April 1987 ism, i.e., kibbutz-based guest By the end of 1986, 1,358 worker houses and hotels. co-operatives employing 33,997 In spite of considerable people were active, and 75 per ﾮｾｾｾｾｾｾｾｾ＠ success in creating an egalitarian cent of them were less than ten commun ity with a high standard years old. f{o;.Ofl of living, the kibbutz movement The average worker co-op had finds itself with some trouble- 25 members, and 43 per cent of The Farm Store ... some problems. The retention the members were employed in rate for members has dropped construction and public works. and -m.QII.L! markedly during the last decade The know-how developed by so that at present about 50 per the CGSCOP is supported by a QUALITY PRODUCTS FOR YOUR cent of kibbutz-born are leaving. set of laws and a number of And coincident with harsh meas- policies of the French govern- HOME AND FARM ures taken to reduce Israel's ment. These include: workers triple-digit inflation rate, about can receive their unemployment UNITED CO-OPERATIVES OF ONTARIO one-third of kibbutzim are expe- insurance payments up-front six

Worker Co-op Summer 1989 13 SHOPTALK

Uprising Bakery, part of CRS, in Vancouver Peace March.

Member involvement Until we grew to 23 members, in- The Problems of Success volvement in decisions did not appear to be a problem. Management decisions Vancouver's CRS requests were taken in three collectives which met weekly. Co-op-level decisions were feedback on issues it now faces made by a series of committees and in monthly general meetings of the whole co-op. Excessive meeting-time costs and By Marty Frost a poorly-defined "committee" structure forced us to restructure in 1983 and to CRS worker co-op ofVancouver now elect a board of directors that makes II includes the largest wholesaler of directional decisions . In 1984, a formal naturalfoods in Western Canada with an- management structure was created. nual sales of $6.3 million. Started in Managers at CRS have a similar level of 1973' by some socially-conscious act- responsibility to those at more tradition- ivis(s as a resource group for buying ally-structured businesses, but our clubs, and incorporated in 1976, CRS managers have direct accountability to has grown steadily as a business until it both the collectives and the general / now embraces 37 members. In addition membership through the board of direc- to the natural-foods wholesaler (Horizon tors. Distributors),.CRS also includes Upris- Planning takes place at the collective ing Bakery. level and at the board level. Each collect- CRS's growth from a small collective ive goes through a planning process has resulted in some new problems in around such issues as: working con- maintaining member involvement in ditions, sales levels, personnel, etc. decision-making and in deciding upon an Each collective approves its own operat- incomes policy for an increasingly more ing plan. The board goes through a plan- complex range of jobs. The following ning process for general goals which presentation by CRS general manager, span all collectives. General goals such Marty Frost, is intended to initiate a se- as net-income targets and salary pack- ries on how worker co-operatives are ages are approved at a general meeting dealing with these thorny problems. by the entire membership. Each manager

14 Summer 1989 Worker Co-op There is a feeling of frustration because the avenues for expression are becoming unwieldy_ CRS member Carol Madsen. is responsible for planning within his/her voice in the direction of the co-op. Meet- members and non-members alike. Those collective and the general manager is re- ings of the entire co-op take place about allocated to internal capital accounts are sponsible for co-ordinating planning be- eight times per year, but the meetings are given to members only. tween collectives. There is some feel- becoming so large that members are in- 2. Our dependents' support package ing among the membership of losing its timidated about speaking. When currently costs over $80,000 per year. members do speak they sometimes feel There is talk in the co-op about more ef- "not heard." The board, and to an extent fective use of this money. Some believe the general meetings, are becoming that we should not be providing extra "bogged down" with policy issues. support for parents with children. There is a feeling of frustration because 3. Job-based salary differentiation, the avenues for expression are becoming particularly with respect to the unwieldy. For example, members do not managers, has created a lot of controver- wish to relinquish control over policies; sy. There is some feeling that to pay any- but having this work done at general one more money diminishes the value of meetings is, by virtue of their bulkiness, lower-paid jobs. Others feel that it is nec- denying members an effective voice. essary for CRS to pay closer to the market rate in order to attract and hold The Salary Dilemma the calibre of people needed to operate an When CRS was established, and until organization of this size and complexity. 1986, there was a two-tier salary struc- 4 . As our base rate continues to in- ture. There was a single-base rate, and crease, new workers come in at increas- there was a supplement for parents: $200 ingly higher salaries. How long can we per child, up to two dependent children, afford to start workers off at higher and with (as of 1985) income-testing of our higher salaries? members. In 1986, after our manage- Other worker co-operatives, which ment structure had been in place for like CRS have grown in size, must be about a year, seniority differentials were facing similar problems. It would be created, and a differential of $100 per helpful if we could find out how you are month was applied to managers' salaries. dealing with these issues. In 1988 , seniority differentials were in- ｣ｲｾ｡ｳ･､＠ in amount and frequency, and managers' differentials were increased to Marty Frost can be contacted at CRS, $275 per month. 3450 Vanness, Vancouver, B.C. V5R 5A9; There are several issues contained in (604) 439-7977. Readers wanting their the salaries' discussion: feedback considered for publication in 1. Members and non-members are the Worker Co-op magazine should also send it to Jack Quarter, The Ontario Insti- paid at the same rate. The only differenti- tute for Studies in Education, 252 Bloor ation arises when profits are distributed. St. West, Toronto, Ontario M5S 1V6; (416) Those paid as cash are distributed to 923-6641, Ext. 2576.

Worker Co-op Summer 1989 15 FORUM

Centro Proceso Datos de Caja Laboral Popular Mondragon - an example of a community bank. Co-operation among social investment funds By Ted Jackson

The problem of lack of access to cap- ness, feels the same way . Morepver, the act locally to fill the capital gap for dem- II ital - in the form of loans, loan internationalization of financial markets ocratic economic organizations. I am a guarantees, mortgages and equity capital and increased competition in the finan- member of a small non-profit organiza- - plagues progessive economic in- cial sector has led the banks, with the tion in Ottawa called Communityworks, itiatives. Lack of capital is not the only FBDB following in tow , to invest in in- which serves as a financial-support or- problem community-owned and worker- creasingly larger, safer, more main- ganization for co-operatives and non- owned enterprises face, but it is one that stream (if this is possible!) investments. profits in eastern Ontario. With assets of must be solved. This means financing large-scale about $500,000, we make loans and loan Anyone who has been involved in mergers and acquisitions in particular. guarantees of up to $25,000 over three community economic development un- years. We are careful to screen proposals derstands that there are institutional and Credit ·Unions and take collateral in equipment, inven- structural reasons why democratic eco- Some credit unions have proven to be tory or other assets. Over the past five nomic organizations have difficulty get- very able and active lenders to communi- years we have made several dozen loans ting capital. The banks do not trust dem- ty enterprise. Toronto's Bread and Roses (only one very small one had to be writ- ocratic organizations: they see them as and Vancouver's CCEC are fine exten off), financed the start -up of two non- high-risk aberrations, especially if these amples. But commercial lending by profit housing projects and sponsored enterprises are small. The Federal Busi- credit unions has remained relatively un- conferences and publications on commu- ness Development Bank (FBDB), our derdeveloped in this country. nity economic development. There are public lender of last resort to small busi- There are many ways for Canadians to no full-time staff in this organization.

16 Summer 1989 Worker Co-op We would like to grow. One way is to controlled investment companies to Moreover, in Canada we now have a invite loans "to" Communityworks from build low- and middle-income housing substantial and promising experience individuals and institutions (churches, and real-estate projects that create jobs with labour-controlled, venture-capital community organizations). We could and local assets. In the U.S., at least, funds investing in industrial enterprises. pool these loans, repay them at a modest some of these companies engage in joint The Solidarity Fund, run by the Quebec interest rate and make loans to local en- ventures with community agencies, Federation of Labour, with assets of terprises. churches and foundations. There is de- about $200 million and 65,000 investors, In the U. S. there is a national associa- bate on this approach within unions in has created or saved 7,000 jobs through tion of community loan funds whose our own country. its investments in Quebec businesses. members manage a total of $30 million. The Solidarity Fund is also negotiating In our own country, there are many small with local community groups to provide loan funds in Nova Scotia, Quebec, them with loans for local initiatives. Ontario, the Atlantic and B.C. On a na- Organized It is becoming clear that we need some tional basis, the United Church of Cana- form of national financial institution - a da has a small loan fund. To become ef- labour can development bank, a foundation or some fective these small funds must grow larg- other structure - to aggregate pools of er and become linked together. capital and invest these funds in local playa major development agencies, loan funds, credit Trade union investment unions and labour investment mech- Organized labour can, if it chooses, play role in anisms, which, in tum, will invest in lo- a major role in investing in democratic cal democratic, economic organizations. economic organizations. One possibi- investing in Such a national institution could co- lity, with remarkable potential, is for ordinate the movement of capital to unions to negotiate control of investment democratic regions of high unemployment and un- decisions related to their pension funds, derdevelopment. Although government and direct even a small percentage of funds might be used, this financial insti- these funds to democratic economic economic tution could operate relatively autono- organizations. Some unions in Canada, mously. Funds could actually be delive- the U.S. and the U.K. have set up union- organizations. red by local agencies. We are obliged to think globally about problems and opportunities related to investing in democratic organizations. One of the unstated purposes of the G-7 summit meeting in Toronto (June 1988) was to institutionalize, beyond the political lifetime of the present leaders, the conservative economic agenda of deregulation, privatization and free trade. Groups that oppose these policies and propose alternatives must plan not only on a global basis but also on a long- term basis. Local coalitions of Canadians interested in making investments in democratic economic organizations can join with each other to form a national coalition. The groups interested in this type of investing already work together on many issues. They now should consider working together on the issue of investment capital.

Ted Jackson is an Ottawa-based consult- ant in economic planning and human- resource development. This article is adapted from a presentation to a work- shop at the Citizens' Summit Conference One of the many Caja branches in the Basque country. held in Toronto in June, 1988. He can be contacted at Suite 712, 151 Slater Street, Ottawa, Ontario K1 P 5A3; (613) 230-5221.

Worker Co-op Summer 1989 17 FORUM

Los Andes Wholefoods & Cafe in Hackney, England; one of the new gener- During the last 15 years in Britain, ation of British worker co-ops. III hundreds of new worker co- operatives have been formed. While many of these new enterprises are small, there is growing interest in co-operative production, in part evidenced by the formation of numerous, local co-operative- development agencies. It is curious then, The lessons of history that in the midst of this co-operative renaissance, that the number of older worker co-operatives in Britain should be on the in financing co-operative decline. In 1911, there were 84 worker co- operatives in Britain, some of them with development hundreds of members. By 1958, there were only 28 affiliated to the Co- operative Productive Federation, al- By Paul Derrick though one, Ideal Clothiers Ltd. had more than 800 workers. Today only three of these remain: Equity Shoes Ltd. in Leicester; N.P.S. Shoes Ltd. in Wool-

18 Summer 1989 Worker Co-op The issue is: how can ｭ･ｭ｢･ｮｾ＠ more adequately aston; and Northants and Queen Eleanor Additional shares in a co-operative en- Ltd. in Kettering. The others, most rec- share in the terprise do not imply additional ently Leicester Printers Ltd. , were taken privileges. Voting in co-operative over or otherwise turned into conven- growth of their societies is, of course, not in proportion tional capitalist enterprises. to the shares held but is equally distribut- Most of these worker co-operatives co-operative's ed among the members. In other words, were successful enterprises. The reasons bonus shares serve only as some recogni- for their takeover or conversion provide assets and yet tion of growing equity that is the product important lessons for what is still a sti II adhere to of members' labour. youthful worker co-op movement here The issue of tax liability for invest- and in North America. the principle of ments in worker co-operatives is also important. In 1978 the Labour Government Co-ops sell out limited return on introduced a tax concession to encourage Some of Britain's older worker co- employee shareholdings which enabled operatives ran into financial trouble capital? firms to issue bonus shares free of per- because they distributed too much of sonal income tax. For reasons that were their surplus to worker-members, there- not clear worker co-operatives were ex- by failing to adequately re-invest earn- cluded from this concession, and it was ings or maintain adequate reserves. An- more than the value of their shares. This not until many amendments later (in other reason, however, is that the mem- was the fate of West Cumberland 1986) that this discrimination was re- bership sold out in order to realize a Farmers, the largest agricultural co- moved. substantial capital gain. This happened operative in Britain. Could consumer co- with Wigston Hosiers (in the 1960s), operatives be ripe for takeover too? Tax concessions Cardiff Printers and Avalon Shoe. When The marketplace is full of predators. If In some jurisdictions, worker co- Bristol Printers was wound up after 68 we are to maintain larger co-operative operatives are limited by guarantee and years, the shares which had been re- enterprises and also develop new ones, thereby prevented from issuing shares. deemable at £1 became worth £28. Con- the movement must address the problem This is the case with co-ops registered trary to the principle of limited return on of capital formation . The issue is: how under the ICOM Model Rules. Tax con- capital, co-operatives incorporated can members more adequately share in cessions, in such cases, could be exten- under the Industrial and Provident the growth of their co-operative's assets ded so that people could invest in their Societies Acts have been allowed to dis- and yet still adhere to the principle of co-operatives by making loans to them, tribute their residual assets to members in limited return on capital? free of personal tax. That is to say, when proportion to their shareholdings. In One approach taken by worker co- members of worker co-operatives re- other words , upon dissolution a co- operatives is to allow members some invest part of their earnings, those earn- operative's shares can increase in value, share in the growth of their enterprise's ings should be exempt from income tax. in effect becoming like the shares of assets in proportion to pay. Ideal It would also help development if co- other kinds of enterprise. Hence, where Clothiers adopted bonus shares in 1904. operatives were free from corporation there has been a significant gap between The Mondragon co-operatives have, for tax, except when earnings are distribut- original share values and assets, co- the last 30 years, achieved a high degree ed. John Moore found this an operatives have been ripe for a takeover of member re-investment through the use "interesting" suggestion when he was at or a sellout. of "capital credits" which are like bonus the Treasury in 1985 , but thought it might shares issued in proportion to members' encourage the conversion of companies Limited return work contributions. into co-operatives. This has not been a problem for co- Co-operatives have difficulty compet- operatives incorporated either using the Bonus shares ing with large private chains. If they can model rules of the Industrial Common The Plymouth Co-operative Society, a be encouraged to plough back a high Ownership Movement (ICOM) or in consumer co-op in Britain, allowed proportion of earnings, with members countries with laws prohibiting the distri- members to share in the growth of assets sharing in the growth of assets through bution of residual assets . However, the by issuing, in 1971 , special bonus shares the issue of bonus shares or loan stock, principle of limited return on share capi- in proportion to purchases, redeemable they should be able to compete more ef- tal is not one widely promoted by co- only upon reaching retirement or leaving fectively. operative activists in today's en- the district. Presumably, agricultural co- Paul Derrick is a co-op activist and au- trepreneurial environment. operatives should be able to issue bonus thor in the United Kingdom. His pub- Takeovers are not just occurring in shares in proportion to trade. Both con- lications include Co-ownership, Co- manufacturing. Agricultural co- sumers' and agricultural co-operatives operation and Control (London: Long- mans, 1969). He can be contacted at 30 operatives in Australia have been taken could be empowered to issue bonus shares Wandsworth Br. Rd., Pulham, London, over when farmer-members were offered to their employees, also free of tax. U.K. SW6 2TH; (01) 736-4514.

Worker Co-op Summer 1989 19 PROFLE Breton (UCCB). "No so-called policies have helped. It's not simply an economic problem - it's a social, political and a Four people guarding cultural one. The loss of self-esteem and self-reliance has to be stopped and a sense of worth must be built around our a fragile legacy Gaelic culture." Ironically, Jim Watson and John Shaw, the two Gaelic-speaking members Cape Gael Associates Co-op of the co-op, are not originally from Cape Breton. Watson, brought up on the By Veron ica Gillies coast of Maine, first became interested in Gaelic when he worked with Gaelic- speaking Irish immigrants in a graveyard in South Portland. "I became intrigued, Summertime in Cape Breton. Kilts and the more I found out about their cul- II are conspicuous at every Scottish ture, the more intrigued I became." festival, sales of tartan cloth skyrocket When he later travelled to Ireland and and the sound of fiddlers and the swish of Scotland, Watson became "fervently im- square-sets can be heard in steamy halls passioned" about the loss of this culture. across the Island. Despite these appar- He came to Nova Scotia 15 years ago to ently healthy signs of a Scottish pres- investigate the state of Gaelic culture ence, some are worried that the Gaelic here. He ended up marrying a Cape language - the very core of these tradi- Bretoner and settling in River Denys, In- tions - is being ignored. verness County, eventually learning Ellison Robertson, Donnie MacGil- Gaelic both through courses and directly livray, Jim Watson and John Shaw from older people in the area. A teacher formed Cape Gael Associates Co-op in by profession, he now teaches Gaelic 1987 to remind people about the culture each summer at Iona Highland Village. that led to those Scottish traditions. And they are well-suited to the task. Between The '60s influence the four of them, they share a mere 10 Shaw grew up in central Ohio. He heard university degrees in the fields of social about Cape Breton and its Gaelic culture and labour history, fine arts, education, as a linguistics' student in the early '60s. Celtic studies and linguistics. Two speak He spent two summers studying Gaelic and teach Gaelic and all have had books in Glendale, Inverness County, and published on this topic. They share a moved there permanently after complet- common concern about the neglect of ing a master's degree in Celtic studies Gaelic culture in Cape Breton - the only and a doctorate in linguistics. He became region in North America where tradition- a co-ordinator of Celtic studies at the al Gaelic language and culture remain. College of Cape Breton (now UCCB), with the task of making Gaelic culture Making a difference and language available to the communi- If existing institutions were not going to ty. He soon discovered, however, there respond to the problem, the co-op would. were no appropriate teaching materials According to Robertson, an artist and that applied to Cape Breton's situation. fiction writer, it "just seemed logical" to "I became aware that Cape Breton was form an organization once the ideas for an extremely important area worldwide projects started to flow. The community- as far as Gaelic was concerned and that based structure of a worker co-op this valuable resource was not being appealed to them as a small community guarded by our institutions," Shaw says. could relate to it and it was consistent "Over the last 10 years, we've lost a with Gaelic tradition. great opportunity to record local history "Since the 1920s, the entire region has - we've lost half the population of been in an economically bad situation," Gaelic speakers here. If work had been says MacGillivray, a professor of social done back in the '70s by institutions that history at the University College of Cape are gobbling up taxpayers' money,

20 Summer 1989 Worker Co-op Cape Gael Associates Co-op, I. to r.: John Shaw, Jim Watson, Donnie MacGillivray, and Ellison Robertson. things would be a lot different." also hopes to publish a book of Gaelic Over the last reminiscences by Cape Breton Gaels. Co-op very active Robertson and Watson have already pub- In their short time together, the Cape 10 years, we've lished one, called Sealladh Gu Taobh (A Gael co-op members have been trying to Sideward Glance). They are also plan- encourage the development of the Gaelic lost a great ning other projects to make Gaelic lan- language, traditional singing, instrumen- guage and music more accessible and tal music, dance and story telling in a va- opportunity to more closely linked to the economic and riety of ways. They helped organize the social development of Cape Breton. To International Conference on Gaelic and record local achieve this goal, they are looking at her- Culture held at the UCCB two years ago. itage development in other countries. They organized a Gaelic show through history - we've To Shaw, Gaelic language and music UCCB's Gaelic Cape Breton Island Play is as tangible an asset as any natural re- Group Fund. (UCCB set up the fund after lost half the source. If it is to be there for those who the International Conference to assist in come later, it must be preserved. the establishment of Gaelic pre-schools.) population of "The choice is up to us," he says. "To They have carried out consultancy work remain Gaels people have gone through a for post-secondary institutions and Gaelic speakers lot of adversity. We have a responsibility produced Gaelic learning materials to look after the culture." based on local cultural resources. They here. arranged a three-week series of lectures For more information about Cape Gael for Elderhostel last fall about Cape shows were so successful that Cape Gael contact Jim Watson, River Denys, Nova Breton Gaelic culture. One of their was asked to organize another one for Scotia; (902) 756-3142. proudest achievements was the Gaelic Vancouver's Folk Festival the following Cape Breton show they organized for year. Veronica Gillies is a communications assistant with the Innovations Project, St. . Expo '86. Fifteen performers put on 33 Besides their' plans to organize more Francis Xavier Extension, Antigonish, shows over a two-week period. The Gaelic Cape Breton shows, the co-op Nova Scotia B2G 1CO; (902) 867-5165.

Worker Co-op Summer 1989 21 By the middle of the 1800s, Canadian workers (like their counterparts in Great Britain and industrial Europe) were organizing co-operatives to protect themselves from capitalism's ravages.

Organized labour encou raged worker co-ops in the 19th century By Grant MacDonald

Few of us recognize the depth of des Co-operative Association was incor- II Canada's co-operative history . By porated to "carry on a general mercantile the middle of the 1800s, Canadian and manufacturing business on the princi- workers (iike their counterparts in Great ples of co-operation, cash dealings only Britain and industrial Europe) were or- and mutual participation in profits." ganizing co-operatives to protect them- The Iron Moulders International Un- selves from capitalism's ravages and to ion in Toronto founded as many as 20 co- gain some political and economic control operative foundries in the 1860s. Al- of their society. though many of these were in southern One of the earliest co-operative experi- Ontario, at least one was reported as ments occurred on the east coast. The Car- under construction in the Maritimes. A leton Co-operative Society was started in March, 1868, letter in the Moulders 1864 in Saint John, New Brunswick, for Journal declared that strikes were "manufacturing and commercial purpos- 'played out' and that unions should go all es." Three years later, the SaintJohn Tra- out for the co-operative movement.

22 Summer 1989 Worker Co-op At its Toronto convention in July ofthe were started. At the height of the nine- same year, the Moulders changed the hour struggle in 1872, the Ontario Work- The Knights of name of its union to the Iron Moulders man became a co-operative venture, but International Co-operative and Protect- lasted only six months. D.J. O'Don- Labour, the most ive Union, with amendments to the con- oghue's Labor Record which was started stitution and provision for serious in 1886, lasted a year. In 1892, during important promotion of co-operati ves. In 1873, one the strike at the News, a group of printers national labour union official stated that co-operative banded together and founded the Star. It, fo undries were "the sovereign balm for too, lasted about a year, despite financial organization all our wounds; the morning star, hailing support from the Toronto Typographical the coming day of labor's redemption." Union and the Toronto Trades and La- in Canada prior But he added that any such enterprises bour Council. had to be carefully planned. In 1878, cigar makers established the to 1900, was a Toronto Co-operative Cigar Manufac- Best shoe factory tory Association. The Toronto Typo- strong proponent In February, 1869, 15 members of a local graphical Union assisted the venture by of the Knights of St. Crispin, a taking 20 shares for which it was allowed of co-operation. shoemakers' union which, for a time, a representative. The Association's fac- was one of the most powerful interna- tory opened for business in March, 1879, tional unions on the continent, es- and a year later was reported to be doing tablished a co-operative shoe factory in fine. Saint John. The Crispins were ardent Journeymen Bakers in Halifax, strik- cluding at least one operation in Toronto supporters of co-operative principles, ing against a number of bakeries includ- which lasted about two years in the mid- which they considered "a proper and suf- ing Moir and Company in 1882, es- 1880s. ficient remedy for many of the ills of the tablished a co-operative bakery which present system ... " ByJuly, 1869, the co- survived for three weeks. After that, the The Knights of Labour operative had 150 members. Shares were workers were rehired by their employers The Knights of Labour, the most impor- $50 each, and available to Crispins any- at the wage they had demanded and with tant national labour organization in Can- where. Their sale is reported to have real- a shorter working day. In 1887, Ham- ada prior to 1900, was a strong proponent ized $20,000, and the factory is de- ilton bakers successfully used the threat of co-operation. After 1880, the scribed as the best shoe factory ever star- of a co-operative bakery to win their Knights, one of the first unions prepared ted in that city. demands and in doing so demonstrated Printers were another craft with an in- their interest in some of the basic el- terest in co-operative production. In ements of workers' control. There were Toronto three co-operative newspapers other forays into co-operative baking in- Quarry workers in the old days.

ｾｾｾＭＭＭＭＭＭＭＭＭＭＭＧｾＭＭＭＭＭＧＧＧＧＧｾＭＭＭＭＭＭＭＭＭＭｾｾＭＭｾｾＭＭＭＭＭＭＭＭｾｾｾｾｾｾ＠ o 8'

Worker Co-op Summer 1989 23 to organize both the skilled or unskilled, organized a co-operative foundry early in Workroom of Women, circa 1890, cour- significantly raised the consciousness of 1872 after losing a strike at the Soho tesy public archives of Nova Scotia. workers, employers and entire communi- works. And, although few details have ties regarding the co-operative alternative. been uncovered, the Working Womens' regularly reminded of examples else- The Knights did more than advocate Protective Association, following a where that had not. Hope remained for co-operation. Through local assem- strike, set up a co-operative glove factory strong. Perhaps co-operative organizing, blies, the Knights operated grocery co- in Toronto in 1893. like trade union organizing, would require operatives in Hamilton, Ontario; more than one attempt. Nanaimo, B.C.; and Sherbrooke, A community of workers Much of the interest in co-operative Quebec; and started or supported The co-operative experiments in the 1800s production came from craftspeople, worker-owned enterprises, including a reflects more than some pockets of interest. from workers whose ability to put their printing co-operative in Toronto, a co- Rather, there was a growing class con- own stamp on their product had not yet operative biscuit and confectionery sciousness and a community of workers been taken away from them. Interest in works in Chatham, Ontario, a shoe com- identifying with each other's plight. They co-operation came as a logical extension pany in Montreal, and a knitting factory recognized the common enemy of industri- of their knowledge of their trade and their in Norwich, Ontario. al capitalism and communicated their con- refusal to accept management's views of Cigar makers in Stratford, Ontario, cerns, strategies and ideas across geo- how things should be run. "It was easy also founded a co-operative factory in graphic, industrial and craft boundaries. for workers to believe," as Kealey notes, 1886 which was owned by the Knights of As Canadian workers organized them- "that all the capitalists brought to the Labour and run under Cigar Makers In- selves, they became aware that their process was capital" and that "an alterna- ternational Union rules. It employed be- power might be used not just to limit the tive source of capital would transform tween 20 and 30 people and produced a power of capitalists but also to transform the society." brand known as "the Little Knight." The society. Co-operative institutions, initi- Knights were also behind another co- ated by trade unions and controlled by This article draws heavily on Eugene operative cigar factory in Belleville. the working classes, might become a ma- Forsey's, Trade Unions in Canada, Although opposed to strikes as a jor agent of change. It was an idea that 1812-1902 (University o/Toronto Press, means of change, the Knights did not was talked about within most working 1982); Gregory S. Kealey's, Toronto avoid them. They were at the centre of class organizations of the period. Workers Respond to Industrial Capi- the dramatic Toronto Street Railway As labour historian, Greg Kealey, has talism 1867-1892 (University o/Toronto strike in 1886 and the attempt by the suggested, worker co-operatives were im- Press, 1980); and Greg Kealey and workers to establish an alternative co- portant because they "flowed directly Bryan D. Palmer's, Dreaming of What operative transportation system. Al- from the shopfloor experience of people Might Be: The Knights of Labour in though the co-operative bus service did and the practices of their unions in strugg- Ontario, 1880-1900 (Cambridge Uni- not last more than a month and a half, it ling to control production." Co-operative versity Press, 1982). met with considerable support from the experiments, although they were often public and other trade unions. short lived, were valuable both symboli- Grant MacDonald Is an adult educator at Henson College of Public Affairs and Co-operative experiments occurred in cally and tangibly as a testament to the Continuing Education, Dalhousie Univer- other industries and trades. Machinists potential for worker self-management. sity In Halifax, Nova Scotia B3H 3J5; and blacksmiths in Toronto reportedly While local efforts "failed," workers were (902) 424-2526.

24 Summer 1989 Worker Co-op A primary institution of mutual self-help for the ethnic working class in northeastern Ontario and one of the more unique operations in Canadian co-operative history.

By Peter Vasiliadis

The Workers' Co-operative of New Ontario was a political battleground in the 1930s

In November, 1980, the last remain- atory restnctlOns of the metropolitan II ing store of the organization known south, capitalists have usually been able as 'The Workers' Co-operative' was to do what they pleased. This was most closed in Timmins, Ontario, an area of apparent after the First World War when Northern Ontario once known to gold- the goldminers of the Porcupine Camp miners as Porcupine Camp. This was the were faced with the problems of rising quiet termination of what had been one of inflation and decreasing wages. The the most unique co-operative operations mining companies were able to blunt any in Canada. reaction by dividing the workers along From its debut in 1926, The Workers' ethnic lines. They promised Canadian Co-op rapidly expanded to include a bak- citizens job priority and access to ery, dairy, boarding house and stores in bargains in newly-created mine-owned Timmins, Schumacher, South Porcup- stores in return for maintaining the la- ine, Connault, Larder Lake and Kirkland bour peace and being vigilant against Lake. While it originally began as busi- 'aliens.' Although similarily grim eco- ness, its reputation, indeed its notoriety, nomic conditions led to the creation of stemmed from its political and ethnic ac- co-operatives in other Canadian mining tivities. communities, the workers had invariably In the natural-resource-rich region of been supported by strong unions. In the northeastern Ontario, far from the regul- Porcupine Camp there was no such

Worker Co-op Summer 1989 25 thing. The initiative, however, would an effort to nullify a confrontation with of 'one-person/one-vote', was also a ma- come from a new quarter - from the militant immigrants, in 1927 an amend- jor weakness, as it allowed vocal in- very immigrants who were under attack. ment was made to the Co-operative Un- dividuals and their followers to gain ion charter which forbade political dis- power by showing up at irregularly- Co-operative experience cussions. However, the tactic only attended meetings and voting as a block. The original appeal for a co-operative served to push The Workers' Co-op fur- On February 22 , 1931, the 'take-over' came from the Finns who had experience ther left on the political spectrum. took place at a packed assembly of parti- with such enterprises; co-op stores were These differing interpretations of co- san supporters. The new leadership im- common in Finland as well as in the operativism came to a head in 1928 when mediately changed the character of the Finnish communities of the United the Communist International declared co-op from an emphasis on gradual eco- States. In the Porcupine Camp, the Finns that the working class was entering an era nomic reform to radical political activ- had created informal co-op boarding of a revolutionary class struggle. The on- ism. houses in which compatriots bought set of the Depression seemed to provide The Communists assumed control of shares, rented rooms and were provided verification and gained the Communists the co-op's board of directors and the all- with meals. This model was taken up by many new converts. The Communists important educational committee which other ethnic groups, notably the openly criticized the operation of co-ops had been set up according to Rochdale Ukrainians and recent British emigres. It outside of their party's influence, espe- doctrine to encourage instruction in co- also gained the backing of an emerging cially those utilizing the "utopian" and operative concepts. This committee now Communist group who perceived it as a neutralist consumer approach . They in- assumed a more propagandist purpose. possible political platform, especially af- sisted that all co-ops should be worker- The alteration in co-op objectives was inter its attempt to create a radical trade un- run and politically militant. terpreted to the rank-and-file by Nick ion had failed by mid-1926. The supporters of the Communist Par- Thachuk who became chairperson of the The co-op was incorporated in ty in the Porcupine Camp viewed The education committee. One of Thachuk's November, 1926, with $4,000 in capital Workers' Co-op's consumer orientation other objectives was to transform the co- accrued through the sale of $10 shares. as only momentary expedience prior to op from consumer to employee owner- The organization was officially called the creation of a politically militant, ship. As part ofthis effort, indoctrination 'The Workers' Co-operative of New worker-owned institution. This perspec- meetings were held twice a month to Ontario Limited,' a name which referred tive was espoused by Nick Thachuk who prepare employees to assume control. to the social class of its members rather had the multiple roles of employee and The employees were also compelled to than the structure of the co-op whose secretary of the co-op, as well as being participate in summer courses sponsored members were its consumers. There was the Ukrainian community leader and by the Communist Party to enhance their no real debate over whether they should head of the local Communist group. class consciousness and to groom them function as a "worker co-op." In a region The Workers' Co-op had accumulated with an absolute class division between a large cash surplus during its first years labourers and capitalists , where the of operation. It maintained a good cash- leaders and customers of the co-op were flow even through the worst of the De- workers, it did not make sense to argue pression because gold mining continued over non-issues, especially at a time to prosper. This privileged position en- when worker-owned establishments hanced its appeal to the Canadian Com- were not considered viable options. munist Party who wanted to use it as a A MAWIII! OF SOCIAL AIID lCOIIOMle PlllCIII .. regional base for its interests. Changes Publl.hed In the Intere.te of the canadilUl Co-operatlve Movement. A pOlitical role were already occurring within the co-op The first manager of The Workers' Co-op which encouraged the Communists. On Vo!.l1, No. 1 OCTOBER, 1919 SOC per Annum was Charles Haapanen, an American July 15, 1930, the manager, Charles THE ONLY SOLUTION Finn . Because he wanted to placate the Haapanen, resigned because of a desire of the host Anglo-majority, he advocated the to return to the United States. His depar- HIGH COST OF LIVING classic Rochdale model which was a ture removed the major stabilizing influ- i. by oreani,in. the control of standard part of Anglo-Canadian co- ence. THE NECESSARIES of LIFE operativism. Through the Rochdale in the interelh of the con.umers model , Canadian co-ops sustained a The Takeover THROUGH CO-OPERATIVE SOCIETIES There can be no profiteering where the people control and direct socio-political "neutrality" that helped to Amos Tobias Hill, Finnish leader and by democratic vote, and divide profits in proportion to pllrchases. I I there is a Co-operalive store in your community jom it. ｾｩｶ｣＠ maintain both capitalist and Anglo con- Communist Party of Canada politbureau it all the trade you can. and induce your friends and neighbours to do Iikewbe; the ,,::reater the trade. the greater the ｳ｡｜ＧｩｮｾＮ＠ trol. For the immigrants, situated in en- member, was transferred to the Porcup- I f you have no Co-Operative store, and you and youI' (riends wish to organize one, (or information and advice vironments where class and ethnic con- ine Camp to direct party supporters. Write to THE ORGANISATION DEPARTMENT fl icts were the norm, this perspective was With Hill operating among the Finns and THE CO·OPERATIVE UNION OF CANADA. nothing short of insane. They refused to Thachuk among the Ukrainians, the ｾ＠ BRANTFORD. ONT. regard The Workers' Co-op as a sanctu- Communists prepared for the expropria- ary from a politicized world. Their inter- tion of The Workers' Co-operative. Party for their proper position in the co-op. pretation of co-operativism resulted in supporters bought shares in the co-op Yet , despite promises, there was little ac- mistrust from the Co-operative Union of and, if they owned multiple shares, sold tual progress toward a worker co-op, as Canada (the national organization of the them to Communist sympathizers. Hill the political objectives of the Communist co-operative movement), which was and Thachuk understood that one of the Party surmounted any such attempt. The controlled by Anglo-Saxon farmers . In major strengths of co-ops, the principle vision of a worker co-operative was ef-

26 Summer 1989 Worker Co-op Western Federation of Miners Local was to prosper economically under Com- ric about class struggle was evocative of 145, Porcupine, Ont., circa 1919-20. munist control, expanding its number of another time when there was no respon- stores and adding a bakery, dairy and sive government or strong unions. fectively misappropriated by political in- boarding house, it was nevertheless Steeped in political ideology, the terest and could not overcome it. politically marginalized and, in the final members were unwilling to run the oper- The Communist Party found it expedi- analysis, unsuccessful. Eventually, a ation simply as an economic enterprise. ent to maintain control of The Workers' new co-op - 'The Consumers Co- Ironically, The Workers' Co-op assumed Co-operative as a regional power base operative Society Limited' - created by the role it had previously despised of and a milch cow from which they appro- Workers' rivals and run by former mana- others: utopian idealism without regard priated funds to finance supporters ger, Charles Haapanen, who had re- to reality. Unable to adapt to change, it across Canada. The co-op also served as turned from the United States, acquired was reduced to a single small store in a refuge, providing employment for greater support because it publicly South Porcupine, which held on tena- those party members who lost their jobs stressed its political loyalty . Particularly ciously but was finally forced to close in because of their political activities. If the after World War II and at the start of the 1980. With it went what had once been a party surrendered control to the co-op's Cold War, The Workers' Co-op became a primary institution of mutual self-help employees, it might have lost these lone cry in the northern wilderness, as its for the ethnic working class in northeast- benefits, since it could never be certain laudable but prosaic resolutions on issues ern Ontario and one of the more unique that worker loyalty to the party would such as world peace and the atom bomb operations in Canadian co-operative his- override loyalty to the co-op and the em- met with indifference, if not outright tory. ployees' own interests. The worker as hostility. consumer and employee could be con- Inevitably, The Workers' Co-op found This article is adapted by the author from trolled. However, it was unlikely that it difficult to retain supporters, even his thesis research. He has published a workers as owners could be so manipu- among its old allies who no longer longer piece on The Workers' Co- lated. wished to advertise their political affili- operative of New Ontario which can be found in Canadian Ethnic Studies, Vol. 17, ations. The Workers' Co-op's dwindling No.3, 1985. Peter Vasiliadis can be con- Successful, yet marginal membership, old but resolute, Were still tacted at 6 Averill Cresent, Willowdale, Although The Workers' Co-operative ready and willing to fight, but the rheto- Ontario M2M 2A9; (416) 226-2263.

Worker Co-op Summer 1989 27 As in France and England, Quebec unions and worker-production co-operatives were intimately linked in defending the concerns of workers. The worker co-operative permitted unionized workers to support themselves during long strikes. ｾＮＧ＠ . 'iff'"r

James John Harpell, founder of the oldest surviving worker co-op in Worker co-operatives Canada. in Quebec from 1865 By Alain Bridault and Ginette Lafreniere

In 1865, Quebec's first worker co- As in France and England, Quebec II operative - "La cooperative de unions and worker-production co- construction de Quebec" - provided operatives were intimately linked in work for approximately 40 people. I defending the concerns of workers. The This co-operative was part of the "So- worker co-operative permitted unionized ciete des charpentiers de navire," workers to support themselves during which itself was founded in 1861 and long strikes. Historians have noted many was comprised of about 750 members. examples of striking workers forming At that time naval construction for the worker co-operatives: the first luggage British Empire brought prosperity to co-operative in 1887, the Franklin Co- Canada's eastern ports. A co-operative operative Press in 1888, a co-operative bakery was created by the "Grande As- of shoemakers in 1887, the Point-Saint sociation," a worker organization Charles industrial co-operative in 1886, founded in 1867 by Mederic Lanctot. and a cigar production co-operative in With the influence of The Knights of 1893. Other than the cigar co-operative Labour, we can observe a concerted ef- which endured to the 1930s, these first fort in Quebec to develop worker-pro- worker co-operatives rapidly disappea- duction co-operatives. red.

28 Summer 1989 Worker Co-op After the founding of the Labour Party more than 30 years old today with multi- in the purchase of machinery. Others did in 1904 and after the election of the first million dollar sales. The workforce for not even own basic machinery. They Labour parliamentarian, A.T. Lepine, these forestry co-operatives consisted of could be described as manpower co- and with the influence of the European subsistence farmers who wanted to operatives (a term used by the Interna- movements, the socialist-labour move- supplement their meager earnings. At tional Bureau of Labour), similar to the ment received a second wind. A "so- that time, outside the rich agricultural Italian "Bracchianti" agricultural co- cialist commune" was established in lands of the Saint-Laurence basin, farm- operatives. Montreal in 1907. The socialist leader, ing was subsistence only - a few cows The modem forestry co-operatives in Albert Saint-Martin, and a nucleus of and animals, and a large garden. Other Quebec differ from their forerunners be- militants created Quebec's version of than some revenues from the sale of cause they are mature businesses with a Rochdale. It included the esperanto co- cream to small co-operative creameries strong membership base and with con- operative (two co-operative stores), a which survived up until the 1960s, an es- siderable assets in equipment, factories, collective farm (the Kanado) started in sential part of the habitants' income etc. Yet they, too , remain apart from the 1914, a newspaper "Spartakus," and a came from the labour of father and sons other worker co-operatives of the printing press which later became a co- in the large timber yards during winter. province. The 32 forestry co-operatives operative in 1932. A labour university The paper mills, which exploited the and their 3300 members have formed was also created but disallowed in 1933. large concessions granted by the govern- their own organization, a council, rather These first experimental worker co- ment for public forests, contracted the than joining the provincial federation . operatives did not enjoy a future. Unlike timber-cutting to "jobbers" who in turn France and Italy, Quebec did not have hired the lumberjacks. They lived in un- The Post-War: An Exceptional the necessary support system for co- healthy quarters and worked for pitiful Case, Harpell3 operatives. It is important to remember wages based upon the cords of wood that In 1945, James-John Harpell, philan- that up until the first world war French- they cut. Even today, the Irving timber- thropist and proprietor of printing Canadian society was predominantly ru- yards in New Brunswick continue this presses in Toronto and Saint-Anne de ral. The other co-operative movements type of exploitation. Bellevue, decided at the time of his which took hold at the time corresponded The forestry co-operatives were creat- retirement to bring the businesses under to the sociological needs of the people: ed to fight against exploitation. Often en- the control of his workers by converting credit unions (financial co-operatives) couraged by the parish priest, they ente- them into worker co-operatives - The that provided credit and protection red successfully into competition with Garden City Press Co-operative in against usury and marketing and pur- the jobbers. However, the original for- Toronto and Harpell's Co-operative in chasing co-operatives for farmers . estry co-operatives differed from other Quebec (the latter being changed to the Therefore, worker co-operatives direc- forms of worker co-operatives in several French name, "L'imprimerie cooperat- ted at the craftspersons and labourers of ways. Some forestry co-operatives were ive Harpell," in 1977). James J. urban centres corresponded to the similar to agricultural co-operatives, that Harpell's vision extended far beyond the specific needs of only a small is , semi-autonomous owners co- proletarized minority. It is important to operating in the marketing of wood and Garden City Press, 1920. note that the strong influence of the Cath- olic Church and its virulent anti-socialist campaigns did manage to contain any tendency towards the development of worker co-operatives during this period.

The Second Wave: Forestry Co-operatives When the Antigonish movement started its study groups during the Great Depres- sion, not only did it influence the creation of forestry and fishing co-operatives in Nova Scotia, but also in the Acadian peninSUla and amongst French Canadian communities on the other side of the Baie des Chaleurs in Gaspesie. The first forestry co-operative was founded in 1938 in Grande-Vallee. By 1970, 166 forestry co-operatives had been created in such places as Gaspesie, Saguenay lac St- Jean, on the North coast, in Abitibi Temiscamingue, and in the Appalachians.2 Forestry co-operatives were created primarily in rural areas where public forests constituted close to 90 per cent of woodland. Most survived only a few years; others, however, are

Worker Co-op Summer 1989 29 operatives have sought help from financial institutions, mainly because of loan guarantees from La Societe de developpement des cooperatives, a provincial government agency. It is important to note that 35 large co- operatives undertake 90 per cent of the total business and have around 40 per cent of the total members. These are the oldest co-operatives. (Twenty are more than 10 years old.) They are, by and large, forestry co-operatives which operate in the hinterlands of Quebec.

An AnalysiS of the Contemporary Movement The current development of worker co- operatives in Quebec and Europe is a relatively new social phenomenon which has accompanied the change from an industrial to a post-industrial society. Vari- ous social groups are beginning to utilize creation of a worker co-operative. Like expectations that were raised. the co-operative way of work to defend Robert Owen of New Lanark, Harpell their socio-economic interests. We dis- also created a model community in Ste- Quebec Labour Co-operatives tinguish four social layers which contain Anne de Bellevue in 1919 for the press in the 1980s a potential for the creation of worker co- workers. Developed as a "garden city," Due to the Quebec government's actions operati ves . in the image of its European and Ameri- in establishing both a special-aid can counterparts, this community was program and a specific legislative frame- The "Traditional" Craftsperson part of Harpell's heritage to his workers. work, worker co-operative development Traditional crafts persons constituted the In 1922, Harpell also founded the Insti- took off during the 1980s. By 1985,178 majority of members in the French tute of Industrial Arts for professional worker co-operatives with 7,341 movement prior to the boom in worker and continuing education of the workers. members were registered. They co-operatives. They can be found in con- The Harpell Co-operative Press was furnished around five per cent of the total struction, public works , and printing. In exceptional because it was created from of small-business manufacturers and Quebec, the labour legislation in con- the conversion of a healthy business. It roughly 0.4 per cent of the total of struction (the union monopoly on hiring) was for a long time the largest Canadian Quebec workers. Other noteworthy limited the creation of worker co- worker co-operative both in terms of characteristics are as follows: operatives in this sector, but the forestry revenues and its working members. In 1. Of 178 co-operatives, 104 were co-operatives have attracted these types 1986 it had nearly 200 workers and about founded between 1981 and 1986,33 be- of "artisans." $12 million of sales. tween 1975 and 1986, and 41 between These "free labourers," according to 1940 and 1976. the expression used in the past century, A Second Exceptional 2. The co-operatives are predominant- have been hurt by the computer revolu- Case: Tricofil ly in the primary sector (natural tion which has wiped out certain jobs. In In 1973, when the Regent Knitting tex- resources) and the service sector. the printing industry, the typographers tile factory of St-Jerome closed its doors, 3. Worker co-operatives are found - the labour aristocracy of the past cen- the workers decided to buy the factory in predominantly in the peripheral regions tury - were almost wiped out in one order to save their jobs. Similar to the of the province. The large region of decade. LIP in France and the Meridian Motorcy- Montreal has only 23 co-operatives, 22 cle in England, Tricofil became, because per cent the total. Similar numbers are Workers of the "Weak" Sectors of intense publicity, a cause celebre. found in Saguenay and in Abitibi. There are many examples of the closing Tricofil was, at the beginning of the 4. With the exception of forestry and of factories being prevented by the for- 1970s, seen as the finest example of a taxi co-operatives, worker co-operatives mation of worker co-operatives. In weak self-managed firm. This experience are comprised of very small businesses. sectors of the economy, such as the tex- revived the worker co-operative 5. These co-operatives undertake what tile industry, the labour co-operative is a movement in Quebec and the role of or- we call the "second market of work." means of job maintenance. There are ganized labour in worker co-operatives. The work is often seasonal and may have many examples both in Quebec and in Even though Tricofil did not become in- other uncertainties associated with it. Europe: the buyout of Tricofil by the corporated as a worker co-operative till 6. Financing of worker co-operatives FfQ, the LIP adventure in France, the the very end of its existence in 1981 , its differs in the 1980s as opposed to the conversion of Manufrance by the CGT, ultimate failure as a business was a set- 1970s. The federal and provincial grants and Meridian Motorcycle in England. back to the movement. The disenchant- represent but a small part of the financing During the 1970s a new category of ment following Tricofil was due in part to obtained in the 1980s. Worker co- worker ｾ＠ co-operatives was created that

30 Summer 1989 Worker Co-op was no longer craft-like but industrial. by students and workers of high professi- These factory workers form the most im- onal qualification. This new "salaried These first portant contingent of new members of elite" is similar to the "labour elite" or experimental worker co-operatives. craftspersons of the last century. Like the labour elite it is utilizing the worker co- worker The White Collar operative as a specific mode of work or- "Neo-craftspersons" ganization. co-operatives did White collar neo-craftspersons and intel- lectual workers are another group that is The "Non-class" not enjoy a future. revitalizing the worker co-operative Finally there exists what Gorz called the movement. They are in all new trades "non-class," the new "Iumpen prol- manpower co-operatives in Paris are, in which treat information like merchan- etariat," an increasing mass comprised of fact, protective organizations for mar- dise, the artistic trades, and notably the structurally unemployed and "marginal" ginal workers. This type of co-operative professions. workers. is undouotedly destined for greater de- They are the heirs of the blue-collar This "social layer" is the target of gov- velopment where it is possible to harmo- craftspersons. It is amongst the neo- ernment policies that favour the creation nize the interests of marginal workers crafts persons that the co-operative vitali- of worker co-operatives as institutions of and national and multi-national enter- ty is strongest. They are the ones who an- "social daycare." Because the more dis- prises and, of course, where the co- imated the self-managment wave of the advantaged of the non-class do not par- operatives do not contradict the interests 1970s and who developed a growing ticipate in the labour force, their mobili- of the unionized workers in the same sec- demand for improved quality of life at zation ｩｾ＠ very difficult. tor of the economy. work and in other endeavours. It is Under the guidance of the state, a new In conclusion, the small creative amongst this group that a new culture fer- type of organization emerges out of the "boom" in Quebec's worker co-ops at ments - a culture of quality and dignity non-class. These are human resource co- the beginning of the 1980s is finished. It rather than dependence, and a culture of operatives, "groups of co-operative la- was linked to unemployment provoked difference rather than normality. These bour," of which we cannot find any his- by an economic crisis. What remains are ideals exist even though this class is com- torical example in the industrialized the objective structural conditions which paratively privileged. The renaissance of countries, except for the Bracchianti co- have sustained this. rebirth of worker co- worker co-operatives in Europe during operatives and luggage handlers of Italy. operatives. It is probable that this young the 1970s is a direct product of the cultur- Auxi-Plus, a homecare worker co- co-operative sector will continue to al revolution of the 1960s brought forth operative in Montreal, and the temporary develop. As to its rhythm and strength, only time will tell.

This article is excerpted from the chapter, "Social History of Worker Co- operatives in Quebec" , Jack Quarter and George Melnyk (Eds.), Partners in En- terprise: The Worker Ownership Phe- nomenon, Montreal: Black Rose, 1989 ($16.95).

Alain Brldeault is a researcher at the Centre for Co-operatives (IRECUS), the University of Sherbrooke, and GlneHe Lafreniere Is a graduate student In that same department. Brldeault can be contacted at 1360 Leonard, Apt. 2, Sher- brooke, Quebec J1K 2L6; (819) 569-2434.

'Most of the historical data concerning the nineteenth century is taken from Paul Vincent, "Les caracteristiques propres des cooperatives de travailleurs et leurs conditions historique d'emergence," Montreal, H. E. C. Centre de Ges- tion des cooperatives, cahier 5-85-3, 1985.

2Benoit Levesque et. aI, Profil Socio-Economique des Co-operatives de Travail au Quebec (Montreal: Universite du Quebec and the Comite Provincial des Cooperatives de Travail, 1985.

3The information on Harpell taken from Paul Vin- cent, L' histoire d' une communaute ouvriere et d' une transformation d' entreprise en coop de travailleurs, z.: imprimerie cooperative Harpell, The modern generation of Quebec forestry co-ops, as compared to forestry Montreal, H. E. C., Centre de gestion des coopera- around 1935 (previous page). ti ves, .cahier 5-85-2, 1985.

Worker Co-op Summer 1989 31 Skeptics about worker co-ops

George Keen, Secretary-General of the Co-operative Union of Canada, 1909-1945.

*George Keen and the Co-operative Union of Canada: 1909-1945 By Ian MacPherson George Keen played a significant of those relatively rare individuals who II role in defining the nature and the or- could completely devote himself to a thodoxy of the co-operative movement in cause, even though the personal costs English-Canada. Born in Stoke-on- were high, whether measured in eco- Trent, England, in 1869, he became a nomic or psychological terms. clerk and an aspiring lawyer, before im- Between 1909 and 1945 , Keen served migrating to the industrial city of Brant- as the General Secretary of the Co- ford in 1904. Two years later he became operative Union of Canada, the aspirant involved with the local consumer co- national organization of co-operatives in operative, and this involvement led him English Canada. Until 1918, Keen did to a life-long commitment to the further- not receive a salary for his labour on be- ance of the co-operative movement in half of the Union, and after that date he English Canada. Keen was , in fact, one received a modest salary although it was

32 Summer 1989 Worker Co-op often in arrears. Despite the weakness of relationships were better in co-operatives this support, Keen played a vitally- until at least the middle of the twentieth The organized important role in the development of co- century. operatives in English Canada. He was George Keen absorbed this approach consumer, not the main conduit for the importation of to workplace relationships, although he British ideas about co-operatives - also advocated, li ke many other British ideas that significantly shaped the Engl- co-operators, the vital role of trade the producer, ish-Canadian consumer movement - unions as defenders of worker rights. In and he was one of the principal ex- fact, he spent much of his career promot- should be the ponents of co-operative philosophy in ing co-operatives, with little success, Canada. Thus, in understanding the rela- among Canadian trade unionists. Like controlling tive weakness of the worker co-operative Beatrice and Sydney Webb in Great Brit- sector in Canada, it is important to appre- ain, he believed that the salvation of the force in the ciate George Keen's attitudes towards it. working classes lay in three organiza- To a significant extent, he helped to de- tions: trade unions, which would protect fine the initial attitudes of the Canadian them in the workplace whether co- economy- movement towards issues of worker operatively owned or not; a party which, ownership and control. like the Labour Party in Great Britain, would defend them in politics; and the Co-operative Commonwealth co-operative movement which would Keen was a co-operative utopian; he be- protect their purchasing power in the ized consumer, not the producer - lieved that all economic activities and marketplace. whether farmer or manufacturer - many social activities should be structu- should be the controlling force in the red on a co-operative basis. He believed Consumer dominance economy. Minimum standards of living it was possible to create a "Co-operative One other element in Keen's thought af- should be assured and adequate purchas- Commonwealth" in which people, moti- fected how he viewed worker co- ing power should be universally shared, vated by what he and his mentor George operatives: his belief in the dominance of but the underlying guideline for econom- Holyoake called ' associative intelli- the consumer. For Keen, the notion of ic development should be the production gence,' would build an ideal society production-for-use meant that the organ- of more goods at improving quality to a based on consumption for use and fair re- TilE CA XAOIAX CO-OPER ATon growing number of people. And, indeed, ward for labour. A devout, liberal Catho- it was this vision of an improving lic, his views were drawn from the theo- standard of living for all people that Keen ries of the British co-operative believed should motivate co-operators, movement and the Catholic reform tradi- Mr. Working Man including those in the working classes. tion perhaps best associated with the pa- Keen's first encounter with worker pal encyclical, Rerum Novarum. These Why don't you trade at the control took place in 1910. Samuel Car- two traditions did not always mix com- Co-operative and get most ter, the first President of the Co- fortably , and the issue of worker co- operative Union of Canada, was the operatives was one example of where out of your dollars? successful owner of the Royal Knitting they did not. Mills in Guelph. He was a Liberal, very We carry the best Quality goods and The dominant British attitude towards active in local politics, and with a pater- our prices are as low as any and all worker co-operatives, so well described nalistic interest in the problems of the by Philip Backstrom in Christian the profits go back to our mem- working classes. Approached by the Socialism and Co-operation,in Victorian bers in dividends and interest Town Council in 1910 for ideas about the England, was ultimately unsympathetic. use of a vacant warehouse it owned, Car- The model that came to dominate the M ake up your mind to join to-day and ter suggested the development of a British movement was drawn from busi- help along a movement worker co-partnership which would nesses of the early Industrial Revolution, that will help you. ! manufacture furniture. He promoted the with the sole exception being that co- i idea, apparently with considerable operative managers did not expect, and success, among members of the Town were not granted, salaries comparable to The Glace Bay Co-operative ! Council, the Guelph Trades and Labour managers in private companies. In other Society, Limited. i Council, and the Guelph Board of Trade. words, the hierarchical relationships and Glace Bay, N . S. The proposal fell apart, however, be- authoritarian environments typical of l cause local business people insisted upon early capitalism were perpetuated in Examples of appeals to working a conservative distribution of surpluses British co-operatives, although it is prob- people made by the Co-operative to workers and because of difficulties in ably true that union-management Union of Canada. gaining the support of working people.

Worker Co-op Summer 1989 33 The latter problem and the related difficul- internationally-known Swiss co-operator rience; a failure to collect accounts; high ty of enlisting the support of trade unions who taught at Victoria College, the Uni- labour costs in a low wage industry; and a for co-operative stores, deepened Keen's versity of Toronto. Keen served on the weak board of directors. The best of in- apprehensions that the mass of Canadian Board of the Foundation even though tentions and adequate sums of money workers would ever support the co-oper- from the beginning he was concerned ab- were not enough to secure success. ative movement. out the impractical idealism of some of its leaders. In 1932, the Foundation estab- Hierarchical structures Another failure lished a co-partnership called "Work- Aside from casual contacts with the Gar- Keen's second encounter with worker Togs" to manufacture overalls. Lassere in- denvale Co-operative Press of J.1 . Har- control involved another paternalistic at- vested $15,000 of his own funds in the en- pell, these were the only experiences Keen tempt at creating a worker co-operative, in terprise, but it never became successful. had with workers' control in his 36 years this instance fostered by the Canadian In fact, it closed its doors within a year, as General Secretary. However, these ex- Fund for the Establishment of Integrally after the loss of several thousands of dol- periences reinforced his acceptance of the Co-operative Associations of Producers lars. The company failed, in Keen's view, British movement's view that workers (the Robert Owen Foundation). This because of the unwillingness of the Foun- would enhance their control and protect Foundation was funded largely by a group dation's directors to give significant pow- themselves through consumer societies, of academics in Toronto during the 1930s, er to the workers; a very complicated fi- their political parties and trades unions. but most particularly by Henri Lassere, an nancial structure; a lack of business expe- Keen became something of an authority on management within consumer societies, a kind of business which by its nature tends towards hierarchical structures and strong control mechanisms. Finally, Keen was always impressed by the materi- alistic nature of North American society, a materialism he believed was as deeply im- planted in the working classes as it was among the business classes. He did not believe this materialism, even for small groups of workers, could easily be eradi- cated in his lifetime. George Keen, therefore, was skeptical about the efficacy of worker co-operatives, as much as he wished to believe in them. For him, their time was far in the future, and he consequently did not spend much time promoting them or informing Canadians about their success. Sur- prisingly, though, he was very much in- fluenced by the liberal Catholicism that encouraged worker co-operatives in Eur- ope and, no less than Moses Coady, he was convinced that co-operatives were the best way to liberate the poor and power- less. He logically should have champi- oned worker co-operatives even in an hos- tile environment. He seldom did, and consequently the Co-operative Union, which had considerable moral influence, if little real power, never embraced a cause which should have commanded its interest.

Ian MacPherson is Chair of the History De- partment at the University of Victoria, Vic- toria, British Columbia. He has written numerous books and articles on the co-op- Samuel Carter, first president of the Co-operative Union of Canada. erative movement in English Canada.

34 Summer 1989 Worker Co-op In Robert Owen's Shadow David Dale of New Lanark By David J. McLaren, Heatherbank Press, Glasgow, 1983, 119 pp., £2.50 Reviewed by Jack Quarter

Last summer I visited New Lanark, II a Scottish community made famous by Robert Owen during the early nineteenth century. There, I came across a provocative book, David Dale of New Lanark, and had lunch with its author, David McLaren, who argues that Robert Owen's role in New Lanark has been ex- aggerated. New Lanark was founded in 1785 by David Dale in partnership with Richard Arkwright, the controversial inventor of spinning jenny. This partnership was quickly dissolved, and New Lanark ad- vanced under Dale's management. By the late 1790s, its accomplishments had become internationally recognized: "The Visitors Book contains the signa- tures of students, advocates, writers, Peers, ministers, soldiers and school- masters from such far-flung places as Norway, Jamaica, New York, Germany, Spain, India and Geneva .. . it seems only fair to say that what had been called 'Owen's New Lanark' ... ought really to New Lanark, Scotland, the model community that Robert Owen made fa- be called 'Dale's New Lanark'." mous. From humble beginnings, Dale accumulated great wealth as an importer of achieved a quality of life that was far practical skills (embroidering), hygiene cotton and manufacturer of cotton goods superior to the norms for the late and so on." Religion was also taught. and as the first Glasgow agent of the eighteenth century. The inhabitants were The school served not only the factory Royal Bank of Scotland. He was known well-fed and had relatively congenial liv- workers but also the surrounding village, for his philanthropy and for his benevo- ing conditions. The death rate was low, its enrollment reaching 507 by 1796. lence toward his employees. When the and high standards of hygiene protected Based on their achievement, students first cotton mill at New Lanark burned the community against smallpox and progressed through grades and generally down in 1785, he continued to pay his cholera, both of which were widespread stayed in school until their fifteenth year. employees' wages until production rein Glasgow at that time. sumed. Schooling was free and made availa- Enter Robert Owen The idea of a factory-community was ble during the daytime for children under On June IS, 1798, Robert Owen visited not Dale's invention; according to six (something unprecedented at that New Lanark. A year later, he returned McLaren, others had preceeded 'him by time). Apprentices went to school in the with two partners (Manchester business- at least IS years. Nevertheless, under evening. "The children were taught the men) with an offer to purchase. He was Dale's proprietorship, New Lanark three Rs and church music as well as also to become Dale's son-in-law follow-

Worker Co-op Summer 1989 35 "When Dale sold New Lanark to ing marriage to Dale's daughter, Carol- Robert Owen in 1799, British co-operative movement adopted ine. The advantageous terms of purchase an approach (consumer co-ops) of which of New Lanark reflected Owen's special he sold not only a Owen had been critical. Yet Owen was a relationship to Dale, and in addition , controversial and unorthodox figure in Owen "gained access to plenty of trading profitable enterprise, his time. In the words of one of his capital through Dale's association with but a place which biographers John Harrison , he "provided the Royal Bank." a kind of reservoir from which different However, Owen's interest in New had from its groups and individuals drew ideas and Lanark was less of a business venture and inspiration which they applied as they more of an opportunity to prove hi s outset a tradition chose. Working men and co-operators, theory that human beings were molded of providing good for instance, repudiated Owen's authori- by their environment. For the next 25 tarianism and millenarian ism but drew years, he managed the community accommodation and upon his social theories and anti- through a style that historians referred to living conditions and capitalist arguments." as "paternalistic" and "autocratic"; of Apparently then, New Lanark was more importance, he undertook some also a school." founded by David Dale, who passed it bold education initiatives and made over to his son-in-law. Robert Owen New Lanark famous through his writ- ing good accommodation and living con- added to the community and publicized ings. ditions and also a school. What Owen it. More importantly, New Lanark In Owen's interpretation , he was re- provided was undoubtedly superior so served as an inspiration for Owen's so- sponsible for building New Lanark into a far as schooling was concerned, but the cial theories. model community. Upon his initial visit credit has to go to Dale for establishing a in 1798, he described it as "a primitive school which served the community New Lanark is currently being recon- manufacturing Scotch village and four surrounding the mills." structed under the guidance of the New mills for spinning cotton." McLaren, McLaren's interpretation of New Lanark Conservation Trust. Persons however, argues that Owen never recog- Lanark causes the reader to reflect upon interested in visiting should contact nized Dale's contribution and greatly ex- Robert Owen's contribution to this peri- Lorna Davidson, New Lanark Conser- aggerated his own: od of history. Even though Owen was in- vation Trust, New Lanark Mills, Lanark "When Dale sold New Lanark to volved in many so.cial activities, New MLl1 9DB, Scotland; (0555) 61345. Robert Owen in 1799, he sold not only a Lanark was the primary project upon McLaren's book is available at New profitable enterprise, but a place which which he built his reputation. None of the Lanark for £2 .50 plus £J .50 post had from its outset a tradition of provid- Owenite communes succeeded, and the age.

Robert Owen's management methods Pu blished by The New Lanark Conservation Trust

_ Robert Owen came to New Lanark novative means of behaviour contro!' Yellow - Moderate goodness _ in 1800, already an accomplished Owen's monitor was a small 4-sided Blue - A neutral state of morals cotton-mill manager. He achieved block of wood which hung next to each Black - Excessive naughtiness world-wide fame for his success in New person's machine. The colour facing out Owen wrote in his autobiography: Lanark , both for the social experiments indicated the person's conduct. It was At the commencement of this new he introduced in the village and the busi- the job of the Superintendent of each de- method of recording character, the great ness organization of the mills. partment to set the monitor, though each majority were black, many blue, and a Owen wished to improve the efficien- worker could appeal to Owen, or the few yellow; gradually the black cy of the mill workers, but unlike his Master of the Mill . 'Books of Character' diminished and were succeeded by the contemporary mill owners he did not be- were used to keep a record of the conduct blue and the blue was gradually succee- lieve in physical punishment. Instead he of the workers . ded by the yellow, and some, but at first introduced the "Silent Monitor" as an in- White - Super excellence in conduct very few, were white.

36 Summer 1989 Worker Co-op The U.K. 16 Developing Successful Worker Co-operatives By Chris Cornforth, Alan Thomas, Jenny Lewis, and Roger Spear, Sage Publications, 1988, 245 pp. Reviewed by Donna Huffman

• Developing Successful Worker Co- • operatives is an important addition to the literature. This book is based on in- depth case studies of 16 worker co- operatives in the United Kingdom, most of which have been developed in the past five years as a result of the numerous local CD As (Co-operative Development Agencies). Developing Successful Worker Co- operatives is not the best title that could have been given to the book, however. Relatively little of the book focuses on efforts to develop worker co-operatives, although the final chapter makes some important recommendations for action. Instead, the book concentrates on the experience of existing worker co- operatives: their economic importance; the external factors which affect them; the motivation of their workers in forming the business; and whether degenera- tion into capitalist modes of operation is inevitable. PAPERBACK LTD - recycled paper distributors, London, England; one of The conclusions on all counts are the new generation of British worker co-ops. cautiously optimistic: that worker co-ops can be as economically successful as relations-type tours. It recognizes the years. The authors point out, however, other businesses formed under similar costs of working co-operatively as well that it will be necessary to re-evaluate circumstances; that they serve their as its benefits. It provides answers to a lot these co-ops after they've been operating members' needs well, despite the costs of previously unanswered questions, for at least 10 years. of working collectively; that degenera- such as how worker co-operatives are tion from co-operative goals is not in- managed. It attempts to take the Motivations important evitable; and that local development "member's" point of view, arguing that The motivations of members are often a agencies can be effective in assisting worker co-operatives have not succeeded blend of commitment to an ideological their development. (Statistics quoted in if they do not meet the needs of the viewpoint and the need to create jobs and the book show that on average, two members, be they job creation, collect- earn a living. The authors understand worker co-ops were formed for each ive work or ideological goals. Finally, it that the performance of worker co- CDA staff member per year.) is based on a wide range of worker co- operatives cannot be examined outside of operative experiences, including takeo- the context of these motivations. Collect- Unique approach ver co-operatives, professional-services ive decision-making is an important goal This book is unique in several ways co-operatives, job-creation co-oper- in many of these co-operatives, but at the which make it especially useful to prac- atives and alternative co-operatives. This same time members realize the inef- titioners. It is based on in-depth studies range was made possible by the large ficiencies of full participation at every of the co-operatives and interviews with numbers of worker co-operatives created level of operation. The worker co- workers and managers, not just on public in the United Kingdom in the past few operatives described in the book are chal-

Worker Co-op Summer 1989 37 lenged by the need to balance the benefits of involving every member in every decision with the efficiencies of setting up a hierarchical organization which removes members from many types of decisions. OUR TIMES There are interesting discussions on the role of the managers , the rotation of job responsibilities and decisions by the member- "A pioneer labour journalist once ship. Some of the co-operatives suffered from being overly dependent on a manager's expertise, while others suffered from said that a trade unionist without a inexperienced management and poor decisions early in the co- operative's life. labour newspaper is like a soldier without ammunition. Today we Parallels Parallels to Nova Scotia and other parts of Canada can be drawn might substitute labour magazine. from this book. The co-ops studied were not large industrial co- operatives with well developed financial and marketing systems One of the best is Our Times." such as in Mondragon. They generally were small, poorly- - Ron Verzuh, author of Radical Rag capitalized operations, founded by their members with relative- and editor, The Leader, ly little help from outside and with little contact with other CUPE national magazine worker co-operatives. In Canada, much needs to be accomplished in terms of developing a national support system, where Working people are facing big fights. worker co-operatives and development agencies can share resources, develop common programs and become a common Conservative governments attack our rights voice in advocating for worker co-operatives as an option for and our livelihood. with privatization and business development. cutbacks. We need our own magazine to The worker co-operatives described in this book have had to work out new ideas and strategies. find their own way by learning largely through "trial and error." Our Times is independent. We're not Through books like this one, hopefully new worker co- run by a bureaucracy and we're not driven by operatives will be able to learn from the mistakes of these co- operatives and avoid many of their problems. glossy, manipulative ads. All we need is you. Defend yourself. Use the pre-paid sub- Donna Huffman is research director of the Innovations Project, St. scription card on this page. Fill it in and mail Francis of Xavier University Extension, Antigonish, Nova Scotia B2G 1CO; (902) 867·5165. today.

The Contemporory Director contains the How to direct information you need to provide leadership for all types of co-operatives and credit unions. co-operative In a clear, readable style, this book covers topics such as - enterprises • roles and operation of the board of directors • member relations more • financial decision-making • planning and policy making effectively. Wi th the help of The Contemporory Director, you can more effectively carry out your role - whether you're a board member. part of the management team, employee or member of a co-operative or credit union. Anyone interested in learning more about the operation, goals and fu ture 01 cD-operative enterprise will find The Contemporary Director a thought-provoking yet p ractical guide, Ih. contemporary Thousands of copies have been sold world- direc tor wide! Order your copy today by phoning (306) 244-3600 or moil the enclosed coupon with your cheque Of money order.

ｉＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭｾ＠ Send me _ cop ies of The Contemporary I Director a t 516 each (includes 51 ,00 posta ge Yes! I'll subscribe. Here's my cheque. and handling) Total enclosed ___ I I Nune ______Canadian • Ask about special bulk ra tes available on orders of 6 or more copies. I Co-operative ａｾｍ＠ ______Make cheques or money orders payable to: I -Association Canadian Co-operative Association I Moil to: Canadian Co-operative Association #510 - 119 4th Avenue South I Saska toon. Saskatc hewan S7K 5X2 I Code ______Union ______I I .Adtess I OUR TIMES, 390 DUFFERIN ST., TORONTO, ONT. M6K 2M L ______ｾ＠

38 Summer 1989 Worker Co-op e Z I N E

de Travail L''''1989

Loi sur les cooperatives

L.R.Q., chapitre C-67.2

i Jour au 18 ' avril 1986

Sommaire

Campus Cooperatives page 2 Editorial \ page 3 , ＧｊｪＮｬＡｮｾﾷｮｯｵｶ･ｬｬ･＠ｾＧｯｩ＠ page 4 et 5 Rapport Maheu Noiseaux pages 6 et 7 Les breves page 8 et 9 Foe U S

Le 13 juin dernier, la CDR de Montreal presentait, a I'Ecole des Hautes Etudes Commerciales, les resultats de la premiere promotion de son Programme Campus Cooperatives. Des six projets retenus au depart, quatre nouvelles entreprises sont nees dans plusieurs secteurs de la vie economique: I'informatique, I'editique, les services de garde et I'horticulture. COOPERATIVES La CDR a profite de ceUe occasion pour annoncer Ie debut d'une deuxieme promotion prevue pour octobre prochain et pour lancer la campagne de CANADA recrutement de ces nouveaux projets.

PHOTOS: ｊ･｡ｮＭｆｲ｡ｮｾｯｩＸ＠ Leblanc

La nouvelle cooperative SOURIGARDE: focelyneArbic, Daniel Martel et L' equipe d' Editique • Telematique • Conseils (ErC): facinthe Blais, Alain Danielle Desilets. Mitchelson, Christian Doucet et Robert Viens accompagne a l' extreme gauche par Pierre Allard, directeur general de la CDR de Montreal.

L' equipe de Dimension lnformatique: Guy Boudreau et Claude Guimont. Les specialistes en horticulture: Christine Polem et Nathalie Rene d'Art Saison.

P AGE • 2 EDITORIAL Ie MAGAZINE Reamenager Ie de Travail «coffre d' outils» Volume 9 Numaro 1 ｾｴＸ＠ 1989 Ca gronde, ｾ｡＠ ecrit, ｾ｡＠ discute, ｾ｡＠ «comite», ｾ｡＠ recherche, ｾ｡＠ EDITEUR CDR de Montreal et Centre de gestion des cooperatives bouille. Depuis janvier 1989 la course au reamenagement du des HEC «coffre d' outils» est debutee. COMITE D'ORIENTATION Pierre Allard, Juliette Bonneville, Jean-Frangois Denault, Le «coffre d' outils» c' est les moyens legaux, fiscaux et financiers Jacques Gauvin, Jean-Claude Guerard , Luc Labelle et Pierre Marin qui font que les cooperatives se creent, se developpent et DIRECTEUR DE LA REDACTION demeurent des cooperatives. Ces moyens sont done la Loi des Richard Roussi n cooperatives, la Societe de developpement des cooperatives et Ie COLlABORATEURS Regime d'investissement cooperatif. De plus, I 'interpretation Michele Allard , Jean-Claude Guerard, Michel Hebert, Armand fiscale du ministere du Revenu vient completer la panoplie Lajeunesse, Marc-Andre Leboeuf, Andre Mercier et Louise Perreault etatique. Le «coffre d'outils» comprend aussi des moyens qui INFOGRAPHIE appartiennent au mouvement. tditique • Telematique • Conse ils (ETC) IMPRIMERIE L'ensemble de cette effervescence a pour objectif de reamenager Our Times ｾＱＳ＠ l'intervention de l'Etat face au developpement des cooperatives de Le Magazine COOP DE TRAVAIL est publiii quatre fois travail. Le magazine Coop de travail salue les initiatives qui ont I'an, a 2 500 exemplaires et est vendu en kiosque et pour but Ie reamenagement necessaire. par abonnements. Dans ce sens, que Ie c.c.Q. depose un memoire au nom de TARIFS PUBLICITAIRES I' ensemble du mouvement cooperatif sur Ie role de I 'Etat face au 1/8 de page 40$ 1!2 page 125$ carte d'affaires (9 ,3 X 6cm) sur 2 colonnes (9 ,3 X 24cm) developpement cooperatif et Ie reamenagement des outils, c'est 1/4 de page 70$ sur 3 colonnes (14,1 X lS,6cm) sur2 colonnes (9 ,3 X 12cm) sur 4 colonn es (18,9 X 12cm) une demarche qu'appui Coop de travail. sur3 colonnes (14 ,1 X Scm) 1/3 de page 90$ Une page 250$ sur 2 colon nes (9,3 X 16,2cm) sur 3 colonnes (14,1 X 10,7cm) Couverture ｩｮｴｾｲｩ･ｵｲ･＠ 400$ Que la Direction generale des cooperatives organise une consultation sur la Loi des cooperatives et sur les moyens de ABONNEMENTS (pour un an, 4 pa rulions) developpement mis en place par Ie gouvernement; c'est une Individuel 17$ En ｱｵ｡ｮｴｩｴｾ＠ Institutions ＱＰｾＵＰ＠ 15$ demarche qu' appui Coop de travail. et ｾｴｲ｡ｮｧ･ｲ＠ 19$ 51 et plus 14$ En kiosque (I'un ile) 4,50$ ｎｵｭｾｲｯｳ＠ precedents (I'unile) 5$ Que Ie C.C.Q. ait commande une etude sur la capitalisation des cooperatives, c' est une demarche qu' appui Coop de travail. ADRESSE DE RETOUR Magazine COOP DE TRAVAIL Devant l'importance du debat pour Ie developpement futur des 3514, avenue Lacombe • Montreal, Oc • H3T 1M1 telephone 514.340.6056 • telecopieur 514.340.6023 cooperatives de travail Coop de travail a consacre ce numero a la loi et la fiscalite cooperatives.

DONATEURS Cependant, par les idees avancees jusqu'a present, il semble qu'il Societe de developpement des faudra plusieurs formes de discussions pour que d'un debat, on cooperatives passe a une veritable strategie de developpement des cooperatives de travail appuyee par les moyens legaux et fiscaux adequats. Ajoutez votre nom ala listedes donateurs pour quatre parutions consecutives. Le Comite d 'orientation

P AGE • 3 LOI ET FISCALITE Pour une loi adaptee a la realite des cooperatives de travail

La Direction des cooperatives a dernh3rement entrepris une consul- tative. Les seuls versements tation portant, entre autres, sur les impacts de la «Loi sur les obligatoires it cette reserve se- cooperatives» sur Ie developpement des cooperatives de travail. raient les excedents proven ant Dans ce contexte, la Cooperative de developpement regional (CDR) de Montreal lui a presente plusieurs propositions de modifications. des operations avec des non- On retrouvera dans cet article les grandes lignes des modifications membres. Les membres pour- proposees. Ces quelques notes preliminaires pourront, on I'espere, raient cependant decider, en as- contribuer a alimenter Ie debat. semblee annuelle, de verser une plus grande part de leurs exce- On entend souvent dire que la un frein au developpement des dents it ce capital collectif in- «Loi sur les cooperatives» est cooperatives de travail. Regar- divisible, et il pourrait y avoir conyue en fonction des coopera- dons d'un peu plus pres diffe- des avantages fiscaux pour cette tives de consommateurs et des rents aspects de ces questions. contribution it un patrimoine cooperatives agricoles et que productif que nul ne pourra s'ap- certains aspects sont inadequats Certains ont presente la co- proprier individuellement. dans un contexte de cooperative operative de travail comme une de travail. On entend aussi par- entreprise ou les gens vont con- Le ministre, monsieur Pierre Un autre element it mettre en lerdela fiscalitequi pourraitetre MacDonald a commandi une vaste place serait un poste d'EXCE- consultation sur la Loi sur les DENTS NON REP ARTIS cooperatives. Rendra-t-il La for- (ENR), comparable, dans une mule cooperative de travail plus certaine mesure, avec les bene- La Direction des cooperatives du attrayante pour les entrepreneurs? fices non repartis (BNR) des C' est notre souhait. ministere de l'lndustrie, du Commerce compagnies. La part des surplus et de la Technologie annuels qui n' est pas versee it la sommer un emploi pendant une reserve ni distribuee sous forme longue periode, avant de se re- de ristoume se retrouve dans les tirer du marche du travail. La excedents non repartis (ENR), realite est cependant toute autre. qui s'ajoutent it I' Avoir de la II s'agit tres souvent d'un grou- cooperative. Une fois par annee, pe d'entrepreneurs qui se don- selon une mecanique qui reste it nent une entreprise pour exercer definir, on evalue la part de cet Une equipe au service leur metier de fayon democra- ENR qui sera eventuellement tique pendant une periode de attribuee it chaque membre, et des cooperatives temps donnee. On parle donc de que celui-ci pourra toucher, a gens qui construisent une en- certaines conditions lors de son treprise et qui peuvent la quitter depart de l'entreprise. au bout de quelques annees. La loi doit tenir compte de cetterea- L'existence des ENR permet lite et permettre, en cours d' ope- aux membres de capitaliser leur ration de I' entreprise, ou lors entreprise, sans avoir it Ie faire d' un arret eventuel des acti vites, par Ie biais d'une reserve im- que chaque membre puisse partageable. La tendance it se toucher la part de richesse repartir chaque annee les sur- 710, place D'Youville a 7< etage qu'i1 a contribue a creer. plus de I'entreprise sera alors Quebec (Quebec) moins forte. Gouvernemenl du Quebec G1R 4Y4 Mlnistere de l'lndustrie, du Commerce Pour ce, il faut tout d'abord in- et de la Technologie tel.: (418) 691-5978 troduire Ie concept d'une reser- '*' ve generale relativement facul- suite a la page 5

P AGE • 4 ,LOI ET FISCALITE I

II sera important de veiller a ce que la fiscalite glob ale d'une cooperative de travail ne soit pas desavantagee par rapport a la fiscalite globale d'une compagnie

suite de la page 4 propres interets et reglements, operatives. Une loi sur les co- pement des cooperatives de tra- sur: operatives qui veut s'assurer de vail a avantage it en tenir Les surplus re-investis dans ne pas etre un frein au develop- compte. l'entreprise sous cette forme ne 1) l'acceptation eventuelle du seront plus imposes dans les travailleur comme membre; mains des membres (comme 2) Ie maintien du statut de tra- c'estle cas actuellement pour les vailleur en cas de refus du tra- ristournes re-investies en capital vailleur de devenir membre social). L'entreprise est impo- ou de non-acceptation par la see it son taux marginal, gene- cooperative du travailleur ralement moindre que celui des comme membre. membres, et Ie membre sera im- pose lorsqu'il touchera effec- Au niveau de la fiscalite, il sera tivement sa part d'ENR. important de veiller it ce que la fiscalire globale d'une coopera- Afin de demeurer coherent dans tive de travail (impOt de la co- ce souci de partager equitable- operative et de ses membres) ne ment la richesse creee, il faudra soit pas desavantagee par rap- Monsieur Marc-Andre Leboeuf, D irecteur du support aux promoteurs de la voir it reconnaitre aux membres port it la fiscalite globale d'une Cooperative de developpement regional de Montreal, a participe acti- vement a la consultation sur la reforme de la Loi sur les cooperatives. Sa une part de la plus-value de l' en- compagnie (imp6t de la com- longue experience sur Ie terrain fait de lui un expert sur Ie sujet. treprise, tout au moins en ce qui pagnie et de ses actionnaires). a trait it la plus-value de la valeur marchande des actifs tangibles En ce qui a trait au Regime d'in- de l'entreprise. Dans Ie meme vestissement cooperatif (RIC), esprit, il faudrait abolir l'article il a tout interet it etre re-amenage 185 qui consacre la devolution pour devenir reellement inreres- desinteressee de l'actif net en santo Les contraintes actuelles cas de liquidation. du RIC forcent les membres it Ｈａｍｲｕｾ＠ laisser dans I' entreprise sous Quelques autres articles de la loi forme de reserve indivisible seraient it reevaluer. Ainsi, des sommes plus elevees que les mentionnons Ie. fait qu'il est avantages fiscaux consentis. COOPERATIVES impossible, it l'heure actuelle Afin d' assurer au gouvemement pour une corporation sans but une permanence du capital, et CANADA lucratif de proceder it une con- d' assurer aux travailleurs un tinuation legale en cooperative reel avantage, la contrainte au de travail. II y a pourtant une remboursement de parts priv- demande de ce cote. ilegiees emises dans Ie cadre du RIC devrait etre, non plus un ac- Un reseau international L'article 224.2 qui parle de la croissement de 50% de la de createurs d'entreprises periode d'essai des membres de reserve generale, mais Ie main- la cooperative n'est pas clair tien du niveau de I' ensemble de dans sa formulation. II devrait I' A voir apres emission. indiquer clairement qu'apres une periode maximum d'un an Les cooperatives de travail, en- la cooperative doit inviter Ie treprises it but lucratif, ont leur membre en probation it faire une particularites par rapport aux Un produit de fa CDR de Montreal Campus Cooperatives Canada demande d'admission comme compagnies. Mais elles ont Contactez-nous pour obtenir 3514. avenue Lacombe membre. Et que la cooperative de plus amples informations Montreal. Qc. H3T lMl aussi leurs particularites par rap- sur ce programme 514.340.6056. Telecopleur514.340.6023 statuera, en fonction de ses port aux autres types de co-

P AGE • 5 DOSSIER Le financement des cooperatives Maheu N oiseux depose ses conclusions au CCQ

Al'assemblee generale du Conseil de la cooperation du Quebec, la Societe-conseil Maheu Noiseux a presente les conclusions de sa recherche portant sur Ie financement des cooperatives. Le rapport sommaire rappelle que Ie controle diffus, lie ala nature cooperative, rebute les preteurs et qu'illeur est plus facile d'evaluer la capacite de remboursement d'une societe acapital-actions. Le seul paliatif, aleur avis, semble etre Ie mecanisme de garantie exteme. La Societe de developpement des cooperatives jouit d'un tel mecanisme. Cependant ses investissements aupres des cooperatives diminuent de 2 millions de $ par annee depuis 1985-86. Le rapport conclut que la S.D.C., etant sous Ie controle de I'Etat, est devenue un instrument d'intervention politique specialise. On propose donc que les co- operatives creent leurpropre organisme de garantie de prets. En plus de la creation de ce Fonds de croissance des cooperatives, on propose, pour ameliorer Ie financement exteme, d'elargir Ie Regime M.M. Claude Beland, president du Mouvement Desjardins et elu administrateur au C .C.Q. et Magelia St-Pierre, nouveau secreta ire general d'investissement cooperatif aux institutions financieres associees de eet organisme furent des auditeurs attentifs lors du depot du rapport aux cooperatives et si opportun, au grand public. Maheu Noiseux. D'autres possibilites sont enumerees. 1) Quant ala fiscalite, on suggere de demander l' exemption d'impat 4) On suggere de demander l'aide gouvemementale telle que Ie pour les cooperatives, l'impot differe pour les ristoumes rein- versement a la cooperative des primes d'assurance-chomage vesties, l'imposition a titre de dividendes pour les ristoumes residuelles d 'un chomeur qui se joint aelle et une subvention ala encaissees. capitalisation egale a 20% de l'apport des membres. 2 )Rendre la reserve partageable et distribuee au membre quittant En conclusion, Ie rapport suggere de prioriser la cooperative, sur la base du total des transactions qu'il a effec- les suggestions suivantes. tuees avec celle-ci. 1) Obtenir l'admissibilite des parts des cooperatives aux Regimes 3) Favoriser les liens entre les cooperatives et Ie Fonds de solidarite Enregistres d'Epargne Retraite. de la F.T.Q., pour que celui-ci y investisse en parts privilegiees. 2) Creer un ou des organismes de garantie d'emprunt. 3) Elargir Ie Regime d'investissement cooperatif, au moins aux institutions financieres associees aux cooperatives et peut -etre au LOUISE BOUCHER grand public. avocate 4) Determiner un mecanisme qui permette de maintenir constant Ie pouvoir d' achat des parts sociales et creer un gain de capital nominal non-imposable. 5) Faire des representations pour que la S.D .C. s' oriente principale- ment vers l'aide au demarrage des cooperatives dans tous les 2328 rue Ontario est secteurs de la cooperation. Montreal H2K 1W1 Tel.: (514) 527-8903 6) Creer un organisme dedi6 a foumir du capital de risque aux Telecopieur: 527-1410 cooperatives.

suite ala page 7

P AGE • 6 DOSSIER On ne peut ni enrichir la cooperative au detriment de ses membres, ni enrichir les membres au detriment de leur cooperative

suite de la page 6 dins et davantage pour les autres traite de I'ensemble cooperatif Ie RIC aux investisseurs ex- mouvements sectoriels. Meme qui n'est de fait que l'union de ternes. Parce que Ie RIC oblige Commentaires it Mondragon, la Caja Laboral specificites sectorielles. La pro- la creation d' une reserve au Popular se desengage de plus en blematique cooperative varie moins equivalent it 50% des plus de cette voie. Doit-on ris- selon la taille des cooperatives et investissements, donc it la re- Les resultats presenres enume- quer de plus que Ie gouverne- Ie type de societariat. II apparait nonciation par Ie societaire rent davantage des pistes qu'un ment vidange dans Ie mouve- impossible de concilier dans une d'une partie importante des enonce d 'une politique fiscale et ment cooperatif sonrole d' appui meme straregie les besoins de gains que son entreprise va de financement appropries aux et ses interventions? nos cooperatives de travail et generer, Ie RIC est discrimina- cooperatives. La recherche re- d'une cooperative de la taille toire envers Ie societaire. Les vele des lacunes fondamentales Pourtant des transformations d'Agropur. dirigeants cooperatifs informes importantes. importantes prennent place au et soucieux de leurs societaires Quebec. La tendance est it la La troisieme lacune est l'igno- ne publicisent par Ie RIC. Dans La premiere est sa meconnais- creation de Fonds d'investisse- rance de la specificite coopera- les conditions actuelles, rendre sance de I'histoire cooperative mentlocaux,regionauxetmeme tive de travail. La cooperative Ie RIC accessible aux investis- quebecoise. La proposition la provincial. Les partenaires sont de travail ne s'aborde pas seurs externes accroit de fayon plus importante est celle de la visibles: Ie Mouvement Desjar- com me une compagnie. II faut importante les pertes des so- creation d'un Fonds de crois- dins, la Caisse de depOts et de articuler une straregie globale cietaires. C'est une proposition sance pour Ies cooperatives, placement, Ie Fonds de solidar- qui interrelie societaire et co- qu'iI faut proscrire. faisant appel it l'epargne des ite et possibIement les munici- operative. On ne peutni enrichir menages et des institutions. A palites. Ces Fonds devraient la cooperative au detriment de Le rapport preliminaire et som- toute fin pratique, ceci equivaut etre accessibles aux coopera- ses membres, ni enrichir les maire soumis a l'assemblee it demander au Mouvement tives en autant qu'il existe un membres au detriment de leur generale du C.C.Q. lance des Desjardins d'assumer finan- minimum de confiance envers cooperative. Toute politique pistes mais n 'articule aucun cierement Ie developpement cette forme d'organisation. fiscale et de financement doit plan strategique. La revue du cooperatif, vu la quasi absence rechercher un tel equilibre. II CIRIEC «Cooperatives et chronique des autres institutions La proposition n' a de sens que si faut rappeler que lors d'un em- developpement» est, nous financieres du mouvement. la vogue est la creation de Fonds pront, ce n 'est pas la cooperati ve semble-t-il, allee beaucoup plus L'histoire recente des coopera- d'investissement specialises. qui paie I'inreret mais Ie so- loin dans I' enumeration des pis- tives de pecheries et de consom- Specialisation par secteur, 10- cietaire. La cooperative n'est tes. 100000$ plus tard,on en est mation nous indique que telle calite, forme d'organisation, que I 'instrument de gestion. La encore aux balbutiements! n' est plus son intention. La type d'investisseurs, etc. Le nuance est de taille et merite presence d' organismes tels que Quebec semble trop petit pour attention. ElIe remet en cause la la S.LD., C.LD., Tremplin 2000 un tel enchevetrement de Fonds proposition consistant a elargir Jean-Claude Guerard permettraient pourtant de tels d'investissement. investissements cooperatifs. II faut rappeler que recemment Ie Quant it la S.D.C., sa confusion Mouvement Desjardins etait un vient certes de certaines poli- partenaire dans la S.D.C .. II est tiques gouvernementales, mais difficile de croire qu' il en ait ete en grande partie de son ineffi- eli mine sans son consentement. cacite interne. Les revendica- tions depuis plus d'un an de Le mouvement cooperatif doit- nombres d'intervenants en font il assumer seul Ie financement etat. Le memoire ecarre it I'as- de son developpement? Le ris- semblee generale du C.C.Q. est que parait trop eleve qu'il soit explicite sur ce point. contraint it des difficultes it cause de la debacle financiere La seconde lacune de la recher- d' un secteur cooperatif. Ceci est che est son ignorance des spec i- vrai pour Ie Mouvement Desjar- ficires sectorielles. L'etude

P AGE • 7 B R IS v E S

｣Ｎ､ＮｲＮｾ＠ A .. , G ,. ,:,:,.::;;:••• ｾｾｾＧＺＺＡ］ＧＺＺＧＺＺｾ＠ chvltes en aspesle ______

La Cooperative de developpement regional Gaspesie/Les Des reprend ses activites apres plus de 18 mois d'arret et ce grace a l'apport financier du M.E.Q. et du M.E.E.S., par Ie biais d'un programme parraine par les commissions scolaires de notre region et Ie College de la Gaspesie. Une entente de service intervenue entre la Cooperative de developpement regional Gaspesie/Les lIes et Ie Groupe ressource en logement collectif de la Gaspesie et des Des-de-la-Madeleine nous a permis de mettre en place un Groupe conseil,lequel a pu profiter du soutien tant technique qu'adminis- tratif des trois points de service du Groupe res source en logement collectif de la Gaspesie et des lIes-de-la-Madeleine soit: Maria dans la Baie des Chaleurs, Gaspe etCap-aux-Meules au lIes-de-la-Madeleine. Les resultats L' equipe de Ia Gaspesie et Ies lles-de-la-Madeleine: Jules Lemieux G.R.T., des sessions d'information et de sensibilisation aux principes cooperatifs, pour la creation d' entreprise, n' ont pas tarde a se faire sentir car, malgre une Luc Potvin G.R.T., Helene Jomphe GR.T., Michele Allard CDR., Andre equipe restreinte (2 personnes) et un echeancier d'a peine huit mois, trois Tremblay G.R.T. et Alain Bernatchez CDR. cooperatives de travail ont vu Ie jour en Gaspesie, totalisant la creation de plus de 30 nouveaux emplois a temps plein et nous avons en reserve des population de jeunes en region et par consequent d' augmenter nos chances demandes pour trois autres projets de creation d' entreprise cooperative pour de stabilite economique. l'automne. Toutefois, malgre cette performance, notre avenir semble Nos budgets actuels permettent au Groupe conseil d' etre a l'oeuvre jusqu 'a precaire, car meme si nous repondons a un besoin economique pour une la fmjuin 1989. Une nouvelle demande aupres du M.E.Q. et du M.E.S.S. region aussi peu nantie que la notre, nous ne sommes pas encore assures sera presentee, c'est actuellement notre seule voix de fmancement. La d'un financement de base adequat car Ie ministere de l'Industrie, du Cooperative de developpement regional Gaspesie/Les Des demeurera ac- Commerce et de la Technologie ne semble pas prendre vraiment au serieux tive dans sa recherche de financement, si les resultats ne sont pas probants Ie travail accompli et c'est plus que dommage. Notre region dejafortement a l'autornne 1989, nous nous verrons de nouveau dans I'obligation de penalisee l'est encore plus, compte tenu du fait que l'entrepreneuriat, rMuire considerablement nos interventions en esperant des jours meilleurs quoique tres vivant, ne peut emerger faute de capitaux de base ce qui reduit pour l'entreprise cooperative et les travailleurs et travailleuses de notre considerablement nos chances de creer des emplois, de maintenir notre region. Histoire a suivre ...

Cooperative de ｾ＠｀ｉｉｉｉＢｉｉｾ＠ Le prix Excelsions pour Circonference_ Conseilciescoope"U,esde l'Oulaouais transformation de cedre ___

La Chambre de Commerce du Grand Ioliette vient de decemer a Cir- Des travailleurs oeuvrant dans la transformation de cedre se sont regroupes conference Ie prix Excelsions dans la categorie Nouvelle Entreprise. pour former la Cooperative de transformation de cedre de l'Outaouais. Cette cooperative de travailleurs actionnaires et la cooperative forestiere Fondee a Ioliette en 1987, cette cooperative de travail est issue du dy- PICANOC detiendront respectivement 25% et 8% des actions des Indus- namisme de cinq intervenants d'experience. Des Ie depart, Circonference tries Ced-bec Inc., entreprise qui se specialisera dans la production de met au service des organisations et des entreprises une banque de res sources bardeaux de cedre. orientees vers l'efficacite organisationnelle et aptes a diriger ou a soutenir Le principal promoteur du projet, monsieur Richard Pepin, s' est merite une diverses activites de consultation, d'anirnation, d'organisation, de forma- bourse de 25 000$ pour avoir presente Ie meilleur plan d'affaires dans Ie tion, de redaction, de soutien a l'integration au travail et de support au cadre du cours-concours «Devenez entrepreneur» parraine par Ia Fondation developpement. de l'entrepreneurship de l'Outaouais. Circonference a deja a son actif plus de cent interventions aupres de L 'entreprise emploiera environ 35 personnes et necessitera des investisse- regroupements regionaux et provinciaux, d'institutions financieres, d'or- ments de l'ordre de 1,2 million de dollars. Les travaux de construction de ganismes de developpement, de services publics, de table de concertation l'usine debuteront a l'autornne 1989. et de groupes socio-communautaires. Ce prix Excelsions est une belle marque de reconnaissance et d' encourage- Le CCO prevoit un fonds de ment pour cette equipe de jeunes entrepreneurs novateurs, qui en plus de ｾ＠ｃｯｮｳ･ｩｬ､･ｳ｣ｾＢｬｩＬ･ｳ､･ｬＧｏｵｴ｡ｯｵ｡［ｳ＠ capital de risque ______s'appliquer a sa co-gestion, reussit a installer dans la region et ailleurs un creneau de nouveaux services professionnels et sur mesure. Au cours de son assemblee generale annuelle Ie president du Conseil des cooperatives de l'Outaouais, monsieur Rejean Laflamme a souligne que pour Ie nouvel exercice fmancier l'organisme devra, d'une part, participer a la mise sur pied d 'un fonds regional de capital de risque qui se pretera au Ｇ｣ｯｮｳ･ｩｬ｣ｩ･ｳ｣ｾＢｉ［Ｌ･ｳ､･ｬＧｏｵｴ｡ｯｵ｡［ｳ＠ Un bilan positi....f ______developpement d'entreprise a base participative. D'autre part, Ie Conseil veut integrer Ie concept de developpement durable dans son plan d'action Au terme de son annee financiere Ie Conseil des cooperatives de I' Outaouais comme vient de Ie faire Ie Mouvement Desjardins avecla publication de son (CCO) a recrute dix nouvelles cooperatives-membres. De plus, neuf option environnementale. Acet egard, Ie CCO vient d'initier deux projets cooperatives ont ete creees dont huit cooperatives de travail et une coopera- dans les secteurs refletant bien cette preoccupation. D s 'agit d 'un projet de tive de consommation. Le CCO represente 65% des 102 cooperatives compostage de residus d' entreprises papetieres ainsi qu 'un projet de culture actives dans la region de l'Outaouais. biologique en serres.

P AGE • 8 B REV E S

ｾ＠ Conseildescoop&aH""del'Outaoua;s Une question de fric ____

Une quarantaine de participants ont assiste au seminaire «Une question de de fonds des entrepreneurs locaux» . Cet outil peut cependant aider a la mise fric» tenu samedi Ie 27 mai 1989 par Ie Conseil des cooperatives de sur pied et l' expansion d' entreprises de taille interessante que les entrepre- 1'00taouais. neurs non epaulCs ne pourraient realiser par eux-memes. Ce seminaire a permis de presenter les outils de financement disponibles ac- Notons enfin que Ie partage des informations et des idees ainsi que la tuellement afin de demarrer ou de consolider une entreprise. reflexion commune qui a eu lieu lors du seminaire «Une question de fric» ont permis de voir des perspectives nouvelles de dCveloppement en region. n a egalement fait ressortir deux outils dont l'Outaouais pourrait se servir Les participantsont bCneficie d' exemples concrets, vecus dans 1'Outaouais, pour fortifier et diversifier son economie. D'une part, il y a la Societe de placement dans l' entreprise quebCcoise (S.P .E.Q.) qui permet de mobiliser illustrant cette prise en mains de notre developpement economique. Dans des fonds rapidement pour des entreprises prometteuses et d' autre part, un la conjoncture actuelle il faut que nous innovions afm de mettre en place une infrastructure entrepreneuriale permettant l' essor de l' economie regionale fonds de capital de risque. et un developpement durable. Formule interessante par sa flexibilite, son dCmarrage facile et surtout les avantages fiscaux qui y sont lies, elle est limitee, cependant, a certains secteurs; d'oillanecessite d'un autre outil complementaire soit Ie fonds de capital de risque regional, pour couvrir tous les secteurs d' activites et tous les secteurs geographiques. Ailleurs au Quebec, les collectivites se prevalent deja de ces outils afin de pouvoir investir des mises de fonds importantes dans leurs P.M.E.locales. Des efforts ont ete deployes dans notre region pour la mise sur pied d'un fonds de capital de risque. 11 faut completer Ie processus afm de ne pas prendre de retard sur les autres regions du Quebec. Toutefois, comme l' a indique M. Dupon-Hebert du Fonds de solidarite, «Ie fonds de capital de risque ne remplacera pas 1'initiative locale et les mises

ｌＧ｡ｳｳ･ｲｮ｢ｨｾ･＠ generale du CQRCDR

Parmi les conferenciers «Une question de fric», on retrouve de gauche a droite MM. Richard Pepin, directeur general de Ced-bec Inc.; Michel Dupont-Hebert, Fonds de solidarite des travailleurs du Quebec; Gilles Begin, directeur general du C.C.O.; Richard Messier, president de La Federation quebecoise des cooperatives de travail; Guy Deschenes, president de BOISACO; Serge Regnault de la SD.I. et Jean-Claude Guerard, professeur aux H.E.Coo M. Leon Lajoie absent lors de la prise de ｾ＠ photo. 11 ｾ＠ .. "c:s. I!! "- C Naissance d'une nouvelle ｾ＠ｾ＠ｃｯｮｳ･［ｬ､･ｳ｣ｾＢｴ［ｶ･ｳ､･ｬＧｏｵｴ｡ｯｵ｡［ｳ＠ cooperative ______§ I Cl. Grace au support du Conseil des cooperatives de 1'Outaouais, des etudiants en orthopedagogie ont mis sur pied une cooperative d' enseignement adapte Le 27 juin dernier Ie Conseil Quebecois du regroupement des cooperatives «La Cooperative des services orthopCdagogiques de 1'Outaouais». de dCveloppement regional (CQRCDR) a tenu son assemblCe generale annuelle a Montreal. Les delegues des six CDR membres ont eu l' occasion de Lors de laconference depresse qui a marque I'evenement, madameMireille prendre connaissance du bilan des activites realisees au cours de la derniere E. Landry a precise les grandes orientations de la cooperative. annee et d' adopter Ie plan d' action de la deuxieme annee. Comme l' a «L'important, a-t-elle dit est de chercher a valoriser l' enfant qui a accumule souligne Ie president, monsieur Jean-Claude Guerard, pour cette seconde plusieurs echecs jusqu'a maintenant. Pour ce faire, nous cherchons a lui annee, «Ie CQRCDR devraintensifier son travail dans larealisation utile des faire realiser des reussites significatives a ses yeux. 11 est alors de premiere experimentations dans Ie cadre du programme d'aide a I'innovation. Son importance de chercher a mettre en valeur ses forces et ses talents. Notre Conseil d'administration aura la tache de decider du futur role du aide, en ce sens, repose sur des principes simples mais essentiels c' est-a-dire CQRCDR, comme lieu de coordination etde soutien denos actions dans nos sur Ie respect de l' enfant comme personne et comme apprenant dans tout ce regions respectives.» que cela comporte» a-t-elle souligne en terminant. Le nouveau Conseil d'adrninistration est forme de Jean-Claude Guerard, On pourraentrer en communication avec 1'une des responsables en telepho- president, Rejean Laflamme, vice-president, Pierre Allard. Viateur nant au (819) 568-2677. Oil 1'on se fera un plaisir de donner de plus amples Beaupre, Juliette Bonneville, Armand Lajeunesse et Gilles Paquette, renseignements.

P AGE • 9 SEMINAIRES DE FORMATION

ｾ＠ Gestion ｾｆｩｮ｡ｮ｣･＠ｾ＠ Ressources-humaines ｾ＠ Marketing ｾ＠ Vente ｾ＠ Etc

Un choix parmi 40 seminaires et ateliers

Une tradition de formation de qualite pour les entrepreneurs, gestionnaires et employes des entreprises maintenant adaptee aux cooperatives de travailleurs

Une collaboration entre la Banque federale de developpement et la Cooperative de developpement regional de Montreal

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ｻｾｾ＠ Banque federale Federal Business ｾＢ＠ de developpement Development Bank

Canada ｵｾ＠ 'tJ()PtMTIVc [)E otveUffcl'1&lJT ｾｴＶｉｏｎａＯＮＮｐ･＠ｾｎｔｒｩａＯＮＮ＠ (514) 687-4121 (514) 340-6056

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