How Co-Operatives can be part of Labour's future

In our latest piece for the Huffington Post  Bev Clack and I spell out how responsible capitalism is often not applied by big business and the resulting effects for us all.   What we’d like to do is spell out some examples of how different things can be! 

(Announcement just made that Huff Post has been hacked so there may be a delay in getting our post out there !)

One example :

The John Lewis Partnership

The reason it is called The John Lewis Partnership is because at the outset in 1929 it desired to establish  a relationship with staff who are considered  partners within the business.   In providing dedication and energy to make the business special, The JLP  seeks to reward the partners by offering eg :

·         A proportion of its profits as a percentage of salary.

·         Each Partner's pay rate is examined and discussed annually to ensure that it is consistent with the local market rate and reflects the Partner's contribution to the business.

·         The John Lewis Partnership offers a non-contributory, final salary pension scheme after three years’ service. Those with less than three years' service have the option of participating in a joint contributory scheme until the three year period is reached.

·         There are extensive career development opportunities which are discussed from day one, preferential holiday arrangements throughout the UK, generous leave.. and more. 

·          

Waitrose Supermarkets is part of the John Lewis Partnership. No wonder when one opens, local staff often leave their retail jobs with other employers.

To put it simply The Partnership is open, fair and transparent. Profits are shared, everyone has a voice and there is a true sense of pride within.  

Anyone would think this model was a modern phenomenon – but it was set up in 1929 when other workers were battling for decent working conditions in retail, manufacturing etc.  During this period the Trade Union movement grew and continued to fight for workers’ rights – even to the extent of

agreeing basic rights eg one day per week free from work usually Sunday, paid holidays, down to 10 minute breaks each morning and afternoon to have a drink and visit the loo !    The JLP does not align to the trade union movement.

The Co-Operative Model of business – 2012

Interestingly the UN has named 2012  “The International Year of Co-operatives”  in the hope that it will encourage countries around the world to promote the establishment of these types of businesses.  People who work in a co-operative directly benefit from its success – rather like the John Lewis Partnership.  It is owned and operated by a group of individuals and can, for example, be a cake stall at a market or can be much larger - we all know the Co-Operatives stores on our high streets for example.  Some village shops are now run as co-operatives – without them locals would lose their local shop.  .

If the co-operative happens to be a building firm, or a bakery for example, the workers decide what they build or what they should bake !  A library or a green-grocer can be run as a co-operative – anyone can run one !   A co-operative is a democratic organisation. Its principle is ‘one member, one vote’ and the workers make mutual decisions about the business.  Another name often used for a co-operative is mutualisation.  Decisions about holidays, pensions, are made by the workers or certainly in tandem with a Board of Trustees if there is one !  

Quite a different type of service offered by a co-operative has been established in New York, providing a care service.  Rather than caring being seen as a low grade job, it has developed into a care training organisation offering full training with benefits and guaranteed hours.  

Decisions are made by a Board of Directors, half of whom are elected from the worker-owners.   There is a Worker Council too which acts as a liaison between the Board of Directors and the employees, consulting on decisions and other issues.  There is an annual vote to approve the net profit allocation and other benefits.

There is no reason why local caring co-operatives could not be established here in the UK.   What a great model – training and caring at a local level for the benefit of all who are involved – the workers *and the clients !