Recent Co-operative News

The following service is a collection of articles reporting on co-operatives found in online English-language newspapers and magazines in Canada and around the world. Most recent postings are displayed here as well as in the left-hand bar "Co-operatives in the News".

Congratulations to Andrew Petter in his appointment as President and Vice Chancellor at Simon Fraser University

Jan 20 2010 - 00:00

Congratulations to Andrew Petter in his appointment as the President and Vice Chancellor at Simon Fraser University starting in September 2010.

See SFU news release http://www.sfu.ca/pamr/media_releases/media_releases_archives/media_01191001.html

http://www.bcics.org/content/research-fellows 

Canadian Co-operative Association wins CURA: CCCBE Co-Applicant in $1 million SSHRC grant awarded for research on co-operatives

Jan 21 2010 - 00:00
Jan 21 2010 - 23:59

Canada's co-operative sector, in partnership with Mount Saint Vincent University, Saint Mary's University, the University of Saskatchewan and the University of Victoria's Centre for Co-operative and Community-Based Economy has been awarded a $1 million SSHRC grant to measure the social, economic and environmental impact of co-operatives.  With nearly 9000 co-operatives with over 17 million members in Canada, this Community-University Research Alliance is an important undertaking and analysis of co-operative associations, co-ops, credit unions and academic researchers in Canada.  




For more information visit: http://www.coopscanada.coop/en/info_resources/CURA  or contact
Donna Balkan, Communications Manager
Canadian Co-operative Association
613-238-6711, ext. 206
Cell: 613-314-1032
communications@coopscanada.coop 


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UN United Nations Declares 2012 International Year of Cooperatives

Jan 18 2010 - 13:19

The United Nations General Assembly has declared 2012 as the International Year of Cooperatives.  This is in recognition of the stabilizing impact that cooperatives have on community social and economic development.   Visit: http://www.un.org/News/Press/docs/2009/dev2784.doc.htm

United We Can: Resource Recovery, Place and Social Enterprise, Society and Natural Resources to be Published

Sep 11 2009 - 16:46

United We Can: Resource Recovery, Place and Social Enterprise, Society and Natural Resources written by Crystal Tremblay, Jutta Gutberlet and Ana Maria Peredo has been accepted by the journal Resources, Conservation & Recycling.
Crystal Tremblay is a Ph.D student Department of Geography, University of Victoria.  Jutta Gutberlet is an Associate Professor, Department of Geography at the University of Victoria, and Ana Maria Peredo is a Professor, Faculty of Business and the Director of the BC Institute for Co-operative Studies.

For information on the journal Resources, Conservation & Recycling visit http://www.elsevier.com/wps/find/journaldescription.cws_home/503358/description#description 

New Business Course Offering at UVic titled "Sustainable Communities: Global and Local" Fall 2009

Jul 23 2009 - 00:00

The Faculty of Business is offering a new course titled Sustainable Communities: Global and Local Fall 2009

The course has two parts. The first examines critically the global landscape in which business operates, with attention paid to social, political, economic and cultural issues. The second considers the role that might be played by business in developing sustainable local societies.

The aim of the course is to prepare future business leaders  and others to participate in a globalised business environment as citizens as well as business people. A broader understanding of the many dimensions of this participation, and a sense of a variety of culturally-sensitive models of entrepreneurship, are meant to enhance the ability of business leaders to contribute to society through their business activities.

Course Content

Globalization, communities, and development;
What is sustainability? ‘sustainable growth’ measures of progress and quality of life;
The role of the market in development;
The new regulators in the globalizing economy and the collapse of the global economy;
Sustainable development and it environmental, economic, social, cultural, ecological and political dimensions;
Globalization and local economies: cultural paradoxes;
Sustainable development & co-operatives;
Sustainable development &social enterprises, and
Sustainable development & community-based enterprises

Instructor:  Dr. Ana Maria Peredo

For more information contact her at: aperedo@uvic.ca

Shawn A-in-chut Atleo elected National Chief of the Assembly of First Nations

Jul 23 2009 - 00:00
Jul 23 2009 - 23:59

Congratulations to Shawn A-in-chut Atleo who has been elected as National Chief of the Assembly of First Nations.  The AFNs’ 30th
Annual General Assembly was held in Calgary.  Chief Atleo's election platform was based on four pillars: First Nations Families and Communities; Treaties, Title and Rights; Economy and Environment and Nation Building, First Nation Governments.

Visit his website: http://www.shawnatleo.ca/

 

 

 

Congratulations to Ian MacPherson and Peter Podivinikoff our New Canadian Cooperative Hall of Fame Inductees

Jul 16 2009 - 00:00
Jul 16 2009 - 23:59

The Canadian Co-operative Association celebrated 100 years of co-operation and created a virtual Canadian Co-operative Hall of Fame.

Ian Macpherson and Peter Podivinikoff were recognized for their lifelong contribution in promoting, developing and uniting co-operatives in
Canada. For more detail visit: http://www.coopscanada.coop/public_html/hof/

Dr. John Lutz wins Canadian Historical Association's Clio Award

Jul 13 2009 - 14:43

A BC Institute for Co-operative Studies Advisory Board member, Dr. John Lutz has been awarded the Canadian Historical Association's Clio Award for best book on British Columbia history for Makúk: A New History of Aboriginal-White Relations.  Dr. Lutz's book examines exchanges, conflicts of meaning, intercultural relations and work. Dr. Greg Blue also a supporter of the BCICS was one of the writers of Death by a Thousand Cuts, which explores the infamous form of imperial Chinese capital punishment and was the winner of the association’s Ferguson Prize for best book by Canadians on a non-Canadian history topic.

UN considering feasibility of proclaiming an International Year of Cooperatives

Jul 3 2009 - 00:00

The General Assembly, in its resolution 62/128,
requested the Secretary-General, in consultation with Member States and
the relevant international organizations, to consider effective ways
and means of raising public awareness of the overall socio-economic
impact of cooperatives, including the desirability and the feasibility
of proclaiming an International Year of Cooperatives, and to report
thereon to the General Assembly. For more information visit:  http://www.un.org/esa/socdev/social/cooperatives/survey.html

Former BCICS staff member wins Distinguished Co-operator Award

Jun 23 2009 - 00:00
Jun 23 2009 - 23:59

BCCA Distinguished Co-operator Award

bcca.png

The Distinguished Co-operator Award recognizes and honours British
Columbia co-operators and co-operative organizations for outstanding
achievement and service to the co-operative/credit union movement. Up
to three Awards (one for an individual, one for an organization and one
for a youth) were be presented at BCCA’s 2009 gala Awards Dinner.

This year’s winner for Distinguished Co-operator Award goes to  Robin Puga!

robinpuga_vanco-opradio_20080221.jpg

Robin Puga is a web developer, radio connoisseur and co-operative
enthusiast, originally from Bowen Island he now lives in Vancouver.
Robin earned his degree in Software Engineering from the University of
Victoria. In 2000, he started Digiloom – a web development company
specialising in affordable Open Source web solutions, providing
non-technical users with the ability to update their own websites. From
2002 through September 2008, Robin was employed as Technology Director
at the British Columbia Institute for Co-operative Studies (BCICS).
While at BCICS he helped design and implement many online projects,
including the Co-operative Learning Centre. He also helped coordinate
the publishing of Youth Reinventing Co-operatives – a book about youth
co-operatives around the world. In May 2006, Robin began producing and
co-hosting Each For All – a weekly educational radio show about co-ops
and social economy organizations. Each For All airs on CFUV (Victoria
Community Radio), CFRO (Vancouver Co-op Radio) and is syndicated on
WRFG (Radio Free Georgia, in Atlanta). In 2009, he has directed his
energies to forming two new worker co-operatives – CanTrust Hosting
Co-operative and Each For All Worker’s Co-op. Robin is an active board
member of the Vancouver Co-op Radio, the Canadian Association for
Studies in Co-operation and the B.C. Co-operative Association.

"New" Housing and Homelessness Course Offered for Graduate Students at the University of Victoria

Sep 9 2009 - 00:00
Sep 11 2009 - 00:00

A new course is being offered for Graduate students at the University of Victoria. The course GS501 Interdisciplinary Topics: Applied Research in Housing and Homelessness will be held from September-December 2009. Mondays, 2:30pm to 5:30pm. in Room CLE B215.

The primary focus of this course is the development of critical approaches to applied research and to generate knowledge for policy development in the field of housing and homelessness In particular, this interdisciplinary graduate course will be a unique opportunity for students to undertake an applied research project in collaboration with the B.C. Ministry of Housing and Social Development.  Students will work collaboratively with representatives in the Ministry of Housing and Social Development to plan and conduct a research project (for example, designing program evaluation, needs assessment, conducting a literature review) on which they will make a final presentation.  Potential topics for research projects include homelessness, rental market and market housing, Aboriginal housing needs,  senior housing needs , Women fleeing violence and housing issues,  anticipating future housing needs in B.C., sustainable and green housing.

For more information and details on how to register visit: http://www.researchimpact.ca/localRI/UVic/GSHousing/


The course is open to all graduate students with permission from their graduate advisor. The course may be taken for credit.

For more information on this course contact Bernie Pauly (bpauly@uvic.ca, 250-721-6284), or Margo Matwychuk (mmatwych@uvic.ca, 250-721-6283)

 

 


 

 

People before profits

Jun 15 2009 - 00:00
Jun 15 2009 - 23:59

Article in response to the article "Economics for Lefties"

 

Joseph Heath charges that advocates for worker co-operatives fail to
understand capitalism. All Heath's column really demonstrates is that
he does not understand co-ops.

By trying to equate condominiums, insurance
mutuals and law firms with co-ops, he ignores some essential elements
of what make a co-op different from other structures. When he calls a
traditional corporation a form of "money lenders' co-op," he exposes
his complete ignorance about co-ops and undermines his own credibility.

Co-ops
are built on fundamental democratic principles where the members share
a common purpose and concern for each other's welfare. The simple fact
is co-ops are not just about profits, unlike in a traditional
corporation. It is the commitment to democracy--absent in corporations,
law firms and mutuals--that defines a co-operative.

Sure, worker
co-ops often succeed in small operations. But they are also successful
in large, complex industries, such as appliance manufacturing, steel
manufacturing and lumber production. They succeed because they are
about social benefits as much as economic benefits --maintaining and
creating good, stable jobs in the community.

Heath's convoluted
argument about co-ops causing job loss is idle sophistry. His point may
offer some vague interest as a philosophical parlour game, but it bears
no reflection on how worker co-ops operate in the real world. For example,
worker-members still get paid their wages, and then democratically
decide how best to disperse any excess revenue in the best interests of
the organization and the members--hardly what Heath tried to convey.

I invite Heath to visit one of the hundreds of worker co-ops in Canada to see how they really work.

Jason Foster, Edmonton

Bees can fly, and worker co-ops can succeed

Jun 15 2009 - 00:00
Jun 15 2009 - 23:59

Article in response to the article "Economics for Lefties"

Joseph Heath's critique of worker-run co-operatives ("Economic for lefties," May 27) and why they must fail reminds me of the apocryphal story of engineers explaining why bees can't fly.

I offer a single
counter-example -- the Mondragón Corporation, in Spain's Basque
country, an association of 150 co-operatives in every sector --
industry, agriculture, banking, marketing, education, health insurance
and pension management. Around 21,000 workers are partners in their own
co-ops and in the corporation, and all enterprises are run
democratically. By regulation, the highest-paid director makes no more
than 4.5 times the wage of the lowest-paid production worker.

Mondragón
is run democratically by a 650-member Co-operative Congress, its
delegates elected from Mondragón's constituent co-operatives. The
annual assembly elects a governing council, which runs the corporation
and appoints senior staff. Each individual co-op has a workplace
council, whose elected president works with the enterprise manager.

More
than half a century ago, five workers in the Basque country, graduates
of a democratically run polytechnic school, started a co-op that
manufactured cooking-stoves. More co-operatives followed and linked
together, and a credit union was established. Other co-ops were invited
to join the group, and also companies facing bankruptcy, on condition
that they became co-ops as well. The Mondragón Corporation in its
present form emerged from this association of co-operatives in 1991.

Finances
in Mondragón are managed co-operatively, through a worker-run bank
called Caja Laboral, employing 1,800 partner-owners. The bank was the
first one in Spain to provide customer service in late afternoons and
evenings. Health insurance and pensions are run by another
co-operative, Lagun-Aro; the marketing co-operative Eroski is the
third-largest retail group in Spain and the largest Spanish-owned
supermarket chain; and the local university, Mondragón Unibertsitatea,
is a co-operative as well, founded in 1997 from the fusion of three
co-operative colleges. Four-thousand students presently attend at the
university's three campuses.

Contrary to Heath's common-sense
notion of human nature as essentially self-centred, Mondragón workers
characteristically accept wage cuts in hard times rather than layoffs.
If layoffs in one enterprise do prove necessary, those laid off are
found positions in other co-ops. Even during economic crises, the
Mondragón area has maintained a high rate of employment.

Of
course, Mondragón is not utopia. There are the usual stresses and
strains found in any institution, and observers have noted that there
is some disaffection in the ranks with what is perceived as top-down
management (although everything is relative -- at Mondragón, managers
are appointed by a democratically elected Social Council). The
centralization of decision-making has come at some cost, perhaps, to
full democratic participation on the ground.

But what Mondragón
does prove is that Heath's confident assertions are no more than a kind
of learned speculation. Mondragón does not create unemployment; there
are no second-class members of it; and it and its partner-owners are
prosperous by any economic measure one cares to apply. There have been
no mass wage-cuts because of expansion, and Heath's "perverse supply
response problem," much like the engineering obstacles that forbid bees
to fly, remains an academic abstraction -- dazzling, perhaps, to the
readers of op-ed pieces and to assorted philosophers and economists,
but irrelevant in the face of proven success.

John Baglow is an Ottawa-based writer and researcher in public and social policy.

Co-ops are Successful

Jun 15 2009 - 00:00
Jun 15 2009 - 23:59

Letter to the editor in response to the article "Economics for Lefties"

The Ottawa Citizen

Re: Economics for lefties, May 27.

As
many Canadians are questioning traditional economic models in the wake
of the global financial crisis, it is ironic that Joseph Heath has
chosen this time to criticize co-operatives.

Heath uses the term
"co-op" and "worker co-op" interchangeably in his article. There are as
many different types of co-operatives as there are traditionally
organized businesses.

Worker co-ops, in which the co-op members
are the employees, are just one example, and many -- such as
Ottawa-based La Siembra, which produces Cocoa Camino chocolate -- have
been very successful.

But there are also, as Heath acknowledges,
many other types of co-ops, including credit unions, retail co-ops,
housing co-ops, child care co-ops, energy co-ops and so on. What they
share is that they are owned by their members and governed on the basis
of one member, one vote.

The fact is that there are some 8,800
co-operatives in Canada with more than 17 million members, 150,000
employees and $275 billion in assets. The world's 300 top co-ops, which
include such Canadian businesses as Desjardins Group, The Co-operators
and Saskatchewan-based Federated Co-operatives Ltd., have an annual
turnover of $1.1 trillion U.S., the size of the 10th largest economy in
the world.

And rather than "cause unemployment," co-ops are an
engine of job creation. According to the United Nations, co-operatives
around the world create more jobs than all the multinational
corporations put together.

This year marks the 100th anniversary
of Canada's organized co-operative movement. Back in 1909, the founders
of the Co-operative Union of Canada envisioned a society in which
business would operate in a democratic and open fashion, where people
would come before profits and where concern for community would be as
important as the bottom line.

An economic model that doesn't work? Hardly. A relevant alternative in today's challenging economic times? Absolutely.

Carol Hunter,

Ottawa

Executive Director

Canadian Co-operative Association

Responses to "Economics for Lefties"

Jun 15 2009 - 00:00
Jun 15 2009 - 23:59

Comments published online in response to the article "Economics for Lefties"

Shawn Hyam
May 30, 2009 - 10:27 AM

A VERY important correction: worker co-ops do not in fact get a tax
break from the government. Surplus profits distributed to the
worker-owners are a business expense only because they are taxed as
wages to the recipients. This is considerably worse than in a standard
corporation, where I can pay a (much lower) corporate tax rate and then
issue dividends. I have owned both a standard corporation and a worker
co-op, and I assure you that the vast majority of gov't tax breaks and
support go to the corporation model. They make it considerably more
difficult for coops.

Prof. Sonja Novkovic
May 28, 2009 - 10:53 PM

Prof. Heath has aparently stopped reading economics research papers
sometime in 1970s, when Ward-Vanek (theoretical, i.e. imaginatory)
model of a co-operative firm dominated the literature, model that
produced the perverse supply response. Since then economists have been
busy looking for evidence of this phenomenon, and could not find it. A
great paper by Bonin, Jones and Putterman was published in 1993 in the
Journal of Economic Literature, listing the long lineup of econometric
studies which found no evidence of perverse supply response, no
evidence of not hiring new members, no evidence of free-riding and
operating under capacity; no evidence of hiring fewer workers than the
competing firms. What problems co-operatives do have can be related to
a number of issues coming from ideological and institutional biases
against them, this article being a case in point.

blair hamilton
May 28, 2009 - 10:12 AM

Professor Heath shows an alarming ignorance of basic knowledge of
cooperatives when he compares law firms and condominiums to
cooperatives, as neither are run on a cooperative basis and are
distinct from actual co-ops. Moreover, his assertion that every worker
in a worker co-op receives an equal share of revenue is not only
horribly simplisitic, but essentially wrong. If he would examine the
literature, he would find out that worker cooperatives have a superior
5 year survival rate to other forms of business organization. If he
furthered his understanding of economics, he would understand that
cooperatives can remain operational and employing people in a long-term
break-even environment, while their corporate competitors have to pull
up stakes - with no return on capital, they cannot justify their
presence in a community. While it would be amusing to go through the
article and rebut in more detail, let me close by observing that The
Citizen should really be doing a more thorough job of vetting the
expertise of their op-ed authors.

Hazel Corcoran
May 27, 2009 - 5:02 PM

I was disappointed to read this very negative portrayal of the
co-operative movement in general and the worker co-op movement in
particular. There is not space in a letter to the editor to address all
the points, however… Over 10 million Canadians are members of
co-operatives, and Canadian co-ops hold more than $225 billion in
assets. Around the world more people are employed by co-ops than all
multi-national corporations together. Canada’s co-op movement is
marking its 100th anniversary in 2009 at a celebratory Congress in
Ottawa this June, featuring speakers such as John Ralston Saul, Jim
Stanford and the Conference Board’s Chief Economist. Co-operatives and
credit unions (financial co-operatives) are community-based
organizations with the goal not only to grow the bottom lines of their
businesses, but also to focus on the needs of their members and
communities. The worker co-operative movement, although small in Canada
–so far--, has been shown around the world to have huge potential. In
Europe there are approximately 60,000 worker co-ops with over 1.3
million worker-owners. Many are manufacturing businesses. In Mondragon,
Spain, where the economy is based on worker co-operatives, there is
lower unemployment than in other regions of Spain. The US has 10
million people working in employee-owned companies. The message is
catching on in Canada about the many benefits of worker-owned
co-operatives, and I appreciate Naomi Klein’s and Avi Lewis’ publicity
of the movement. As we witness another failure of the mainstream
economic model, the co-operative movement, including worker co-ops, can
be a big part of the solution. Relentless capitalism pursuing profit
over all other considerations has brought the economy to its knees.
“Co-operatives are not (only) tools to address crisis, but a
sustainable form of enterprise that outlives crisis and drives
recovery.” (www.ica.coop/activities/idc/2009.html) Another economy is
possible. Hazel Corcoran Executive Director, Canadian Worker Co-op
Federation, Calgary

Greg Pang
May 27, 2009 - 2:01 PM

Dear Prof. Heath: This article is quite insightful, but I noticed some
significant errors. A bit of personal disclosure: I have no affiliation
or vested interest in any co-operative other than my $5 membership to
Mountain Equipment Co-Op so that I can buy outdoors gear from their
shops. First of all, the substance of your argument addresses a valid
concern about worker co-ops in particular. However, both the article’s
sub headline and your opening four paragraphs reference co-operatives
in general, and it seems like you’re painting all co-ops with the same
brush. This is problematic because under Ontario law, as prescribed in
the Co-Operatives Corporations Act (“CC Act”), there are several types
of co-ops whose mandates and objects can differ greatly. Along with
worker co-ops, there are service co-ops, consumers co-ops, supply
co-ops, marketing co-ops, housing and housing development co-ops,
farming and supply co-ops, etc etc. Again, worker co-ops are just one
type of co-op out there, whose mandate is generally to provide
employment. Secondly, I would like to address this line in your
article: "Renters have been banding together for decades to "fire the
landlord" and form co-operatives. That's what condominiums are." This
line is quite erroneous for the following reasons. Even though
condominium associations (i.e. the organization that runs a condo
complex) may make decisions “cooperatively” by unit owners of a condo
complex, these associations are not co-operatives. A co-op is a
specific legal entity defined governed under the CC Act. Condominium
associations, in Ontario, are incorporated and governed under the
Condominium Act. Your reference to renters banding together to “fire
the landlord” refers to housing co-ops governed under the CC Act, which
are wholly different from condominium associations. Thirdly, your line
“Lawyers have been forming worker co-ops for decades as well (that's
why law firms are run by the "partners")” is also an erroneous
statement. Law firms are not worker co-ops at all, but are rather legal
entities called partnerships governed in Ontario under the Partnerships
Act. The relationship between partners, their associates and other
staff is vastly different than the relationship between workers of a
worker co-op. These are very different entities that must not be
confused.

Economics for lefties

Jun 15 2009 - 00:00
Jun 15 2009 - 23:59

Co-ops sound great if you hate big corporations. Not so great if you care about how they work in real life

By Joseph Heath, Citizen Special
May 27, 2009

As the worst recession in 60 years grinds on, Naomi Klein and Avi Lewis are starting to get excited. From "bossnappings" in France to factory occupations in Canada and Britain, workers are starting to flex their muscles. The time may have come, they say, to fire the boss and seize control of the means of production. "Co-ops are once again emerging as a practical alternative to more lay-offs," they write.

Klein and Lewis, I must admit, make me a bit crazy. Not for the usual reasons, though. Unlike their right-wing critics, I don't disagree with the basic complaints they have about the capitalist system. I think they identify real problems. But they proceed to blame these problems on totally fictitious causes, then recommend solutions that are guaranteed not to work. Like co-ops.

[Article continues below]



See also the following responses:
Comments from Hazel Corcoran, Executive Director of the Canadian Worker Co-operative Federation (CWCF), Dr. Sonja Novkovic, economics professor at St. Mary's University in Halifax and others.
Article by Ottawa social policy researcher John Baglow
Letter to the editor from Carol Hunter, Executive Director of the Canadian Co-operative Association (CCA)
Letter to the editor from Jason Foster, Director of Policy Analysis for the Alberta Federation of Labour


Why do they do this? Because they don't understand basic economics. In this respect, they're in good company. Most of the left-wing establishment in this country doesn't understand economics. I barely do. But at least I'm trying.

Consider co-ops. There is in fact a large literature on the subject, much of it written by economists, none of it particularly optimistic about their potential. Why? Because they don't work very well. If they did, there would be more of them. Furthermore, they have the potential to muck up the entire economy (more on that later).

Here's a question. If workers are so great at running companies, why do they have to wait until their employer is going bankrupt before taking over the firm? Renters have been banding together for decades to "fire the landlord" and form co-operatives. That's what condominiums are. Lawyers have been forming worker co-ops for decades as well (that's why law firms are run by the "partners"). Some of the largest insurance companies in the world are co-ops ("mutuals").

Furthermore, co-ops get a massive tax break from the government, primarily because the surplus revenue they distribute to their members is considered an expense and isn't taxed as profit, the way it would be in a standard business firm.

So if co-ops are such a great alternative to old-fashioned profit-oriented firms, why aren't there more of them already? Why aren't capitalists willing to pay workers to take over their firms, then split the tax savings? Dairy farmers didn't have to wait for a financial crisis in order to create a number of highly successful supply co-ops. So why are there almost no worker co-ops in the manufacturing sector?

The easiest way to answer this question is to look at co-ops that do succeed and consider what they have in common. In the case of worker co-ops, the answer is fairly straightforward. Worker co-ops succeed in sectors where there is a single class of workers and no expensive equipment. Travel agencies, for instance, are often worker co-ops.

Once you start getting a lot of equipment or a variety of different types of workers, certain characteristic problems begin to show up. Most importantly, conflicts of interest begin to develop among the workers. Imagine having a big meeting where it's to be decided collectively how much everyone is going to earn. That decision is a whole lot easier when everyone is doing the same job.

One of the reasons that standard business corporations succeed as well as they do is that they are essentially "money lenders' co-ops." Because money is an extremely homogenous input, shareholders suffer from very few internal conflicts. Thus they are able to provide fairly coherent instructions to managers. Co-ops, by contrast, often break down due to infighting.

Setting aside these internal difficulties, there is a fundamental flaw with the idea of an entire economy constituted by worker co-ops. The problem is that co-ops create unemployment. Let me repeat that, just for emphasis. Co-ops are not a "cure for layoffs." They cause unemployment.

Why? Because they have an incentive structure that leads them to stop hiring long before a capitalist firm would. Even if the potential increase in revenue from a new employee would be more than enough to cover that person's salary, co-ops may be tempted not to hire. That's because each new employee gets an equal share of net revenue. As the firm expands production, hiring eventually reaches a point at which it generates a decrease in wages for existing workers at the firm, even though it is still increasing net revenue. (It increases the total net, but decreases the per capita net.)

Everyone knows how much workers enjoy having their wages cut. As a result, workers in a co-op typically confront an uncomfortable choice. They either leave productive capacity sitting idle, or they hire new workers and accept lower wages. Typically, they choose to do neither. Instead, they bring in new workers, not as full members, but as good old-fashioned wage-slaves (such as the "associates" in a law firm).

As a result, worker co-ops have a tendency, over time, to convert into something that very much resembles capitalist firms, with the founding members as the owners and everyone else working on salary. This is why 19th-century socialists like Beatrice Webb were so strongly opposed to the co-operative movement.

Of course, in the 19th century there was a sophisticated debate among socialists about this very subject, among activists who took economics seriously as a discipline. The same cannot be said today. This is unfortunate. There are, in my experience, quite a few people with a lot of big opinions about capitalism. There are, unfortunately, far fewer who actually understand how capitalism works.

So perhaps one can see why, when I see Klein and Lewis presenting worker co-ops as a "cure for layoffs," it drives me a bit crazy. My first reaction is to ask, "How do they intend to solve the perverse supply response problem?" But then, of course, I realize the answer. They don't intend to solve the perverse supply response problem, because they don't know there is one.

There you have the problem of economic illiteracy on the left, in a nutshell. How can you purport to fix a problem, when you haven't even taken the time to understand the solution you're proposing?

Joseph Heath teaches in the Department of Philosophy at the University of Toronto, and is the author, most recently, of Filthy Lucre: Economics for People Who Hate Capitalism.

© Copyright (c) The Ottawa Citizen

Co-op Week, ICU Day 2009 to focus on advantages of co-operatives

May 25 2009 - 00:00
May 25 2009 - 23:59

Co-op Week, ICU Day 2009 to focus on advantages of co-operatives and credit unions in uncertain economic environment

Ottawa, May 19, 2009 - The enormous contribution co-operatives and
credit unions make to the lives of Canadians and their communities,
especially in uncertain economic times, will be the focus of this
year's Co-op Week and International Credit Union Day celebrations, October 11-17, 2009.

Canada's two national co-operative associations, the Canadian
Co-operative Association (CCA) and the Conseil canadien de la
coopération et de la mutualité (CCCM), together with Credit Union
Central of Canada (CUCC) and the Conseil québécois de la coopération et
de la mutualité (CQCM), will call on Canadians during Co-op Week to
reflect on the various ways co-ops improve their lives and strengthen
their communities. In developing this year's Co-op Week and ICU Day
campaign, the Canadian organizations worked closely with their
international partners, the World Council of Credit Unions (WOCCU) and
the Credit Union National Association (CUNA) in the United States.

Instead of a single theme as in past years, Co-op Week 2009 will
celebrate the advantages of co-operatives in the current economic
environment. Three Co-op Week posters, available in English and French
and illustrated with silhouettes of people rooted in their communities,
will reflect three of these advantages:

* Co-operatives are...putting people first
* Co-operatives are...creating sustainable jobs
* Co-operatives are...investing in communities

In addition, International Credit Union Day, Thursday, October 15, will
have its own distinctive theme, "Your Money, Your Choice, Your Credit
Union", which will also be promoted and distributed by Canadian
co-operative and credit union associations, as well as credit union
associations around the world. The ICU Day poster will also feature
silhouettes of people and use the same orange, blue and green colours
as the Co-op Week posters.

"While today's economic times pose serious challenges, they also
provide an opportunity for the co-operative sector to demonstrate the
differences between co-ops and traditional business models," said CCA
Executive Director Carol Hunter. "We know that Canadians are
increasingly interested in supporting organizations that are open,
democratic and put people before profits, and that's what co-operatives
and credit unions are all about."

"We are pleased to work with other national and international groups on
the campaign to promote International Credit Union Day and Co-op Week,"
said David Phillips, president and CEO of Credit Union Central of
Canada. "We work with these groups year round on projects that support
important initiatives that help members around the world cope with
trying economic times."

International Credit Union Day has been celebrated annually on the
third Thursday of October since 1948. The celebration of Co-op Week in
Canada became a national event in 1982 with the encouragement of the
Co-operative Union of Canada, CCA's predecessor.

In the coming months, promotional materials for Co-op Week and ICU Day will be available for order online at www.coopscanada.coop and www.cucentral.ca.
-30-
The Canadian Co-operative Association is a national association for
co-operatives in Canada, representing more than nine million
co-operative and credit union members from over 2,000 organizations.
CCA members come from many sectors of the economy, including finance,
insurance, agri-food and supply, wholesale and retail, housing, health
and the service sector. CCA provides leadership to promote, develop,
and unite co-operatives and credit unions for the benefit of people in
Canada and around the world. CCA is celebrating its 100th anniversary
in 2009.

Visit our web site at www.coopscanada.coop

Contact:
Donna Balkan, Communications Manager
Canadian Co-operative Association
613-238-6711, ext. 206
Cell: 613-314-1032
communications@coopscanada.coop

CDI funding renewed: $19.1 million

May 25 2009 - 00:00
May 25 2009 - 23:59

Federal government renews and enhances Co-operative Development Initiative:  $19.1 million over four years for co-op development 

 

Ottawa, May 21, 2009 - The Canadian Co-operative Association (CCA) is very pleased with the federal government's decision to renew and enhance the Co-operative Development Initiative (CDI), a program aimed at providing support to new and emerging co-operatives across Canada.

The Honourable Jean-Pierre Blackburn, Minister of National Revenue and Minister of State (Agriculture) announced today that the government will invest $19.1 million over the next four years to support the establishment of new co-operatives and test innovative methods of using the co-operative model. The previous CDI program, which began in 2003, expired on March 31 of this year.

"This is wonderful news for the co-operative sector, for Canadians who use the services co-operatives provide and for the communities in which co-operatives are located," said CCA Executive Director Carol Hunter. "By renewing and enhancing CDI, the government has recognized that co-operatives create jobs and bring enormous value to Canada's economy."

The new program will have two major components:

* Advisory Services, which will improve access to co-operative development information and services that will assist in the formation of new co-operatives. This component of the program is an expanded version of the Advisory Services component of the previous CDI; it will continue to be managed by CCA and its francophone sister organization, the Conseil canadien de la coopération et de la mutualité (CCCM) through provincial and sectoral co-operative associations across Canada and will also provide new national services.

* Innovative Co-operative Projects, which will provide project support for new and emerging co-operatives. This will include value-added agriculture projects, which had been supported by a separate Ag-CDI component within the previous program. This component will now be fully managed by CCA and CCCM.

In addition, there will be a Research and Knowledge Development component, which will support new and applied research to support co-operative development. This component will be managed by the federal Co-operatives Secretariat, which is part of Agriculture and Agri-Food Canada.

Ms. Hunter said she was pleased that the two national co-operative associations have been given the opportunity to fully manage the two major components of the program; under the previous program, the associations only managed Advisory Services and Ag-CDI. "We are happy that the government has confidence in the co-operative sector to administer these funds on its behalf, for the benefit of co-operatives, communities and all Canadians," she said.

CCA and CCCM have actively lobbied for the renewal of the CDI program for the past two years, with the help of individuals and organizations across Canada, from both within and outside the co-operative sector.

"We would like to thank all the people and organizations who participated in our CDI renewal campaign, and who let their elected representatives know how important this program was to their co-operatives and communities," Ms. Hunter said. We would like to particularly thank the superb efforts of our member co-operatives and credit unions which helped this campaign succeed."

The previous CDI program supported more than 1,500 co-operatives through Advisory Services and project funding, and helped create some 200 new co-operatives.

Information on how to apply for the Innovative Co-operative Projects component of the new program, including criteria and deadlines, will be available on CCA's website, www.coopscanada.coop, within the next few weeks.

The Canadian Co-operative Association is a national association for co-operatives in Canada, representing more than nine million co-operative and credit union members from over 2,000 organizations. CCA members come from many sectors of the economy, including finance, insurance, agri-food and supply, wholesale and retail, housing, health and the service sector. CCA provides leadership to promote, develop, and unite co-operatives and credit unions for the benefit of people in Canada and around the world. CCA is celebrating its 100th anniversary in 2009.

Visit our web site at www.coopscanada.coop

Contact:
Donna Balkan, Communications Manager
Canadian Co-operative Association
613-238-6711, ext. 206
Cell: 613-314-1032
communications@coopscanada.coop

READ THE RESULTS OF THE QUEBEC CO-OP STUDY

May 25 2009 - 00:00
May 25 2009 - 23:59

READ THE RESULTS OF THE QUEBEC CO-OP STUDY

 

The Ontario Co-operative Association (On Co-op) has published an English summary of last year's report on co-operatives by the Quebec Ministry of Economic Development, Innovation and Export. The report showed that Quebec co-ops have a significantly higher survival rate than traditional businesses in the province.

Click here to read the summary of the report on the On Co-op website or go to www.ontario.coop.

The full report is available only in French 

Fair Trade in Nakusp

May 13 2009 - 16:41

Published online for KBS Radio
Sun, 2009-05-10 09:25

An idea that came to life at a Nakusp Secondary School
Sustainability Club Meeting, is now a reality. Nakusp has now been
designated as the first Fair Trade Town in BC.  The quest to become a
Fair Trade Community began 6 month ago and was accomplished by NSS
Student Alyshia Gustofson.

Gustofson says once everyone was informed and on board, she had to send
an application to register for fair trade status. She added that now
that they have received the status one of the requirements to form a
steering group focused on making sure the town stays committed the the
project and to create new initiatives in the community.

Erin Miller KBS News

Victoria Community Health Co-op Seeks Business Manager

Apr 27 2009 - 15:31

Job Posting:

 

Victoria Community Health Cooperative Business Manager

Background
The Victoria Community Health Cooperative (VCHC) is the first health co-operative in Victoria. To date we have developed a clear vision and mission statement, a strategic plan, a preliminary business plan, and promotional materials. We are committed to following the seven International Co-operative Principles.  Our current operations include community education programs to enhance wellness, monthly community clinics and wellness education curriculum/presentations in middle schools.  

Job Summary
We seek a Business Manager as we move forward to implement next steps. The initial focus of the position will be on development of all business aspects of the newly formed Co-operative. Candidates will have related education and several years experience working in business development.   Commitment to primary and integrative health care and co-operatives is important.  The Manager will report to the members of the Co-operative through its Board of Directors.

The work will evolve in response to the needs of the Co-operative and the passions and skills of the Manager, but will focus on four areas.  

  • Support to the Board and Committees.
  • Financial responsibilities will include: fundraising; financial administration of grants; and further development of investment strategies.
  • Business development responsibilities will include: helping  implement community outreach programs in collaboration with existing working committees; exploring development of a permanent community wellness centre; and researching and advising on program implementation.
  • Public and media relations work will include:  outreach to our members, the community and the media; and include a membership drive and ongoing marketing of the VCHC.


Position details: This is a three month part-time contract starting in June, and  could become a full-time permanent management position.  We plan to interview during the first or second week of May.  Please send your statement of interest and resumé to:  Merran Proctor at justcauses@shaw.ca 

The Coming Co-op Crunch

Apr 2 2009 - 13:53

Published in TheTyee.ca
By Colleen Kimmett
Published: April 2, 2009


Hemmed in by duplexes on either side, the courtyard at Penta Housing Co-operative features a communal garden, playground and massive willow trees.

It's the kind of place you'd want to raise kids: safe, secure and within walking distance to parks and the beach. And, in a neighborhood where houses sell for upwards of a million dollars, it's affordable for a one-income family.

That's why Bruce Inglis, his partner and their two children moved here five years ago (after waiting eight years to get in). The kids have since left home, but for Inglis, "It's hard for us to imagine living anywhere else."

Still, that's a reality he knows they might face one day. The buildings here are 30 years old, near the end of their shelf life, and that means maintenance costs are increasing.

"There's a finite point at which people can continue to repaint or patch up to keep things going," says Inglis.

Like many of the co-ops across British Columbia and Canada, Penta was built in the '70s with a wave of funding from federal government programs that both reduced the cost of the mortgage, and provided subsidies for low-income units.

These programs, which were delivered through operating agreements with individual co-ops and government, continued through the '80s and early '90s. The result was an affordable, diverse and community-based housing stock; there are now approximately 2,000 non-profit housing co-ops currently across the country. In British Columbia, 260 co-ops provide approximately 14,500 homes for mid- and low-income families.

But in the next 10 years, nearly half of the government operating agreements will expire, leaving many co-ops to effectively fend for themselves.

A new co-op generation?

Thom Armstrong, executive director of the B.C. Co-op Housing Federation, says there are a couple of implications to consider.

"On one hand are a whole bunch of wood-frame buildings nearing the end of their 30- or 40-year life. Co-op members are asking themselves, how long will my housing last?" he said.

"At the same time, when you don't any longer have a relationship with government, you don't have an obligation to do anything, other than what the laws of the land say, but neither do you have the security that came with the government financing."

"Is it just a stock of disposable housing, does it just run out and fall down? Or do we rebuild it, refinance it for another generation of co-op members?"

Can co-ops afford to stay affordable?

The question of how (or whether) to refinance and rebuild in the absence of government subsidies is up to individual co-ops. The Co-op Housing Federation of Canada offers a certification program, called 2020 Vision, that requires them to establish a mission statement and financial plan.

Working through the process, says Armstrong, will not only force co-ops to think about their future but also makes them more desirable to private financers.

"They're going to have to go to a commercial lender and say, based on the value of our property and based on our income stream... will you lend us the money to rebuild for another 40 or 50 years," said Armstrong.

"Co-ops haves spent years building really viable supportive communities, and now they're going to have to turn their attention to what it takes to be a real viable business as well."

Never to soon to plan

Scott Hughes, director of community business banking at VanCity has a word of advice: make sure to plan well in advance of when an operating agreement might end.

"Typically, the decision-making process is slower. They will need enough time to get the appraisals and inputs that they need."

Although property values and the amount of financing have shrunk, "low interest rates allow you to borrow more against the same stream of rental payments," he says.

Roofs and Roots Housing Co-operative has had the experience going it alone. Incorporated in 2001, they were the first new co-op in the Victoria area in 15 years.

"The major challenge for a new cooperative like ours was that we don't have an overarching authority, like the federal government, to provide us with a down payment or the benefits of subsidies," says co-founder Pascale Knoglinger.

They had to raise equity from five different government and non-governmental funders ("with five different deadlines and requirements," Pascale notes) and find a seller patient enough to wait as they gathered a down payment.

'That's the Catch-22'

"For a co-op these days, you really have to find the right seller and have to have a really good relationship will all these different funders," she said.

Making sure that even low income people can afford co-op housing charges is more difficult, she says.

For example, in order to access renovation and retrofit funding from the Canada Mortgage and Housing Corporation, unit prices have to fall under the median income threshold.

"We had to lower some of the units' monthly fees, and that means that we decreased our revenue," said Knoglinger.

"You have to incur a deficit in order to meet the criteria," she says. "That's the whole thing, that's the catch-22."

'Sweat and time'

"It's hard for people who live in co-ops to think about developing new co-ops," says Sol Kinnis, Roofs and Roots co-founder. "It's a heck of a lot harder than I thought it would be."

She thinks existing co-ops could play a role in invigorating a new stock of housing by contributing to a development fund.

"If we contributed a certain amount of money every year towards a development fund, it could be used as leverage for government funding," she says.

But, as Inglis points out, the success of co-op housing depends on the people involved, not just the funding available.

"We moved here because it was affordable... but in the five years we've lived here we've had no choice but to get closer to the real costs," he says.

"Maybe not so much in real dollar costs, but on a monthly basis some of us contribute a lot of our sweat and time... easily several hundred dollars of my own labour. It's a value that people often forget about."

UVIC STUDENT WINS NATIONAL ENTREPRENEURSHIP AWARD

Mar 27 2009 - 10:49

MEDIA RELEASE
March 26, 2009


Jill Doucette, a fourth-year University of Victoria biology student,
has won top honours at the national Nicol Entrepreneurship competition
for her green business consulting practice known as Synergy.

“Winning this award is such an honour and I’ve gained confidence in
myself and my business idea,” says Doucette. “Through the mentorship
and contacts I made at the Nicol competition, I feel that I've learned
what it takes to be an entrepreneur and I’m excited for the next step
in the process.”

Doucette’s business focuses on implementing sustainable business
practices within the coffee, restaurant and retail industries. She
offers a range of services such as greenhouse gas inventories and
energy audits, and providing green energy products and waste management
systems. She also advises clients on how to integrate green ideas into
their business strategy, access appropriate environmental funding
programs and grants, and promote their resulting sustainability
initiatives.  

According to Doucette, one of her clients, Oughtred Coffee and Teas,
has “diverted literally tons of soft plastics” from the landfill every
year through its recycling program. Oughtred has also introduced waste
management practices and installed motion sensors to reduce energy
consumption.

This year’s competition, which ran on March 23 to 24 in Ottawa, saw
teams participating from 13 universities across the country. UVic was
the only entry from Western Canada. The annual Nicol Entrepreneurial
Award recognizes the value of the entrepreneurial spirit and the
important role it plays in the success of a business.

Doucette was invited to participate in the Nicol competition based on
her first-place finish in the UVic Business Plan contest, which wrapped
up on March 6, 2009. The “pitch-it and plan-it” elements of the
competition were organized by the Faculty of Business entrepreneurship
program to expose all UVic students to the benefits of entrepreneurship
and innovation concepts. Information about other winning business plans
is online at: www.business.uvic.ca/media/news/view/155 <http://www.business.uvic.ca/media/news/view/155> .

—30—


Media contacts:
Jill Doucette (Biology, student) at 250-589-2599 or jilldoucette@gmail.com
Dianne George (Business Communications) at 250-721-6411 or buscomm@business.uvic.ca

Co-op to fund fight against tar sands exploitation in Canada (Feb 26)

Mar 16 2009 - 00:26

http://www.crainsmanchesterbusiness.co.uk/apps/pbcs.dll/article?AID=/20090226/FREE/902269997/1007

Manchester-based Co-operative Financial Services is to
help fund legal action to stop energy companies from exploiting oil
sands deposits in Canada.

The mutually-owned financial group is
paying £50,000 for an evidence gathering exercise to support a case
being brought by the Beaver Lake Cree nation, an indigenous people who
live in the area where the oil sands industry is based in the province
of Alberta.

They believe that the activities of the oil companies will lead to
the destruction of their traditional hunting and fishing lands and are
seeking a court injunction over 16,000 permits issued by the Alberta
state government.

If successful, the legal action could prevent oil companies like
Shell and BP from extracting up to two trillion barrels of oil from the
Canadian tar sands.

The Co-operative said it would provide more
funding if it were needed. Paul Monaghan, head of social goals and
sustainability at CFS, said his company’s support for the legal action
would create international publicity.

CFS plans to spend £500,000, in collaboration with the World Wildlife Fund, on the fight against so-called toxic fuels.

Oil
sands produce more carbon dioxide than other types of oil production
and their extraction involves huge open cast mines which can leave
craters filled with polluted water.

The Alberta state government said it would “rigorously defend” the
case. It said the equivalent of £4.9bn was invested in tar sand
exploitation between 2000-2008 in Alberta, creating six times as much
spending in other parts of the province’s economy.

5Qs: Eyes on the Future

Mar 11 2009 - 14:31

Posted By: John Threlfall
Monday Magazine

One-day think-tank offers a fresh perspective on our troubled times

One of the first things Nicole Chaland recites to me when I call her is a quote from noted American humourist Will Rogers: “It’s almost worth the Great Depression to learn how little our big men know.” The context is obvious, of course, given the recent collapse of both the investment market and people’s general faith in big business as we know (knew?) it.

Chaland, co-organizer and workshop presenter at Remaking the Economy through People’s Eyes: A Forum Exploring Economic Models for Today and Tomorrow, is merely putting voice to a thought that an increasing number of people already believe: the economy is broke, literally and figuratively. But rather than just hide under the covers and burn the stock pages, the likes of Donna Morton (founder and executive director of the Centre for Integral Economics), UVic’s own Dr. James Tully (political science) and Doug Wright (co-op business development), Dr. Mark Roseland (SFU’s Centre for Sustainable Community Development) and the University of Cambridge’s Helen Haugh are gathering this weekend to explore different ways to both recover and renew the world’s economy. We asked Nicole Chaland what people can expect this weekend.

Monday Magazine: How did you choose your speakers?

Nicole Chaland: The presenters are a perfect mix of thinkers and people who have spent a lot of time studying and doing it for the past 20 years. Donna Morton, for example, is a woman who’s not afraid to roll up her sleeves and speak about the economy—she was one of the first to talk about tax-shifting.

MM: How does the day work—do people pick and choose what they want to hear?

NC: We’ve got four keynote speakers and nine workshops, of which people can choose two to attend. We’re going to highlight and reinforce some of the positive stories right now—VanCity is a great example: they recorded record profits in 2008 and returned almost $9 million to members. We need more people who really understand what’s going on.

MM: Can you give us an idea of the kind of workshop you’ll be having?

NC: One is on “capital pools” for community economic development—that is, community economic development investment funds. Essentially, what we need is a vehicle for people to put their RRSPs into things on a community level, like the Cornerstone Cafe or the Roofs and Roots Housing Cooperative. Basically, this workshop is going to show how it’s being done in Nova Scotia or Quebec—how to reclaim or remake our economy—then go to our credit unions and ask to set up a fund. The City of Victoria could probably fund a $20,000 research project on this that would yield good results.

MM: Is the idea to offer how-to knowledge or just some ideas that aren’t really being considered?

NC: Well, we’re hoping community leaders will come—we’ve got a couple of local councillors signed up already—but realistically, we just want to send a positive message to people. Actually, about 60 percent of the people coming are from outside of Victoria—from Vancouver, even someone from Alberta. We definitely want people to get inspired, to talk about these things as they develop. It’s a really good mix of university and regular folks.

MM: Are you hoping some serious solutions will come out of this weekend?

NC: I don’t think anyone has all the answers, but co-ops and credit unions could play a lead roll in stabilizing the economy. A recent study showed that housing trusts are pretty much immune to foreclosures; in the Netherlands, one out of every three homes is owned by a non-profit association, but here, non-profits still tend to have a real ghetto association—but that’s not the case with the rest of the world. And non-profits make up about eight percent of the gross domestic product, more than twice what agriculture does. It really matters where we put our money and this is being realized in places like Quebec and Europe, where they’ve been banding together in building a social economy. People are starting to realize it’s an important part of the economy; there’s more than just the private sector and the public sector, there’s also the social economy.

Remaking the Economy runs 9 a.m. to 4:30 p.m. Saturday, March 7, in UVic’s MacLaurin Building. Admission is free and lunch is included, but space is limited. Go to bcics.coop/content/remaking-economy to register.