Worker Co-ops & the Labour Movement

Worker Co-ops & the Labour Movement

November 24, 2007

CWCF AGM - AncasterPresented by: Hazel Corcoran (CWCF), April Bourgeois (Co-op Ventures

and CWCF Board), and Michael MacIsaac (CLC)

--> Declaration on Worker Ownership

November 24, 2007

CWCF AGM - AncasterPresented by: Hazel Corcoran (CWCF), April Bourgeois (Co-op Ventures

and CWCF Board), and Michael MacIsaac (CLC)

--> Declaration on Worker Ownership

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OutlineOutline Background

PLWCC

What Next?

Background

PLWCC

What Next?

IntroductionsIntroductions

Who I am Why I am here What I expect to get out of this Workshop

Who I am Why I am here What I expect to get out of this Workshop

COMMON CAUSE – COMMON GROUND

COMMON CAUSE – COMMON GROUND

Economic Democracy Common Good VS Individual Welfare Wealth Shared VS wealth Concentrated People before profit “Harmonize the interests of labour and

capital”

Economic Democracy Common Good VS Individual Welfare Wealth Shared VS wealth Concentrated People before profit “Harmonize the interests of labour and

capital”

Divergent Paths 1970 - PresentDivergent Paths 1970 - Present

The redefining of “Liberal Capitalism”, neo-conservatism and the forces of global corporatism.

Larger Co-operatives become business centric and focused on being competitive within their markets. (Retail Co-ops, Credit Unions) Some disappear.

Labour Unions under attack - changing legislation – offshore manufacturing –Flight of Capital – Declining Membership

The redefining of “Liberal Capitalism”, neo-conservatism and the forces of global corporatism.

Larger Co-operatives become business centric and focused on being competitive within their markets. (Retail Co-ops, Credit Unions) Some disappear.

Labour Unions under attack - changing legislation – offshore manufacturing –Flight of Capital – Declining Membership

Divergent Paths 1970 - PresentDivergent Paths 1970 - Present

From common ground to indifference Collective bargaining experience in larger Co-

ops Lack of a common table (National Labour –

Co-operative Committee) The loss of our collective history Fighting separate battles separately

From common ground to indifference Collective bargaining experience in larger Co-

ops Lack of a common table (National Labour –

Co-operative Committee) The loss of our collective history Fighting separate battles separately

The Wheel Comes RoundThe Wheel Comes Round

Impacts of global corporatism come home to roost The Rust Belt – manufacturing moved to locations with

lower labour standards Rise of Sweatshops Rise of the service sector (McJobs) Rural Decline – Death of one industry towns Globalization holding down Canadian union wages -

Conference Board of Canada

Impacts of global corporatism come home to roost The Rust Belt – manufacturing moved to locations with

lower labour standards Rise of Sweatshops Rise of the service sector (McJobs) Rural Decline – Death of one industry towns Globalization holding down Canadian union wages -

Conference Board of Canada

Impact on the PrairiesImpact on the Prairies

Dow BioProducts to cease production and shutdown Elie manufacturing facility

Weyerhaeuser Mills shut down, 300 out of work (Big River and Wapaweka – PA)

Moose Jaw – Worldwide Pork Tolko Industries Ltd.: Permanent Closure

Announced at Operations in The Pas, Manitoba Dominion Bridge / Canron West Closes (Similar stories in other regions: resource industries

generally; manufacturing job loss)

Dow BioProducts to cease production and shutdown Elie manufacturing facility

Weyerhaeuser Mills shut down, 300 out of work (Big River and Wapaweka – PA)

Moose Jaw – Worldwide Pork Tolko Industries Ltd.: Permanent Closure

Announced at Operations in The Pas, Manitoba Dominion Bridge / Canron West Closes (Similar stories in other regions: resource industries

generally; manufacturing job loss)

Focusing on the Prairies:PLWCC

Focusing on the Prairies:PLWCC

Original meeting – Saskatoon, September 16 & 17 20+ attendees including union members,

provincial labour federation staff, CLC reps, CVWC, SCA and CSC staff

Facilitators/Presenters included Lynn Williams president emeritus USWA, Dan Bell OEOC, Hazel Corcoran CWCF and CVWC members

Funding provided by Carrot Cache (Big Carrot), CWCF, SCA/CCS and CVWC

Original meeting – Saskatoon, September 16 & 17 20+ attendees including union members,

provincial labour federation staff, CLC reps, CVWC, SCA and CSC staff

Facilitators/Presenters included Lynn Williams president emeritus USWA, Dan Bell OEOC, Hazel Corcoran CWCF and CVWC members

Funding provided by Carrot Cache (Big Carrot), CWCF, SCA/CCS and CVWC

PLWCCPLWCC

Outcomes of the meeting Formation of PLWCC Better understanding of the place of Worker

Co-ops within the Co-op Sector Better understanding of labour issues as they

relate to worker ownership Knowledge of the OEOC model and success

factors required

Outcomes of the meeting Formation of PLWCC Better understanding of the place of Worker

Co-ops within the Co-op Sector Better understanding of labour issues as they

relate to worker ownership Knowledge of the OEOC model and success

factors required

PLWCCPLWCC

PURPOSE

The purpose of the Council is to facilitate collaboration between labour and worker co-op

activists and to improve conditions for workers in the Prairie region by promoting and facilitating

worker ownership.

PURPOSE

The purpose of the Council is to facilitate collaboration between labour and worker co-op

activists and to improve conditions for workers in the Prairie region by promoting and facilitating

worker ownership.

PLWCCPLWCC

COUNCIL MEMBERSHIPThe Council is comprised of members from Alberta,

Saskatchewan and Manitoba who represent the labour or worker co-op movements. Additionally, resource people provide support and mentorship to the Council. Membership is voluntary and without

remuneration.

COUNCIL MEMBERSHIPThe Council is comprised of members from Alberta,

Saskatchewan and Manitoba who represent the labour or worker co-op movements. Additionally, resource people provide support and mentorship to the Council. Membership is voluntary and without

remuneration.

PLWCCPLWCC

MANDATEThe mandate of the Council is:

To build the capacity to respond where unionized employees want to explore buying out a business as a worker co-

operative or other type of employee-owned enterprise due to business succession or a

crisis situation;

MANDATEThe mandate of the Council is:

To build the capacity to respond where unionized employees want to explore buying out a business as a worker co-

operative or other type of employee-owned enterprise due to business succession or a

crisis situation;

PLWCCPLWCC

MANDATE

To provide a common table on issues important to both the worker co-op and

labour sectors, such as joint lobbying and mutual support for worker co-operative

and/or unionized businesses;

MANDATE

To provide a common table on issues important to both the worker co-op and

labour sectors, such as joint lobbying and mutual support for worker co-operative

and/or unionized businesses;

PLWCCPLWCC

MANDATE

To do outreach and to provide two-way learning opportunities between the worker co-op and labour sectors;

MANDATE

To do outreach and to provide two-way learning opportunities between the worker co-op and labour sectors;

PLWCCPLWCC

MANDATE

To provide workshops on topics specific to this mandate, including financing tools for conversions and other subjects as

identified;

MANDATE

To provide workshops on topics specific to this mandate, including financing tools for conversions and other subjects as

identified;

PLWCCPLWCC

MANDATE

To coordinate the response to opportunities, including assembling a

skilled team to respond quickly to crisis situations involving unionized employees in Manitoba, Alberta and Saskatchewan

MANDATE

To coordinate the response to opportunities, including assembling a

skilled team to respond quickly to crisis situations involving unionized employees in Manitoba, Alberta and Saskatchewan

PLWCCPLWCC

Steering Committee April Bourgeois (Co-chair-CVWC) , David

Winter (Co-chair, CLC rep for the Prairie Region), Hazel Corcoran (CWCF), Jason Foster (Alberta Federation of Labour), Larry Hubich (Sask. Federation of Labour), Chris McCarville and Greg O’Neill (CVWC), with participation by Lynn Williams and Dan Bell. Recent additions are: Wendy Sol (Western Regional VP, CEP) and Chris Parlow (Steelworkers).

Steering Committee April Bourgeois (Co-chair-CVWC) , David

Winter (Co-chair, CLC rep for the Prairie Region), Hazel Corcoran (CWCF), Jason Foster (Alberta Federation of Labour), Larry Hubich (Sask. Federation of Labour), Chris McCarville and Greg O’Neill (CVWC), with participation by Lynn Williams and Dan Bell. Recent additions are: Wendy Sol (Western Regional VP, CEP) and Chris Parlow (Steelworkers).

PLWCCPLWCC

Monthly meetings by teleconference Formalized terms of reference Drafted & distributed brochure (Steering committee

designed – AFL printed) Made worker co-op presentations at labour schools

(AFL), booth at AFL Convention, and several District Labour Councils & Alberta & Saskatchewan

Discussions regarding Maple leaf Pork processing in Saskatoon

Held Seminar on Financing, Sept 2007 in Edmonton.

Monthly meetings by teleconference Formalized terms of reference Drafted & distributed brochure (Steering committee

designed – AFL printed) Made worker co-op presentations at labour schools

(AFL), booth at AFL Convention, and several District Labour Councils & Alberta & Saskatchewan

Discussions regarding Maple leaf Pork processing in Saskatoon

Held Seminar on Financing, Sept 2007 in Edmonton.

PLWCC Financing SeminarPLWCC Financing Seminar

Edmonton, September 24-25, 2007 20+ attendees including union members, provincial

labour federation staff, CLC reps, CWCF & CVWC Facilitators/Presenters included David Levi, CEO,

GrowthWorks, Tom Croft, CEO, Heartland Labor Capital Network (responsible pension investment advocates) & the Steel Valley Authority, Hazel Corcoran CWCF and CVWC members

Funding provided by Carrot Cache (Big Carrot), AFL, Regina DLC and Westoba Credit Union.

Edmonton, September 24-25, 2007 20+ attendees including union members, provincial

labour federation staff, CLC reps, CWCF & CVWC Facilitators/Presenters included David Levi, CEO,

GrowthWorks, Tom Croft, CEO, Heartland Labor Capital Network (responsible pension investment advocates) & the Steel Valley Authority, Hazel Corcoran CWCF and CVWC members

Funding provided by Carrot Cache (Big Carrot), AFL, Regina DLC and Westoba Credit Union.

PLWCC Financing SeminarPLWCC Financing Seminar

David Levi of GrowthWorks, has committed to provide support to the Council as it moves forward. GrowthWorks offers regionally based retail venture capital funds across Canada, & manages funds with a total of over $800 million in assets.

Heartland Network has encouraged responsible pension capital investments and helped bring attention to a broader universe of worker-friendly investment strategies.

David Levi of GrowthWorks, has committed to provide support to the Council as it moves forward. GrowthWorks offers regionally based retail venture capital funds across Canada, & manages funds with a total of over $800 million in assets.

Heartland Network has encouraged responsible pension capital investments and helped bring attention to a broader universe of worker-friendly investment strategies.

PLWCC Financing SeminarPLWCC Financing Seminar

Tom Croft emphasized the importance of early knowledge of potential opportunities for employee buyouts: the earlier the workers’ intervention, the higher the likelihood of success.

In the US, tens of thousands of living-wage jobs have been saved and created using Heartland strategies.

Tom Croft emphasized the importance of early knowledge of potential opportunities for employee buyouts: the earlier the workers’ intervention, the higher the likelihood of success.

In the US, tens of thousands of living-wage jobs have been saved and created using Heartland strategies.

What NextWhat Next

Creating awareness Continued brochure distribution Presentations like this Participation with labour schools

Developing capacity Local developers and labour reps working with OEOC

(CWCF is contact point) Identifying local professional expertise Lining up potential sources of capital

Creating awareness Continued brochure distribution Presentations like this Participation with labour schools

Developing capacity Local developers and labour reps working with OEOC

(CWCF is contact point) Identifying local professional expertise Lining up potential sources of capital

What NextWhat Next

Opportunity identification None identified to date Labour-initiated (need the awareness/promotion

piece to be working)

Facilitating the conversion

Opportunity identification None identified to date Labour-initiated (need the awareness/promotion

piece to be working)

Facilitating the conversion

Steps in the Buy-Out ProcessSteps in the Buy-Out Process

Educate the supporters of the buyout. Establish a buyout association - (future

Co-op). Do a pre-feasibility assessment. Conduct a feasibility study. Develop a Business Plan.

Educate the supporters of the buyout. Establish a buyout association - (future

Co-op). Do a pre-feasibility assessment. Conduct a feasibility study. Develop a Business Plan.

Steps in the Buy-Out ProcessSteps in the Buy-Out Process

Negotiate the purchase and create the structure for the new employee-owned co-operative.

Arrange financing. Close the deal with the seller.

Negotiate the purchase and create the structure for the new employee-owned co-operative.

Arrange financing. Close the deal with the seller.

What NextWhat Next

Bring in other co-op developers to work on PLWCC conversion projects.

What about other regions of the country?

Bring in other co-op developers to work on PLWCC conversion projects.

What about other regions of the country?

QUESTIONS?

DISCUSSION?

QUESTIONS?

DISCUSSION?