Resilience through Solidarity

This is part two in a three part series. You can read part one here.

Whilst it is easy to cherry pick individual examples of worker cooperatives, it is important to acknowledge that cooperatives can and do fail albeit at a lower rate. A report by Quebec in 2008 found that after five years, just 35% of traditional businesses were still operating, compared with 62% of cooperatives launched over the same period.

In fact, reports show that during the financial crisis, fewer European cooperatives went bankrupt and reported significantly fewer job losses. This is especially well documented in the case of cooperative banks.

This increased resilience makes sense when you consider how the worker cooperative model affects relationships both internally and between the company and the wider community. It recognises that people are rooted in and value community and are worth more than limitless growth for growth’s sake. It is less likely to exploit poor labour standards elsewhere in favour of higher profits if it would mean job losses internally.

Whilst the cooperative model is not a magic pill — the entity is a financial structure first and foremost with a social purpose strongly tied to it — the differences in how cooperatives typically respond to crises is striking. Equal ownership means job losses are used as a last resort instead favouring an equal, proportionate reduction in hours across teams . Additionally, greater cooperation between different cooperatives including via cooperative federations enables low interest borrowing between cooperatives to support one another during difficult times.

Of course there will be conflicts between cooperatives as there are everywhere else in life but having a common sense of purpose and underlying values means there is a better chance of working through those challenges together. This requires negotiation, discussion and debate — integral elements of a healthy thriving democracy.

We have, I believe, forgotten how to do democracy outside of marking a ballot paper once every few years. I’m talking about the rough and tumble of dealing with real people, not company procedures, email chains and corporate away days. I mean open, respectful and honest conversation that includes hearing opposing viewpoints, negotiation, making a case, compromising — the skills that actually help us work together to productive ends whilst forging stronger bonds with our fellow colleagues, compatriots and neighbours.

I do not think it is a coincidence that in a society where most people work in a rigidly hierarchical structure, feel alienated from their work and in competition with their peers that politics has become increasingly divisive and with an era-defining referendum ballot paper in your hands, what other chance do you have to feel heard and included in society.

When people feel such lack of control over their own lives and when the Hansard Society reports that 47% of people in the UK feel they have “no influence at all over national decision-making” it is no surprise that this frustration has led to a preference for autocratic leadership with 54% of people surveyed saying “Britain needs a strong leader”.

In part three of this series, I will discuss how worker cooperatives can provide insight as to why this might be the case.

You can get in touch with me at jawad.anjum@onpurpose.london