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| Lunch Lesson Four - Co-operatives ![]() Simon meets the managers Imagine a business without bosses where everyone gets paid the same wage. It sounds at best unlikely and at worst a recipe for anarchy, but that's how Calverts - a successful London print shop - is run. It's a co-operative which was set up 24 years ago, after an industrial dispute. The business is run by its 16 workers, including printers, graphic designers and sales staff. Everyone's the same The co-operative has a flat management structure, which means that no-one is more senior than anyone else. And everyone earns the same, no matter how many years they have worked for the business. Many of the workers have been with the company for a long time. This is largely because they like having an equal say in decision making. They can decide how to structure their hours, what paternity and maternity benefits they should have and what equipment they need to buy for their business. This all makes it sound as if the co-operative isn't as tough as other businesses. But business is business. And hard decisions have to be made. Show of hands If someone doesn't come up to scratch or fit in, the workforce has to act. Sometimes a decision on whether to get rid of someone may even come down to a vote. Calverts is a success story. Unlike many co-ops, banks have had the confidence to lend it money, which it's used to buy new printing machines. New equipment means the business can expand. But the question is, how big could Calverts grow before making decisions by committee would become too complicated. Calverts reckons a staff of 30 would probably be the upper limit. And if they stay on the path to success they could yet face the toughest vote of all - whether to continue as a co-operative. Student Guide Calverts turned into a co-operative when things went wrong. An industrial dispute was threatening the business so the employees got together and took it over. Instead of setting it up like any other business, they decided that they all wanted to be involved in the decision-making. This way, no one's nose could be put out of joint - just as long as everyone was prepared to accept the majority vote. This is known as a workers' co-operative.
Many workers' co-operatives are created in the same way as Calverts. The threat of closure often means that the staff get together to keep things running. They may even pool their redundancy money to keep the business going. Just think... Why do the staff at Calverts like working there? Craft enterprises often set up as co-operatives from the beginning. A group of skilled people who want to work together to sell their craft products could find it a good way to share responsibilities. Sometimes co-operatives can hit trouble because they have a lack of management skills. Even a small business needs expertise in accounts, marketing and general administration for example. Taking an eye off the cashflow is a quick way to disaster! What about producers? Farming is full of co-operatives. Working together make things cheaper because you can buy, sell and organise everything on a much larger scale. Often co-operatives are formed as a matter of necessity. For example a combine harvester is an expensive item of equipment that is used for only a short period each year. Only by buying it together and sharing the cost can small farmers afford to buy one. Vineyard owners in France often get together to turn their grapes into wine. A winery that makes good wine and meets all the health and safety requirements is a complex business. Small producers often have trouble hitting the mark so joining together gives them a better chance. What about the customers? We all have the chance to be part of a co-operative. Every time you shop at a co-op shop, you are taking part. Around the country, they work in different ways. Members often have a card which records their shopping. They will earn a discount according to the amount they spend. When there are big decisions to be made, the customers, who are also called members, are sometimes called on to have their say. Day-to-day decisions are taken by full-time staff as co-ops are often quite large organisations. Humble beginnings Customer Co-ops all began in Rochdale in the 1850s. A group of poor people got together and decide to buy food in bulk and set up a shop for the local community. Those who joined, paying �1 to help run the shop, got a share of the profits - or a dividend - based on how much they had spent. The overall objective of co-ops of all sorts is to provide the members with a fair deal. Just think... Is there a co-op in your local area? What does it do? How does it work? Why do people join co-ops as workers, producers or customers? |
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