Worker Cooperative Business Model

1. The Employee Solution: Make a job, don't just get a job. Worker Cooperative Business Model Based on the Mondragon Experience and others

2. The Employee Solution: Make a job, don't just get a job. Common Corporate Model STAKEHOLDERS < Corporate Heads < Middle Management < Workers Primary DIRECTION OF ACCOUNTABILITY

3. The Employee Solution: Make a job, don't just get a job. This system used to work because… • The owners carry the weight of business expenses, decisions, and risks (liabilities) allowing workers to focus on specific tasks. • The owners pay for employee benefits – medical, dental, time off, etc. • The owners are looked up to for handling disputes and making things run smoothly.

4. The Employee Solution: Make a job, don't just get a job. But the system is failing because… • Business is getting too complex. • Productivity is down • There is less engagement at work • Workers have trouble getting enough hours or enough wages. • They are miserable and complain more. • They are actively disengaging. • Incentives aren’t motivating people as they once did.

5. The Employee Solution: Make a job, don't just get a job. The battle between the two pillars of management TEDTalk - Yves Morieux: As work gets more complex, 6 rules to simplify http://bit.ly/1eFHbJv • Hard – Structures, processes, systems, metrics, etc. • Soft – Feelings, interpersonal relationships, traits, etc.

6. The Employee Solution: Make a job, don't just get a job. Cannot be balanced when solutions… Require organizing for a competitive advantage… • Cutting overhead while fulfilling new requirements • Adding new systems, strategies, functions… • Updating equipment and re-educating employees Which often takes precedence over… • The interplay of how the systems fit together… • Is the new process making it easier or harder on the workers? • Can the work be done more efficiently and with less cost to the consumer as well as management?

7. The Employee Solution: Make a job, don't just get a job. Morieux’s solution…

8. The Employee Solution: Make a job, don't just get a job. COOPERATE

9. The Employee Solution: Make a job, don't just get a job. What did we hear earlier? • No hierarchy means cooperation • Democratically operated • Decisions made by consensus • Workers enjoy working • And… • Customers liked shopping there • Stability of location • Have medical/dental benefit packages

10. The Employee Solution: Make a job, don't just get a job. What cooperatives have we seen so far? • The Cheeseboard, Berkeley, CA • Arizmendi Bakery, Berkeley, CA • Rainbow Market, Berkeley, CA • Inkworks Progressive Printing, Berkley, CA • The Sleepless Goat Café, Kingston, Ontario, Canada • Rebuilders Source, Green Worker Cooperatives, S. Bronx • Your Local Market Co-op, Stratford, Ontario, Canada • Others included: Ireland’s Cooperative Support Services, Gavin & Co. Accounting, Suma Wholefoods, JustBooks Collective, Dublin Community TV, Belfast Cleaning Society, Meitheal Mid West (promotes worker cooperatives in Limerick, IR); in San Francisco Other Avenues Food Store Co-op, Tech Collective, A Taste of Denmark Bakery; and in Oakland Mandela Foods Co-op

11. The Employee Solution: Make a job, don't just get a job. Not all cooperatives are small • Evergreen Cooperatives http://evergreencooperatives.com/ • Evergreen Laundry – launched 2009 • Evergreen Energy Solutions – Incorporated 2008 • Green City Growers – officially opened on 2/25/2013 • Mondragon Corporationhttp://www.mondragon-corporation.com/eng/

12. The Employee Solution: Make a job, don't just get a job. Mondragon Corporation • Basque region of Spain • Arrasate/Mondragón, Guipuscoa province • 2007 pop. 22,112

13. The Employee Solution: Make a job, don't just get a job. Mondragon Corporation 1956 – Don José María Arizmendiarrieta founded Talleres Ulgor(FAGOR Electrodomésticos S. Coop.)

14. The Employee Solution: Make a job, don't just get a job. Mondragon Corporation Ulgor’s first product: paraffin heaters Initial funding: local organizations & private investors • Town councils of Mondragón, Arechavaleta, Escoriaza and Oñate • Provincial Savings Bank of Guipúzcoa • Provincial Council • Chamber of Commerce • Ministry of Education • local companies • family men • associates

15. The Employee Solution: Make a job, don't just get a job. Mondragon with FAGOR in center

16. The Employee Solution: Make a job, don't just get a job. Mondragon Corporation 12/2012 – 80,321 worker/owners in 289 companies and organizations Talk aboutEmpowerment! Areas of finance, industry, retail and knowledge

17. The Employee Solution: Make a job, don't just get a job. Mondragon Model • Built from top-down • College • Fagor – industrial • Bank • All others followed The supportive infrastructure became fertile ground for the growth of many autonomous cooperatives.

18. The Employee Solution: Make a job, don't just get a job. Worker Cooperative Structure Based on the Mondragon Model and others Direction of Accountability is Organic MARKETPLACE Business Direction & Market Adaptability ]worker-owners < Core & Basic Cooperative Principals SUPPORT MECHANISMS

19. The Employee Solution: Make a job, don't just get a job. Mondragon’s Annual Congress

20. The Employee Solution: Make a job, don't just get a job. Mondragon Corporation • Mondragon cooperatives operate in accordance with the “Statement on the Co-operative Identity” maintained by the International Co-operative Alliance. • The ICA was founded in 1892, headquartered in Geneva, Switzerland.

21. The Employee Solution: Make a job, don't just get a job. ICA Statement of Cooperative Identity VALUES Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibility and caring for others. Definition A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. PRINCIPALS 1. Voluntary and Open Membership 2. Democratic Member Control 3. Member Economic Participation 4. Autonomy and Independence 5. Education, Training and Information 6. Co-operation among Co-operatives 7. Concern for Community __________________________________________________________________________________________________________ http://ica.coop/en/what-co-op/co-operative-identity-values-principles

22. The Employee Solution: Make a job, don't just get a job.

23. The Employee Solution: Make a job, don't just get a job. Where would you rather work? Here? Or here?

24. The Employee Solution: Make a job, don't just get a job.

25. The Employee Solution: Make a job, don't just get a job. What type of businesses make good worker cooperatives? • Accounting firms • Antique stores • Appliance stores • Appraisers • Architectural firms • Art Galleries • Auto repair • Bakeries • Banks • Batting cages • Bed & Breakfasts • Beekeepers • Bicycle shop • Building supply stores • Business supplies • Butchers • Car dealerships • Car washes • Carpentry shop • Cemeteries • Clothing store • Computer repair • Construction contractors • Consultants firm • Convenience stores • Craft supply stores • Cyber Cafe • Dance studios • Daycare centers • Deli products • Delivery services • Drycleaners • Entertainment agents • Event Coordinators • Farmer’s markets • Feed stores • Fish market • Formal wear rentals • Furniture stores • Gas stations • General stores • Graphics and web design • Grocery stores • Groomers • Gun shop • Hotels • Housecleaning business • Housesitting services • Insurance sales • Jewelry stores • Kitchenware stores • Landscapers • Laundromats • Law firms • Lending locations • Medical & Dental care • Miniature Golf • Motels • Network business • Newspapers • Nurseries • Office rental services • Office supplies • Optometrist • Painters • Party rentals • Pet stores • Pharmacies • Photographers • Pottery stores • Print shops • Recycle-Upcycle shops • Rental yards • Repair shops • Restaurants • Retail stores • Roof Installations • Secretarial services • Senior care assistance • Shipping services • Shoe stores • Sign painters • Sporting goods store • Storage units • Theatres • Tile & Flooring stores • Training centers • Transportation services • Travel agencies • Trophy stores • Warehouse rental

26. The Employee Solution: Make a job, don't just get a job. BRAINSTORMING(work+shop)

27. The Employee Solution: Make a job, don't just get a job. We want to fulfill Three Objectives • Create a team for the Foundation Support Group • Create new business ideas for our community • Create a team for our first conversion cooperative

28. The Employee Solution: Make a job, don't just get a job. Part 1 – What businesses do we need here? • Something you go off the hill to get? • Something you think is missing here? • Something you would love to do here? • Maybe that venture you’ve always dreamed of and just haven’t gotten around to doing? • Perhaps a complement or supplement to an existing business (raw materials, services)?

29. The Employee Solution: Make a job, don't just get a job. Part 2 – Consolidate our ideas • Combine like businesses on a single large paper. • What type of business(es) could each group of interests become? Write it/them across the top of one half-sheet leaving ¾ of each section blank. (Categories and sub-catgories)

30. The Employee Solution: Make a job, don't just get a job. Part 2 – Example 1. Auto Mechanic 2. Children’s Boutique

31. The Employee Solution: Make a job, don't just get a job. Part 3 – What abilities can you offer? • Personal work experience? • Your favorite pastime or hobby? • A skill you want to learn or improve? • Something you know others are doing and would like to build upon? • Resources you have access to that could assist the community?

32. The Employee Solution: Make a job, don't just get a job. Part 3 – Example 1. Auto Mechanic 2. Children’s Boutique Jim Smith Keith Bowen Mark Thompson Joe Harding Karen Sharp Ella Stevens Mary Jennings Jennifer Teal

33. The Employee Solution: Make a job, don't just get a job. Keynote TalkFlavia Krieg

34. The Employee Solution: Make a job, don't just get a job. Finally – What’s Next? • We’ll process the data you’ve compiled. • We’ll contact you individually and send you the contacts for those with like interests. • There is a follow-up gathering next Sat. Feb. 1, 10 AM, Little Red School House on Step #1 – Feasibility Studies. We’ll let you know more details when we contact you.

35. The Employee Solution: Make a job, don't just get a job. Finally – What’s Next? MY FOCUS… Continue to promote Worker Cooperatives as a local economic solution. Foundational Support Group & Website(AnzaBusinessCenter.com) To provide speakers and resources for new worker cooperative start-ups and business conversions. To solicit interested and skilled workers to share in the conversion of my existing graphics and web design business.

36. The Employee Solution: Make a job, don't just get a job. Two quotes of Empowerment…

37. The Employee Solution: Make a job, don't just get a job. “Whatever the mind can conceive, and believe, the mind can achieve.”Napoleon Hill

38. The Employee Solution: Make a job, don't just get a job. “…no heart has ever suffered when it goes in search of dreams, because every second of the search is a second’s encounterwith God and with eternity.”The Alchemist