Cooperatives still more resilient to the crisis

Every year since 2009, CICOPA has been consulting its members made up of national organisations representing cooperatives in industry and services in 33 countries throughout the world (including 16 EU countries). This consultation process has resulted in an annual report which gives a better understanding of the effects of the crisis on cooperative enterprises.

The new report about the situation in 2010 provides some key elements on how those cooperatives face the crisis: what has been, in 2010, the impact on worker and social cooperatives of the crisis that flared up in 2008? Is the situation different in Europe compared to the rest of the world? Are there any signs of recovery? Were the measures put in place by worker and social cooperatives and their federations during the previous years sufficient to limit employment losses and enterprise closures in 2010?

Among other things, the results of this consultation shows that in terms of economic performance, the employment and enterprise survival rate for worker and social cooperatives is better compared to conventional enterprises as well. It also shows stronger signs of recovery mostly in countries with a stronger cooperative implantation and experience.

With this 3rd report, cooperatives represented by CICOPA with their democratic management and governance, again show their tendency to produce a type and level of organisational innovation that significantly contributes to the economic sustainability of the enterprise.

Click here to see the full report

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What is a cooperative

Cooperatives a sustainable employment solution!

A cooperative 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.

Enterprises represented by CECOP are enterprises in which workers unite to satisfy their needs in terms of creation of sustainable jobs. They can be industrial enterprises or services rooted in the territories and having a long-term strategy. They are a genuine solution for sustainable jobs in Europe: they are broken down into workers’ cooperatives, social cooperatives and other types of enterprises owned by their workers.

Workers’ cooperatives: Workers’ cooperatives are enterprises subject to the same restrictions of competition, management and profitability as other companies. Their originality lies in the fact that their workers hold the majority of the shares, at least 51%. In doing so, the workers decide jointly on the major guidelines of their enterprises and appoint their leaders (managers, boards of directors, etc.). They also decide on how to share the profit with a twofold aim: to give the preference to the workers of the enterprises, in the form of refunds based on the work done and to consolidate the enterprises with a view to handing it over onto the future generations, i.e. creating reserves to reinforce the equity and ensuring thereby the sustainability of their enterprises. In all cooperatives, the internal democratic control is based on the principle of “one man, one vote” whatever the capital share held by the respective workers. Finally, the cooperative spirit promotes its employees information and training, a prerequisite to develop the autonomy, the motivation and responsibility, accountability required in an economic world which has become insecure. (Source: www.scop.coop)

Social cooperatives: Social cooperatives are specialised in the provision of social services or reintegration of disadvantaged and marginalised workers (disabled, long-term unemployed, former detainees, addicts, etc.). A large number of such cooperatives have been set up in Italy but also in other EU countries. Most of them are owned by their workers while offering the possibility or providing for the obligation (according to the national laws) to involve other types of members (users, voluntary workers, etc.).

Other types of enterprises owned by their workers: There are other types of enterprises owned by their workers such as for example the “Sociedades Laborales” in Spain which are real driving forces of economic and social activities which have contributed to lower the unemployment level and to revamp a sustained growth in Spain.