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PURPOSE It is the practical application of the Socialist desire to achieve the “common ownership of the means of production” (see Clause IV ). Its purpose, by preventing control being obtained through the purchase of a company’s share capital, is to ensure that the founders’ aims are pursued in perpetuity. This is particularly desirable to the founders of a workers’ co-operative, who, inspired by solidarity and the desire to create fulfilling employment, will typically build the business up through hard and low-paid work (misleadingly called “ Sweat Equity ”). They may out of a sense of fairness wish to hinder future generations of employees, or their heirs, from winding up the co-operative so as to be able to share the sale proceeds among themselves (see Asset Stripping ). IN PRACTICE Common ownership is practised by large numbers of voluntary associations and non-profit organizations, by all Charities , as well as implicitly by all public bodies. Most Co-operatives have some element of common ownership, but some part of their capital may be individually owned. A very significant early influence on the movement has been the Scott Bader Commonwealth , a polyester resin manufacturing company in Wellingborough, Northamptonshire, which its owner, Ernest Bader, gave to the workforce. From the collective movement, the most significant experience is probably Suma Wholefoods in Elland, West Yorkshire. In London, Calverts is another rare example of an established worker co-operative with a policy of pay parity. HISTORY OF THE MOVEMENT The principle was adopted by the “new wave” workers’ co-operative movement during the 1970s, and continues to this day although it is less common. In 1976 the British parliament passed the Industrial Common Ownership Act (“ICO Act”), which gave £100,000 of seed funding to the Industrial Common Ownership Movement (ICOF) and £50,000 to the Scottish Co-operative Development Committee (SCDC). ICOM was fuelled by three strands of thought – Christian socialism, workers’ control and “rice and sandals” alternativism – and successfully promoted the creation of over 2,000 worker’s co-operatives, before merging in 2001 with the Co-operative Union to form Co-operatives UK , thus reuniting the worker co-operative and consumer co-operative sectors. In parallel the growth of some 60 local co-operative development agencies (CDAs) supported by local authorities gave on-the spot start-up help to groups wanting to start a co-operative. Sometimes the local retail co-operative societies were also active. By combining personal, community and business development this movement brought many disadvantaged people the opportunity to go into business for themselves. Combining the agendas of economic democracy, equal opportunities and social inclusion in this way has many good points, but has led to the establishment of many rather weak businesses, reflecting a “lifestyle” rather than seeking profits and growth. |
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