Worker cooperatives may sound like something out of the 19th century, but they still exist in the age of global capitalism.
In Spain, for instance, the Mondragon Corporation is a huge worker-run cooperative based around 95 collectives – the largest cooperative in the world.
Worker cooperatives produce products or services. But they are run very differently. Workers can become members of the cooperative they work for by buying a share of the business. This gives them a vote in how the business is run and a share of net income, after costs have come out.
Co-ops do not have external shareholders – the profits stay with workers. Rather than bosses deciding and workers carrying out the tasks, worker cooperatives are based on democratic principles. Big decisions are discussed and then voted on, and each member gets one vote. They offer a direct way for workers to control their production and shape the economy.
In Australia, these models peaked in the 1980s. Most are gone, though a few older cooperatives are still running, such as Tasmanian recycling cooperative Resource Work Collective, founded in 1993.
In recent years, there’s been renewed interest in the model. The Earthworker cooperative network focused on Victoria’s Latrobe Valley. The goal: find new types of employment and products in a coal area undergoing transition.
Coal plants in the Latrobe Valley provided jobs for generations of workers. Their closure poses real challenges.
How well does the model work?
Mondragon is the most well-known example. Founded in 1956 in the Basque region of northern Spain, Mondragon grew and became self-sustaining. It has developed supporting institutions such as research and development companies and even a university. It also established a credit union, which attracted capital and provided loans to cooperatives.
While Mondragon is a successful example, these organisations face a number of barriers to their survival.
Critics have argued worker cooperatives tend to fail as workers do not understand the market for their products, but Mondragon undercuts this criticism.
Worker cooperatives can have difficulties raising capital. Some banks can be reluctant to invest as they may lack familiarity or sympathy with the model.
Instead, workers may put some or all of their savings into the organisation to get it started. Taking these kinds of risks means some workers may be focused on getting immediate rewards, rather than investing surplus funds or building up cash reserves.
Workers can sometimes choose to transform a successful cooperative into a capitalist enterprise to achieve greater capital gains.
Surprisingly, trade unions are generally hostile and suspicious of worker cooperatives. Union organisers may fear worker-owners could see little need for trade unions in representing their interests, or that cooperatives could undercut union wages and conditions to remain competitive.
To date, worker cooperatives have had a limited impact in Australia, despite the relatively strong historical position of workers.
Compared to member cooperatives and other types, worker’s cooperatives tend to be short lived in Australia. That’s because most were formed by workers after an industrial dispute or to maintain employment during economic downturns.
In 1987, for instance, workers retrenched by a major communications company decided to form a co-op which became the Electronic Service Centre in Fairfield, New South Wales. A later example is Abrasiflex, a NSW company bought by workers facing retrenchment in 1993. Both cooperatives failed by the early 2000s.
Their popularity peaked in the 1980s, when the model was promoted by state Labor governments. Policymakers saw them as a short term means to resolve unemployment, rather than a long term means to secure economic democracy.
The model lost traction in the early 1990s due to an economic downturn, capital shortfalls and changing political circumstances.
New energy
The idea for Earthworker came from discussions between unionists and environmentalists over job creation and the environment. Earthworker founders were influenced by the Green Bans.
As the project’s website states:
Conflict can occur between environmentalists who want to shut down certain industries, and unionists who want to protect jobs […] we should work together for a “just transition” and create jobs that aren’t just better for the earth, but for workers too.
In this respect, Earthworker has much in common with the Cleveland Model in the United States, which links green business, local economic development and fair labour practices.
Earthworker only formally became a cooperative in 2011, though discussions date back to the late 1990s. In 2016, the network bought a hot water tank manufacturer in Morwell and began making their own tanks and solar hot water systems as the Earthworker Energy Manufacturing Co-operative. The cooperative is aimed at helping the Latrobe Valley’s transition away from coal power jobs.
Morwell and other Latrobe Valley towns are losing coal jobs. But new industries and business models are emerging.
Earthworker promotes the payment of trade union wage rates and conditions. The goal is to build a network of cooperatives supporting each other to build economies of scale.
Their other cooperatives include Earthworker Construction (residential construction, landscaping and maintenance) and Earthworker Smart Energy (improving thermal efficiency and comfort in homes). These cooperatives are generally small, with 10 members or fewer.
Another cooperative, Redgum Cleaning, closed down in 2023. It was not viable due to staff shortages, increased costs and work cancellations during the pandemic. Paying union rates in a competitive industry also assisted its demise.
By contrast, the Earthworker Energy Manufacturing Co-operative has found a way to survive in a competitive market.
Niche or mainstream?
Australian worker cooperatives ensure manufacturing and services remain locally owned and controlled. Could they expand? It’s possible.
Capital remains a major issue for Australian worker cooperatives such as Earthworker. Without capital, it’s hard to scale. Government efforts to expand domestic manufacturing often overlook this model.
The Earthworker network points to one future for Australian worker cooperatives. Despite the failures of the past, Earthworker’s focus on building a network of sustainable businesses rather than a single cooperative is a promising path.
We have a rare opportunity to learn about the newest and best possible ways to support family and community members struggling with mental health issues, at a free talk and afternoon tea provided by Upper Blue Mountains Sunrise Rotary at the Planetary Health Centre at 2pm this Saturday 29 Nov. Hear from Peter Joseph AM, Chair of the Black Dog Institute, and Professor Helen Christensen AO, Fellow of the Australian Academy of Science and former Executive Director and Chief Scientist at the Black Dog Institute. They`ll be in conversation with journalist Emma Rossi. Dr Christensen is a pioneer in using the internet to reach young people struggling with depression. Her digital mental health interventions are used by millions globally, delivering evidence-based therapy for depression, anxiety, and suicide prevention. Her research uses data from smartphones and wearables – like movement, screen use, and sleep – to detect early signs of mental health issues. Bookings essential here (link in profile): https://bit.ly/4oOnYxz
This Saturday Sherlie McMillan from Rotarians 4 Planetary Health will be running a workshop on How to use a sewing machine from 9am at the Planetary Health Centre in Katoomba. Learn how to set up a machine, service it, troubleshoot when it`s not sewing correctly, and learn some basic sewing skills.
Bookings essential here (link in profile): https://events.humanitix.com/how-to-use-your-sewing-machine
NB. This class is a prerequisite for our very popular Fashion Upcycling classes held once a month.
We`re thrilled to announce that Professor Helen Christensen, a pioneer in using the internet to reach young people struggling with depression, will be joining the conversation with Peter Joseph AM from the Black Dog Institute and journalist Emma Rossi at the Planetary Health Centre at 2pm this Saturday 29 November. Helen was the Executive Director and Chief Scientist for the Black Dog Institute for 10 years and has now been elected a Fellow of the Australian Academy of Science. Her digital mental health interventions are used by millions globally, delivering evidence-based therapy for depression, anxiety, and suicide prevention. Her research uses data from smartphones and wearables – like movement, screen use, and sleep – to detect early signs of mental health issues. This free event is being co-hosted by Upper Blue Mountains Sunrise Rotary and the Blue Mountains Planetary Health Initiative. Afternoon tea will be provided. Bookings essential here (link in profile): https://bit.ly/4oOnYxz
Human composting is increasingly being legalised around the world. Read about it in Katoomba Area Local News here (link in profile): https://www.katoombalocalnews.com/legalising-human-composting/
If you’d like to see this option available in NSW you can now sign a live petition to the NSW Parliament here (link in profile): https://bit.ly/43QIHbz
Thanks to everyone who contributed to deliver a fantastic Disaster Risk Awareness Expo and Family Day yesterday. @mark_greenhill_mayor opened the event at which we celebrated the 13th birthday of Betty the Asbestos Education House; @firecoat_au demonstrated and launched its range of fire retardant products that can help protect homes, gardens and even electricity poles; the Bushfire Retrofit Toolkit was launched; Santa arrived and delighted young and old; and @plantinspired99 and Action for Animals fed us all with a delicious plant-based sausage sizzle. The day was filled with talks, workshops, stalls and the sharing of a huge amount of expertise to keep us, and the other species we share our planet with, safe and healthy! @southkatoomba.rfb @nswses @fireandrescuensw @nswrfs @redcrossleura @redcrossau @shelter.building.design @firehalo.au @asbestosawareness @amelie_ecology @bbagsbluemtns @wireswildliferescue @handsheartfeet
Our marquee is up and we`re excited about our Expo and Family Day tomorrow (Sat 22 Nov). There`s something for everyone from a free sausage sizzle, plants from Santa and drumming and pollinator workshops, to sessions on keeping you and our community safe from extreme weather events and hazardous substances like mould and asbestos. Learn how intumescent paints can slow the spread of fire and pick up a sample pot; check out all our emergency service organisations; learn how to dispose of hazardous materials; paint a native orchid, make some seed balls or sew a boomerang bag to give as plastic-free Christmas presents this year; enjoy coffee and locally made sweets; and get tips on how to retrofit your home safely and beautifully to be prepared for future extreme weather events. View the full program and register here (link in profile): https://bit.ly/4nFrY1J
There are so many new and innovative ways of doing things, like the new cooking techniques being explored by Michael from Good Fat Pastry, and the new fire protection methods being launched at the Planetary Health Centre`s Expo and Family Day on Sat 22 Nov. Check out Michael’s recent presentation at the Food Security Fair in our video here: https://bit.ly/4pnXbIg (link in profile) and come along to taste his delicious carrot cake and pastries at the Expo on Saturday. Check out the program and register to attend here (link in profile): https://bit.ly/4nFrY1J
In 2006 Peter Joseph’s son Michael suicided after a 14-year episodic battle with mental illness. Peter is now the Chair of the Black Dog Institute which is working to achieve better outcomes for all those struggling with mental health issues. Journalist Emma Rossi will engage Peter in an intimate and moving conversation about a life of purpose and mental health advocacy. As a Rotary scholar Peter will also reflect on how Rotary helped shape his values and sense of purpose as a young man - and how those early lessons continue to guide his work today. This free event is being hosted by the Upper Blue Mountains Sunrise Rotary Club and the Blue Mountains Planetary Health Initiative on Saturday 29 November from 2-4pm at the Planetary Health Centre at 33-39 Acacia St Katoomba. Afternoon tea will be provided. Bookings essential here (link in profile): https://bit.ly/4oOnYxz
Learn about intumescent fire retardant paint and a range of other strategies to prepare for extreme weather events, and to manage hazardous materials, at the upcoming Expo and Family Day at the Planetary Health Centre on Sat 22 Nov. You can register to attend here (link in profile): https://bit.ly/4nFrY1J We checked out how intumescent paint works in this video.
When temperatures reach a certain point the intumescent paint begins to swell and expand, often up to 50 times its original thickness. It forms a thick, carbonaceous "char" that acts as an insulating barrier. This layer slows the rate at which heat reaches the structural elements and buys valuable time for people to safely exit a building during a fire. It makes the structure safer for firefighters and rescue teams. #intumescentpaint #fireretardant #bushfire @firecoat_au...
Mould, lead paint, asbestos, silica dust from engineered stone bench tops and a wide range of chemicals, are amongst some of the many hazardous substances entering our environment and negatively impacting our health. Asbestos is found in over 3000 products including textured paints, moulded garden pots, brake pads and clutch linings in older cars, floor and ceiling tiles, lino, fibro, roofing, pipes and gutters, hot water systems, backing for switchboards and insulation boards in air-conditioning ducts, insulation, sealants, fillers, caulking and adhesives, gaskets for industrial and lab equipment and more. We’ll have information to take away and Blue Mountains City Council and the Asbestos and Hazardous Materials Consultants Association (AHCA) will be running free workshops on how to identify and manage these hazardous substances at the Planetary Health Centre`s Disaster Risk Awareness Expo in Katoomba on Sat 22 Nov. Find out more and register to attend here (link in profile): https://bit.ly/4nFrY1J
Are you ready for the next bushfire, heatwave or flood? Why not take steps to prepare at the Planetary Health Centre`s Expo and Family Day on Sat 22 Nov. Award-winning Hempcrete designer Kirstie Wulf from @shelter.building.design will share 10 steps to build or renovate for sustainability and resilience; engineer Mark Liebman will share how you can build a green roof to reduce stormwater runoff and cool your building; Dr Agnieszka Wujeska-Klause will share research results on the most appropriate actions to lower heat in summer and help you use a thermal imaging camera to identify which surfaces retain the most heat; Frank Inzitari will introduce you to the @firehalo.au which can help reduce ember attack; and a team from the University of Technology Sydney (UTS) will work with you to use the Bushfire Retrofit Toolkit to design your own personal bushfire plan. We`ll also be launching Firecoat`s new Bushfire Home Protection Kit. Learn more and register to attend here: https://bit.ly/4nFrY1J
There are so many extraordinary volunteers keeping us and wildlife safe all year round! Come along and meet them at the Expo and Family Day at the Planetary Health Centre in Katoomba on Saturday 22nd Nov. Learn what you can do to be ready for emergencies, and how you can volunteer or help in some other way. Together we can be more prepared and reduce the risk of disaster. There`ll be a free sausage sizzle so help give us an idea of numbers by registering here (link in profile): https://bit.ly/4nFrY1J
In Katoomba, a grassroots litter-picking group tackles rubbish before it reaches our water supply. Their story shows how local environmental action, fueled by community connection, can drive meaningful change for planetary health.
