Worker co-ops can yield innumerable benefits to low-income immigrant and other vulnerable communities, including job creation and wealth-building opportunities, healthy, democratically-run workplaces, leadership development, and social cohesion. This webinar will share the key benefits and challenges of the worker co-op model, and describe what functions and conditions are required for nonprofits to successfully build a sustainable worker-owned co-op.

1. Sponsored by:
Incubating Sustainable
Worker Co-ops
Meche Sansores, Alex Armenta, and
Elena Fairley
August 14, 2013
Twitter Hashtag - #npweb
Part
Of:

2. Sponsored by:
Advising nonprofits in:
• Strategy
• Planning
• Organizational Development
www.synthesispartnership.com
(617) 969-1881
info@synthesispartnership.com
INTEGRATED PLANNING
Part
Of:

3. Sponsored by:Part
Of:
Coming Soon

4. Sponsored by:
Today’s Speakers
Hosting:
Sam Frank, Synthesis Partnership
Assisting with chat questions:
Jamie Maloney, 4Good
Alex Armenta
Associate Director
WAGES
Part
Of:
Meche Sansores
Executive Director
WAGES
Elena Fairley
Communications &
Development Associate
WAGES

5. INCUBATING SUSTAINABLE
WORKER-OWNED CO-OPS
Meche Sansores, Executive Director of WAGES
Alex Armenta, Associate Director of WAGES
Elena Fairley, Communications and Development Associate at WAGES
August 14, 2013
Women’s Action to Gain Economic Security

6. Today’s goal
Our goal for this webinar is to answer the following questions:
1. What are the main challenges creating long-lasting opportunities for low-
income women and immigrant communities?
1. How does WAGES’ model of co-op incubation address these challenges?
1. What functions and conditions are required to be equipped to be a holistic
co-op business developer?
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

7. Part 1:
What are the main challenges creating long-
lasting opportunities for low-income
women and immigrant communities?
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

8. What are the challenges?
Part 1:
Challenges
 Sustainable
economic
opportunity
 Economic
integration
 Next generation
dreams
HIGH BARRIERS TO
EMPLOYMENT
x Limited English proficiency
x Few opportunities that offer
good pay and working conditions
x Lack of access to educational
opportunities
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES
HIGH BARRIERS TO
ENTREPRENEURSHIP
x Understanding business
models, market feasibility, US
consumer culture
x Navigating business regulations
and requirements
x Stresses and burdens of sole
proprietorship over time
x Vulnerability to market shocks

9. Microenterprise or Worker Co-ops?
 Higher level of expertise required
 Higher start-up costs
 Greater control over business
 Lower barriers to entry
 Lower start-up costs
 Less control over business
Part 2:
The Co-op
Solution
Microenterprise Worker Co-ops
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

10. Part 2:
How does WAGES’ model of co-op
incubation address these challenges?
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

11. Co-ops in the U.S.
 30,000 co-ops in the U.S.
 Over 100 million members
 There are 5 types of co-ops
Producer ConsumerPurchasing HybridWorker
Snapshot of Cooperatives
Part 2:
The Co-op
Solution
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

12. More on Worker Co-ops
Worker cooperatives are businesses that are owned and
democratically governed by their employees.
Keyelements:
 Democratic Governance
 Profit Sharing
Worker Co-op Snapshot:
• 300 worker co-ops in the U.S.
• 40 of those are immigrant-owned
Arizmendi Bakery Evergreen Cooperatives Emma’s Eco-Clean
Part 2:
The Co-op
Solution
Examples:
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

13. Proven Results: Stable, Secure Businesses and
Earnings
 5 Bay Area Cooperatives
 $3.2M combined annual sales
 103 jobs
 Benefits – ie medical, time off, disability
 Average member tenure 4.2 to 6 years
 Individual incomes 158%
 Median household income 70-86%
Part 2:
The Co-op
Solution
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

14. Proven Results: Personal, Social, FinancialAssets
 Median retained earnings asset @ $9,219, w/ no-interest loans
 Secure, stable earnings through co-op profit distribution
 Personal capability and leadership development
 Protection from workplace hazards and abuses
 Social support and coherence
Part 2:
The Co-op
Solution
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

15. Part 3:
What functions and conditions are required
to be equipped to be a holistic co-op
business developer?
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

16. What is WAGES’ role?
Part 2:
The Co-op
Solution
WAGES is a co-op incubator. WAGES builds co-ops that empower low-income
immigrant Latinas to become entrepreneurs, achieve financial security, and
exercise leadership.
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

17. Services for co-op members are provided in small group settings
as well as individual business consulting, mentoring, and
coaching.
 Intensive co-op member leadership development
 Communications and conflict resolution
 Social entrepreneurship and business management
 Co-op principles
 Co-op governance
 Financial inclusion
 Co-op shared services
Services provided
Part 3:
What is
needed
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

18. There are 5 phases in cooperative development that make WAGES’
model unique.
Business Development And Incubation
Part 3:
What is
needed
I. Business
Planning
II. Business Launch
III. Business
Incubation
IV. Business
Graduation
V. Post-graduation
Support
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

19. In worker co-ops, the two extremes of business imperatives and
social commitments can function synergistically, creating mutually
reinforcing positive outcomes.
Building a relational culture in our economy
Part 3:
What is
needed
Business
Imperative
Social
Commitment
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

20. Co-op Principles
1. Voluntary and open membership
2. Democratic member control
3. Member economic participation
4. Autonomy and independence
5. Education, training, and information
6. Cooperation among cooperatives
7. Concern for community
Part 2:
The Co-op
Solution
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

21. Skills Required
In order to succeed in building a worker co-op, incubators must draw from a
wide skill set that spans business development and individual leadership
development.
Co-op incubators must wear many hats, which can at times be in conflict.
Part 3:
What is
needed
Business Developer Leadership Coach
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

22. Basic Requirements to Launch a Co-op
Part 3:
What is
needed
1. Skilled and experienced co-op business developer staff
and/or consultants
2. Feasible business plan
3. Secured/identified diverse sources of funding
4. Program training and mentoring curriculum for:
• Co-op member development
• Management support
5. Formalized commitment from the Board of Directors as well
as a group of founding members
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

23. Conclusion
1. Cooperatives are a viable option to address challenges that immigrants
face.
2. Worker co-ops are a high-resource, high-impact model to help low-income
workers and immigrants achieve financial security.
1. Undertaking a worker co-op project requires extensive resources, and a
broad skillset that spans business development and leadership
development.
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

24. www.wagescooperatives.org/learn
See technical assistance page for:
• Downloadable Foundations of WAGES Cooperatives
• Upcoming tools for co-op developers and communities
• Updates on 2014 Co-op Intensive Institute
Thank you!
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES

25. Any questions?
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES