Can Coops Bring a Renaissance in Detroit?

Over the weekend, I had the honor of being part of a panel discussing worker cooperatives with the Southeastern Michigan Jobs with Justice organization. About 35-40 people ventured out on a cold rainy day to ask questions and listen to the experiences of myself, a worker from Madison’s Nature’s Bakery, two leaders of the New Era Worker Cooperative and a representative of The Working World.

It was a lively discussion as all three coops developed through slightly different methods, are of different sizes, and have different structures. Despite the differences, we all talked about the difference between ownership and control. There was a commonality in how workers engage as owners to move the business forward. A lot of the discussion focused on the importance of communication, education, and information.

I grew up in Toledo, Ohio which remains part of the larger auto industry. During my high school years, I would make a monthly trip to Port Huron in the summer with a scuba diving club. The members of the club were working men and women from the region (at the AMC plant, and other factories). A large number were union members and the ones that weren’t didn’t really talk about it. Making the drive up I-75 some thirty years later was more than depressing. Starting with the site of the old plant on Willy’s Parkway and all the way to the UAW Vote Center on Livernois Ave, it was a trail of broken concrete, vacant overgrown lots, and crumbling buildings that spoke to a different era of vibrant activity. It felt as if I was travelling through the ruins of a lost civilization.

Behind the scenes is the government of Michigan attempts to force bankruptcy on the City and steal the pensions of city workers. It is a city in a major crisis.

Can the worker coop model help? I think it is possible, but people will need to forget about the Detroit of the 1950’s and 1960’s. In using the cooperative model, the community should focus on the needs that currently aren’t being met (either because of the failure of the State and local government) or the lack of people willing to enter the market without a guaranteed profit. This might include groceries, daycare, and even charter schools using the worker coop model.

In some ways, Detroit provides a great opportunity to build a Mondragon-style” cooperative community. By starting small, and siphoning off development funds and solidarity funds along the way, the cooperatives could start building a larger development fund. With assistance from groups such as The Working World, Northcountry Cooperative Development Fund, and other sources (perhaps some investor angles who don’t mind settling for a 5% return), they could rebuild Detroit as a truly Cooperative City.

One of the key concepts that we spoke about was building sustainable communities. This isn’t about maximizing pay, but creating a decent life with jobs that won’t be shipped to the lowest bidder. It means earning enough to be able to afford good, wholesome food, quality clothes and decent housing. It also means that this generation needs to make a sacrifice to get it started. As the president of the New Era Windows noted, he could have gone to work at O’Hare and made a decent wage, but this struggle is about more than wages, it is about  working with each other to build a strong community. In the end, that will benefit all of us.

 

About John McNamara

John spent 26 years with Union Cab of Madison Cooperative and currently helps develop co-ops in the Pacific Northwest. He holds a Ph.D. in Business Administration and Masters in Management: Co-operatives and Credit Unions from Saint Mary's University.
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