New era of democratic socialism

Posted: 18 October 2015 in Uncategorized
Tags: , , , , , , , , ,

WorkerCoOp

While we’re on the topic of democratic socialism, why not expand the definition—from improving the way the wealth of the nation is shared (e.g., by raising taxes on the one percent and strengthening the safety net) to exploring new ways of democratizing the enterprises where that wealth is actually produced (e.g., by promoting worker-cooperatives)?

The New Era Windows and Doors Cooperative in Chicago is one such example.

The New Era Windows and Doors Cooperative has been in operation since 2013. It hasn’t been easy, but the worker-owners have learned together how to operate their own business. And then there were the meetings: “It was difficult to make decisions together,” Robles said. “But it’s kind of fun, because at the end of the day it’s for the benefit of everyone.”

Sales are modest, but growing. Last year the company sold about a half million dollars worth of windows. This year, they anticipate the number will be significantly higher. There are 23 worker-owners, and two staff members who Robles hopes will opt to become worker-owners.

His vision is for New Era to help spawn other cooperatives. Instead of expanding by hiring drivers, for example, he’d like to see the company help start a cooperative of drivers.

How is this company staying alive when other owners have failed? The worker-owners made tough decisions about what equipment they could get rid of to save money. And they did a lot of sales via word of mouth.

“The good thing is we don’t have the CEO making millions of dollars,” Robles said, “so we have the ability to compete with the industry.” Also, they don’t have to generate big profits to keep investors happy; they just have to make enough to pay expenses and pay back their debt.

One of the keys for success at New Era is it operates according to a different logic:

This business model is based on “enough.” Enough pay and benefits to live with dignity. Enough of the machinery that is necessary, but not the sort that is too expensive. Opportunities for employee-owners to draw on their full capacities, not to be relegated to repetitive work while a few make all the decisions and much of the money. Their more equitable pay structure creates opportunities for more people to have enough to live and thrive; instead of keeping some at the edge of poverty while others prosper.

This is what local power looks like: companies like New Era Windows and Doors creating the stability that comes with locally rooted employment, insulated from the speculative finance that, in the case of publicly traded companies, requires many jobs be moved to low-wage regions. These worker-owners focus on values, including the possibility for others to also be worker-owners, and the importance of producing ecologically smart products. The company prides itself on selling energy-efficient windows and doors, and customizing them to the climate and location of the client.

Worker-cooperatives have many obvious advantages over capitalist enterprises, and thus should be part of any contemporary definition of democratic socialism.

They can also solve the problem of capitalist education—in which, according to Einstein, “An exaggerated competitive attitude is inculcated into the student, who is trained to worship acquisitive success as a preparation for his future career.” Participating in a worker-cooperative means making decisions “for the benefit of everyone.”

And, if New Era is any indication, learning to do that can actually be fun!

Comments
  1. Finally good news coming out of America. The days of dish washer to millionaire have long gone, but people still believe in it. Working together is the way forward – well done.

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