VOICE OF THE
WORKERS ISSUE 08 FEBRUARY 2014
EDITOR’S NOTE JOSEF VELLA
Social Co-operatives
Contents And the answer is...
02
Making the choice
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The benefit of Social Co-operatives
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Social co-ops are very relevant to Malta 06 Social Cooperative examples around the world
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On the EU agenda 08 Video 09
Welcome to Issue number 8 of the Voice of the Workers Magazine. This issue deals with a potential answer to the many social issues we currently face in Malta. With the changes to our social and economic landscape, we really need to propose and implement strategies that will lead not just to economic growth, but also to a fairer distribution of wealth generated. We need to cultivate a society that ensures that opportunities to succeed are really open to all. We need to see that people who are at a disadvantage, be given the tools VOICE OF THE
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to be successful. Workers who are at the risk of being exploited, can become owners of their places of work. Social Co-operatives are an answer. This issue deals with what a social co-operative is, how it can work, and illustrates reallife examples of how it works in different countries. The advantage we have is that we can refer to models in other countries, and tailor a model that suits us best. The foundations of our Republic are based on work and a fair state. This is one concrete way of moving more in that direction. Enjoy!
Is there a solution to the issue of childcare and more inclusive education? One important answer lies in cooperation and social co-operatives. READ MORE ON PAGE 3 1
And the answer is‌ Social co-operatives have proven to be effective solutions to changing social structures and relationships in many countries. Malta is facing very fast social transformations that present different challenges that need to be tackled, avoiding the nasty effects of social dysfunction. Social Co-operatives present a tangible opportunity to effectively address these pressing social needs. VOICE OF THE
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Making the choice A RECENT STUDY ON THE BEHAVIOUR OF ANTS REVEALED MUCH MORE THAN WE REALLY THINK WE KNOW ABOUT THEM. In an experiment, a group of ants was made to change their abode. In return, they were given two boxes on different sides of a three square metre surface. They needed to set up their home in one of the boxes. It was discovered that the decision to choose one box from the other depended on different factors, much like humans do when they are house hunting. What was more interesting is that no one ant did this alone. Different ants visited the boxes, and together made the decisions piecing together the different knowledge VOICE OF THE
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each ant had. Once the decision was made, they all congregated into one chosen box, and the ants who could not make it over the box’s threshold were literally carried by the others. This cooperative act helped them respond to the changes that they were faced with. Maltese society is changing fast, and is undergoing profound transformation . This transformation is affecting families, the mobility of people, knowledge and capital, and the role of women, most notably their role in the family vis a vis other family members, as well as their participation in the labour market. The list is long, and most of the changes are interrelated: children and work, disabled persons and
employment, workers and the economy – the list goes on and on. These changes bring about a diverse array of needs that have to be addressed. It is essential that we do not just acknowledge the issues: we need to find concrete answers. How can we address issues of social integration for disadvantaged groups of persons? What can be done to address issues of worker exploitation? How do we address the integration of unemployed persons into the labour market? Is there a solution to the issue of childcare and more inclusive education? One important answer lies in cooperation and social cooperatives. 3
Co-operatives provide adequate solutions to social needs, precisiely because they can bring local stakeholders to work together and cooperate. Synergies can be created between service users, service providers, as well as public authorities. Moreover, opportunities can be created since the service can be rooted in the community itself. Through their democratic structure and their emphasis on people, co-operatives, especially social ones, can provide a quality service, more stakeholder control, as well as more efficiency and responsibility. Co-operatives can be labeled in more than one way; producer, worker, purchasing, retail, service, social co-ops: these co-operative types address different areas of activity and the economy, but their underlying democratic principles are the same. Social co-operatives have a social missiojn beyond service to its members. People come together and use their entrepreneurial skills for social good. Social cooperatives around the world include areas such as the health sector, housing, education, social services, care of children, elderly and disabled people, energy production and environmental services, the integration of unemployed people into the workforce, as well as workers who are at risk of exploitation. Since these co-operatives are rooted in the community, they provide efficient health services to the same community they came from. Social co-operatives are: businesses where the primary purpose is to benefit the community through delivery of public services, and ... are democratically owned by a VOICE OF THE
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combination of: the people who work in them (paid or unpaid), beneficiaries and investors ... workers should make up the majority of that membership and shareholding. (John Atherton) The advantages of social cooperatives are numerous. The fact that there is direct involvement and control by stakeholders means that the service rendered is of high quality. Moreover, there is the necessary motivation to give a n efficient and economic service. This is particularly useful to Government, especially in areas where it it is involved in providing a service itself. It works out much cheaper for government to subcontract services to the community, and it makes economic sense since experience in other countries has shown that it works out cheaper. It is a fact that the government machinery is slower, more cumbersome and as a consequence, more difficult to manage. This social aspect is also very tangible with worker cooperatives. Social co-operatives that integrate unemployed persons into the labour market, not by just giving them employment, but by empowering them to become part of organisation they work in. This is also evident in sectors where workers run the risk of being exploited. Rather than feeding the pockets of one or a small group of individuals, the benefits of work go to the workers themselves and their families. Wealth is generated and distributed locally, and part of the increased wealth can be reinvested for the benefit of the workers themselves. In these organizations, capital is not the do all-end all of activity, but is one of the means to deliver quality activity.
The choice in favour of social co-operatives needs to be a conscious decision. First and foremost, government needs to become aware of the immense opportunities social co-operatives present to address Malta’s fast-changing social needs. This awareness has to take place on different levels, whether it is on national as well as on local government level. On local government level, Local Councils can be a vital promoter of social co-ops operating by their community, for their community. In terms of legislation, social co-operatives are not yet defined in Malta. Inserting a new section in the Co-operative Societies Act, specifically defining the constitution and role of social co-operatives, will address this issue. The UHM’s vision on social cooperatives is that these provide a viable solution to Malta’s changing social needs. It is satisfying to note that its vision on social co-operatives and their useful role has been accepted by government and included in the 2014 budget. A long journey always starts with the first step. UHM believes that this is definitely the right step forward. We cannot sit on the wall and wait for something to happen. We can look to other countries and see what they have successfully done. Together with economic growth, we need to talk about a fair society, where all can have the opportunity to move forward and prosper. Social co-operatives provide keys to fair and resilient economic development, sustainable employment and social cohesion. Social co-operatives provide an answer. 4
The benefit of Social Co-operatives
Hon. Marie Louise Coleiro Preca Minister of the Family and Social Solidarity
It is with great pleasure that I contribute to this publication on Social Cooperatives.
neighbouring Italy, and Sweden, the United Kingdom and Belgium too.
they promote social inclusion, integrating those at the periphery of society.
Social cooperatives are part of the increasing family of social enterprises which in 2012 were already representing around 8% of total employment in Western Europe (OECD). The highest rates can be seen in Denmark, Netherlands and Ireland with 13.8%, 16.6% and 15.8% respectively.
Social cooperatives are, in reality, multi-stakeholders that come together for the primary purpose of delivering public services to benefit their communities.
The objectives of social cooperatives lend themselves well to the Maltese scenario.
By their very nature, cooperatives are socially beneficial tools. People come together and conduct business in a democratic way.
Social cooperatives bring together workers suffering precarious conditions, previously unemployed persons and disadvantaged people. They exist in so many areas of life, including children’s services, health care, care of the elderly and disabled, education and helping the unemployed.
Their impact has been felt far and wide. They have existed since time immemorial, proving popular in
Successful cooperatives alleviate the financial burden of social welfare systems and
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Persons who are employed in precarious conditions, unemployed persons, as well as disadvantaged persons need a structure that can help them become more socially and economically independent. So much can be achieved by working together. I hope this publication will give an insight into what social cooperatives can achieve, and how addressing poverty and social exclusion builds a just society. 5
Rolan Micallef Attard CEO – Malta Co-operative Federation
Social co-ops are very relevant to Malta The expression “social economy” is slowly making its way into the Maltese vocabulary and gradually influencing those entrusted with devising policy and sustainable development strategies. Ironically, in a world faced by economic crises the social economy has grown into a global movement, responding positively to the negative impacts caused by the crises, offering viable alternatives to the traditional business models. Social enterprises have primarily social objectives and purposes that serve the general public or their members. They operate
commercial activities with policies that aim at reinvesting their surpluses. They are independent and autonomous societies with a strong democratic participatory governance structure. Social enterprises that are run in this manner are a perfect fit to the existing Maltese co-operative legal model.
conventional commercial businesses are unwilling to invest in, as the rate of return is not adequate for the shareholders. Operating in such a manner social co-operatives enterprises offer higher quality products and targeted services maximising the social, environmental and cultural impact.
Social co-operatives in Italy perform a central role in the country’s economy and in return Italy has established a solid support structure for them. Social co-operative enterprises achieve social objectives backed by government policies, which
The consultation process for the revision of the co-operative legislation currently underway should be the ideal scenario to continue the discussions to create a favourable climate and legislative structure for social cooperative enterprises in Malta.
87, St. Ursola Street, Valletta VLT 1234 Malta Tel: (+356) 21 233 078 Email: info@maltacooperativefederation.coop www.maltacooperativefederation.coop VOICE OF THE
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Social Cooperative examples around the world WAGES CO-OPERATIVES (USA) WAGES is an acronym meaning Women’s Action to Gain Economic Security. These co-ops works to promote the economic and social well-being of low-income women through cooperative business ownership. These worker co-ops place a lot of emphasis on environmentallyfriendly techniques in order to protect their workers as well as the environment. Through better wages, they expand the social empowerment of their families and communities. There are five co-operatives in WAGES, all of whom are owners of eco-friendly housecleaning businesses. www.wagescooperatives.org
CGM – GRUPPO COOPERATIVO (ITALY) Founded in 1987, CGM is an umbrella organization of a large swathe of social cooperatives. It calls itself a web of excellence in the ‘production’ of welfare. It is made up of 10,000 co-operatives oprating in all of Italy’s regions. It services 700,000 Italian families through services in education, health, social, rehabilitation, formative, cultural, scholastic and even tourism. It’s main aims are to promote community wellbeing, design quality projects and services at affordable prices. It works closely with different entities , and actively promotes the inclusion of disadvantaged persons into the labour market, and also promotes employment through its web of activities. www.consorziocgm.org
CARING SUPPORT (UK) Caring Support is a community co-operative set up by local people who need reliable and consistent quality care services. The co-operative enables people to exercise choice to remain at home and live safely with peace of mind, dignity and respect. Caring Support takes care of all the necessary paperwork; prepares care plans individually tailored to each person, ensures continuity of carers and improves quality of life in a secure, supported life at home. It is a new model of homecare based on small local clusters providing care, giving practical support to unpaid carers, whilst training and employing local people as home and personal care assistants.
Click here to listen to a short interview with Stefano Granata CGM president on RAI Radio 1, regarding the CGM’s role in Italy’s times of crisis: tinyurl.com/ngupgeg
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On the EU agenda
As part of the campaign, a European demonstration has been called in Brussels on 4 April 2014. tinyurl.com/nzethmh tinyurl.com/pv7dcxk Towards the EU cooperative roadmap: Third meeting of the working group on cooperatives Last 31st of January, the third meeting of the permanent working group on cooperatives set up by EU Commission Vice-President Antonio Tajani took place in Brussels. The topic of this session was financing of cooperatives & business development support services. The European Commission announced that a group of six experts would be created to build up concrete recommendations on cooperative training & education, financing of cooperatives, and business development support services, the three subjects that have been discussed during the meetings of the permanent group on cooperatives. The paper should be ready by June and will be presented at the high level European conference that will be organised in September 2014. Cooperatives Europe confirms its commitment to closely work with the EC to shape the EU Cooperative roadmap, see: tinyurl.com/q2uqe46
Social & Business Co-Creation http://www.youtube.com/watch?v=dMFSmaxuYn0 The competition Social & Business Co-Creation: collaboration for impact, is looking for innovative Co-Creation projects in Europe led by social-mission organisations, traditional businesses and public institutions. All social-mission organisations (e.g. NGO, association, not-for-profit, foundation, social enterprise), businesses and public institutions who work together to create change in Europe can apply. The competition deadline is April 10, 2014.
TOOLS VIDEOS
The campaign aims at driving the European Union in a new direction. Instead of sticking with failed policies, European leaders need to fight for a new path, a plan based on investments in sustainable growth and quality jobs. If not, we will continue to see unemployment rise. Social Europe must not be destroyed. Crisis cannot be solved without sound social basis.
Once a week, CICOPA and CECOP, its European organisation will highlight a cooperative by posting on its social networks (Facebook & Twitter) pictures, videos and a short description of the enterprise. This material will also be published here: www.cicopa.coop/-1coop1week-.html
CALL FOR APPLICANTS
The European Trade Union Confederation (ETUC) has launched a campaign for A New Path for Europe.
Discover 1 cooperative every week!
The 3 winners will receive coaching and a first prize of 20,000 Euro, two runner-up prizes of 10,000 Euro and two early entry prizes of 1,000 Euro, and will be featured in prominent media. Click here to know more about the search and get more information on how to enter: tinyurl.com/o5p3jgg Examples of co-creation cases: tinyurl.com/pcne84m 2014’s Most Valuable Employee: The Social Intrapreneur.
NEWS
A New Path For Europe is what we want, now!
Please read here the article published by Forbes at the following link: tinyurl.com/qylwwhb Information about SOCIAL ENTREPRENEURSHIP FUNDS from the EC website DG EU Single Market: tinyurl.com/bn5lw5v SOCIAL BUSINESS INITIATIVE leaflet is downloadable here: tinyurl.com/ozld9l2
The “Your Europe” portal is the main source of information on these subjects, so you should check here if your situation is covered. If you want to ask a question about your EU rights, “Your Europe Advice” is a team of independent legal experts who can: • provide free and personalised advice in your language, within a week • clarify the European law that applies in your case • explain how you can exercise your EU rights To access to Your Europe Advice portal click here: http://europa.eu/youreurope/advice/index_en.htm
INFORMATIVE SOURCES
PRESS RELEASE AND DEMONSTRATION CAMPAIGN
The CIA Brussels Office, one of this project’s partners, have brought together a series of initiatives at European Union level connected to Social Co-operatives and Social Enterprises and a social Europe in General.
Video
UNION ÓADDIEMA MAGÓQUDIN (Malta Workers’ Union) Dar Reggie Miller, St Thomas Street, Floriana, FRN 1123 - Malta Tel +356 21220847 - +356 21234801 - +356 21236484 • Email info@uhm.org.mt www.uhm.org.mt Operational Programme II - Cohesion Policy 2007-2013 Empowering People for More Jobs and a Better Quality of Life Project part-financed by the European Union European Social Fund (ESF) Co-financing rate: 72.25% EU, 12.75 MT, 15% Private Funds Investing in your future