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Cooperative Ownership Models

Tool in Action

The following are examples of cooperatives with a strong link to the local community.

SSC Employment Agency, Baltimore, Maryland, is a worker cooperative temp agency that was established in 1997. Committed to providing optimum employment opportunities to its workers and with a focus on client satisfaction, SSC began with 10 workers drawn from a pool of individuals considered the hardest to employ, including some with criminal records or problems related to substance abuse. In 2000, SSC placed 260 workers in jobs, mainly in Baltimore's hospitality industry.

SSC gives its workers both ownership and voice in the agency. After 160 hours as employees, workers are eligible to apply to become members of the cooperative. If the cooperative board, comprised of other worker-owners, approves their application, a one-time $100 membership fee is deducted from their paychecks. Currently, SSC has 17 worker-owners who elect the company's board of directors and receive dividends from the company's profits.

According to Avis Ransom, one of the founders of SSC, being owners, not just workers, helps members cope with a challenging work environment. "Working in the hospitality industry is not easy: most jobs are low-wage, and sometimes workers face little respect in their job environment," says Ransom. "There's a sense of internal dignity that comes from perceiving oneself as an owner rather than just an employee."

Jobs range from janitorial and job-site cleanup to assembly and light clerical work. Assignments encompass one-event placements, such as a football game where workers are employed as stadium cleanup crews, to office assignments that last several weeks at 40 hours per week. A local business management and development firm, R&B Unlimited, Inc., provides management assistance to SSC.

Las Flores Metalarte, Coamo, Puerto Rico . Metalarte is a worker-controlled, democratically run producer of household furniture and kitchen cabinets. It began 25 years ago, when resident Miriam Rodriguez enlisted the aid of a local priest and started a social action committee to provide employment opportunities for local youth.

Since its modest beginnings, Metalarte has grown and prospered, employing 180 worker-owners. The co-op owns several facilities in Coamo with 140,000 square feet of space. An additional 35,000-square-foot building is under construction to house the heart of the operation, the cutting and processing area. Company clients include the Home Depot in Puerto Rico; a number of small family-owned furniture stores throughout the island and several furniture stores in the Virgin Islands
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The cooperative's success has had a ripple effect on the organization's employees, the town they live in, and the local economy. The brother of one of the workers established his own sandwich shop across the street from the factory. The sister of another started a catering business that delivers lunches and dinners to the Las Flores Metalarte cafeteria. The Association of Independent Producers, another local non-profit sewing company, uses space and equipment provided by Metalarte. Metalarte pays the light and water bills for the local Head Start center, which serves 40 girls and boys, the children of Metalarte workers and other residents in the town.

New workers at Metalarte have a one-year probationary period, after which they become owner-members. Currently all profits are reinvested into the company. Both worker-owners and community representatives sit on the board of directors, an arrangement that contributes to Metalarte's strong ties to the community. "With one vote each, workers elect board members who decide the future direction of the firm and determine how profits are used. They hold a general assembly of all workers that meets once a year and elect the board of directors every two years. Eight workers and five community representatives comprise the board, and [the] CEO holds a nonvoting seat,' says Rebecca Bauen.

The company currently employs 180 worker-owners. A new worker at Metalarte has a one-year probationary period, after which he or she becomes a full owner-member with voting rights. Currently all profits are reinvested into the company.