Worker cooperatives and other cooperative enterprises can spur neighborhood revitalization and equitable, sustainable growth. That's because they create meaningful jobs and build community wealth while grooming local leaders and inspiring democratic participation. So argues scholar and activist Jessica Gordon Nembhard, whose new book, Collective Courage: A History of African American Cooperative Economic Thought and Practice, reveals the rich, hidden history of African American cooperatives. The 30,000 co-ops in the United States today have helped create 2.1 million jobs and contributed more than $150 billion to our total income, according to a study from the University of Wisconsin. In an interview with America's Tomorrow, Gordon Nembhard explains how the lessons of the past can foster an even stronger, more inclusive cooperative movement.

Let's start with basics: what is a cooperative?

It's an enterprise, a business model, based on a set of values and principles that are grounded in economic democratic participation. It's about supplying and supporting economic activity based on need, not based on profit, and about building assets that will stay in the community, because it is owned by the community.

How can co-ops advance community revitalization and build a stronger economy?

Cooperatives address problems created by market failures, discrimination, and underdevelopment. They help people collectively to get the goods and services they need that they can't get anywhere else or that they can get only under inferior conditions. For example, many African Americans started credit unions because banks wouldn't serve them or charged unfairly high interest rates. Co-ops are a way for groups that have faced discrimination to gain some amount of economic stability, and from there you are in a much stronger position to gain political and civil rights. Fannie Lou Hammer said you can't have civil rights if you don't have economic independence, and that's still true today.

The biggest problem is that people don't know enough about this model. We're all brought up to operate as individuals and to compete individually. But the problems we face are too big to solve individually. Cooperatives are a way for people to come together, to pool together what they do have to get something for their community, for themselves and their families. You get all these interlocking benefits, more dignity of work, more connection to the community, social and human capital development, in addition to a viable business that is stabilizing a community.

How far back can African American co-ops be traced?

I began my research by reading W.E.B Du Bois. He wrote a book in 1907, Economic Cooperation among Negro Americans. He starts reporting about enslaved people working together to save enough money to buy somebody out of slavery, or to do a community garden so that they all can get some extra vegetables and fresh food to eat. And the roots of collective action and pooling of resources go back even further. Every society, every group in the world through history has used some form of economic cooperation. To say it came only from a European tradition, which I sometimes hear, is unfair and untrue.

But what is true is that this work — actually doing alternative economics in black and other communities — was always very dangerous work, which is why I titled this book "Collective Courage." I've documented how there was physical violence and many times there was economic sabotage against these businesses. I often found instances of people getting killed, co-ops being burned down, commercial banks not lending or providing financial services to these businesses.

You describe hundreds of fascinating examples of African American cooperative activity through the centuries.

Right. I thought this book would take two years and I'd find maybe 10 examples. Fifteen years and hundreds of examples later, I'm still finding new information. I didn't expect that I would find such a rich history of African American cooperatives and cooperative activity, from slavery times to today. And I found that in each of these periods, there were black organizations that were deliberately promoting co-ops. So in the 1880s it was integrated unions, like the Knights of Labor, and black organizations like the Colored Farmers' National Alliance and Co-operative Union. In the 1930s and 40s it was the Young Negroes Cooperative League — which had Ella Jo Baker as the executive director — and the Ladies Auxiliary to the Brotherhood of Sleeping Car Porters, led by Halena Wilson, with support from A. Philip Randolph. And then in the 1960s and 70s, the Student Nonviolent Coordinating Committee and the Black Panther Party started cooperatives; and the major civil rights organizations created the Federation of Southern Cooperatives, which is still around today promoting cooperative development in the South.

In each of these periods, having strong black organizations that were deliberately doing co-ops seems to have really made a difference. And today, we have a resurgence of cooperatives, especially worker cooperatives, among immigrant communities, young people, and people of color. And again, this is being led by strong organizations, like the U.S. Federation of Worker Cooperatives, which I helped to start 10 years ago. People also start cooperatives during bad economic times, such as during the Great Depression and during the Great Recession.

What surprised you the most in doing this research?

One of the biggest surprises for me was how many black leaders were actually talking about and creating co-ops, but that's not what they were famous for. W.E.B Du Bois, A. Philip Randolph, Marcus Garvey, Ella Jo Baker, and others all spoke or wrote about, and were involved in black cooperatives and democratic ownership. African American cooperatives grew side by side with the European American cooperative movement, and grew side by side with the long civil rights movement.

Ten years ago, I'd go to co-op gatherings and find very few black people in the room. Urban African Americans felt like the co-op movement had nothing to offer them and was not relevant to them. I still get people who tell me that blacks don't have this tradition, that this is not an indigenous model. Part of my work is to remind African Americans of our long and strong history of cooperative economic activity. And once they hear some of the examples I've researched, people start to realize that this is in their own family history, and start sending me stories of their aunts or grandparents who were involved in a co-op.

Tell us about a cooperative that's around today.

One of my favorite examples is about a 25-year-old co-op, Cooperative Home Care Associates in the South Bronx. It was started by a nonprofit with the purpose of giving low-skilled women, mostly black and Latina women, much better jobs. There are over 1,000 worker-owners today, and they provide themselves with health care, good pay, a matched savings programs, and annual dividends. They really galvanized the home care industry throughout the city to get better wages for everybody and to provide better training and job-ladder support.

What's needed to advance cooperative development?

First is education. We really need more people to just understand the option, understand the model. We need to be teaching it to kids in middle school and high school. Second, we need more financing, especially if we want to do co-ops with low-income people. We need bridge loans, start-up funds, and grants; we have to educate and interest the funding community, whether it's foundations or municipalities or workforce development programs. Third, what we need is strong, uniform co-op laws. Some states have great co-op laws. Some states have none. For example, you can't license a worker co-op through Mississippi state law. We need to fix that.

What's next for you?

My book came out less than a month ago, but I have many more stories and materials that didn't fit in the first volume, and I am learning more every day. So I'm working on volume two.

To learn more about starting or supporting cooperatives in your community, go to the U.S. Federation of Worker Cooperatives , the Federation of Southern Cooperatives, and Grassroots Economic Organizing Newsletter.

Read the rest of the May 7, 2014 America’s Tomorrow: Equity is the Superior Growth Model issue.

Cities are investing billions in sorely needed water system upgrades over the next 20 years, and many of those dollars will flow through low-income communities and communities of color. Two new reports by Green for All and PUSH Buffalo and Partnership for the Public Good outline how to use community benefit strategies – including local hire policies, social enterprises, green infrastructure investments like parks and rain gardens, and more – to ensure these investments grow strong neighborhoods, cities, and regions. For examples of cities and communities pioneering these strategies, read our previous stories about PUSH Buffalo, Verde, and the City of Portland, Oregon.

Read the rest of the April 24, 2014 America’s Tomorrow: Equity is the Superior Growth Model issue.

Even in competitive industries like retail, businesses can boost profits and provide good jobs, argues MIT business professor Zeynep Ton. Her new book, The Good Jobs Strategy, explains how investing in workers and implementing smart business practices can benefit investors, customers, and millions of employees. Ton's groundbreaking research provides important evidence that we can raise the minimum wage without hurting businesses' bottom line, and should help to inform the national dialogue about inequality. America's Tomorrow spoke with Ton about her research.

What is the good jobs strategy?

It is a strategy that yields great value to investors and customers while creating good jobs for employees. And it is a strategy that doesn't depend on charging customers more. The good jobs strategy involves two components: investment in people and a good design in operations. The strategy is not just about paying employees more or treating them nicely. It's about making smart operational decisions that transform the investment in people into high performance.

Sounds like everybody wins.

The good jobs strategy benefits everyone. It works great for employees because they have good jobs. The companies I studied paid their employees higher wages than their competitors. They do a better job providing more predictable schedules. They design jobs in a way that provides meaning in the job and sets up employees for success. It's good for customers because they end up having low prices and great customer service. And investors also benefit. When companies pursue the bad jobs strategy, the pervasive operational problems have a big effect on their sales and profits. They end up leaving money on the table because their operations are not that good.

How do companies implement a good jobs strategy?

The companies I studied were all making similar and smart operational choices. First, offer fewer but better choices for customers. Second, combine operations standardization with employee empowerment. Third, cross-train employees, and fourth, operate with enough staffing so that employees can do their jobs well. These four choices really enabled the good jobs strategies by reducing cost, increasing the productivity of workers, and enabling employees to have an effect on company profits.

Most people want to do a good job at work. They don't go to work thinking, how they could mess this up. They want to contribute. The companies that offer the good jobs strategy do this well.

Tell me about a company doing it right.

QuikTrip, based in Tulsa, Oklahoma, is one of the best Fortune 100 companies to work for, and has been for many years in a row. Their wages are higher than the industry average, and they provide more stable schedules and room for advancement than their competitors. Not surprisingly, they have one of the lowest turnover rates. At the same time, they offer the lowest prices in their industry, outstanding customer service, and thrive financially. Their per store profits are almost double the top quartile in their industry and they have one of the highest sales per square foot in the industry.

In my interviews, several QuikTrip employees told me they loved their job because they were held to very high standards. The company had very high expectations of them and they loved being able to meet those expectations. They told me how their job is about making people happy. This is a convenience-store chain with gas stations; part of their job is cleaning toilets and gas pumps. But they see their job as so much bigger than that.

Can the good jobs strategy reduce poverty and inequality?

Absolutely. Look at companies that follow the good jobs strategy. Employees with full-time jobs at these companies are nowhere near the poverty line. Millions of people work in retail, so this could have a large impact.

What will it take to move the needle on this?

We can all do our part to encourage more companies to adopt this. As business school academics, we can educate our students, the future business leaders who will manage these companies, to show them you can run a business and make money by satisfying multiple stakeholders at the same time.

Customers can clearly vote with their own feet. They can choose restaurants and stores that provide good jobs.

What policy levers would help?

This is not my expertise. But if the minimum wage were to increase, that would put pressure on companies to find ways to improve the productivity of their employees.

Why don't more companies pursue a good jobs strategy?

There's a mindset that the only way to get the lowest prices is to pay employees as little as possible, treat them as a cost to be minimized. This has become the conventional wisdom. And companies tend to have more short-term focus than long-term focus. The good jobs strategy is about making a set of choices that improve the productivity of employees and that ensure that employees can play a big role in driving profits. It's not an easy strategy to execute but this should not be an excuse, given how much of a social problem we have and how much everyone can benefit.

This interview originally appeared in the February 12, 2014 issue of the America’s Tomorrow newsletter.

Halloween wasn’t the only attention-grabber at the end of October.

The Ford Foundation hosted an amazing event on October 30 on our country’s demographic changes, and the many opportunities that exist in our increasing diversity.

If you weren’t in the room with PolicyLink, the Center for American Progress, and lots of national leaders, we’ve got the next best thing! Grab some popcorn and settle in–the whole great day is on tape.

PART I: Welcome and Opening Remarks

• Darren Walker, President, Ford Foundation
• Maya L. Harris, former Vice President, Democracy, Rights and Justice, Ford Foundation

PART II: Equity as an Economic Imperative

A panel of economists, business leaders, and workforce experts explores the economic and business case for equity.

• Moderator: Angela Glover Blackwell, PolicyLink

Panelists:

• Heather Boushey, Center for American Progress
• Stephen DeBerry, Bronze Investments
• Nicole Smith, Georgetown Center for Education and the Workforce
• Jason Young, Hidden Genius Project

PART III: Advancing an Equity Policy Agenda

This panel of elected officials and advocates addresses how to make equitable growth the reality.

• Moderator: Neera Tanden, Center for American Progress

Panelists:

• Jocelyn Frye, Center for American Progress
• Maria Teresa Kumar, Voto Latino
• Brad Lander, New York City Council

PART IV: What the Public Really Thinks about Diversity and Equity

Award-winning journalist Soledad O’Brien interviews Gary Segura and Ruy Teixeira about a new nationally-representative public opinion poll about diversity, equity as an economic imperative, and the All-In Nation equity policy agenda, after a presentation of the results.

Panelists:

• Soledad O’Brien, Journalist and CEO, Starfish Media Group
• Gary Segura, Latino Decisions
• Ruy Teixeira, Center for American Progress

Want more? Download the CAP and PolicyLink book, All-In Nation: An America that Works for All, which lays out the kind of policy agenda Americans polled would support to bolster the economy and reduce inequality.

Like your media a little more social? Check out the event in tweets!
 

From New York to San Diego, thousands of fast food workers have gone on strike for higher wages and the right to form unions. Roughly three million people – disproportionately people of color – work in fast food, earning a median wage of $8.94 an hour. Better pay would not only benefit them and their families; it also would strengthen the U.S. economy. Here's why:

1. Increase consumer spending. Every $1 increase in the minimum wage increases a household's consumer spending by $2,800 a year, estimates the Chicago Federal Reserve Bank. Multiply that by three million fast food workers, and the nation would see tens of billions of dollars in new consumer spending.
2. Create better-paying jobs in low-income neighborhoods. Fast food establishments tend to cluster in low-income neighborhoods where there are few other employment options, including in poor suburbs. Raising wages for fast food workers would provide better employment opportunities, helping to revitalize neighborhoods while we continue to work to improve food choices in these communities.
3. Reduce strain on our public assistance programs. Restaurant workers, including fast food workers, are on public assistance programs like food stamps at twice the rate of the rest of the U.S. workforce, according to Saru Jayaraman from Restaurant Opportunities Centers United. More than 80 percent of fast food workers earn less than $10.10 an hour, or $18,500 per year, which means they are eligible for food stamps if they're in a family of two or more. Raising the wage would allow our public dollars to go towards necessary investments in infrastructure and education, not subsidizing employers for low-wage jobs. 
4. Raise the floor for all. Higher wages for fast food workers would put upward pressure on other low-wage industries that hire from a similar pool of workers, like other restaurant work and retail. Restaurant, retail, and service occupations are projected to have the largest employment growth in the economy, and even though many who work in these occupations have some college education, these are among the few jobs that do not require a high school diploma. Raising the floor for these jobs is an essential step towards rebuilding a middle-class economy.
5. Create better opportunities for the next generation. More than one in four fast food workers struggle to support at least one child. Research from the Partnership for America's Economic Success shows that an increase in household income to 150 percent of the poverty line (roughly $14/hour) during early childhood can lead to increased earnings – by as much as $200,000 over his or her lifetime.

By Mary Kay Henry and Angela Glover Blackwell
Originally posted on the SEIU blog.

Closing racial gaps in income would result in 13 million fewer people living in poverty. Infographic courtesy All-In Nation: An America that Works for All.

Closing racial gaps in income would result in 13 million fewer people living in poverty. Infographic courtesy All-In Nation: An America that Works for All.

With 11.5 million unemployed people in our country, job creation is essential. But they can’t be just any jobs. We need to grow good jobs, increase the quality of all low-wage jobs, and create pipelines to careers that pay family-supporting wages.

In a country as wealthy as the United States, all workers should be able to afford stable housing, healthy food, quality education, and health care. It is also an economic imperative to support our workers if we want to remain competitive globally and boost our economy.

This means increasing wages and labor protections so that every worker, in every industry, can support a family, build assets, and plan for retirement. It also means ensuring that today’s workers—and tomorrow’s—have opportunities to gain the education, skills, and training needed to move up at work, and become a part of the middle class.

This is urgent: by 2020, 66 percent of jobs are expected to require at least some postsecondary education, and we’re not coming close to meeting that demand. And it is even more urgent as communities of color become the majority and yet are disproportionately in low-wage, often dead-end jobs and lack access to the educational and training opportunities to fully manifest their potential and move up in the world of work.

But there are solutions. All-In Nation: An America that Works for All, the new book from PolicyLink and the Center for American Progress, describes how racial and economic inclusion is necessary to achieve shared prosperity as America undergoes a profound demographic shift, and presents a policy agenda to create a more equitable economy. This agenda aligns perfectly with SEIU’s agenda to improve the lives of the nation’s service workers and build a strong and prosperous service sector.

Here are six things from All-In Nation that President Obama and Congress can do right now to put us on the path to economic equity and inclusion:

Guarantee Domestic Workers Basic Wage and Labor Protections.

Nearly two years ago, President Obama pledged to extend basic workplace rights to our country’s 1.8 million domestic workers. While new rules from the Department of Labor extending minimum wage and other basic workplace protections to in-home caregivers have been proposed, they have yet to be finalized. President Obama—perhaps with help from newly confirmed Labor Secretary Tom Perez—can guarantee these rights today.

Do Business Only with Companies that Pay Good Wages and Offer Benefits.

Every year the federal government spends more than $500 billion on goods and services. President Obama can issue an executive order requiring government contracts to go to companies that pay living wages, offer paid sick days, and provide other benefits.

Increase the Minimum Wage.

As Christian Weller, Julie Ajinkya, and Sarah Treuhaft write in All-In Nation, “raising the minimum wage from $7.25 per hour to $10.10 would put $51.5 billion annually in the pockets of affected workers, who are disproportionately people of color, and would create approximately 140,000 new jobs every year.” President Obama and Congress have both an economic and moral incentive to make this happen as soon as possible.

Train Low-Income Youth and Adults for Good Jobs in High-Growth Industries.

Congress should pass the Pathways Back to Work bills proposed by Sen. Richard Blumenthal (D-CT) and Rep. George Miller (D-CA), which would prepare hundreds of thousands of low-income youth and adults for quality jobs in high-growth industries. Stay tuned to Half In Ten for ways to get involved.

Strengthen Community Colleges

The Obama Administration and Congress should enact policies like the Community College to Career Fund proposed in President Obama’s FY 2013 budget that would train 2 million workers for well-paid jobs in high-demand sectors.

Protect Labor Rights

The National Labor Relations Board should enact new regulations that modernize the union election process and make it easier for workers to join a union and protect and expand their rights to a living wage, benefits, and other supports.

These steps would be a good start to creating an all-in nation and fostering an inclusive, vibrant economy. All-In Nation presents compelling new analysis demonstrating that racial inclusion would strengthen America’s economy in the short and the long term, and provides a blueprint for creating a more equitable economy and nation. We hope our leaders take note.

Mary Kay Henry is the President of the Service Employees International Union (SEIU). Angela Glover Blackwell is the founder and CEO of PolicyLink.