As he promised, Senator Bernie Sanders (I-Vt) has launched his Presidential campaign with a focus on issues.
Among the 12 platform planks that he published there are several traditional ideas such as rebuilding American infrastructure and guaranteeing health care to all. But the very last platform offers a genuinely fresh idea: boosting America's worker co-ops.
The Sanders campaign writes:
We need to develop new economic models to increase job creation and productivity. Instead of giving huge tax breaks to corporations which ship our jobs to China and other low-wage countries, we need to provide assistance to workers who want to purchase their own businesses by establishing worker-owned cooperatives. Study after study shows that when workers have an ownership stake in the businesses they work for, productivity goes up, absenteeism goes down and employees are much more satisfied with their jobs.
In the United States, co-ops are often associated with small businesses such as coffee shops or groceries. But with the right regulatory incentives and support, worker-owned businesses can be much larger. Take the Mondragon corporation of Spain, for example. Today it has over 70,000 employees and brings in annual revenues of over $12 billion Euros. Within the various units of the corporation, workers decide on the direction of production for the company as well as what to do with the profits. While CEO-to-worker pay ratios in the United States have reached over 300-to-1, in Mondragon the cooperative model ensures that in most of its operations, “the ratio of compensation between top executives and the lowest-paid members is between three to one and six to one.”
Today, there are 11,000 worker-owned companies in America, and there are up to 120 million Americans who are involved in some form of co-op if you include credit unions in the tally. By endorsing their expansion, Sanders is proving that his differences with his opponents are not just in style but in substance – providing an alternative to the top-down corporations that run our economy.