Vox Political: The Cooperative Party Fighting Back against New Labour Infiltration?

Mike today has posted up an interesting little piece about the Cooperative Party’s plans to develop some distinctive policies of its own. The party has been allied to Labour since 1927, and has 25 MPs elected on a joint ticket. Gareth Thomas, the MP for Harrow West, who chairs the party, has said that the party will be developing its own distinctive policies ahead of centenary next year in 2017. Among the policies suggested is the representation of carers on the boards of companies providing social care services, and that the care workers for those companies should be able to take over those companies if they’re going to close or change hands. Mike comments that these are excellent policies.

The party has also stated that it is staying neutral in the leadership contest, and has rejected the idea that it is going to be infiltrated by right-wing Labour MPs, who want to split away and turn it into a vehicle for their own campaign against Jeremy Corbyn. Mike comments that the policies look like they’re deliberately formulated as part of a backlash against attempts by the Blairites to take over the party. He is, however, sceptical about how neutral it really is in the leadership contest. He asks how many of its MPs signed the letter supporting Owen Smith.

Mike’s piece is at: http://voxpoliticalonline.com/2016/09/09/is-co-operative-partys-new-stance-a-backlash-against-new-labour-takeover-bid/

G.D.H. Cole in the 1940s wrote a massive history of the cooperative movement, A Century of Cooperation. It’s astonishing now, after the co-op has largely turned itself into a mainstream supermarket, how revolutionary co-operatives were, and how deeply ingrained they were as part of working class life. In their time, they were seen as a genuinely revolutionary movement that would superseded capitalism. The vast majority of co-operatives were retail, but producers’ cooperatives, in which the workers also had a share in management, also existed. I think all workers should have the opportunity to take over and run failing companies, just as a few were given such power way back in the 1970s by Labour party. A few years ago I reblogged a video on the way the Argentinian economy was partly saved by its workers taking over failing economies, with comments by the veteran American radical, Naomi Wolf. Since then, most have returned to being normal capitalist enterprises. Nevertheless, the success of these companies does show that workers also can be good managers.

Book Review: G.D.H. Cole’s A Century of Co-Operation

(George Allen & Unwin Ltd. for the Co-operative Union Ltd 1944).

Many of us of a certain age still remember the Co-op before it became a regular supermarket chain. It was a store in which regular shoppers – the co-op’s members, were also it’s owners, and entitled to receive a share of the profits. This meant that you were paid a dividend. This was later issued in the form of ‘Green Shield’ stamps, which could be used to buy further goods in the stores. The co-operative movement was founded way back in the 1840s by the Rochdale Pioneers, former members of Robert Owen’s socialist movement. After this had collapsed, the Pioneers then went on to apply his socialist principles to running retail stores. The movement rapidly caught on and expanded, not least because, unlike ordinary shops, the co-ops sold pure food without the poisonous substances added elsewhere. For example, many bakers added arsenic to their bread to make it whiter, and more attractive to the purchaser. The co-ops didn’t, and so their food and goods was healthier, and thus more popular. Unlike their competitors, you could be fairly sure that what you bought from the co-op wouldn’t kill you in the name of making it appear more tasty. By 1942 there were 1,058 co-operative retail societies, with a total membership of 8,925,000 – just shy of 9 million people.

I found this book on the history of the movement in one of the charity bookshops in Bristol. It’s by the great socialist and writer, G.D.H. Cole, who was one of the leading members of Guild Socialism, a British form of syndicalism, which recommended the abolition of the state and its replacement with a system of guilds – trade unions, which would include all the workers in an industry, and which would run industry and the economy. Instead of parliament, there would be something like the TUC, which would also have administrative organs to protect the consumer.

The book’s chapters include:
I: “The Hungry ‘Forties'”,
II: Co-operation before the Pioneers
II. Rochdale.
IV. The Rochdale Pioneers Begin.
V. The Rochdale Pioneers to 1874.
VI Christian Socialists, Redemptionists, and Trade Unions
VII. Co-operation and the Law.
VIII. The Origins of the Co-Operative Wholesale Society
IX. Co-operative Growth in the ‘Sixties and ‘Seventies.
X. The Second Revolution.
XI. The ‘Eighties and ‘Nineties.
XII. The Women’s Guild.
XIII. Co-operators and Education.
XIV. Co-operation in Agriculture – Ireland: The Beginning of International Co-operation.
XV. Co-operation before and during the First World War.
XVI. From War to War.
XVII. Guild Socialism and the Building Guilds
XVIII. Co-operative Development between the Wars.
XIX. Co-operators in Politics.
XX. Co-operative Employment.
XXI. International Co-operation.
XXII Co-operation Today and Tomorrow
I. the Growth of Co-operation.
ii. The Development of Co-operative Trade.
iii. Large and Small Societies.
iv. Democratic Control.
v. Regional Strength and Weakness.
vi. Co-operative Education.
vii. The producers’ Societies.
viii. The Wholesales and Production.
ix. The Next Steps.

Appendix: Who Were the Pioneers?

Cole notes that some forms of what became known as co-operation existed in various trades and businesses before the Rochdale Pioneers. Some of the capital used to set up businesses in the early 19th century, came from the workers. They tended to invest in other businesses’ than their employers, so that if their wages were cut during a recession or dip in trade, the dividends they would receive from their shares would not also suffer. Although not remarked on in the book, you could say that this shows how the working class has been disinherited. In many cases, they contributed their savings and money to the development of capitalism, but despite the existence in some firms of profit-sharing schemes, they have been and are being excluded from the profits of the modern, industrial economy.

From industry, co-operation also entered politics, with the establishment of a Co-operative Party, which is now part of the Labour party. The movement spread across Europe, to Germany and as far as Russia. Lenin was greatly impressed by the value of the co-operatives as a form of socialism. According to Aganbegyan, Gorbachev’s chief economist for perestroika, before 1950 47 per cent of all industries, including farms in the USSR were co-ops. Industrial democracy and co-operatives were a central plank of Gorbachev’s perestroika. Unfortunately, Gorby’s attempts to revive Communism failed, and Yeltsin turned them into bog-standard capitalist companies through the voucher system. Other thinkers and politicians in other countries saw co-operation as the solution to their countries’ social and economic problems. One of these was the Bulgarian Stambolisky, the leader of a peasant’s party before the First World War. He wished to organise the peasant farms into a system of co-operation, which would modernise the country by allowing them to acquire electricity and improve production and conditions. More recently, the Mondragon co-operatives, set up in Spain by a Roman Catholic priest in the 1950s, has become an industrial giant, involved in just about all areas of the Spanish economy.

Cole’s book understandably concentrates on the history of the co-operative movement from its emergence to the middle of the Second World War, and is an immensely detailed and thorough work of scholarship. Although not as prominent as they once were, co-operative businesses still exist in Britain. They were supported in the 1970s and ’80s by politicos like the great Tony Benn and Ken Livingstone, and may once again become a major force in British society and the economy.