Essentially, we need more unions - I'm not sure we have to invent new names for these things. These won't be your parents' unions, or the union boogeyman you may have seen on TV—the union can do exactly what you wish it to do.
I've been (unintentionally) part of two union drives in my own life and have seen friends in an unrelated field participate in a third. They make perfect sense in moments like our current one, where owners can hire dozens of attorneys to jeopardize your job while you of course are limited to whatever legal representation you've been saving up for.
Around me the union boogeymen are the police and teachers unions. Ultimately the issue is a professional political class decoupled from reality that extort local government.
However there are also the unions for artists (think actors, television writers, theater, etc) which do a very good job stabilizing pay and standards for safety without interfering with the flexibility of businesses to hire who they want or labor to work where they want to. Within reason.
> In many existing demand cooperatives, such as rotating savings groups, there is often a trusted central coordinator — frequently an older community member — who helps maintain accountability and keep the interests of the group aligned.
Aligned with what? Whenever a central position is formed with power over something, even if it’s only a steering power, it will be sought out by power-hungry people and manipulated.
This thin proposal would be more interesting if it could give any discussion about the difficult points and how they’d address them rather than waving it all away under the guidance of a benevolent individual at the center.
To say I’m skeptical of an organization that wants to choose how to spend my money for me is an understatement.
Interesting, but - it says it's a co-op, but this is a word with a legal definition. Every co-op I know publishes what it's legal entity is, how voting is done, etc. This just has "click to join". If your pitch is that you have more integrity than typical companies then you have to, you know, "walk the walk".
Also in some jurisdictions, calling yourself a co-op without actually being one will get you into legal difficulties. Companies that don't quite fulfil all the requirements are careful not to call themselves once. Igalia, for example, are very serious about being worker owned and run, but they made the choice to have a slightly different structure so they don't call themselves a co-op.
Dumbest idea i've ever seen. Complete misunderstanding of how the tech world works.
The idea is: if sufficient consumers banded together and coordinated their spending power, they can drive decisions in the executive suite of the companies.
Nothing could be further from the truth. It's neither the spending of consumer nor even the spending of business that drive decisions. The only thing that drives decisions at that level is capital allocation - not spending allocation. Wealth drives these decision - not spending.
So if all these tech workers want to band together and do something about it, they would create their own ETF or mutual fund, and put all their wealth into that fund and then have the manager of that fund direct that capital based on their mission.
Of course you will see that this won't work because there just isn't enough capital here to move the market compared to the other capital allocators who are just trying to maximize returns.
There seem to be a lot of enthusiasts of this kind of idea, and certainly there must be 100 people like this here on this forum in the US. Can they point me to one such one here that is high performance?
There are actually really interesting tech intersections here, possibly. 8 years ago I published an article[1] that ended with some speculation about the possibility of automating organized consumer action to permit, for example, people to coordinate to force companies to drop abusive terms in contracts. The co-op model is in the same family.
Back in the day, my basic idea was basically this: the reason that consumer companies can impose unfair terms on people is because it's basically only a small amount of money to an individual, and it's costly for people to coordinate. For example, the expected cost to me of some company's arbitration clause is small, because the probability of any individual into a dispute with them is low. But in the aggregate it's bad: over a million customers (say) it's almost certain that one of those customers gets royally screwed by it. So: what if all those million customers of company X could all agree to automatically cancel their service contracts with X, if and only if enough other people also agree to do so that a simultaneous cancellation would cause real pain to the company's bottom line. And then enforce that agreement with automation. Some basic game theory suggests the objectionable clause immediately goes boom.
yes exactly this is the exact problem I want to see solved. I think high trust demand co-ops like JCCU(https://jccu.coop/) have solve this issue. I will definitely read your article.
This is just asking for the job to be hurriedly outsourced to where this is not a thing, if not eliminated altogether. It makes sense only for jobs that are tightly geographically constrained and are not subject to work visa imports.
You used to get a dividend from the profits based on your share of purchases from "the Store" back in the day where I'm from. That was a consumer coop driven by the demand of its members.
This sounds like a re-branding of a cryptocurrency/DAO scheme. It's too abstract for conventional consumers to understand and too game-able for serious participants to not be wary of. Who is this for?
The post is written like as if consumer coops is a radically new idea (spoiler: they're everywhere in Europe). Unfortunately they have long since succumbed to the same mechanisms as their competitors and have a tremendous power concentration in top leadership, with directors making ridiculous salaries. On paper though, e.g. Coop with a 25 % market share in Norway is owned and controlled by about 1 million of its customers.
This idea is model after those consumer coops from JCCU to mondragoon to some other smaller american consumer coops. Our proposition is that the openly displayed set of the CO-OPs goals along side AI moderation may help with alleviating these issues
I've seen many co-ops fail. They never address the long-tail nature of productivity, perhaps to not offend people or because most people can't admit it or even understand it. Popular loudmouths take power. Quiet competent people leave. Co-op slowly dies.
This negative cycle is even more pathological in co-ops than in a normal corporation/for profit.
> They never address the long-tail nature of productivity...
Mondragon tries to address this through accepting bounded inequality. 9:1 pay ratio from highest-paid to lowest-paid is allowed (still far below US median corporation 192:1 ratio). They decouple democratic ownership from operational management. They funnel profits into individual internal capital accounts in proportion to the worker's pay, payable upon retirement or dissociation from the cooperative. They heavily subsidize continuing education to lift the long tail baseline skillsets.
However, I suspect none of the above is effective without the right cultural context. The Basque region where Mondragon's cultural center of gravity still heavily draws upon and resides within, laid the fertile cultural cues the cooperative leverages. High competence individuals are rewarded within this Basque-centric cultural context with high social status, reasonable job security, and the psychological reward of building up their own community.
If that supposition is true, then the uncomfortable reality is the dominant, hyper-individualistic American cultural context will always be a poor fit to co-ops. That might be made irrelevant through demographic replacement: everywhere the hyper-individualistic culture dominates, it is currently eliminating families with no demographic end in sight. We shall see.
You’ve described a corporation. Think of YC companies - equity owned by early employees. Controlled by “someone senior”. And if things are going good more friends are invited to join in, multiple companies start owning equity within each other and you back new incomers by directing demand towards their products. The difference between that and a coop is that in a corporation there is some legal standing to enforce the rules and control abuse. In eastern europe where coops had more of a presence the people in power would just abuse the coops - theft, misdirection of resources towards “friends”, pyramid schemes benefiting “older members”… but you couldn’t go and sue as a shareholder because via political connections the entrenched leader and his buddies could use their power to pay off someone and hurt you. The real prof in concepts like this are enforceable contracts.
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[ 0.33 ms ] story [ 50.5 ms ] threadI've been (unintentionally) part of two union drives in my own life and have seen friends in an unrelated field participate in a third. They make perfect sense in moments like our current one, where owners can hire dozens of attorneys to jeopardize your job while you of course are limited to whatever legal representation you've been saving up for.
Around me the union boogeymen are the police and teachers unions. Ultimately the issue is a professional political class decoupled from reality that extort local government.
However there are also the unions for artists (think actors, television writers, theater, etc) which do a very good job stabilizing pay and standards for safety without interfering with the flexibility of businesses to hire who they want or labor to work where they want to. Within reason.
Aligned with what? Whenever a central position is formed with power over something, even if it’s only a steering power, it will be sought out by power-hungry people and manipulated.
This thin proposal would be more interesting if it could give any discussion about the difficult points and how they’d address them rather than waving it all away under the guidance of a benevolent individual at the center.
To say I’m skeptical of an organization that wants to choose how to spend my money for me is an understatement.
Also in some jurisdictions, calling yourself a co-op without actually being one will get you into legal difficulties. Companies that don't quite fulfil all the requirements are careful not to call themselves once. Igalia, for example, are very serious about being worker owned and run, but they made the choice to have a slightly different structure so they don't call themselves a co-op.
The idea is: if sufficient consumers banded together and coordinated their spending power, they can drive decisions in the executive suite of the companies.
Nothing could be further from the truth. It's neither the spending of consumer nor even the spending of business that drive decisions. The only thing that drives decisions at that level is capital allocation - not spending allocation. Wealth drives these decision - not spending.
So if all these tech workers want to band together and do something about it, they would create their own ETF or mutual fund, and put all their wealth into that fund and then have the manager of that fund direct that capital based on their mission.
Of course you will see that this won't work because there just isn't enough capital here to move the market compared to the other capital allocators who are just trying to maximize returns.
Back in the day, my basic idea was basically this: the reason that consumer companies can impose unfair terms on people is because it's basically only a small amount of money to an individual, and it's costly for people to coordinate. For example, the expected cost to me of some company's arbitration clause is small, because the probability of any individual into a dispute with them is low. But in the aggregate it's bad: over a million customers (say) it's almost certain that one of those customers gets royally screwed by it. So: what if all those million customers of company X could all agree to automatically cancel their service contracts with X, if and only if enough other people also agree to do so that a simultaneous cancellation would cause real pain to the company's bottom line. And then enforce that agreement with automation. Some basic game theory suggests the objectionable clause immediately goes boom.
[1] https://utppublishing.com/doi/abs/10.3138/utlj.2017-0047 ... sorry for the academic journal paywall
This sounds like a re-branding of a cryptocurrency/DAO scheme. It's too abstract for conventional consumers to understand and too game-able for serious participants to not be wary of. Who is this for?
This negative cycle is even more pathological in co-ops than in a normal corporation/for profit.
I hope some day someone figures a better way.
Mondragon tries to address this through accepting bounded inequality. 9:1 pay ratio from highest-paid to lowest-paid is allowed (still far below US median corporation 192:1 ratio). They decouple democratic ownership from operational management. They funnel profits into individual internal capital accounts in proportion to the worker's pay, payable upon retirement or dissociation from the cooperative. They heavily subsidize continuing education to lift the long tail baseline skillsets.
However, I suspect none of the above is effective without the right cultural context. The Basque region where Mondragon's cultural center of gravity still heavily draws upon and resides within, laid the fertile cultural cues the cooperative leverages. High competence individuals are rewarded within this Basque-centric cultural context with high social status, reasonable job security, and the psychological reward of building up their own community.
If that supposition is true, then the uncomfortable reality is the dominant, hyper-individualistic American cultural context will always be a poor fit to co-ops. That might be made irrelevant through demographic replacement: everywhere the hyper-individualistic culture dominates, it is currently eliminating families with no demographic end in sight. We shall see.
The abbreviation for "cooperative" is always spelled with a hyphen.