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Coop 101 ayah

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Carolyn Edsell-Vetter
Carolyn Edsell-Vetter

This document provides an orientation for prospective members of a landscaping cooperative. It explains that a cooperative is jointly owned and democratically controlled by its members. Members invest through an initial share purchase and have equal voting rights. Profits and surplus are distributed to members based on their patronage. The orientation covers cooperative principles of governance, member rights and responsibilities, profit distribution, and the process for becoming a cooperative member.

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Orientation for Prospective Coop Members A Yard & A Half Landscaping Cooperative, Inc. C O O P E R A T I V E
What is a Worker-Cooperative? Democratic Control Joint Ownership Shared Equity Reserves Cooperative Distribution of Profits A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly- owned and democratically- controlled enterprise. C O O P E R A T I V E
What is a Worker-Cooperative? Democratic Control Joint Ownership Shared Equity Reserves Cooperative Distribution of Profits Worker-owned workers finance the coop together through an initial buy-in Worker-controlled on basis of One worker, one vote Workers share surplus Worker-owner equity stays in the coop as working capital C O O P E R A T I V E
Why Worker-Cooperatives? Direct benefit from personal labor Reinvestment in local economies Stabilization of family & community Working capital for seasonal business Owner accounts loan capital for improvements and equipment Higher employee well- being and satisfaction Professional growth & development Accessible to lower income owners Shared start-up costs and risks Employee buy-in and responsibility Democratic Control Joint Ownership Shared Equity Reserves Cooperative Distribution of Profits C O O P E R A T I V E
7 Cooperative Principles 1. Voluntary and open membership 2. Democratic member control 3. Members economic participation 4. Autonomy and independence 5. Education, training, and information 6. Cooperation among cooperatives 7. Concern for community C O O P E R A T I V E
Democratic Control Democratic Control Joint Ownership Shared Equity Reserves C O O P E R A T I V E Based on graphic from Equal Exchange www.equalexchange.coop
Governance vs. Management Democratic Control Joint Ownership Shared Equity Reserves C O O P E R A T I V E Management Governance
Who Does What? Democratic Control Joint Ownership Shared Equity Reserves C O O P E R A T I V E Decision CEO(s) Worker- Owners Mgmt Team Who can I give input to? Create Annual Budget D R I CEOs, Worker-Owners Allocate Patronage I D Worker-Owners Set Pay Ranges & Benefits D R I CEOs, Worker-Owners Set Compensation Philosophy I D I Worker-Owners Amend Bylaws D Worker-Owners Elect Board Officers D Worker-Owners Evaluate/Hire co-CEOs D I Worker-Owners Evaluate/Hire Employees D I I CEOs, Mgmt Team D Decision-maker R Ratifier, must approve final decision I Input-giver, opinion must be sought out by decision-makers
Rights & Responsibilities Democratic Control Joint Ownership Shared Equity Reserves C O O P E R A T I V E Rights Responsibilities Share in profits Buy 1 share of stock Make nominations for Board Pay taxes on patronage and bear portion of any losses Propose items & speak at Worker-Owner meetings Attend monthly Worker-Owner meetings Vote for Board officers & change to Bylaws Recruit and mentor new & prospective worker-owners Serve on board and committees Learn about operations of the coop to make good decisions
Surplus Democratic Control Joint Ownership Shared Equity Reserves C O O P E R A T I V E
Surplus Democratic Control Joint Ownership Shared Equity Reserves C O O P E R A T I V E
Things to Think About Democratic Control Joint Ownership Shared Equity Reserves C O O P E R A T I V E Ownership is a commitment of money, but also of time and energy. Owners share in the profit, but also in the risk. Individual owner accounts will lose value if the company loses money. You may become ineligible for some forms of public assistance due to increased income. You are responsible for what happens in the company. You may face personal legal & financial liability if good financial controls and governance structures are not maintained.
Becoming a Member Democratic Control Joint Ownership Shared Equity Reserves C O O P E R A T I V E Current employee Sponsorship by current Member 3 seasons of employment (>20 hrs/wk) past employment with AY&AH may be considered Sign Member Agreement agreeing to Bylaws, including to pay taxes using a government-issued tax ID number (SSN/ITIN) Sign Share Purchase Agreement to purchase 1 share at $7,000 Approval by vote of majority of Board Members NOTE: Shares cannot be sold, gifted, or inherited. On separation, shares will be paid out within 3 years.

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Coop 101 ayah

  • 1. Orientation for Prospective Coop Members A Yard & A Half Landscaping Cooperative, Inc. C O O P E R A T I V E
  • 2. What is a Worker-Cooperative? Democratic Control Joint Ownership Shared Equity Reserves Cooperative Distribution of Profits A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly- owned and democratically- controlled enterprise. C O O P E R A T I V E
  • 3. What is a Worker-Cooperative? Democratic Control Joint Ownership Shared Equity Reserves Cooperative Distribution of Profits Worker-owned workers finance the coop together through an initial buy-in Worker-controlled on basis of One worker, one vote Workers share surplus Worker-owner equity stays in the coop as working capital C O O P E R A T I V E
  • 4. Why Worker-Cooperatives? Direct benefit from personal labor Reinvestment in local economies Stabilization of family & community Working capital for seasonal business Owner accounts loan capital for improvements and equipment Higher employee well- being and satisfaction Professional growth & development Accessible to lower income owners Shared start-up costs and risks Employee buy-in and responsibility Democratic Control Joint Ownership Shared Equity Reserves Cooperative Distribution of Profits C O O P E R A T I V E
  • 5. 7 Cooperative Principles 1. Voluntary and open membership 2. Democratic member control 3. Members economic participation 4. Autonomy and independence 5. Education, training, and information 6. Cooperation among cooperatives 7. Concern for community C O O P E R A T I V E
  • 6. Democratic Control Democratic Control Joint Ownership Shared Equity Reserves C O O P E R A T I V E Based on graphic from Equal Exchange www.equalexchange.coop
  • 8. Who Does What? Democratic Control Joint Ownership Shared Equity Reserves C O O P E R A T I V E Decision CEO(s) Worker- Owners Mgmt Team Who can I give input to? Create Annual Budget D R I CEOs, Worker-Owners Allocate Patronage I D Worker-Owners Set Pay Ranges & Benefits D R I CEOs, Worker-Owners Set Compensation Philosophy I D I Worker-Owners Amend Bylaws D Worker-Owners Elect Board Officers D Worker-Owners Evaluate/Hire co-CEOs D I Worker-Owners Evaluate/Hire Employees D I I CEOs, Mgmt Team D Decision-maker R Ratifier, must approve final decision I Input-giver, opinion must be sought out by decision-makers
  • 9. Rights & Responsibilities Democratic Control Joint Ownership Shared Equity Reserves C O O P E R A T I V E Rights Responsibilities Share in profits Buy 1 share of stock Make nominations for Board Pay taxes on patronage and bear portion of any losses Propose items & speak at Worker-Owner meetings Attend monthly Worker-Owner meetings Vote for Board officers & change to Bylaws Recruit and mentor new & prospective worker-owners Serve on board and committees Learn about operations of the coop to make good decisions
  • 12. Things to Think About Democratic Control Joint Ownership Shared Equity Reserves C O O P E R A T I V E Ownership is a commitment of money, but also of time and energy. Owners share in the profit, but also in the risk. Individual owner accounts will lose value if the company loses money. You may become ineligible for some forms of public assistance due to increased income. You are responsible for what happens in the company. You may face personal legal & financial liability if good financial controls and governance structures are not maintained.
  • 13. Becoming a Member Democratic Control Joint Ownership Shared Equity Reserves C O O P E R A T I V E Current employee Sponsorship by current Member 3 seasons of employment (>20 hrs/wk) past employment with AY&AH may be considered Sign Member Agreement agreeing to Bylaws, including to pay taxes using a government-issued tax ID number (SSN/ITIN) Sign Share Purchase Agreement to purchase 1 share at $7,000 Approval by vote of majority of Board Members NOTE: Shares cannot be sold, gifted, or inherited. On separation, shares will be paid out within 3 years.