“Schumacher Conversations: Envisioning the Next 50 Years” continues in October on the topic of work and ownership. A recording of “Rethinking Ownership & Work: Shared Responsibility & Reward” is now available online.
This month, cooperative builder John Abrams joined Julian McKinley of Democracy at Work Institute and Beth Spong of Dean’s Beans, a recently-converted worker co-op. Alice Maggio of the Working World, who sits on the Schumacher Center Board of Directors, reprised the role of host.
The group discussed developments in the field of worker-owned business, uplifting the model as a means to redistribute wealth while stimulating meaningful work and social change. Noting increased interest and adoption, these practitioners anticipate greater growth of workplace democracy on the horizon.
Highlights from our October Conversation
High profits are either fortuitous, or they are the achievement not of the owner, but of the whole organization… It is unjust and socially disruptive if they are appropriated by the owner alone.
— E.F. Schumacher, Small is Beautiful
Julian McKinley on worker co-ops as a solution to social disruption
At Democracy at Work Institute, Julian and his colleagues work to expand worker ownership among those locked out of good jobs and business opportunities. One way DAWI does this is through research and data: worker-owned and democratic workplaces, he reports, grew over 30% between 2019 and 2021.
Small is Beautiful, he pointed out, “has been an inspiration for worker-owners, allies and others in support of a more equitable economy for decades.” And the dominant trends of the globalized economy have wrought precisely the type of “social disruption” Schumacher warned about:
Wealth gaps are wider than they’ve ever been before… worker wages have remained relatively stagnant while corporations have recorded exorbitant profits and extravagant C.E.O. pay…
Worker-ownership can help address many of these challenges. DAWI has seen an uptick of interest across industries: from in-home caregivers to cab drivers, people are seeking greater self-determination in their own livelihoods. In turn, Julian explained, worker-owned businesses root wealth within communities and stimulate local trade. For these reasons, he underscored the model’s vitality as a tool for non-extractive development.
John Abrams on the fundamental challenge of our times
In 1974, Small is Beautiful resonated with John Abrams’ ethos as a “back to the land” home builder, with the emphasis on quality over quantity and equity over exclusivity. Starting his South Mountain Company, he recalled, they didn’t know worker-owner best practices or have ready access to technical assistance.
Employees as well as younger entrepreneurs, John says, are hungry for work that’s honest, meaningful, humane, and inclusive. Now that those tools are broadly available, widespread transformation is possible.
What if those many millions of employees in these companies—those who have helped to build them, and whose livelihoods are dependent on their stability— could provide capital through their labor… and assume ownership — democratically-managed — then reap the rewards?
Facing our planetary crises, diversified worker-ownership offers a hopeful way out of stifling “shareholder supremacy.” Transitioning to a just and sustainable economic system “has become the fundamental long-term challenge of our times.”
Beth Spong on scaling a social impact business and converting ownership
Beth leads Dean’s Beans, an Orange, MA coffee roastery which is among the top 10% of independent coffee roasting companies in terms of volume. It was started, she recounted, to demonstrate that that a for-profit business could be rooted in respect for Earth, the employees, and the farmers who supply it.
With steady growth, social impact and profitability, Beth said, the experiment has proven successful. And, as of this year, the company is converting to a worker-coop.
“Historically,” she continued, “the owning class has been the ruling class.” With workers at the helm, Dean’s Beans can buck the profit-maximizing imperative and offer a different answer to a key Schumacher question: “what is enough?” Beth’s answer involves employees being paid well and having excellent benefits, leading a shift to compostable packaging and energy-efficiency, and solidarity with coffee-producing communities.
In coffee lands, we pay more for coffee; we listen to farmers, we invest in those coffee-producing communities and their cooperatives; we fund co-designed and developed education, health, water, and youth development projects.
In turn, she concluded, Dean’s Beans’ commitment to social impact has a palpable effect on employee retention and morale.
Our November Schumacher Conversation, “Expanding the Frontiers of Commoning,” will take place Thursday, November 16th at 2:00 PM Eastern time. Featuring:
- Dorn Cox, Co-Founder of Farm Hack, author of “The Great Regeneration”
- Kathryn Milun, University of Minnesota and Solar Commons Project
- Sanda Niessen, Co-Founder of Fashion Act Now!
David Bollier, Reinventing the Commons Program Director at the Schumacher Center, will host the conversation.