fbpx

Next City: Worker co-ops catch on in Philadelphia

Next City, October 1, 2018: Worker co-ops catch on in Philadelphia 

In West Philadelphia, another new worker co-op launched in June. Formed by artists and social-justice organizers, Bonfire Media Collective provides video and design services — and operating as a collective aims to counteract the industry’s reputation for chronic underpayment, long hours and irregular work. These new businesses are among a handful of diverse co-ops sprouting around Philadelphia, nurtured by a year-long study and training program offered in 2016 and 2017 by the Philadelphia Area Cooperative Alliance (PACA).

The worker co-op model — in which businesses are collectively owned and democratically governed by their workers — has gained broad recognition in some cities as an avenue for tackling income inequality, growing wealth and stabilizing neighborhood-based businesses. Momentum continues to build, with bipartisan action on the national level: In August, co-op advocates celebrated the passage of new federal legislation promising to make it easier for employee-owned businesses to access capital — often a major challenge for co-ops approaching lenders who are not familiar with the model. 

PACA, founded in 2012 to catalyze co-op development in Philadelphia, has worked to bring the co-op concept in particular to historically marginalized communities. Now, with the confluence of PACA’s groundwork, the federal legislation and new interest from city government, Philly’s co-op scene appears poised to take off. Even with the promise of easier access to capital, co-ops still face a host of challenges. It’s not easy to abandon familiar business hierarchies and proceed smoothly into collective management.

In particular, co-ops may not be the first business arrangement that springs to mind for people of color. “When people think of co-ops, the first thing that pops into their mind is a food co-op, often in a white neighborhood,” says Jamila Medley, PACA’s executive director. But many worker co-ops are started by women of color and immigrant women, Medley says.

Philadelphia City Council Member At-Large Derek Green, elected in 2015, is a champion for the co-op cause. Green says he owes his co-op enthusiasm partly to the influence of his forebears. Green was instrumental in securing a $75,000 commitment in the city’s FY 2018 budget for the commerce department to fund a program for co-op outreach and technical assistance. After an RFP process in fall 2017, that money was awarded to PACA earlier this year.

Making acquaintance with so many interested local residents and experts has expanded Philadelphia’s co-op development pipeline. Now, with additional funding this year from the Catholic Campaign for Human Development, PACA has hired two Co-op Developer Fellows, one an African-American urban farmer and one with a Mexican immigrant background. This fellowship program helps PACA walk the walk on tackling racial wealth inequities and fostering power within communities.

PACA plans to focus the $75,000 it recently received in city funds on educating and assisting minority business owners on co-op conversions. . With the collective potential of that project, the city’s SEED project, and PACA’s co-op developer fellowship program, Medley believes co-op development has a strong chance of narrowing the racial wealth gap.

Print Friendly, PDF & Email
Scroll to Top