ILPC 2027

 Cooperative and trade union movements, both of which remain remarkably resilient despite the threats posed by neoliberal economic policies, emerged in the 19^th century with similar goals relating to the promotion of industrial democracy and economic security. Since then trade unions around the world have established or attempted to establish cooperative forms of enterprise, with varying degrees of success. Today, many unions still provide support to members through cooperative or mutual organisations in the form of saving unions or consumer associations. Yet, the relationship between worker cooperatives and trade unions has remained marked by a ‘mutual reserve’ that limits the potential for successful collaboration (Laliberte, 2013). One possible explanation for this reservation is the ambiguity about the status of workers in worker cooperatives and the possible implications for the role of trade unions. However, in recent times there have been attempts to foster closer ties between trade unions and worker cooperatives (ILO, 2013) which has resulted in instances of successful collaboration that protect the economic security of workers (e.g. CICOPA-Mercosur in Argentina and SYNDICOOP in several African countries).

The institutional environment surrounding cooperatives in developing countries is arguably very different to those observed in advanced countries where cooperative enterprises are supported by institutional support networks that encourage shared practice between cooperatives. In many emerging markets, cooperative enterprises have become a central tenet of public policy commitments aimed stimulating economic growth, alleviating poverty, and empowering previously disadvantaged communities. Such policies have caused the proliferation of cooperative forms of enterprise in many countries, such as South Africa, where the government provides support in the form of technical guidance and financial incentives for those wishing to set up new cooperatives. Despite this support, economic and institutional constraints limit the potential for commercial growth - meaning that the majority of these cooperatives remain relatively small enterprises (Theron, 2012). More concerning, however, are warnings from trade unions that ‘bogus’ cooperative organisations are being used to undermine employment regulations and exploit workers.

The purpose of this paper is to explore two aspects of the relationship between worker cooperatives and trade unions. Firstly, it examines the potential for collaboration between cooperative firms and trade unions in the South African institutional context. In doing so, it considers the ways in which trade unions could attend to gaps in the institutional architecture surrounding worker cooperatives, particularly in relation to supporting workplace democracy. Secondly, it investigates some of the challenges faced by both parties when cooperative and unions engage. Underpinned by an interpretivist methodology, a case study method is adopted that focuses on a group of worker-cooperatives based in the South African textiles industry. The data draws on interviews conducted with cooperative managers, government officials and trade union representatives. It finds that most institutional support for worker cooperatives, which is provided by the state and civil society, is focused on providing ‘business’ advice rather than normative guidance about workplace democracy. Thus, there is potential for trade unions to provide support to worker cooperatives in relation to the development of democratic governance structures. However, the findings identify tensions between trade union officials and other actors, such as civil servants and NGO staff, who also provide institutional support to cooperatives.