The relevance of the principles of co-operatism within Co-operative Law

TOPIC 18: Fiscal policy, Legal Innovations, Frameworks and Issues. PHASE 3: Organisational and Governance design. Level of analysis: Macro. The general legislation of co-operatives is based in accordance with the seven... [ view full abstract ]

TOPIC 18: Fiscal policy, Legal Innovations, Frameworks and Issues.
PHASE 3: Organisational and Governance design.
Level of analysis: Macro.

The general legislation of co-operatives is based in accordance with the seven co-operative principles of the Manchester Conference of 1995. However, in order that the said organizations may compete within the current capitalist market, they operate within the margins of these principles, favouring instead the dynamics of commerce, and thereby putting themselves in opposition to their very own legistration defining the fundamental principles of co-operativism.
The principles of “free adhesion” and “internal democracy” may hinder or delay members from leaving, in such cases the refund of the capital investment of the member concerned and the time-span in which this is to be fulfilled need to be defined.
The objective of this brief is to support the notion that thanks to cooperative principles it is possible to work towards more stable and long-lasting employment in a time of economic recession.
First and foremost, in order to achieve this, it is necessary to adhere to a literal interpretation of the role of member and the shared capital according to Art. 45 of the current Co-operative Law 1999. This shows how the democratic principle is fundamental in decision-making within a co-operative.
Secondly, by making a systemic interpretation of Art. 17, differentiating between the possible motives for the departure of members, and whether these are considered to be “just grounds”. It shows how the principle of “free adhesion” implies a temporal and financial commitment from each member towards the co-operative.
Thirdly, studies carried out from 2008 until 2014, on the total number of workers per co-operative, the total number of workers within businesses plus the length of time a worker has been employed in relation to the rest of Spanish businesses of a capitalist nature. Results show that co-operatives have a more stable and long-term employment record than other comparable businesses.
From the study it can be argued that the co-operative principles are necessary to maintain stability of employees, and the current regulations should place the interests of the co-operative before the individual needs of its members.