Black Coop Pioneers in The Struggle For Economic Justice

Jessica Gordon Nembhard, Ph.D. John Jay College, CUNY jgordonnembhard@gmail.
com ASU School of Social Transformation February 14, 2011
Address Marginality and market failure Economic Organizing for Mutual Aid Economic Cooperation & Early Co-ops Black Women Black Youth Economic Independence
Jessica Gordon Nembhard (c) 2010
Cooperative ownership can contribute to anti-poverty strategies and community building strategies. Throughout history, among all groups, cooperatives have facilitated economic development, stabilization, and independence.
Co-ops address underdevelopment, economic isolation and marginality, & market failure when market activities do not provide for the needs of a community.
A larger proportion of Blacks, Latinos, Native Americans, and some Asian American groups compared with Whites in the U.S. are -poor and unemployed, -have lower wealth levels and -lower business ownership, -poorer health, and -higher incarceration levels, in good times as well as bad.
Marginalization forces subaltern groups such as African Americans to find alternative economic solutions. Free and enslaved African Americans pooled their money to buy their own and their family members freedom. Freedmen established mutual societies to help cover costs of illness and death.
Forced segregation made it imperative that African Americans join together economically, because the mainstream economy was exploitative, discriminatory, and exclusionary. Voluntary segregation was often the way to maintain economic independence and control self help efforts maroons, communal societies.
Chance to design & manage needed services in culturally, racially& geographically sensitive ways. Created communities, enclaves, Black businesses and other economic activity insulated from racial discrimination and neglect. From beginning free and enslaved African Americans shared resources.
African Americans have a long and strong history of cooperative ownership, especially in reaction to market failures and economic racial discrimination. It has often been a hidden history and one complicated by economic marginalization, and thwarted by racial discrimination and white supremacist violence.
Often begun by educational institutions or started with a study group to study economic conditions and cooperative economics. Used mainstream cooperative literature. Black leaders and writers promoted cooperative Education.
There have been many proposals for strategies or a movement to focus African American economic development around African American interests and needs. Early interest in cooperatives as a strategy for economic independence.
W.E.B. Du Bois proposed economic cooperation as the only effective and practical solution. Blacks could position ourselves at the forefront of developing new forms of industrial organization that would free us from marginal economic status. Started Negro Cooperative Guild in 1918.
George Schuyler (Pittsburgh Courier) calls on Young Negroes to save the race with economic cooperation. Founded in December 1930 by about 2530 African American youth. Its goal was to form a coalition of local cooperatives and buying clubs loosely affiliated in a network of affiliate councils; to start with 5,000 charter members, paying a $1 initiation fee.
a forum in each community where there are five or more members; a co-operative enterprise where each council exists; a co-operative wholesale establishment in each state; a co-operative bank in each community where there is a council; factories to produce such necessities as clothing, food, and shelter.
By 1932 the League had formed councils in New York, Philadelphia, Monessen (PA), Pittsburgh, Columbus (OH), Cleveland, Cincinnati, Phoenix, New Orleans, Columbia (SC), Portsmouth (VA), and Washington, DC; With a total membership of 400.
Founded in 1967 to present Non-profit organization of state associations to support Predominantly Black cooperatives in southern states. Organic farming, marketing, agricultural processing, fishing, sewing, handicrafts, land buying, grocery, credit unions. Protect Black-owned land. Policy advocacy.
Logo
Ralph Paige, Exec Dir.

Mutual Aid Societies & Beneficial Societies provided joint purchasing and marketing, revolving loan funds, and sickness, widow & orphan, and death benefits. Often operated through Black religious organizations and schools; often informal. Many headed by Black women.
Du Bois (1907) documented hundreds of mutual aid societies and cooperative projects through religious and benevolence institutions, beneficial and insurance societies, secret societies, schools, and financial institutions.
Provide people with the basic needs of everyday life - clothing, shelter, and emotional and physical sustenance (Jones 1985: 127). Efforts at community care (Berry 2005: 64) . Free African Society, Philadelphia 1787 (2nd oldest). By the 1790s women established their own mutual aid and beneficial societies around the country (Berkeley 1985, Jones 1985).
Black women established day nurseries, orphanages, homes for the aged and infirm, hospitals, cemeteries, night schools and scholarship funds (Berkeley 1985, Jones 1985, Lerner 1974). Pooled meager resources, sponsored fund raisers, solicited voluntary contributions (Berkeley: 85). Used modest dues that even the poorest women managed to contribute to meet vital social welfare needs (Jones 1985). Black womens leadership developed.
Black capitalism was a strategy of racial economic solidarity/cooperation Used Negro joint stock ownership companies: the Chesapeake Marine Railway and Dry Dock Company shipyard in Baltimore (1865-1883), Coleman Manufacturing Company in Concord, NC (1897), and the United Negro Improvement Associations Black Star Line and Negro Factories
Mutual insurance companies were the earliest official cooperative businesses among Blacks and whites in the U.S. Starting in the late19th century African Americans organized more formal cooperative businesses that followed the European Rochdale Principles of Cooperation (that became the international co-op principles).
The first official of cooperatives were farm cooperatives and cooperative marketing boards, consumer cooperative grocery stores, cooperative schools, and credit unions. While efforts at collective economic action were often thwarted by racial discrimination, white supremacist sabotage and violence, efforts persisted throughout the centuries.
KoL organized integrated cooperatives and labor unions1800s-early 1900s. 200 industrial co-ops organized by the Knights of Labor between 1886 and 1888 (Curl 2009: 4). Controversial opposition within and outside trade union movement.
Some southern KoL chapters were all Black by 1887 between 60 and 90 thousand AAs were members. Established cooperatives but few records. A cooperative cotton gin in Stewarts Station, Alabama. Cooperative villages near Birmingham (Curl 2009: 101).
The Colored Farmers National Alliance and Cooperative Union (1886-1891) was formed to aid Black farmers, particularly with mortgage payments and marketing; And to counter the violence and exploitation practiced by white land owners and vigilantes (KKK).
Shared agricultural techniques and innovations, and coordinated cooperative efforts for planting and harvesting (Ali 2003: 77). The Union promoted alliances between farmers and laborers, was active in local and regional politics to maintain rights for African Americans after Reconstruction.
Probably over 1 million members largest Black organization of its time. Branches established cooperative stores/ exchanges in the ports of Norfolk, Charleston, Mobile, New Orleans, Houston. Members could buy goods at reduced prices and secure loans to pay off their mortgages (Ali 2003: 89; Holmes 1973).
154 African American-owned cooperative businesses: 14 producer cooperatives; 3 transportation cooperatives; 103 distribution or consumer cooperatives, and 34 real estate and credit cooperatives.
In 1901 Odd Fellows Lodge established the Mercantile Cooperative Company in Ruthville, VA cooperative store. Shares at five dollars each (no one member more than 20), could be paid in installments (Craig 1987). Also bought trucks; built a school. Flourished for 20 years. Achieved a level of economic independence that later aided in the struggle for political rights and racial justice (Craig:134).
Co-op meat markets, Memphis 1914. Sold double amount of original shares. Buy shares in installments limit ten. By August 1919, five stores were in operation serving about 75,000 people. Members of the guilds associated with each store met monthly to study cooperative economics.
Founded by the Natl Negro Business League, Montgomery, AL 1927. An association of independent grocers organized into a buying and advertising cooperative. Created to support independent Black grocery stores with mutual support and collective marketing - in a harsh market during difficult times. By 1930 253 stores were part of the CMA
1930s very active period for cooperatives depression increased need for cooperative grassroots economic activity. Throughout the 1930s and 1940s there were Black farmers cooperatives, credit unions, co-op grocery stores, schools, etc. Ella Baker and George Schuyler developed the Young Negroes Cooperative League in 1930 to promote cooperatives in Black communities.
1935 Consumers Cooperative Trading Company in Gary Indiana 1936 considered the largest grocery business operated by African American in the U.S. -total sales of $160,000. The cooperative consisted of a credit union, grocery store, and gas station. Grocery co-op began to pay dividends of 2 percent on shares of stock owned in 1936.
Two Black schools (Bricks, Tyrrell County) established farmers cooperatives, credit unions, buyers clubs, health insurance, and a state wide Black cooperative federation. North Carolina Council worked with state ag department to develop credit unions and cooperatives. In1936: 3 Black credit unions, by 1948 - 98 48 additional co-op enterprises: 9 consumer stores, 32 machinery co-ops, 4 curb markets, 2 health associations and 1 housing project .
Black labor leader and organizer A. Philip Randolph, and the Ladies Auxiliary of the BSCP promoted cooperatives, especially in Chicago in the 1930s. Walker Credit Union, Montreal, CA 1930s savings and financial education, budgeting. The Brotherhood Cooperative Buying Club in Chicago 1945-49.
Began January 1973, Milwaukee, WI. Started with thirty new cabs. Competitive advantage: the drivers were willing to take passengers to any part of the city (unlike the white cab companies). After 18 months of relatively successful operation, they could not afford the high insurance premium.
Gendered occupational segregation, even after major gains in 1980s. Highest poverty levels (women & children), gender income gap still wide in many areas. Most women-owned businesses are small and in the service or retail sectors; revenues are disproportionately low. Gender wealth gap wide.
Need economic activity that can bridge and complement the world of care and concern, and social reproduction. Women need control over workplace, income, and assets.
Ella Jo Baker - Young Negroes Cooperative League 1930-32 Nannie Helen Burroughs 1936-40 Cooperative Industries of DC Halena Wilson Ladies Auxiliary to the Brotherhood of Sleeping Car Porters 1940s Estelle Witherspoon Freedom Quilting Bee 1960-90s Fannie Lou Hamer Freedom Farm Co-op and Pig Banking 1970s
One mission of the League was to keep control of the organization in the hands of young people; and to bring women into the League on equal basis with men (full inclusion of women). Ella Jo Baker, Executive Director, speaks about role of women in co-ops at first national convention.
Chartered in 1936 as a self-help cooperative in Lincoln Heights, Washington, DC. Started with a federal government grant to provide jobs for unemployed and unskilled. Became a consumers cooperative & agricultural marketing cooperative.
As early as 1938 the Instructions and Decisions of the Auxiliary included subscribing to journals/newsletters about consumer economics and cooperatives; and studying credit unions and consumers cooperation.
The Brotherhood Cooperative Buying Club, founded by women from the Chicago Ladies Auxiliary
Planning started in 1942 Opened in 1945
The Chicago Auxiliary in so far as it is known is the first group of Negro women connected with labor to initiate a consumer cooperative enterprise (Wilson September 1947).
The first BSCP credit union was established by the Montreal chapter. Part of project to create credit unions to help members adjust to economic crisis through savings plans and budgeting.
Founding member of the FSC/LAF Sewing cooperative started in 1967 by sharecropping women to sell their quilts for extra income. Built a sewing plant, and provided other services to the community child care center, after school programs, summer reading prog.
FQB bought 23 acres of land to build sewing factory and to help share croppers (evicted for registering to vote) to farm in peace and to own their own land. At its height with 150 members, the coop was the largest employer in the town of Alberta, AL, in 1992.
Cooperative ownership of land opens the door to many opportunities for group development of economic enterprises which develop the total community rather than create monopolies that monopolize the resources of a community.
Purpose of helping displaced farm workers become self-reliant. Raise pigs and share. Buy up land owned by whites, put it in the hands of African Americans and use cooperative agriculture to keep the development sustainable.
A worker-owned home health care cooperative in the South Bronx, New York Started by a social service agency to create decent jobs and provide needed services in an impoverished community in 1985. Seventy-five percent of the employeeowners had previously been dependent on public assistance, as home care paraprofessionals.
The cooperative employs more than 1000 African American and Latina women. Over 700 are the owners of the company. Leads the industry in above average wages, benefits, career ladder opportunities, leadership training, and low turnover. Annual dividends returned to owners average 25% of initial equity investment ($250). Uses policy advocacy.
There is increasing evidence that students who engage in entrepreneurial projects, especially cooperative businesses, gain benefits including increased learning, more motivation, and incentive (and sometimes financing) to go on to college.
Co-op programs and/or curricula for youth both help motivate them to be academic achievers, and provide economic experiences where they learn by doing and participate democratically in cooperative businesses, As well as develop leadership, advocacy and entrepreneurial skills and earn some money.
The young peoples branch of the Consumers Cooperative Trading Company, a Black-owned cooperative in Gary Indiana, operated its own ice-cream parlor and candy store. In addition, members of Consumers Cooperative held weekly educational meetings for 18 months before opening any of the businesses.
In 1933 they instituted a cooperative economics course in Roosevelt High Schools evening school. By 1936 it had the largest enrollment of any academic class offered by the high school.
In the Fall of 1992 students from Crenshaw High School (South Central Los Angeles) revitalized the school garden to help rebuild their community after the 1992 uprising, and in particular to donate the food to the homeless.
Students established a co-op to sell salad dressing made from the produce grown in the school garden. At least 50% of the profits are saved for scholarships to college. Awarded over $180,000 in college scholarships to 77 graduated student managers (over ten years).
Grassroots economic organizing Economic protection and economic independence Asset building
Cooperative strategies enable local small scale economic activity, often initiated by a community-based organization (church, school, secret society). Bottom up approach, effectively meeting the needs of the grassroots.
Provide protection, economic help for the dispossessed and landless, and services for the under-served. Earn better prices for Black made products, and Better wages. Control over income, and asset ownership.
Cooperative agricultural production and marketing also help individuals maintain land ownership and make a living from farming. Bought land for sharecroppers evicted from white lands.
African American cooperatives throughout history have provided livelihoods, land ownership, home ownership, savings opportunities, and other mechanisms for economic independence for their members even if modest. Address market failure and Racial discrimination.
Increase incomes and options for African Americans. Create enclaves and insulate Black businesses and other economic activity from racial discrimination. Pool resources, share risks.
Cooperatively owned processing plants help farmers to earn more money from their produce, retain earnings, and invest in more equipment, supplies, and land. Often dividends are paid to members from African American owned cooperatives extra return on investment.
The cooperatives anchor economic activity in a community, Employ community members, Provide financing; and Promote leadership development.
Team building, consensus building, problem solving, and other skills gained from cooperative activity are transferable to other acts. Many co-ops engage in policy advocacy also.
nternal education, study circles, training, public education, and publicity; Human energy, enthusiasm, and trust; Reaching and incorporating youth; Empowerment of women; Adequate resources, training and financing; and Creating alternative sustainable economic activity in the face of discrimination and sabotage.
Many of the cooperative businesses emerging in health care, child care and temporary services, for example, are leading their sectors in changing the nature of work and increasing the returns to such work and ownership for African Americans, women, and youth.
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and Urban

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Jessica Gordon Nembhard, Ph.D. John Jay College, CUNY jgordonnembhard@gmail.

com ASU School of Social Transformation February 14, 2011

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Ralph Paige, Exec Dir.

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

Jessica Gordon Nembhard (c) 2010

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