Introduction to Tech Coops

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facilitated by Lottie

notes by Laura

This session was a discussion of coops: what they are, why they are important.

About OpenFlows

Lottie works at NYC OpenFlows w/ Eric. OpenFlows works with nonprofits, unions, and other groups with similar values.

What are coops?

A business that is worker-owned, which means:

  • Worker/owners all own equally
  • Members may collect money separately
  • Produces something (can be food, like Land o' Lakes)
  • Clients are shared
  • Owners pay fee to the coop in service-oriented coops
  • Not like Uber or AirBnB

More about OpenFlows

  • Tech coops specifically work-flow systems
  • Heavy lifting for complex systems like Drupal and CiviCRM

Palante Tech

  • Tech support coop based in Brooklyn
  • Seven workers
    • One is not an owner
    • Distributed in three other cities
  • People shared their interests

How did they become a coop?

  • Jack was a freelancer
    • Realized one person couldn't have all the skills needed - wanted to be in a group that could share skills
  • Coop gave them ability to specialize
  • Managing clients and accounting is shared in economy of scale
  • No longer working in isolation

How it started

  • Met with people who knew each other already and wanted to start a business
  • Politics: didn't want to be "bosses"
  • Not a nonprofit, but not about profit
  • Time before coop - had subcontractors
  • Started March 2010
  • Incorporated in November 2011

How it works

  • Technically it's a C corp (varies state by state)
  • A community development project helps people start coops in New York
  • Lots of long meetings - how to set up HR, hiring/firing
  • Collective, means one person=one vote - decisions made by consensus
  • Coop refers to type of ownership, collective refers to how it's governed
  • Hiring is similar to other places - benefits start right off the bat
  • Process - after nine months, change from worker -> worker-owner
  • Challenge: doesn't work out
  • How to fire: a problem - we haven't been able to
  • At three months: getting up to speed
  • At six months: step up