Cleveland Model

The Evergreen Cooperatives are a connected group of worker-owned cooperatives in Cleveland, Ohio, USA. They are committed to local, worker-owned job creation; sustainable, green and democratic workplaces; and community economic development.

Overview

Background

Much of the idea of worker control came about from the work of Hough Area Development Cooperation and the Congress of Racial Equality's Target City Project in Cleveland, Ohio. Beginning in 1967, both organizations created worker cooperatives and community owned businesses for residents in the area. Similar circumstances arose in places like Youngstown, Ohio, in 1977, when the Youngstown Sheet and Tube company abruptly closed and laid off 5,000 workers. In an effort to stop the layoffs, the workers and city attempted to buy a steel mill and control it themselves. Although the effort failed, it gave rise to the idea of worker self-management.

The Evergreen initiative was created in 2008 by the Cleveland Foundation, the City of Cleveland government, The Democracy Collaborative at the University of Maryland, College Park, and the Ohio Employee Ownership Center at Kent State University, in collaboration with some of Cleveland's most important "anchor institutions", such as Case Western Reserve University, the Cleveland Clinic and University Hospitals.Buffa, A. (April 15, 2010)
"Evergreen Cooperatives Forge an Innovative Path toward High-Quality Green Jobs"
''Apollo News Service''. Retrieved from In November 2010, Evergreen Cooperatives consisted of the Evergreen Cooperative Laundry, Ohio Cooperative Solar, Green City Growers Cooperative and the Neighborhood Voice.

Worker-owned co-operatives

Evergreen is one of a number of systems of worker-owned co-operatives pioneering an alternative model of business in the United States, based on the highly successful Mondragon Corporation in the Basque Region of Spain.Schwartz, J.D.
"In Cleveland, Worker Co-Ops Look to a Spanish Model"
''Time'', December 22, 2009. These systems emphasize the network aspect of the Mondragon system — a connected group of semi-autonomous businesses, each owned and controlled by its workers but part of a mutually supportive, worker-owned and worker-controlled association — as opposed to the smaller, more fragmented worker co-ops that have existed in the U.S. for many years.

Evergreen Cooperative Laundry

Evergreen Cooperative Laundry (ECL) is an industrial laundry serving local hospitals, hotels and other institutions. The ECL was funded with $5.8 million: $1.5 million from the Department of Housing and Urban Development and the City of Cleveland, $1.8 million in New Markets tax credits, $750,000 from the Cleveland Foundation, and $1.5 million from two banks.Grassroots Economic Organizing
"Evergreen Cooperative Laundry Manager: ”Owning Your Own Job is a Beautiful Thing”"
/ref> It operates at the capacity of 10 million pounds of sheets and towels per year, which represents 4% of the local market. According to some sources, the laundry has the potential to expend to 20 million pounds per year. Its customers include two large nursing homes in the local area — Judson Retirement and McGregor Homes. The laundry's LEED certified building uses the latest energy efficient equipment:Breckenridge, Tom
"Evergreen Cooperative Laundry aims to help struggling neighborhoods around Cleveland's University Circle"
''Cleveland.com'', October 20, 2009
* It saves 35% of energy by warming up the clean water with heat from the used water.Grahl, C

The laundry hired 50 employees with the prospect for 35 more workers by the end of the year.Trattner, Douglas, [http://www.freshwatercleveland.com/features/evergreencoop111810.aspx "The Cleveland Model: Evergreen Coops Push 'Buy Local' Model to Extremes"">It eliminates hazardous waste by using EPA-approved chemicals.

The laundry hired 50 employees with the prospect for 35 more workers by the end of the year.Trattner, Douglas

''Fresh Water'', November 18, 2010 Employees received on-the-job technical training and worked with Towards Employment, a workforce readiness organization which focuses on assisting groups which have typically had difficulty transitioning to gainful employment (e.g., people coming off welfare or out of jail).

Employees are paid $8 an hour for the first six months, while they are on a trial period. After that, they are considered for the membership in the co-operative by the peers’ voting. If they are admitted, the salary grows to $10.50 an hour, with 50 cents collected towards the ownership share. After seven years working in the laundry, the individual's share will be equal to $65,000.

Ohio Cooperative Solar

Ohio Cooperative Solar (OCS), a partner member of the Evergreen Cooperatives, employs area residents to help local institutions become green using solar power and weatherizing techniques to improve their Efficient energy use, energy efficiency">"The Cleveland Model: Evergreen Coops Push 'Buy Local' Model to Extremes"
''Fresh Water'', November 18, 2010 Employees received on-the-job technical training and worked with Towards Employment, a workforce readiness organization which focuses on assisting groups which have typically had difficulty transitioning to gainful employment (e.g., people coming off welfare or out of jail).

Employees are paid $8 an hour for the first six months, while they are on a trial period. After that, they are considered for the membership in the co-operative by the peers’ voting. If they are admitted, the salary grows to $10.50 an hour, with 50 cents collected towards the ownership share. After seven years working in the laundry, the individual's share will be equal to $65,000.

Ohio Cooperative Solar

Ohio Cooperative Solar (OCS), a partner member of the Evergreen Cooperatives, employs area residents to help local institutions become green using solar power and weatherizing techniques to improve their Efficient energy use, energy efficiency
. OCS owns and installs photovoltaic solar panels on Cleveland-area institutional, governmental and commercial buildings and performs weatherizing projects for the area's low-income housing in the solar off-season. OCS is entirely worker-owned by citizens who "face barriers to employment"."What is OCS?"
, Ohio Cooperative Solar (n.d.). Retrieved October 23, 2010 OCS was launched in October 2009 and was profitable within its first five months in business. By April 2010, OCS had fourteen employees.

OCS’ customer list includes large Cleveland institutions such as Cleveland Clinic, University Hospitals, Case Western Reserve University, City of Cleveland and the Cleveland Housing Network. In some instances, the client purchases the solar panels from OCS and hires the company to install them. Under this scenario, the client is then responsible for the maintenance of the system and arranging credits with the local utility, insurance and taxes. Alternatively, OCS will own the solar system, be responsible for all the arrangements, and sell the electricity at a negotiated rate to the client. This is the arrangement OCS has with the majority of its clients; it is expected that the project will create approximately 20 new full-time machinery operator and installer jobs to economically disadvantaged neighborhoods in the near future.Shanahan, M.R., & Kiel, S.J.
OCS Fact Sheet
, Ohio Air Quality (n.d.). Retrieved November 3, 2010.

Legislation (Senate Bill 221) passed into Ohio state law mandates that utilities provide at least 25% of their electricity from alternative energy sources, including at least one-half percent from solar energy, by the year 2025. According to the OCS chief executive officer, Steve Kiel, this means that Ohio must produce 60 megawatts of solar generating capacity in the year 2012. The state's current annual production is two megawatts.Evergreen Cooperatives Introductory Video
(n.d.). Retrieved October 23, 2010.

To help Ohio meet this legislative mandate, OCS’ technical director Erika Weliczko announced that the company will be breaking new ground by "targeting several megawatts over the next couple of years…(T)hat’s on the order of nothing that’s been done in Ohio to date." In the next three years, OCS plans to have 50 to 100 employee-owners at work installing and maintain the solar panels necessary to meet the new state mandate.Gar Alperovitz, Thad Williamson and Ted Howard
"The Cleveland Model"
''The Nation'', February 11, 2010. Retrieved November 1, 2010.

When not working on solar panels, OCS employees work in the year-round weatherization program focused on households throughout Cleveland. According to Casey Gillfeather, OCS director of operations, the weatherization process includes insulating exterior walls, wrapping the hot water tank, installing an energy-efficient dryer vent, weatherize the basement, and insulating the attic in order to reduce energy consumption of the house by one-third.Ohio Cooperative Solar
Ohio Employee Ownership Center (2010). Retrieved November 16, 2010.

''Neighborhood Voice''

The ''Greater University Circle Neighborhood Voice'' is a free, student-owned and student-run newspaper and online news source covering worker co-op activity in Cleveland and other issues of concern to residents of the Buckeye-Shaker, Central, East Cleveland, Fairfax, Glenville, Hough, Little Italy, and University Circle neighborhoods.About
''Neighborhood Voice''

References

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External links

Evergreen Cooperatives official website

The Democracy Collaborative

Description of the Greater University Circle Initiative at the Cleveland Foundation's website

''Neighborhood Voice'' magazine

Ted Howard's talk at TEDxCLE 2011
Cooperatives based in Ohio
Organizations based in Cleveland