Child Care Co-operatives

Introduction

There are several structures that can be used to establish Child Care Co-operatives

  • Community Co-operatives
  • User (Parents and Guardians) Co-operatives
  • Worker Co-operatives
  • Service or Marketing Co-operatives also known as Co-operative Consortia

    • They are defined by their membership

    Community Co-operatives

    serve a defined community. Its members are anyone in that community who cares to join. It can provide facilities for that community including child care. It is very like a voluntary sector organisation in nature except that it operates according to co-operative principles.

  • members are drawn from the defined community. One member, one vote
  • the members decide what services will be provided to the community
  • the co-operative is managed by a committee elected by the members
  • committee members manage the co-operative on a voluntary basis. They may receive expenses and act in a paid professional capacity for the co-operative, but they are not paid for being committee members.
  • the co-operative may employ staff
  • if the co-operative makes a profit, the members may decide to re-invest it in the co-operative, or pay a bonus to the members or make a donation to a charity, or a combination of these things.

    • User co-operatives

    are made up of the people who use the service. They are also known as consumer co-operatives. In this case it is the people who buy child care for their children.

  • parents and guardians of the children who regularly use the facilities are eligible for membership of it. One member, one vote.
  • the co-operative is managed by a committee elected by the members
  • the committee members manage the co-operative on a voluntary basis. They may receive expenses and act in a paid professional capacity for the co-operative, but they are not paid for being committee members.
  • if the co-operative makes a profit, the members may decide to re-invest it in the co-operative, or pay a bonus to the members or make a donation to a charity, or a combination of these things.

    • Worker co-operatives

    are made up of the people who work in the business.

  • everyone who works in the co-operative is eligible for membership (after a probationary period). Only people who work in the co-operative are allowed to become members.
  • the co-operative is managed by those who work in it, and only those who work in it may be directors of it.
  • if the co-operative makes a profit, the members may decide to re-invest it in the co-operative, or pay a bonus to the members or make a donation to a charity, or a combination of these things.

    • Service Co-operatives

    provide services to their members, which in the case of a child-care co-operative could be marketing, use of suitable premises, or access to other resources. By combining their purchasing power, members can access a more affordable service. The membership may comprise a mixture of individuals, partnerships and co-operatives providing child care.

  • people or companies who use the service will be eligible for membership, subject to conditions laid down by the co-operative
  • the service and day-to-day running of the co-operative may be provided by paid staff or by members on an unpaid rotational basis
  • the co-operative is managed by a committee elected from the membership or by general meetings of the membership
  • if the co-operative makes a profit, the members may decide to re-invest it in the co-operative, or pay a dividend to the members or make a donation to a charity, or a combination of these things.

    • The co-operative principles that apply to all of these formats are:

  • Open membership to all who qualify. First decide your membership criteria then apply them fairly. No ruling cliques excluding others, no unrealistic hurdles to jump.
  • Democratic government. Good information flow. Policy decided by general meetings of the full membership. No outside control.
  • Equality. One person, one vote.
  • Limited return on capital. No running the business for the benefit of outside investors.
  • Education of members (so that they can play a full part in the co?operative)
  • Social responsibility - consideration of the community and the eco?system in which they operate.
  • Co-operation with other co-operatives (to extend the co-operative system and accomplish together what could not be addressed separately)

    • The plusses and the minuses

    Community Co-operatives

    The plusses

  • a means to mobilise the community
  • can take on other issues as well
  • easier to "sell"
    The minuses
  • focus can wander
  • other things can take priority
  • resource allocation dilemmas

    • User co-operatives

    The plusses

  • high motivation to provide quality care and personal development for children
  • instant market research and customer communication
    The minuses
  • turnover of members
  • induction and training requirement for new members
  • short termism
  • inward investors may be concerned about management turnover

    • Worker Co-operatives

    The plusses

  • high motivation to keep the business running
  • direct communication between users and management
  • builds team work
    The minuses
  • getting inward investment

    • Service Co-operatives

    The plusses

  • reduced costs to individual businesses
  • access to market intelligence and large segment of market
  • ability to service large contracts through collaboration
    The minuses
  • members have to find time over and above that required by their individual businesses

    • Legal matters

    Legal structure

    The most popular for all the above is a company limited by guarantee with membership criteria established according to the form chosen.

    It is recommended to register the company first and build the business inside it. This means that everyone knows what they are joining, what their rights are and what their responsibilities are.

    Those who take responsibility such as membership of a management committee will be becoming company directors. They should be provided with adequate training and recourse to professional advice to ensure that they do not operate fraudulently or wrongfully but maintain their limit of liability (normally to £1).

    Common Ownership

    Normally, though not necessarily, Co-operatives are common ownership organisations.

    Common ownership means that the assets are held in common dedicated to the purpose for which the co-operative was established. There are no individual property rights over these assets and members cannot leave and insist that a share of the asset value is paid to them. This makes for long term security of operation and guards against internal or external take over and asset stripping.

    The Practicalities

    Co-operatives of any kind are best established where the objective is to bring to bear the enthusiasm and skills of a group of people and focus them on a common objective. A large part of that objective should be sustainability. This pre?supposes providing an excellent and appropriate service to an identifiable market using adequate resources of people, facilities, cash and organisation.

    There is no substitute for detailed planning and proper research. This takes time, patience and most of all, the assertiveness to ask for help.


    Advice on all aspects of business planning, legal registration services and grant aid are available through Avon CDA.

    Information sheet developed by Co-operative Assistance Network

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