Madison to fund $5 million in co-op development

Portside - It started with a conversation.

Kevin Gundlach, president of the South Central Federation of Labor in Madison, WI, had heard about Spain’s Mondragon cooperative complex and their union cooperatives in the U.S. He researched how labor could support cooperative development in this country. During his research, Gundlach read about the city of New York investing a million dollars for worker cooperative development. It sparked an idea for Madison.

Then he bumped into the mayor, Paul R. Soglin, at a community picnic. Gundlach told Soglin about his idea to have the city help with cooperative development, not just to create good jobs, but to support neighborhoods. The mayor, Gundlach, responded with: “This is something I’d been interested in as well.”

Soon after that conversation, Soglin initiated Madison’s Capitol Improvement Plan, “Co-operative Enterprises for Job Creation & Business Development.” This plan would authorize the city to spend $1 million each of five years starting in 2016 to fund “cooperative/worker-owned business formation for the purposes of job creation and general economic development in the city.”

The Madison Common Council, known as city councils or commissions in other cities, approved the initiative on Nov. 11, 2014. This allocation is the largest by a U.S. municipality. Earlier last year, New York allocated $1.2 million to help worker cooperative development.