The beginning of co-operatives
The co-operative movement started around 150 years ago, in 1844, when a group of 28 weavers and textile workers working in the cotton mills in the town of Rochdale in England established the first successful co-operative business. The weavers earned very low wages, and they were unable to afford the high prices of food and household goods in the shops. They came up with the idea of opening their own cheaper shop, by buying stock in large volumes and selling it at cost price. They wanted to sell good quality goods that were not adulterated or unfairly measured. At first the shop just sold flour, oatmeal, sugar and butter, but it was a big success.
What made their co-operative distinctive at the time was the adoption of a democratic approach and an ownership system that kept control in their own hands. They formed the Rochdale Equitable Pioneers Society and collected money from member families to open a small co-operative store on Toad Lane in Rochdale. They were committed to running their co-op in a democratic way. Each member of the co-op had one share and one vote, so every member had an equal say in the decisions made in their business. As the Society developed, they began to sell their goods at normal retail prices, but the profits generated were shared among the members according to the amount they spent on purchases during the year.
Although co-ops had been set up before the Toad Lane shop, it was this one that was a real success and therefore the one that became the example that other co-operators followed. The Pioneers wrote down their democratic principles which are still the basis of co-operatives around the world today.