Labour
Italian Social Cooperatives
     by Sabeeha Maithir

Cooperatives have been expected to achieve a number of economic and social goals.  In addition to increasing production and mobilizing under-utilised resources, they have also been expected to increase social justice and equality of opportunity, to reinforce social solidarity, and to rebuild communities fragmented by the impact of colonial regimes, market expansion and new technologies. The use of cooperatives in South Africa began in as early as 1922. However, later amendments to the Act paved the way for the disintegration of the cooperative movement. Since then, political change has led to a renewed popularity of cooperatives as a means of social development.

The mammoth task of poverty alleviation places much strain on governments around the world.  In Italy, it has been found that cooperatives brought relief to the financial strain on the national system of social welfare.  Like South Africa, Italy had rather high unemployment rates. Cooperatives were developed to supply welfare services to the economically weaker layers of society. The primary objective of the Italian Social Cooperative is to facilitate integration of the disadvantaged back into society, through job creation.

Consorzio Abele Lavoro

Consorzio (Consortium) Abele Lavoro is a grouping of 6 separate cooperative initiatives in the region of Piedmont in Turin Italy. It provides employment for 400+ workers at any given time and is one of the most successful cooperative ventures in the region. The role of an Italian Social Cooperative is to ensure the integration and social rehabilitation of the 'disadvantaged.' The disadvantaged in this instance, comprise of the unemployed, the disabled, psychiatric patients, minors, ex convicts and former drug and alcohol addicts. While admittedly this comprises a somewhat different profile to the economically disadvantaged demographic of historic discrimination in South Africa, the eventual aim of social inclusion in order to earn a living and value ones' self worth remains the same. The aim of Abele Lavoro is to change the mental mindset of the worker to one that is proud to be a worker. The objectives include: to create employment, to rehabilitate, to provide training and ultimately, through the aforementioned, to facilitate the primary goal of social inclusion through work.

A defining feature of Abele Lavoro is that it functions in much the same way as any other enterprise except for the fact that it receives a 30% annual tax reduction. The profits that are made are then reinvested in the cooperative. As per European law, a cooperative is permitted to receive a grant but only to a limited amount as an increased grant would result in that cooperative posing unfair competition to other existing companies. This amount varies and remains undisclosed by Abele Lavoro.

Consorzio Abele Lavoro is a superstructure with various cooperative projects that fall under its wing. Rainbow is the largest cooperative within this consortium. 

Rainbow

Rainbow is a cooperative that specializes in recycling old personal computer parts and other electronic material. It employs 180 people who collect old material from office blocks and refurbish them for resale. Most companies have a quick turnover of electronic material. By European law, old electronic material cannot be thrown away due to the fact that they may contain toxic substances. This cooperative has identified a niche and created a business venture out of recycling. The success of the organisation lies in the fact that it is able to pay a salary to each person that it employs, and in this way is able to sustain itself. The organisation now owns 120 trucks and pays the workers E850/month. A more qualified worker will earn up to E2400/month.

The workers of this cooperative work in an area that is 14 000 square meters in size. The work process includes the collection of material, taking the computers apart and repairing damaged parts and either selling parts separately or assembling them into whole new computer units for resale. While the end product is one of a specialized standard, the individual steps in the process are uncomplicated and can be performed by people of varying skill abilities.

Gianni who has been working at Rainbow for almost a year says 'I was without a job and I had a driver's license so I could get a job here. I got training and I am now skilled. I also introduced my friend to Gruppo Abele. He is here cinque [5] month.'

The success of this consortium can be attributed to the fact that there is a central management system that connects various cooperatives that work in the same field, so as to be able to share knowledge and resources. There is a central structure that provides guidance and support to the various cooperatives, guidance that if left to function on their own is too specialized for individual cooperatives to afford. An added distinctive feature is the rehabilitation guidance that workers have access to which is crucial to the long term success of the cooperatives. The consortium is not only permanently staffed by professionals; employees that pass through the system are also given the opportunity to join the more skilled/management constituency of the organisation.

The transformation of an individual from being excluded and marginalized to being able to earn his/her own livelihood and be proud to be employed in this way, is the typical transition that can be seen in Gianni. Carlos, the mentor of workers at Rainbow, says that the one year period is crucial. 'It is at this point that people either affirm their commitment or are unable to keep up and revert to their prior way of life.'  Italian Social Cooperatives have proven vital in the development and integration of disadvantaged individuals into society.

While there are those cooperatives that do not enjoy an equal level of success as Rainbow or any other cooperative under the wing of Abele Lavoro, it must be noted that something must be unique about the way in which this particular consortium is structured in that its success level outweighs most other cooperatives in the region. Perhaps a lesson can be learnt!

Sabeeha Maithir is MA student at the Industrial Organizational & Labour Studies Department, UKZN