"Union Representatives met with management during most of 1977 to hammer out a contract. Discussions proved unproductive. However, after a four day strike in September, 1977, Checker management caved in and signed a contract. During the next year, negotiations moved slowly and relations were strained. Employees filed 25 grievances. None were resolved. In September, 1978, talks broke down and for the second time in twelve months, a strike was authorized. Management tried to maintain operations with scab labor, but the union shut them down completely within a few days.

In December, rumors surfaced that Checker would stay closed permanently. A variety of sentiments developed among the strikers. Some felt guilty about getting employees into something which might cost them their livelihoods. Some were frustrated and angry because the union was unable to reach a negotiated settlement. Some began to feel that if Checker did close permanently, it would be better than working for its management again.

In January, 1979, ex-Checker workers Steve Krumrei, Jim Cooley, Dave Everitt, Jim Symon and Jim Applebaum resolved to create a worker owned company. They felt they had, amongst the membership, enough expertise to be successful in the taxi business. When it became apparent that Checker management would not reapply for taxi permits, Union Cab incorporated. Later that month, it applied for 20 permits. From March to June, Union Cab contacted lawyers, made financial projections, applied to the Federal Communications Commission for a radio license and began seeking the estimated $150,000 necessary to begin initial operations.

By early June, Union Cab had only obtained enough money to put a down payment on the radios. Every day was a juggling act, as projected expenses had to be reevaluated in light of available sources of capital. Finally, a loan package was arranged: $95,000 came from the First Wisconsin Bank (Firstar), $35,000 from the Madison Development Corporation, $15,000 from Wisconsin Horizons and almost $15,000 fro the sale of preferred stock. On October 29, 1979, Union Cab of Madison Cooperative, Inc. opened for business, with 11 new cabs. It was difficult at the beginning, with no yellow pages ad and an average wage of around $0.80 per hour. The Cooperative lost $35,000 in the first three months. Losses were expected, but their magnitude concerned everyone. On February 14, 1980, the City permitted the cab companies to raise their rates. At that point, Union turned the corner."

Another great article is up on the blog of Shift Change, a documentary film in progress telling the little known stories of employee owned businesses that compete successfully in today’s economy while providing secure, dignified jobs in democratic workplaces.

Madison is the state capital, seat of the University of Wisconsin, and home to several worker cooperatives that have been in business for over 30 years.   Rebecca works at Union Cab, founded in 1979, which now boasts 228 worker members – drivers, mechanics, office staff, and dispatchers. Committed to environmental sustainability, they are replacing gas guzzling Crown Victorias with hybrid vehicles. And they designed their own computerized dispatch system to respond to calls for service with the nearest available vehicle, reducing mileage and improving service and efficiency.  Rebecca drove us around and pointed out other long standing Madison coops like Nature’s Bakery and Community Pharmacy. “Worker cooperatives are sustainable businesses, especially in hard times. They are more flexible with changes in the market and give the highest priority to people working in the business. In the U.S. few people are aware of worker cooperatives, but with the economic crisis we are finding lots of interest.”

Inspired by Mondragón’s example, Isthmus Engineering was founded 25 years ago. The cooperative designs and builds state of the art automation systems for a broad range of industries. With 50 employees, the majority worker owners, Isthmus is highly project oriented. Self-directed teams of mechanical and controls engineers, plus highly skilled electricians and machinists, collaborate to design, build, and test equipment that meets their customers’ needs.   “The core principle is one worker one vote, not each dollar one vote,” says founder John Kessler. “We’re not giving up anything by being a worker cooperative. It’s an excellent way to run a business.”

Read other articles from the Shift Change Blog:

• Equal Exchange - A Profitable, Mission Driven Company
• Cooperative Home Care Associates gets high reviews from members
• Ohio Employee Ownership Center and EBO Group demonstrate success of employee owned companies
• Evergreen Cooperatives Seek to Turn Cleveland Around
• Bay Area Coops Thriving