Cooperative Thought - Rochdale Model


Rochdale Model
Rochdale was a woollen and cotton milling town in Lancashire hills, England. In Rochdale all the evils of industrialisation were rampant. During 1840, the mills were paying low wages, strikes and lockouts were frequent, hours of work were long, the housing conditions of the workers very poor, rents were very high, there was much unemployment, the trade system was deplorable – they supplied adulterated goods and charged high price. Hence, this period was called as ‘the hungry forties’ by the historians.  Several efforts were taken by several persons including the government to save the workers.
The pioneers started their way to save the workers from the different kinds of exploitation in 1843.  It was Charles Howarth, one of the leading and outstanding of all the pioneers, who persuaded to choose the cooperative solution to solve the problems. The cooperative store was the idea suggested and implemented by the pioneers.  The societies started by them was registered on 24th October 1844 and started its business on 21st December 1844.
The rules and regulations and business practices adopted by the Rochdale society were:
1.    The capital required to run the society should be from the members only.
2.    The capital brought by the members will get the fixed rate of interest.
3.    The members were supplied with the articles / goods procurable by the society.
4.    The full weight and measures should be given for each product.
5.    All the goods and services of the society are based on cash and carry basis (no credit)
6.    The principle of ‘one man one vote’ is practiced in governing the society.
7.    Equality of the sexes is in practice in admitting members as well as in the management.
8.    The management should be in the hands of office bearers and committee which are elected periodically.
9.    The profit should be divided based on the purchases made by each member from the society.
10.          A defined percentage of profit is allocated for education.
11.          The statement and balance sheet of the society are presented to the members frequently.

The Rochdale society made a great success. The success of the society was mainly due to the rules adopted by the members in the business transactions.  These rules are considered as the guiding principles which enable the cooperatives for its growth and success.
The Rochdale Pioneers where successful in converting their philosophy of mutual help into a practical economic system.


Comments

  1. PollBagSeptember 18, 2024 at 3:03 AM

    This post really opened my eyes to new ideas. I appreciate how you broke everything down so clearly!
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