Social and solidarity economy

In the services sector

People first: cooperation is a path to decent work.

Workers may need a service that is difficult to secure individually, or to organise their skills to access markets on fairer terms. The social and solidarity economy opens a path to collective thinking about these needs and how to manage economic activity for the benefit of people and society.

The Public Services Workers’ Union in Nablus Governorate presents this field as a subject for union education and dialogue. It starts with a practical question: how do we meet workers’ needs, expand their participation and protect their rights when discussing any cooperative initiative?

What is the social and solidarity economy?

In 2022, the International Labour Conference adopted a definition covering enterprises, organisations and other entities carrying out economic, social and environmental activities to serve a collective or general interest. They are based on voluntary cooperation and mutual aid, democratic or participatory governance, autonomy, and prioritising people and social purpose over capital in the distribution and use of surpluses or profits, as well as assets.

Depending on the national context, this field may include cooperatives, associations, foundations, social enterprises and other forms that uphold these values. A name or legal form is therefore not enough; what matters is how decisions are made, who benefits, and how transparency, accountability, sustainability and decent work are ensured.

Unions and cooperatives: complementary roles

A cooperative is an enterprise owned and democratically managed by members who have voluntarily come together to meet shared needs. A union organises workers’ voices, defends their interests and working conditions, and represents them in dialogue and bargaining. A person may belong to both a cooperative and a union.

The two complement each other when union expertise helps clarify rights and members’ needs, while cooperative organisation enables the management of a shared activity or service. The ILO’s 2023–2029 action plan emphasises partnerships, organising and collective bargaining. Both bodies must retain independence and clear responsibilities so workers keep their voice in relation to the management of the activity where they work.

Seven principles put into practice

ILO cooperative training tools present the seven principles as guidance for organising everyday work. They can be understood simply as follows:

Voluntary and open membership: joining freely, accepting membership responsibilities and without discrimination.
Democratic member control: participation in decisions and the election of accountable representatives; in primary cooperatives, each member has one vote.
Member economic participation: fair contributions and clear rules for using surpluses and developing the cooperative.
Autonomy and independence: agreements and funding that preserve members’ control over decisions.
Education, training and information: knowledge that helps members, workers and management fulfil their roles.
Cooperation among cooperatives: sharing experience, services and partnerships that serve common interests.
Concern for community: considering the activity’s effects on people, the environment and local development.

Fair governance and decent work

The ILO agenda links decent work with employment opportunities, rights at work, social protection and social dialogue. In any cooperative activity, income, working hours, safety, skills development and representation must be discussed alongside service quality and economic viability.

Governance needs understandable membership and election rules, financial records accessible to members, documented decisions, and clear powers and conflicts of interest. A member’s capital contribution must be distinguished from employment-related rights; each has its own basis and rules that must be clear.

Women’s participation in decision-making

Fairness is measured by women workers’ ability to influence, lead and access training and resources. Practical questions include whether meeting times and care responsibilities allow meaningful participation, and whether pay and representation gaps are reviewed.

Measurable review

Members can set clear goals for women’s and young people’s participation in decisions and training, and review progress alongside job quality and the activity’s community impact. This monitoring helps assess meaningful participation as well as membership numbers.

Protecting cooperation from sham arrangements

Paragraph 8(1)(b) of the Promotion of Cooperatives Recommendation, 2002 (No. 193), urges preventing the creation or use of cooperatives to evade labour law or disguise an employment relationship, and combating pseudo-cooperatives that violate workers’ rights.

From a union awareness perspective, arrangements labelled membership warrant scrutiny where real participation and ownership are absent and workers are asked to waive protection. Assessing a specific situation requires examining the facts and rules in force; the label alone does not determine the relationship.

Service ideas for discussion in Nablus

The following examples are proposals for discussion, not existing or union-approved projects. Examining them begins by identifying the need, demand, costs, skills, licences and risks, then choosing an appropriate structure with those concerned:

Shared professional services

Exploring cooperation among people skilled in accounting, translation, design and administrative support, with clear rules on task and fee allocation and protection of client data.

Responsible cleaning and maintenance

Exploring cleaning and maintenance services whose workers share in management, with costs accounting for protective equipment, training and actual working time.

Joint purchasing services

Explore pooling members’ orders for professional supplies or essential services after comparing prices, quality, administrative costs and fair purchasing rules.

Care and community services

Discussing care needs and the possibility of organising qualified, safe services, while recognising providers’ work and considering licensing, quality requirements and affordability for families.

From awareness to action

What is our union’s role?

Education and organising

Paragraph 16 of Recommendation R193 outlines workers’ organisations’ role in raising awareness of cooperatives, supporting workers’ union membership, and providing education and training.

Supporting initiatives

The same paragraph encourages helping members establish cooperatives to meet their needs and participating in initiatives to preserve or create employment and improve productivity.

Rights and participation

The proposed role includes promoting equal opportunities and working members’ rights, and contributing to discussions and committees on policies affecting cooperatives.

Cooperation is a choice requiring knowledge, viability, participation and protection of rights. Union discussion draws on international standards while referring to local legislation and competent bodies when considering any local formation or activity.

For a fuller picture

Frequently asked questions

Can a cooperative generate a financial surplus?

Yes. A cooperative needs economic viability and financial sustainability. The 2022 definition stresses the primacy of people and social purpose over capital when using or distributing surpluses, under rules that members help determine.

Does cooperative membership replace union representation?

The need to defend workers’ interests and discuss working conditions remains. ILO standards support complementarity between trade union organisation and cooperatives, respecting each one’s independence.

Is Recommendation R193 binding local law?

It is non-binding international guidance on promoting cooperatives, adopted in 2002, not a convention subject to ratification. Local formation procedures, rights and obligations must be checked against current Palestinian legislation and with the competent authorities.

What should we review before launching a cooperative initiative?

We identify the need and beneficiaries, assess demand, costs, skills and risks, then review legal form and licences with the competent bodies. Those concerned help establish membership and management rules, task and burden allocation, and use of the surplus before commitments are made.

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References

Awareness content explaining the union’s role. Consult the laws in force and the competent authorities when examining an individual case.