Rochdale Equitable Pioneers Society celebrates 180th anniversary

In August 1844 a group of 28 artisans working in the cotton mills in the town of Rochdale, established the first modern co-operative business, the Rochdale Equitable Pioneers Society, opening their first store in December of that year.

This was done as the weavers faced miserable working conditions and low wages, and could not afford the high prices of food and household goods.

They decided that by pooling their scarce resources and working together they could access basic goods at a lower price. Initially, there were only four items for sale: flour, oatmeal, sugar and butter.

The Pioneers decided it was time shoppers were treated with honesty, openness and respect, that they should be able to share in the profits that their custom contributed to and that they should have a democratic right to have a say in the business.

Every customer of the shop became a member and so had a true stake in the business. At first the co-op was open for only two nights a week, but within three months, business had grown so much that it was open five days a week.

While not the first co-op ever established, it was the first to define a set of seven principles that would go on to guide cooperatives worldwide, benefitting both member-owners and their communities. 180 years later these have certainly stood the test of time.

These principles were:

1. Open membership

Ensuring the society is open to everyone, to mitigate discrimination and to promote values of equality, accessibility, solidarity, inclusion and co-operation.

2. Democratic control

Ensuring that everyone has one vote, regardless of how much they have invested, to ensure that control of decisions is shared equally across members. This promotes ethical and fair decision-making, and shared responsibility.

3. Dividend on purchase

The practice of returning a portion of the society’s profits to its members, based on how much they had spent at the co-operative store. This incentivised people to shop at the co-operative stores, and aligned with the co-op’s values of fairness and mutual benefit.

4. Limited interest on capital

The idea that any return on the money invested in the co-operative should be capped at a modest, fixed rate. This prevented investors from profiting excessive at the expense of the co-operative’s members and communities, ensuring that it served its members’ needs rather than becoming focused on enriching shareholders.

5. Cash trading

The practice of selling goods strictly for cash rather than offering credit. This ensured that members could avoid debt, and helped the co-operative maintain a financially sustainable position, while encouraging members to live within their means.

6. Promotion of education

The commitment to providing education and learning opportunities for members and the wider community. Profits from the co-operative were used to fund libraries, reading rooms, classes, lectures, and access to newspapers and books.

Education was believed to be essential to empower individuals, enabling them to make informed decisions about their co-operative and personal lives.

People became better equipped to participate in the management and growth of the co-op, and gained skills to improve their personal and economic well being. 

Values such as fairness, equality and mutual aid were shared and understood more widely as a result of this.

7. Political and religious neutrality

The idea that the co-operative movement should remain free from political and religious influence or affiliation. Co-operatives were not to support or promote a particular political party or religious belief - members could hold any political or religious views, but the society itself would not take a stand on these.

This neutrality ensured that those from diverse political and religious backgrounds could join and benefit from the co-operative without feeling excluded or conflicted.

It also meant members could focus on their shared economic goals and work together for the common good, focusing on economic equality and mutual benefit.

Neil Emmott Leader of Rochdale Borough Council said: “There are many reasons why I am proud to be from, associated with and leader of, Rochdale.

“The seven principles of the pioneers have certainly stood the test of time with 3 million co-ops across the globe and 1.2 billion members* It is testament to the fair and prudent principles of the original pioneers. 

“I would like to think that should the pioneers come back to Rochdale today they would be proud of their legacy and the work we continue today across the borough through Atom Valley, Atom Valley Education Enterprise Partnership with the original values of equality, accessibility, solidarity, inclusion and co-operation.”