ROCHEDALE, England-One of the fundamental taproots of credit unions reaches back to an organization that was not a financial institution. By the late 1800s England had developed a strong movement among cooperative institutions, beginning with social reforms championed by Robert Owen, the manager of the New Lanark Mills, which were owned by his father-in-law, David Dale, a Quaker. Like some, Owen and Dale had come to recognize that the Industrial Revolution had created difficult and even cruel working conditions for many.
Owen called for and put into practice numerous reforms related to adequate housing for employees, good wages, adequate ventilation, and limits of child labor. He also played a role in creating cooperative stores that were owned and operated by workers. The principles Owen helped to develop were adopted by many groups, most successfully the Rochdale Pioneers, a group of 28 weavers who opened a cooperative store in Toad Lane on Dec. 21, 1844. The shop initially offered flour, oatmeal, sugar, butter and candles. It was registered in England under the Friendly Societies Act.
The Rochdale Society of Equitable Pioneers also became the first to pay a patronage dividend to its owners, and later earned fame for creating the "Rochdale Principles," a set of principles of cooperation that provide the foundation for the principles on which co-ops around the world operate to this day. The original store was sold in 1867, but re-purchased in 1931 to act as a museum.
The Eight Rochdale Principles:
Open, voluntary membership.
Democratic control (one member, one vote).
Limited return, if any, on equity capital.
Net surplus belongs to user-owners.
Honest business practices.
Ultimate aim is to advance the common good.
Education of members and public about principles of cooperation.
Cooperation among cooperatives.
