Originally published at Canadian Worker Co-op Federation
At first glance, the idea of a multi-stakeholder co-op might seem an improbable model for success, given the different and apparently conflicting interests involved. It would be hard for a food co-op, for instance, to provide both the cheapest groceries possible to its consumer members and the highest wages possible to its worker members. But this oversimplifies the dynamic that’s actually at play. A co-op whose members are focused solely on their own interests, whatever type it might be, is naturally going to run into challenges. But a co-op where members can come together around shared interests grounded in the movement’s principles offers a model that has much to commend it.
In contrast to traditional co-operatives that are owned by a single class of members, multi-stakeholder co-operatives are owned and controlled by more than one type of membership class such as consumers, producers, workers, volunteers, or community supporters. Stakeholders can be individuals or organizations such as non-profits, businesses, government agencies, or even other co-operatives.
The rationale behind incorporating as a multi-stakeholder co-op will vary with each case. For Winnipeg’s Sun Certified Builders Co-op, multi-stakeholder co-ops had only recently become an option under provincial legislation, and a co-op developer advised that this change was something Sun Certified should take advantage of, advice they took.
In contrast to some business models, a consumer class wasn’t a logical choice for Sun Certified, as its homes are built to last for decades and the Co-op thus has few repeat customers. But Sun Certified Vice-President Evan Proven believes its supporter class has been a valuable asset in the Co-op’s decision making. “If our experience is as a worker, we don’t necessarily understand the experience of consumers,” he says.”And so, being able to have those voices at the table just brings in ideas and perspectives that we don’t know that we don’t have.”
A diversity of perspectives has also proven valuable at Winnipeg’s Fireweed Food Co-op, which has both producer and consumer classes. Peter Hill, the co-op’s sales coordinator, believes that having representation from both sides of the food system has in fact strengthened the Co-op’s functioning.
“We really want to make sure we’re trying to address the issues of the local food system holistically,” he says. “So I think what’s important there is having efficient governance structures which have changed over time. But if those are in place and ensuring that there’s representation from both those member classes, then I think it’s often a benefit more than an obstacle.”
Of course, classes within a multi-stakeholder co-op will still disagree sometimes. Michelle Sadler, Director of Operations and Governance for Victoria stock photography co-op Stocksy, recounts how in 2017 the Co-op’s worker members wanted to remove a 1000 member cap that had been placed on the number of producer members the Co-op was able to have. The Co-op’s workers put forward a resolution to lift the cap, but the Co-op’s producers worried about the risks associated with too many new members and voted against it.
The workers thus put forward an updated resolution to lift the 1000-member cap, but this time with the safeguard in place that the co-op would vote annually whether to continue growing membership or pausing member growth for a year before re-evaluating. This annual safeguard kept the decision of producer member growth with that class and ultimately, the second resolution passed (with over 80 percent of those who voted in favour of lifting the cap). In 2021, after two safeguard annual “freeze votes,” where members continued to approve producer class membership growth, the team put forward another resolution to remove the annual requirement for a freeze vote and it passed.
Despite the success with which Stocksy ultimately resolved this obstacle, Sadler acknowledges that multi-stakeholders co-ops will inevitably face some unique challenges, given the complexity of ensuring each membership class has an equal voice when they all contribute differently to the business. But while this may be a difficult tension at times, she still argues in favour of the model.
“Single Class Co-ops are probably easier to manage, but they can also limit the co-op’s ability to scale and expand their member offering,” she says. “They also miss out on the diversity of having different stakeholders or co-owners. When people who use your product or service are brought into the co-op governance structure, their contribution, loyalty, engagement, and advocacy increase. They are now co-op ambassadors and their contribution will expand beyond their membership – benefiting not only your cooperative but the co-op sector as a whole.”
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