SASKATOON – A co-op isn’t really a co-op unless the members control every aspect of its operations, including its capital, says the outgoing president of Federated Co-operatives Ltd.
In his farewell speech to FCL’s annual meeting last week, Vern Leland reminded delegates that a recent international review of co-operatives emphasized the importance of member control.
“Co-operatives must be independent and free of undue influence or control by outside organizations,” he said.
In an interview later, Leland declined to comment directly on the situation at Saskatchewan Wheat Pool, where just 54 percent of the company’s share capital remains in the hands of members following the recent share conversion.
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“They do what they have to do and we’ll do what we have to do,” he said, adding FCL has always had a good relationship with Sask Pool and he wants that to remain.
But he did say any time outsiders, like lenders or investors, gain a significant degree of control over a co-op’s finances, it’s not good.
Leland drew an analogy to the situation faced by Federated in the early 1980s, when retail co-ops found themselves “financed to the hilt” in the wake of the recession and high interest rates. That gave banks and other lending institutions control over the retails.
“If the members don’t own the major portion of their operation, then someone else is going to be telling them what to do,” he said.
Leland, who retired last week after 19 years as president, told delegates from co-ops across Western Canada the key to Federated’s success has been everyone working together to create benefits for members.
“So long as we remember that our co-operatives are based on membership, and we focus our efforts on offering services that meet the real needs of members in areas where we can create a saving, the future of the co-operative retailing system is secure,” he said.
FCL is the central wholesaling, manufacturing and administration organization for more than 300 retail co-ops in Western Canada.
