One of the key figures behind the proposed marriage between Alberta Wheat Pool and Manitoba Pool Elevators won’t be around for the consummation.
Alex Graham shocked co-workers and industry observers alike last week by announcing his resignation as president of Alberta Wheat Pool, just two weeks before delegates from the two pools vote on whether to merge their companies into one.
“In many respects, he took us to the altar,” said Dale Riddell, director of corporate affairs for Alberta Pool. “He believed in this passionately.”
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Graham said in a July 17 press release he was stepping down for personal reasons, in order to pursue other interests and spend more time with his family. He said the resignation is not related to the merger or any disagreement with the pool’s board or management.
He was unavailable for further comment.
The news stunned officials with both pools and left them scrambling to reassure both members and the public that the merger plans are unaffected by Graham’s unexpected departure.
“There is absolutely no connection whatsoever between the resignation and the merger,” said Riddell, adding employees at the Calgary-based head office were in a state of disbelief.
Pool vice-president John Pearson called the resignation “a surprise and a shock and a disappointment,” but added it doesn’t change the business reasons for proceeding with a merger.
“It’s our hope that it won’t (affect the merger) but we recognize that we need to reassure Manitoba that events will carry on as we were working on them,” he said. “It isn’t the greatest timing, we all recognize that.”
Merger unaffected
Charlie Swanson, president of Manitoba Pool, was reluctant to comment on Graham’s resignation, but did say he doesn’t think it will affect the merger.
“We just have to take his pretty clear statement in the press release that he fully supports the merger and that his board and senior management are on the same wavelength,” he said.
Officials also said the resignation had nothing to do with the issue of who will become president of the new co-operative, if the merger is approved by the companies’ 152 delegates at their July 30-31 meeting in Winnipeg.
“That decision has not been made yet, nor has it been talked about at length,” said Riddell.
Meanwhile, delegates from both companies began holding meetings last week with local members to talk about the merger proposal.
Several delegates from both companies interviewed last week said they expect the merger to be approved.
“For us to survive I think we’ll have to do it,” said Clarke Munro, an MPE delegate from Portage la Prairie. “With the way the grain industry is going, we’re pretty small potatoes and it’s tough to compete.”
Some Manitoba Pool members have expressed concern about whether the new company will be dominated by Alberta interests, since AWP is about twice the size of MPE and so will have about twice as many delegates and directors.
But Peter Galloway, an AWP delegate from Fort Saskatchewan, Alta., said the new company will presumably be run to benefit all members, no matter where they live.
“If the company does well, everyone will make money, whether they’re from Alberta or Manitoba,” he said.
