member benefits democratic Co-operatives in Principle and Practice A NNE M ACG ILLIVRAY AND D ANIEL I SH Occasional Paper Series education community autonomy participatio C ENTRE FOR THE S TUDY OF C O - OPERATIVES CO-OPERATIVES IN PRINCIPLE AND PRACTICE ANNE MACGILLIVRAY Faculty of Law University of Manitoba DANIEL ISH Chief Adjudicator Indian Residential Schools Settlement Agreement CENTRE FOR THE STUDY OF CO-OPERATIVES OCCASIONAL PAPER #92–01 Centre for the Study of CO-OPERATIVES ii Co-operatives in Principle and Practice Table of Contents Preface ................................................................................................................................v Abstract .............................................................................................................................vi Introduction........................................................................................................................1 Part I Co-operatives in Principle: A Review of the Literature..............................................5 1. Overview.....................................................................................................................5 2. Co-operative Enterprises: Origins and Influences......................................................8 2.1 The Rochdale Society and the Original Rochdale Rules...................................8 2.2 The Co-operative Movement in Canada..........................................................13 2.3 The Movement After 1950 ..............................................................................15 3. Co-operative Principles ............................................................................................18 4. Co-operatives and the State: Autonomy, Democracy, and State Intervention .........22 5. Democracy and Control in Co-operative Enterprises...............................................24 6. The Capitalization of Co-operatives.........................................................................26 7. Co-operatives and the Profit Motive.........................................................................28 8. Service to Members and Nonmembers.....................................................................29 9. Summary...................................................................................................................29 Part II Co-operatives in Practice: A Study of Eleven Canadian Co-operatives..................31 1. Introduction...............................................................................................................31 2. The Study..................................................................................................................32 2.1 The Approach ..................................................................................................32 2.2 The Sample ......................................................................................................34 2.3 The Interviews .................................................................................................35 3. The Co-operatives.....................................................................................................37 3.1 Coopérative Fédérée de Québec ......................................................................37 3.1.1 Overview..............................................................................................37 3.1.2 Size ......................................................................................................38 3.1.3 Investments..........................................................................................38 3.1.4 Management Structure.........................................................................39 Centre for the Study of Co-operatives iii 3.2 The Co-operative Trust Company of Canada ................................................. 39 3.2.1 Overview............................................................................................. 39 3.2.2 Size.......................................................................................................41 3.2.3 Investments ..........................................................................................41 3.2.4 Management Structure .........................................................................41 3.3 East Chilliwack Agricultural and Consumer Co-operatives ........................... 41 3.3.1 Overview............................................................................................. 41 3.3.2 Size...................................................................................................... 43 3.3.3 Investments ......................................................................................... 43 3.3.4 Management Structure ........................................................................ 43 3.4 Federated Co-operatives Limited.................................................................... 43 3.4.1 Overview............................................................................................. 43 3.4.2 Size...................................................................................................... 45 3.4.3 Investments ......................................................................................... 45 3.4.4 Management Structure ........................................................................ 46 3.5 Fraser Valley Milk Producers Cooperative Assoc. (Dairyland Foods) .......... 46 3.5.1 Overview............................................................................................. 46 3.5.2 Size...................................................................................................... 47 3.5.3 Investments ......................................................................................... 47 3.5.4 Management Structure ........................................................................ 48 3.6 Mouvement des Caisses Desjardins................................................................ 48 3.6.1 Overview............................................................................................. 48 3.6.2 Size...................................................................................................... 49 3.6.3 Investments ......................................................................................... 49 3.6.4 Management Structure .........................................................................51 3.7 Co-opératif régionale de Nipissing-Sudbury Limited......................................51 3.7.1 Overview..............................................................................................51 3.7.2 Size.......................................................................................................52 3.7.3 Investments ..........................................................................................52 3.7.4 Management Structure .........................................................................52 3.8 Saskatchewan Wheat Pool ...............................................................................52 3.8.1 Overview..............................................................................................52 3.8.2 Size.......................................................................................................54 3.8.3 Investments ..........................................................................................54 3.8.4 Management Structure .........................................................................56 3.9 Scotian Gold Co-operative Limited ................................................................ 57 3.9.1 Overview............................................................................................. 57 3.9.2 Size...................................................................................................... 58 3.9.3 Investments ......................................................................................... 58 3.9.4 Management Structure ........................................................................ 58 3.10 Scotsburn Co-operative Services Limited........................................................58 3.10.1 Overview............................................................................................. 58 3.10.2 Size...................................................................................................... 59 3.10.3 Investments ......................................................................................... 59 Occasional Paper Series, #92-01 iv 3.10.4 Management Structure.........................................................................59 3.11 SECUL Savings and Credit Union ..................................................................60 3.11.1 Overview..............................................................................................60 3.11.2 Size ......................................................................................................60 3.11.3 Investments..........................................................................................60 3.11.4 Management Structure.........................................................................61 4. A Management Perspective on Co-operative Principles and Practice......................61 4.1 Introduction......................................................................................................61 4.2 Background and Training of Managers ...........................................................62 4.3 Managers’ Views of Board–Manager