THE WESTERN CANADIAN LUMBER WORKER 5 CO-OP AVING (The following is a digest of an article by Editor Roy La Berge, appearing in the October issue of Canadian Labour. The Western Ca- nadian Lumber Worker is at- tempting to secure further in- formation on the subject in order to supply further ma- terial for our readers in B.C. who may be interested. Ed.). basement of a member’s house with a monthly order. Soon they placed twice-a-month orders, splitting the orders in Would you like to cut your weekly food bill by 10% to 15%? Investigate the experi- ence of trade unionists in e E Eastern Canada who have lowered their costs with a plan called “The New Co- ops”! SIMPLE PLAN The plan is simple. Mem- bers of these “new co-ops” pay a weekly service fee to cover operating expenses such as wages, rent, power, insurance, etc. They are thus able to sell all their goods at cost without any mark-up. There are no “hidden costs” such as promotional expenses, advertising and other gim- micks. This is a radical de- parture from the operating methods of the traditional consumers’ co-operative store. Hitherto consumers’ co-op- eratives have charged market prices and annually distrib- uted any surplus to members by way of dividends. The new co-ops prefer the “instant re- bate” to the one or two per cent dividend at the end of the year. The president of the Peter- borough New Co-op says, “A $4.00-a-week saving on food is equal to a 10-cent-an-hour wage increase. That’s why these are worthwhile projects for local unions and district labour councils.” Experience seems to indi- cate that almost any local group, particularly those with trade union experience, can form a new co-op if they really bers are willing to do the work. It is claimed that they ean be successfully operated wherever there are commer- cial wholesale outlets ready to sell to them. OTTAWA CO-OPS The Ottawa Co - operative Supplies Depot started with an eight-member study group. It now has 1,000 members. In September 1968, the sales averaged $28,000. It had fif- teen full-time staff members and twelve part-time employ- ees. Members buy a $10 share to start and pay a $5 fee every quarter. The one problem encoun- tered was “bigness.” The smaller units can more easily master problems of inventory. Comparative shopping tests on the items which are the basis of the Consumer Price Index show that the average member ing $30 worth of groceries weekly saves $5.00 after paying the service want it and the mem- - the basement with occasional help from the husbands. This unit now has 40 members, who buy two shares at $5 each and pay $2 a month operating charge. HAMILTON CO-OP Local 1005, United Steel- workers, members promoted , * the Co-operative Distributing Centre of Hamilton Lid. Starting with 50 members the co-op had 175 in September 1968, “about all we can han- dle.” Membership was limited to the Steel local. Weekly sales approximate $3,500 with one full-time staff member and two part-time employees. Volunteers served as packers. Packaged meat is sold and a catalogue service is run by a volunteer for pre- order purchases. TRENT CO-OP A year’s planning started the Trent Co-operative Distri- buting Centre with 250 mem- bers, now 300, and a weekly enrollment of 10 new mem- bers. ame average $8,000 week- Steel’s local union president states that although originally limited to union members, they have now enrolled minis- ters, dentists, teachers, and engineers. ; Members bought a $60 share — $10 down and $5 every quarter. The Steelworkers report about one per cent loss in shrinkage and merchandising which is made up from the $2 a week service fee. “It’s a tight budget but we are making it.” KITCHENER CO-OP The Golden Triangle Co- operative Ltd. opened its doors in January 1968 with 100 members. It has 400 mem- bers buying about $7,000 a week in goods. They pay $1.75 weekly service fee, having purchasd at the outset a $50 share payable $10 down and $5 a quarter. The meat problem was solved by hiring their own butcher. ST. JOHNS CO-OP The City Consumers’ Co- operative of St. Johns had 650 members in September 1968 with sales ranging around $20,000 weekiy. The weekly service fee of $1.75 covers operating costs. The mem- bers bought $20 in shares on joining and pay $15 every quarter to a total of $100. A principal supplier is Mari- time Co-operative Services, Moncton, N.B., with which the co-op unit has a contract for management service. DARTMOUTH, N.S. Six months’ planning in dis- cussion groups opened the Consumers’ Co-operative Metro Ltd. Within a week they had 600 members, with more on the waiting list. Weekly business is about $13,000 with a $1.75 service fee, and a full-time staff of seven. Volunteers help on weekends, members bought $10 in shares to start and pay $5 a quarter up to $50. Supplying fresh cuts of meat was a problem, until the members themselves built a walk-in freezer. They also buy from the Maritime Co-opera- tive Services Ltd. One of the founders said, “The store hasn’t room for any more members. We don’t want the units to become too large for good member par- ticipation in all phases of the Co-op.” “Members tell us that they save 15% to 20% on their former grocery bills.” GRAND FALLS, NFLD. The Grand Falls Co-opera- tive Society Ltd. reports 1,000 members with annual sales totalling $2,000,000. This co-op successfully or- ganized a drug department with a 40 cent-a-week service charge selling prescription drugs and medical supplies at a saving of about 55%. Said the drug dept. man- ager, “By October 1968 we hadn’t seen a single member withdraw from the plan.” Sales ranged at about $600 weekly with about 400 mem- bers signed up with the de- partment. ‘It kind of changes your whole viewpoint about the profit structure,” he said. “We have no sales program in this department. We don’t need one.” REFUSED TO SELL “Several firms have refused to sell us contracts. They won’t put their reasons in writing but it may be that our basis of operating would de- stroy their high mark-up sys- tem.” Many other new co-ops are being formed in Ontario with the aid of the Workers Edu- cational Association. The experience in Ontario and the Maritimes suggests that certain precautions should be taken before launching similar projects in B.C. Discussion group planning in advance of the launching of any such project is a “must.” SHOPPING NEEDS Gather information regard- ing the shopping needs of the prospective members, their ability and willingness to buy shares and/or pay a weekly service charge. Survey the possibilities of volunteer help to start the project. Set a target for the outside limit of membership to avoid the problems of “bigness.” It would be the better part of wisdom to seek advice from the Co-operative Union of B.C., 16 E. Broadway, Van- couver, and also ascertain pur- chasing arrangements with the B.C. Co-operative Whole- sale Society, 6451 Telford Ave., South Burnaby. Both organizations will gladly ren- der assistance. $57.85 IS NEW CAR LABOUR COST It seems that up until recently, the U.S. Government was unable to get information regarding the cost of manufacturing a car from the automobile manufacturers. Now, however, U.S. Senate investigators claim that thanks to the help of Ralph Nader, the fearless author of “Unsafe at any Speed,” they have come up with what it really costs to build a car. It is reported that one example, the Ford Galaxie, costs $1360.38 to build. The most amazing part of the report on the breakdown of manufacturers’ costs was that labour costs per unit in the car factory averaged $57.85! Everytime the auto manufacturers raise the price of cars, it is certainly not because of increased labour costs, because in most ° cases, the annual car increase is more than the total labour cost of manufacturing a car. RESIGNATION DEMANDED Resignation of management consultant R. S. S. Wilson from the Labour Relations Board was demanded by Fed- eration Convention delegates. Delegates charged that his position on: the Board gives him information about union certifications which he can use in his professional work. Attempts by Federation Secretary Ray Haynes to get Labour Minister Peterson to have Wilson resign were re- pulsed by Peterson, stating he would not interfere in the matter because he believed there are sufficient safeguards. SAME OLD THING Kamloops Katie says that a friend of hers who happens to be a habitual shoplifter was finally arrested in a depart- ment store. The store officials got suspicious after watching her wear the same maternity dress for two years.