What Does the Service Center Decision Say About Our Cooperative Nature?
added 01/03/12
by Terry Appleby, General Manager
In November, I recommended to the Co-op’s Board of Directors that we discontinue the operation of the Service Center on South Park Street, next to the Hanover store. The Board voted unanimously at its November meeting to close the station. As soon as that decision was made public, I began to hear from many members concerned about the loss of a convenient source of gas and car repair.
Even more troubling to some was the fact that the decision was made without member input.
Management and the Co-op’s Boards had been discussing the Service Center’s lack of profitability for several years. Unfortunately, I had not been having the same discussion with the members during that time. Losses, while significant, seemed manageable when viewed as providing a necessary service for the members. However, as we looked at the cost of continuing operations and the changes needed to bring the station to profitability, we had to balance the losses against the community good and ask whether they were costs to be borne by the entire membership. Again, because the membership was not involved in those conversations, we came to a conclusion without fully understanding the value placed on the station by those who use it versus the thousands of other members who do not. In December, after taking into consideration the concerns voiced by the members who came forward, I recommended to the Board that we give the Service Center one more year to reach profitability and then reassess the situation.
How the decision was made—and the reaction it caused—say something about our specific cooperative nature. As our co-op has grown, it has evolved into more of a representative democracy. Over the years, as the number of members increased, the members have given the Board of Directors more authority to act on their behalf. One manifestation of that was the bylaw approved by the membership authorizing the Board to make decisions involving sums of up to four percent of the Co-op’s annual revenue. Consequently, the Board has twice voted to expand the operation, first by authorizing the construction of the Lyme Road Community Market, and then by allowing for the expansion into White River Junction. Neither of those projects required a membership vote, and both were received with a minimum of adverse reaction by the members.
The decision to close the Service Center was a different matter. As one member pointed out at a public forum, taking away a service is different than providing a new one. At any rate, the decision to close the station raises the question of how representative we want our democracy to be. This fundamental question for cooperatives speaks to the cooperative principle of Democratic Member Control. Large co-ops like REI or Agrimark invest a great deal of authority in their boards, while other cooperatives leave their boards little leeway for decision-making.
An exciting aspect of the controversy surrounding the decision on the Service Center is that it has energized many to examine their role as members. The issue has given members a reason to consider such topics as transparency, individual interest versus the greater good, representative democracy, and many other questions elemental to cooperation. The other exciting thing, to me, is that members became involved and had a Board listening to them. I hope you and your fellow members will continue to voice opinions on the nature of our cooperative!
