Manitoba is proposing amendments to the Co-operatives Act that would make it easier to start innovative co-ops that make a difference for families and communities. This announcement was made by Family Services and Consumer Affairs Minister Gord Mackintosh and Housing and Community Development Minister Kerri Irvin-Ross.
“Co-ops support community economic development by keeping jobs and money flowing in local economies,” Mackintosh said. “Our government is pleased to introduce amendments that will support a business and service model that empowers families and community members.”
Most notably, the amendments would allow groups that normally form separate co-ops, such as workers and consumers, to combine their resources to create a co-op together. The proposed changes come out of a multi-year strategy developed in partnership with the co-op sector.
“Some people join co-ops because it is in their financial interest, but others join co-ops because they support the values that the co-op stands for,” said Mackintosh. “If, for example, people want to do more to support the new Peg City Car Co-op but don’t need the services offered, under the new model, supporting members could lend money to the co-op and have a say in its operation.”
In 2008, Manitoba introduced the $1.25-million Co-operative Development Assistance Program. Through this program, the province has invested significantly in tools, resources and a strategy to help strengthen and grow the co-op sector including a first-of-its-kind Co-op Development Tax Credit, said the minister. He added the province will also be releasing a new promotional strategy in partnership with the sector later this year.
The proposed amendments would further modernize the existing act by:
• updating provisions for worker co-operatives to enable them to use more flexible business models by allowing volunteers and contracting parties to become members,
• enabling co-ops to hold meetings and vote electronically,
• reforming provisions on access to membership lists to better balance the privacy and democratic rights of members, and
• reforming the special tribunal that hears appeals from members of housing co-ops who face eviction by providing them with enhanced procedural protections.
“This legislation will provide new and innovative options for families that rely on our housing co-op sector,” said Irvin-Ross. “For example, a 55+ housing co-op needing capital investment or more expertise on the board can use the hybrid model to add a new class of supporting members. Family and community members could invest in the co-op and join its board to help seniors manage the property.”
Mackintosh noted that while the current act works for many co-ops, many want more options to grow and start new co-ops.
“We are extremely pleased with the proposed changes and the level of consultation that was held on these amendments. Co-ops will be able to tap into new sources of capital investment and community participation that previously weren’t accessible,” said Vera Goussaert, executive director of the Manitoba Co-operatives Association.
