The Co-op Sector
The term co-operative SECTOR refers to the interdependence of all co-operatives regardless of type, size or location. A principle that guides all co-operatives is 'co-operation among co-operatives.' All co-operatives are encouraged to operate in every practical way with other co operatives at local, national and international levels.
Click here to view a diagram of the interdependencies of the Ontario co-op sector.
CO-OPS IN CANADA
There are over 10,000 co-operatives operating in every region in Canada, with nearly 12 million members, and assets totalling over $100 billion. Co-operatives and credit unions in Canada employ over 125,000 people. In British Columbia there are over 600 registered co-operatives and credit unions with 1.8 million members. Some of the largest companies in Canada are co-operatives. Co-operatives are also located in many of Canada's smallest and most remote communities. CO-OP CONNECTIVITY
Co-ops have extensive networks with other co-operatives throughout the province, the country and the world while remaining community-based organizations. These networks help co-ops become stronger and better serve the needs of their members. Through this structure of working together, co-operativescan pool their resources to maximize their strength and effectiveness.
Co-operatives organize themselves in various ways:
Primary Co-ops
A co-op that does business or provides services directly to individual members within a local community is called a primary or first-tier co-op.
Second Tier Co-operatives
On a more formalized level, many types of co-operatives in Canada, such as credit unions or retail co-operatives, have formed federated or central organizations to provide them with goods and/or services that will benefit all members. For example, credit unions in Ontrio are joined together through Credit Union Central of Ontario. Federated or central organizations, often-called 'second tier' co-operatives, are organized on a modified co-operative basis. Individual co operatives appoint representatives to participate in the affairs of their federated organizations.
Third Tier Co-operatives
In turn, a number of federations may join together to form third-tier co-ops, which represent all kinds of co-operative federations and associations. They often provide sector-wide services to their members and to the co-op movement generally. The Canadian Co-operative Association (CCA) is a third tier organization. Internationally, co-operatives and credit unions are linked by organizations which represent the same type of co-operative throughout the world (an example is the World Council of Credit Unions). There is also an international organization that represents all kinds of co-ops from all around the world, called the International Co-operative Alliance (ICA).
CO-OP STRUCTURE
Co-operatives are organized so that the members democratically control the organization. The structure enables members to run for, and be elected to, the board of directors. The board of directors hires the manager(s). The manager hires the staff. The board of directors will also establish committees to take on a variety of organizational functions for the co-op (membership,finances, communications, etc.)
MEMBERS/OWNERS
(elect)
BOARD OF DIRECTORS
(hires)
MANAGER/STAFF
Some co-operatives are not-for-profit co-ops while others are for-profit co-op enterprises. Not-for-profit co-operatives do not distribute investment shares, although they usually have other membership requirements (like committee involvement, for example). Not-for-profit co-ops use surpluses to enhance services as opposed to distributing profits to members.
Profit generating co-ops generate surpluses which can be used to strengthen the co-op by expanding the business and/or sharing the dividends among members and staff. Some co-op enterprises also have structures which allow members and even non-members to buy investment shares in the co-op. While some co-operatives (like housing co-ops) receive some government funding, co-operatives are not government organizations.
