Members of the Melfort-based Prairie North Co-op and Kelvington-based East Central Co-op will vote on whether or not the two co-operatives should merge.
The two co-ops have been exploring the possibility of amalgamation for years. Under an agreement that’s been around for almost four years, Prairie North has been helping manage East Central.
Randy Wassermann, Prairie North’s general manager, said the merger is about becoming more efficient and competitive.
“We just feel that putting the two retails together will make us more efficient and we’d be able to work more closely together, buying better together, using our resources more efficiently,” he said. “We’re hoping that by having a larger, more efficient retail with a larger balance sheet we are able to take advantage of growth opportunities.”
East Central has a food store, service centre, home centre and agro centre. Prairie North has multiple food stores, gas bars, home centres and agro centres around Melfort and its immediate area.
Wassermann said the merger is about maintaining and improving services, not reducing them.
“All the positions are secure. There’s no job loss related to an amalgamation and no losses of locations,” he said. “All services would remain intact.”
The general manager said the East Central facilities are in a strong position and that the merger isn’t about shoring up a weak co-op, but making both stronger. Co-ops across the Federated Co-operatives Ltd. system have found they’ve had problems keeping rural locations fiscally sustainable as shoppers choose to travel to the larger towns and cities.
To merge, there will be a meeting in Kelvington Nov. 2 at 7 p.m. at the Legion Hall where East Central members can vote on the proposal. Two-thirds of members at the meeting must agree.
“If it’s a positive vote there, we’ll then have the Prairie North members vote as well,” Wassermann said. They will be able to vote at a meeting Nov. 7 at 7 p.m. at Melfort's Kerry Vickar Centre. Two-thirds of those members at that meeting must also agree. “If both sides are in agreement, then the amalgamation would take place Jan. 1, 2018.”
The general manager said members of both co-ops should attend the meetings.
“It’s important to come out and make your voice heard,” he said. “The decision affects the future of your co-operative, so we encourage everyone to come out and take part.”
