It was an overwhelming decision in favour of amalgamation by the Alameda Co-op and the Southern Plains Co-op memberships on Nov. 2 and 3. The first vote was taken in Alameda and then, in Estevan.
In order to pass a motion as important as a merger, a two-thirds majority vote is required among the Co-op members attending the official meeting(s).
The possibility of rejecting the motion to blend the two co-operatives, as recommended by their respective boards of directors, was quickly squashed when the proposed amalgamation motion was passed with an 86.5 per cent approval in Alameda and a 95 per cent green light in Estevan.
A total of 52 members voted in Alameda while 43 official votes were cast in Estevan with just two being marked on the negative side.
The formal process of approving the joint venture should be completed by Jan. 29 of 2017, said Southern Plains president Robert Grimsrud who served as chairman for the Estevan meeting while Alameda Co-op president Keith Young chaired the meeting which had been held a day earlier in that town.
The potential of the amalgamation was brought to the attention of both boards by Federated Co-op Ltd., the provincial body that oversees co-operatives in Saskatchewan.
Jeff Anderson from FCL was present at the Estevan meeting to assist, if required.
“It’s a friendly merger,” said Alameda Co-operative general manager Kendall Annetts while Brian Enns, Southern Plains manager nodded in agreement.
The Alameda business includes a new (two-year-old) general agro store and lumber service as well as a bulk fuel and key lock retail fuel service. It also uses an older facility for storage of certain lumber and agriculture products.
Annetts said the Alameda outlet employs four people, including him. The membership was informed that the Co-op in that town of about 400 people, does about $2 million in business each year.
“This is following a trend,” said Grimsrud in introducing the proposal to the Southern Plains membership on Thursday evening during the meeting staged in the Western Star Hotel conference room.
“There is a changing environment, some fierce competition with shrinking margins and volume sensitive purchasing plans,” he added.
“The cost of providing service is rising, and with increased regulations, and the potential for larger volume purchases and a more transient customer base, this makes sense,” Grimsrud said.
Southern Plains, prior to the merger approval, boasted a membership of 9,967 with 213 employees, while Alameda will bring 371 members into the agreement along with their four employees.
“We will have 11 Southern Plains Co-op locations in five communities once this goes through,” said Enns.
“This gives us more equity in an even larger trading area with greater variety,” said Grimsrud. “Both of these co-operatives are in stable condition, neither one is entering into this agreement because they have to, and the merger will not affect the stability factors,” Grimsrud added.
Once the amalgamation is approved, the current nine-member Southern Plains board of directors will be expanded by one elected director who will represent the Alameda area interests at board and general membership meetings.
“We have some work to do between now and January 29,” said Enns, motioning toward Annetts who nodded in approval. “We’ve been doing some accounting for Alameda already, so that will help the transition.”
Alameda joined the provincial co-operative movement in 1948, said Young.
Following the approval of the merger, Southern Plains members from both centres enjoyed a brief social exchange after the meeting was adjourned.
