how we take back our co-op
by Dorothy Finnigan
Waking Up
If you just learned that our Co-op appears to have lost millions of dollars while being advised by CDS Consulting, you may be angry.
If you just found out that CDS, NCG, and UNFI are working together to create a chain of homogenized co-ops, you may be disturbed.
If you’ve heard from workers about the drastic shift in culture and values at our stores, or if you’ve read the federal retaliation charges against La Montañita, you may be shocked.
If you’re noticing pesticide-laden produce and products from unethical conglomerates in our stores, you may feel betrayed.
If you’re wondering whether predatory corporate greed now infiltrating hundreds of co-ops is a local version of the economic crisis facing our country and our world, you may be right.
You may feel a mixture of emotions right now, but one thing you don’t need to feel is hopeless.
There Is Hope
Thanks to the efforts of co-ops around the country which have thrown back the curtains and shed light on CDS Consulting, NCG (National Co+op Grocers), and UNFI (United Natural Foods, Inc.), [1] we have a clear, direct way to take back our Co-op from the outside groups which currently manipulate it.
As the second largest food co-op in the country, we have the power to transform La Montañita into a beacon of ethical and sustainable cooperative values. We have the opportunity to collaborate with co-ops across the nation to form an association that creates innovative models for the future.
Maybe taking back our Co-op from personal and corporate greed is only the beginning. Maybe it’s time to take back our communities, our governments, and our planet.
It starts here: right in our backyard.
Take Direct Action Now
At the same moment this website went live, we launched a petition for you to sign that calls for a Special Membership Meeting (SMM). Once 10% of La Montañita member-owners sign the petition, our bylaws give us the right to hold an SMM. That means we need signatures from 1,600 member-owners. At the SMM, the member-owners in attendance will vote to remove current board members, vote to elect new board members, and vote on a series of proposals that will set direction for the new board.
The SMM is democracy in action. It represents everything that CDS, NCG, and UNFI are afraid of. Their Achilles’ heel is direct democratic action by the true owners of the co-op.
In fact, CDS Consulting recommends that co-ops change their bylaws so that any Special Membership Meeting is “advisory only.” [2] In other words, if an SMM were held and member-owners voted to remove the board, those board members could decide whether or not they wanted to remove themselves.
Changing the SMM to be "advisory only" is part of a number of changes that CDS advocates through its “Fresh Start Bylaws Template Guide.” It's yet another system designed by CDS to centralize power and minimize input from member-owners and workers. Thankfully, here at La Montañita, we haven’t yet adopted the “advisory only” clause and we still have the power to take direct action with an SMM.
The Putney Food Co-op in Vermont is where co-op member and writer, Mimi Yahn, first identified the influence of CDS and revealed it through a series of investigative articles. Sadly, her co-op lost the fight against corporatization. The board adopted CDS’s Fresh Start Bylaws and a host of other personnel and policy changes. [3]
Unfortunately, the Putney Co-op member-owners weren’t able to mobilize before CDS, NCG, and UNFI were entrenched. However, at Honest Weight Food Co-op in Albany, New York, member-owners successfully called for a Special Membership Meeting, seated new board members, and took back their co-op.
It wasn't easy, but it was worth it.
We Are Not Alone
Honest Weight Food Co-op in Albany, New York, began paying CDS Consulting in December 2009. [4] CDS advised them to adopt the Policy Governance model, [5] use the “Fresh Start Bylaws Template Guide,” [6] and expose their board members to CDS training.
In 2012, the board decided to undertake a massive expansion, [7] projected to cost $5.4 million. [8]
Honest Weight member-owners began to suspect the board was acting “beyond the scope of its authority,” [9] and they were “concerned the existing board tried to co-opt the power given to members to make decisions.” [10] After looking into board actions, member-owners “uncovered unsettling patterns and misrepresentations.” [11]
CDS—via the Honest Weight board—was about to push through another sweeping set of policy changes when the member-owners realized they were on the verge of losing their co-op. In November 2015, the member-owners collected the required signatures to hold a Special Membership Meeting. During the SMM, 625 member-owners voted to remove current board members, seat new board members, investigate a new management structure, and voice “no confidence” in the current management leadership team. [12]
The new board members began investigating records from the previous board and leadership team. They discovered a history of secret meetings [13] [14] and troubling financial decisions. The old board had spent “$500,000 of [their] collective co-op savings” on CDS Consulting and lawyers to “change [their] bylaws” and “remove member-owner control.” [13] [15]
It’s been approximately nine months since the member-owners of Honest Weight took back their co-op. In that time, the new board has focused on transparency, democracy, and local and ethical suppliers. They’ve reduced their purchases from UNFI and increased their focus on local products. They’ve stopped attending NCG events and they’ve stopped paying CDS Consulting. [15] Early results are promising. Honest Weight Food Co-op is back in the black (making profit again instead of losing money), and member-owners once again have a voice.
The Vision
Honest Weight Food Co-op is one of many co-ops we could ally with once we take back La Montañita. Their journey has informed and inspired us, just as we hope to inform and inspire others.
We know we need a new board and new GM so we can clean up the damage that’s been done. But that’s not enough. Together, as member-owners and workers of La Montañita Co-op, we want to create a truly cooperative model that’s even better than what we had before.
As members of Take Back the Co-op, here is what we stand for:
(1) Transparency and Democratic Member Control
(2) Focus on organic, local, and sustainable products
(3) Worker rights
We’re at a turning point in La Montañita’s story, just as we’re at a crossroads in our nation’s history. By taking back our local co-op and transforming it into a vision of what ethical commerce can be, we’re making tangible progress toward an alternative future.
Join the Movement
Here is what you can do:
1. Sign the petition that calls for a Special Membership Meeting.
Each member number counts for one signature and we need 1,600 signatures to reach the 10% threshold. If you’re a regular shopper but are not yet a member-owner, there has never been a better time to join the Co-op and let your voice be heard. Officially become a member-owner at the customer service counter at La Montañita, then sign the petition online.
2. Send a link to the petition and this website to five people you know who are Co-op member-owners or regular shoppers.
3. Donate to the Take Back the Co-op legal fund.
Waking Up
If you just learned that our Co-op appears to have lost millions of dollars while being advised by CDS Consulting, you may be angry.
If you just found out that CDS, NCG, and UNFI are working together to create a chain of homogenized co-ops, you may be disturbed.
If you’ve heard from workers about the drastic shift in culture and values at our stores, or if you’ve read the federal retaliation charges against La Montañita, you may be shocked.
If you’re noticing pesticide-laden produce and products from unethical conglomerates in our stores, you may feel betrayed.
If you’re wondering whether predatory corporate greed now infiltrating hundreds of co-ops is a local version of the economic crisis facing our country and our world, you may be right.
You may feel a mixture of emotions right now, but one thing you don’t need to feel is hopeless.
There Is Hope
Thanks to the efforts of co-ops around the country which have thrown back the curtains and shed light on CDS Consulting, NCG (National Co+op Grocers), and UNFI (United Natural Foods, Inc.), [1] we have a clear, direct way to take back our Co-op from the outside groups which currently manipulate it.
As the second largest food co-op in the country, we have the power to transform La Montañita into a beacon of ethical and sustainable cooperative values. We have the opportunity to collaborate with co-ops across the nation to form an association that creates innovative models for the future.
Maybe taking back our Co-op from personal and corporate greed is only the beginning. Maybe it’s time to take back our communities, our governments, and our planet.
It starts here: right in our backyard.
Take Direct Action Now
At the same moment this website went live, we launched a petition for you to sign that calls for a Special Membership Meeting (SMM). Once 10% of La Montañita member-owners sign the petition, our bylaws give us the right to hold an SMM. That means we need signatures from 1,600 member-owners. At the SMM, the member-owners in attendance will vote to remove current board members, vote to elect new board members, and vote on a series of proposals that will set direction for the new board.
The SMM is democracy in action. It represents everything that CDS, NCG, and UNFI are afraid of. Their Achilles’ heel is direct democratic action by the true owners of the co-op.
In fact, CDS Consulting recommends that co-ops change their bylaws so that any Special Membership Meeting is “advisory only.” [2] In other words, if an SMM were held and member-owners voted to remove the board, those board members could decide whether or not they wanted to remove themselves.
Changing the SMM to be "advisory only" is part of a number of changes that CDS advocates through its “Fresh Start Bylaws Template Guide.” It's yet another system designed by CDS to centralize power and minimize input from member-owners and workers. Thankfully, here at La Montañita, we haven’t yet adopted the “advisory only” clause and we still have the power to take direct action with an SMM.
The Putney Food Co-op in Vermont is where co-op member and writer, Mimi Yahn, first identified the influence of CDS and revealed it through a series of investigative articles. Sadly, her co-op lost the fight against corporatization. The board adopted CDS’s Fresh Start Bylaws and a host of other personnel and policy changes. [3]
Unfortunately, the Putney Co-op member-owners weren’t able to mobilize before CDS, NCG, and UNFI were entrenched. However, at Honest Weight Food Co-op in Albany, New York, member-owners successfully called for a Special Membership Meeting, seated new board members, and took back their co-op.
It wasn't easy, but it was worth it.
We Are Not Alone
Honest Weight Food Co-op in Albany, New York, began paying CDS Consulting in December 2009. [4] CDS advised them to adopt the Policy Governance model, [5] use the “Fresh Start Bylaws Template Guide,” [6] and expose their board members to CDS training.
In 2012, the board decided to undertake a massive expansion, [7] projected to cost $5.4 million. [8]
Honest Weight member-owners began to suspect the board was acting “beyond the scope of its authority,” [9] and they were “concerned the existing board tried to co-opt the power given to members to make decisions.” [10] After looking into board actions, member-owners “uncovered unsettling patterns and misrepresentations.” [11]
CDS—via the Honest Weight board—was about to push through another sweeping set of policy changes when the member-owners realized they were on the verge of losing their co-op. In November 2015, the member-owners collected the required signatures to hold a Special Membership Meeting. During the SMM, 625 member-owners voted to remove current board members, seat new board members, investigate a new management structure, and voice “no confidence” in the current management leadership team. [12]
The new board members began investigating records from the previous board and leadership team. They discovered a history of secret meetings [13] [14] and troubling financial decisions. The old board had spent “$500,000 of [their] collective co-op savings” on CDS Consulting and lawyers to “change [their] bylaws” and “remove member-owner control.” [13] [15]
It’s been approximately nine months since the member-owners of Honest Weight took back their co-op. In that time, the new board has focused on transparency, democracy, and local and ethical suppliers. They’ve reduced their purchases from UNFI and increased their focus on local products. They’ve stopped attending NCG events and they’ve stopped paying CDS Consulting. [15] Early results are promising. Honest Weight Food Co-op is back in the black (making profit again instead of losing money), and member-owners once again have a voice.
The Vision
Honest Weight Food Co-op is one of many co-ops we could ally with once we take back La Montañita. Their journey has informed and inspired us, just as we hope to inform and inspire others.
We know we need a new board and new GM so we can clean up the damage that’s been done. But that’s not enough. Together, as member-owners and workers of La Montañita Co-op, we want to create a truly cooperative model that’s even better than what we had before.
As members of Take Back the Co-op, here is what we stand for:
(1) Transparency and Democratic Member Control
- Full financial disclosure, including consulting fees, lawyer fees, and profit/loss by store
- Direct democracy where member-owners vote on major Co-op decisions
(2) Focus on organic, local, and sustainable products
- Removal of the “Clean Fifteen” and conventional produce
- Creating a comprehensive Food and Products Manual
(3) Worker rights
- Livable wages and benefits
- No union busting or retaliation against whistleblowers
- Fair labor practices for all our suppliers, distributors, and farmers
We’re at a turning point in La Montañita’s story, just as we’re at a crossroads in our nation’s history. By taking back our local co-op and transforming it into a vision of what ethical commerce can be, we’re making tangible progress toward an alternative future.
Join the Movement
Here is what you can do:
1. Sign the petition that calls for a Special Membership Meeting.
Each member number counts for one signature and we need 1,600 signatures to reach the 10% threshold. If you’re a regular shopper but are not yet a member-owner, there has never been a better time to join the Co-op and let your voice be heard. Officially become a member-owner at the customer service counter at La Montañita, then sign the petition online.
2. Send a link to the petition and this website to five people you know who are Co-op member-owners or regular shoppers.
3. Donate to the Take Back the Co-op legal fund.
Eric Sirotkin is an Albuquerque-based human rights lawyer with a holistic focus. His work in the U.S. and around the world includes South Africa, where he assisted with the new constitution, election monitoring, and Truth and Reconciliation Commission. He reviewed this website and is assisting our group with the SMM and other actions.
4. Email us at Django@TakeBackTheCoop.com or Dorothy@TakeBackTheCoop.com to help with:
- Educating member-owners and collecting signatures
- Local and national media outreach and writing Letters to the Editor
- Contacting other co-ops
- Serving on the new board
- Forensic accounting and financial analysis
- Advising or supporting in other ways, especially if you have experience in:
b. Law
c. Retail
d. Food industry
e. Business management
f. Organizing
Remember, the real power does not reside with the GM or outside consultants. It doesn’t even reside with the board. The real power is in the hands of the member-owners: that’s us. We temporarily grant that power to the board, but we can take it back.
Think of us as absentee owners who were out of town for a few years. We put representatives in place to run our business and took it for granted that they would uphold the mission we believe in and the values we cherish. We were wrong.
Our Co-op was infiltrated by individuals and organizations who have their own agenda—one that has nothing to do with co-ops and everything to do with making money for themselves and their companies. But they made a mistake. They went too far. And that got our attention. Now we—the member-owners—are back!
Join us as we Take Back the Co-op!
Next: Sign the Petition and Hear from Workers Inside La Montañita
References:
1: http://ronhelfsblog.blogspot.com/2015/11/say-fear-is-cooperative-elites-best.html
2: CBLD-Fresh-Start-Bylaws-Template.doc, Revised August 3, 2012, Article III: Member Meetings, item 3.2
3: http://www.commonsnews.org/site/site05/story.php?articleno=11411&page=1#.V8MhFZMrIUF
4: https://hwfcinfohub.files.wordpress.com/2015/11/hwfc-specialmembermeet20151130-12pm.pdf; slide 5
5: https://hwfcinfohub.files.wordpress.com/2015/11/hwfc-specialmembermeet20151130-12pm.pdf; slide 6
6: https://hwfcinfohub.files.wordpress.com/2015/11/hwfc-specialmembermeet20151130-12pm.pdf; slide 17
7: http://blog.timesunion.com/realestate/albanys-honest-weight-food-co-ops-move-expansion-a-go/11603/
8: http://alloveralbany.com/archive/2012/08/09/honest-weight-aiming-to-open-new-location-may-2013
9: https://hwfcinfohub.files.wordpress.com/2015/11/hwfc-specialmembermeet20151130-12pm.pdf; slide 3
10: http://www.timesunion.com/local/article/Co-op-coup-Turmoil-at-Honest-Weight-Food-Co-Op-6657467.php
11: https://hwfcinfohub.files.wordpress.com/2015/11/hwfc-specialmembermeet20151130-12pm.pdf; slide 4
12: https://hwfcinfohub.wordpress.com/2015/12/02/grassroots-action-and-membership-meetings-are-powerful/
13: https://hwfcinfohub.wordpress.com/2016/01/07/grassroots-action-and-the-times-union-are-oh-so-helpful/
14: https://hwfcinfohub.wordpress.com/2015/12/19/grassroots-action-and-bylaws-again-are-powerful/
15: https://hwfcinfohub.wordpress.com/2016/06/14/grassroots-action-hwfc-forewarned-reducing-overhead-critical/