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Demystifying the economy | How does a co-op work?

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How do cooperatives work? How could we create one? Who should I contact to do this? It would be interesting to create rental cooperatives for the elderly… — Sylvie Létourneau

“A cooperative is a company which belongs to its members, which is controlled by its members, and whose profits go to the members,” explains Luc Audebrand, professor at Laval University.

For an organization to truly be considered a cooperative, it must meet all three characteristics. “Otherwise, it’s not a real co-op,” says the social economy specialist and holder of the Chair of Leadership in Teaching on Social Engagement.

By distributing power among all through social shares, they aim to promote democracy in decisions concerning the production or economic activity of a group, rather than putting them in the hands of the owners.

With few exceptions, each member holds the same number and therefore has the same decision-making power.

The best-known cooperatives, such as credit unions, are consumer cooperatives: you become a member to obtain a product or service. Like financial services, in the case of Desjardins.

Work cooperatives bring together members who together control their employer, such as the Information Coops, which include the newspapers Le Soleil, Le Droit, La Tribune, Le Quotidien, Le Nouvelliste and La Voix de l’Est.

As for producer cooperatives, such as Sollio Cooperative Group, they are common in the agricultural sector. They generally aim, on the one hand, to pool the consumption of a product necessary for its production (such as grain and fertilizers used by farmers) and, on the other hand, to put their products on the market, like milk and pork.

As for solidarity cooperatives, they try to bring together several types of members. They can bring together, for example, workers and consumers, and even support members, who are simply there to get involved in the organization and help.

“The question to ask is: what is the common need that will determine the form of cooperative to create? », summarizes Luc Audebrand.

Housing cooperatives are generally considered consumer cooperatives, since they aim to offer a service to their members: a roof over their heads.

Several cooperatives of this type intended for elderly people already exist in Quebec, such as the La Brunante Housing Cooperative in Racine and the Coop ViVE in Sutton, in Estrie.

Creating a cooperative is not easy, but many organizations offer help in forming new ones.

These social economy companies, present in all regions, help citizens with their housing projects, in cooperatives or non-profit organizations.

Other organizations can lend a hand, such as housing cooperative federations, economic development corporations and the Quebec Regional Development Cooperative.

On the financing side, those who want to create a new co-op can contact resources such as the Quebec Investment Network in Social Innovation and the Chantier d’entreprises sociale. Some foundations are also likely to offer funds to support this type of initiative.

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