Weaver Street Workers' Woes Continue ...

The Third Quarter results for WSM are published. They are not the happiest reading. I will have a little whine. But it will be even-handed. Everyone gets a knock - including me. But mostly I want to make a plea to the WSM community. You. Specifically the 13,000 of you who are WSM consumer-owners. You need to be doing more. It's your co-op, too. Don't leave it to others to save it.But first, the figures and the whine - and the knock against me. Me? Yeah. Why do I keep trying to keep you folks informed of what is really happening with WSM, while the corporate office continue to paint a picture that is simply not true, and ends up being counter-productive?Oh. I think I just answered the point.  The WSM corporate office would say (have said) I am being disloyal and destructive. How can it be disloyal when we are a community co-op, and one of our values is transparency? And how can it be destructive when all I am doing is sharing the truth, and asking for help for that same community co-op?You can only truly ask for help when you genuinely admit there is a problem. I'm not interested in saving face. I'm interested in saving our co-op.Now, the figures and the whine. The sales increase for Q3 was as I forecast -- 8%. Which sounds good, until you set it against the goal for the year (established by the corporate office) of 15%.Leaving aside why the goal of 15% was established -- for which we have still not received a sensible answer -- what happens if we don't make it? And we won't. It would require that we increase sales each and every week in Q4 by 34%. In the past two weeks, we increased sales by 7% and then 5%. If not making the 15% goal is not important, then why was it established -- with huge deleterious effect on us workers; working harder and harder for less and less? The more disturbing news is that, after we workers bust butt for nine months to increase sales for reasons we do not know, realizing an increase we are told is $1.6 million for the year to date (yay for us, and our contribution to our community co-op!), we are told this will improve profit by only $15,000. And that a dividend is still not guaranteed.So, what was it all for? Do the corporate office -- do you -- have any idea of the dampening effect such news has on the spirit of the workforce in your co-op?Business 101. You do NOT set unattainable goals. Not explain them. Stand idly by why good workers see their efforts fail. And then offer them nothing but platitudes. You kill the drive. You kill sales. You kill the company.The Mission Statement of WSM promises workers a fulfilling work experience. Your co-op is in breach of that provision of the Mission Statement. This should bother you. The WSM corporate office, and the Board that rubber stamps it, have many questions to answer. Fortunately, we workers will have an opportunity to ask those questions.I am told that next week the results of the WSM Employee Survey will be published and shared with all workers. We have been promised the opportunity to digest those results in a meaningful way. We have been promised the opportunity to have meaningful discussions about the results. And we have been promised meaningful opportunity to be involved in the Action Plans we have been promised will be devised to correct the matters raised in the Employee Survey.If the WSM corporate office keep their promises, then, for the first time since I have been involved with WSM, workers will actually have a real voice in the direction of our co-op.And I suspect, if we are given the opportunity, it will be a substantial and effective voice. My anecdotal feedback from fellow workers is that the main points they made were: (1) They want more understanding of goals, how they are set, and why (cf. 15% sales increase, and the crippling debt of $8 million); and (2) They want worker-ownership (the cost of which is $500, compared to about $175 for consumer-ownership) to be cheaper, so that they can vote in Board Elections (yes, your workers have to pay to vote).If the WSM corporate office are serious about allowing changes to reflect the concerns of us workers, then we workers should shortly be able to create a situation where workers will be more involved in the big decision-making in the co-op we half-own. But don't leave it up to us. It is your co-op, too. There are 13,000 consumer-owners. About 100 of you turn up to Annual Meetings. About 500 of you voted in the last Board Elections. This is not involvement. You can not complain about your co-op when you do not participate. Try spending as much time on your co-op as you do on Facebook, and see what happens.Is it worth it? Sure. We may not be the perfect co-op. But we are still a co-op. We blazed a trail for organic food in the locality. We offer a platform for local farmers to sell their produce, in a consistent fashion, which helps those farmers plan ahead. Even now, WSM is helping a sister co-op open in Burlington. There is much about WSM of which we can be proud. There is much to support. And where it is not perfect, you should get involved, and change it!And the most important thing you should be doing at the moment? Shopping more at The Weave. If each consumer-owner spent $10 more in Q4. Not a week. Not a month. Just once. $10 more -- once. We would double the profit to date for this financial year.A co-op is like a love affair. It has it ups. It has its downs. It has happy moments. And troubled ones. And it has at least one of the partners always saying, we could be doing better! Most importantly, like a love affair, a co-op needs work. If you don't work at it, it dies. WSM is too good -- even now -- to let it die. It's up to you. It's your co-op, too ...  

The Board of WSM are inviting feedback from owners on the WSM financial results for 2011, the financial priorities for 2012, and the manner in which the patronage dividend will (may?) be apportioned.The Board Chair's report on the state of WSM's finances for FY 2011 is a re-hash of all that has been covered in the previous comments in this thread. He claims WSM has returned to financial health. I truly wish that were true.The fact is, however, that our profit is lower than last year, and has been achieved by making exploitative demands of already hurting workers.Frankly, the most galling reference by the Board Chair is to an unrepresentative answer in the recent Employee Survey. That reference suggests that the employees of your community co-op are totally happy with their lot.The Board Chair (himself a worker-owner, who works in the WSM corporate office) is fully aware that the results of that Survey were a resounding vote of no confidence in the leadership of our co-op.For sure, we said we like working at WSM. Of course we do. Otherwise we wouldn’t be here. More to the point. We ARE here precisely because we do believe in the principles of co-operation.The Board Chair fails to reference the pages and pages and pages of very specific, detailed and comprehensive commentary, offered by a statistically significant proportion of the workforce, which commentary states quite baldly that we workers are hugely disappointed that our leadership has simply set aside any pretence of being a co-op, and of complying with the co-op’s Mission Statement that demands that employees enjoy a fulfilling work experience.We love working in our co-op. But we are very unhappy with the co-op’s leadership.The Board Chair knows that, and dishonestly chooses to mislead consumer-owners into thinking we workers are happy with everything.The fact is that the recent Employee Survey reported that workers feel overworked, overstressed, underpaid, understaffed, under-equipped and unhappy with the lack of communication from the WSM corporate office, and dissatisfied with the lack of inclusion in decision-making in a co-op they are told they half-own.But the package of information that the Board has released gets worse.You see, we employees are currently engaged in a process of abbreviated discussion about addressing the grievances we raised in response to the Employee Survey.That discussion is supposed to lead to a specific round of discussions on Employee Action Plans to address worker grievances.Indeed, I was approached by the corporate office, and specifically asked not to write publicly about that process while it was underway.The ostensible reason given was to encourage discussion, without employees feeling their remarks might be published. So, I agreed.We can now see that the real reason was to allow the WSM corporate office dishonestly to pretend to the outside world that all was well with our community co-op’s workforce.The point is that those grievances will require funds to address. We workers rightfully feel that, having made huge sacrifices over the past few years, in order to bring our co-op back to some sort of health, it was time finally to address our work conditions, to bring them back to what they were – or better, as a sort of reward.After all, we make the money that keeps the co-op afloat. Why should we not share in the product of our efforts?Yet, before our discussions on the Employee Action Plans are even begun, let alone concluded, we are told in the current Board missive that the Board and WSM corporate office have dreamed up a whole new 10-year Capital Plan, and it is THAT Capital Plan which will receive priority in funding.Enough.We workers were denied a dividend for three years. We were denied pay raises for two years. We have received paltry pay raises since then. All to help the co-op stave off bankruptcy.We have agreed to work longer hours. We agreed to bust butt this past year to try to increase sales by 15%. We are over-worked, over-stressed and under-compensated. We work harder now than we did several years ago, for less. All to help pay off a debt of $8 million, which was borrowed without the approval of owners or workers, to fund the last disastrous capital expansion plan.We have not yet paid off that debt. No doubt further exploitative demands will be made of us next year, since we did not achieve the 15% goal this year. Our own grievances and demand for better conditions are being shunted to one side.And all the while, the Board and WSM corporate office, in secret, are devising yet more capital plans? Which will require more borrowing? Which we workers will have to repay by working even harder?Again. Enough.My fellow workers and I will be doing what we can in our meetings to try to stop this nonsense. But we can not do it on our own. We need the support of consumer-owners when they provide the feedback the Board is currently requesting.But before we get to that suggested feedback, you may well be asking yourselves, how did all this happen without our knowing? Well, I could say because you good folks weren't paying attention. But that wouldn’t strictly speaking be fair.You see. The Board decided last year not to hold an Annual Meeting. But how, you might further ask, could they do that without a change in the By-Laws? Because the Board has given to itself the sole power to change the By-Laws, without a vote of owners. And how did this happen? Er, cf. paying attention ...Ok, so there is this Capital Plan. Which was developed undemocratically. How bad can it be? I don't know. The Board aren’t publishing it as part of their feedback exercise. They want you to agree to it blind.Hmm. But what is all this I say about new borrowing? Well, that’s where the Board’s plans for the patronage dividend come in.Consumer-owners will receive 20% of the dividend apportioned to them. The remaining 80% will be put into a capital fund (consumer-owners will never see it again). And we are told the capital fund will be used to make capital improvements.Well, you say, that makes sense. Well, it would, if it were true, and if the capital projects were being approved by the workers and consumers in our worker-consumer co-op.But the Capital Plan of projects has already been agreed, without our approval, and again, it is not being published.But worse. The fund money itself will not be used to finance the capital projects. Oh no. The fund will simply be used as collateral to BORROW more money (perhaps three or five times the amount of the fund). Each year.And we workers will once again be the ones having to shoulder the sole burden of paying off the debt and the interest. Which we are doing at the moment, to the tune of $2 million a year, on the still existing $8 million debt.Yes. You're reading that right. Even after the debacle of the store expansion in 2007/2008, which nearly bankrupted our co-op. When we still have $8 million of debt to erase. When the only plan so to do is to make the overworked workers work ever harder. Yes. We are planning to fund yet more unknown capital spending with new borrowing.But how, once more you ask, how could the Board possibly get the authority to borrow more money? We, the owners, would stop them. Think again. The Board changed the By-Laws to give them sole and absolute authority to borrow whatever capital monies they need.All of this has been going on and continues because you good folks do not put down your foot. What can you do? Put down your foot. And save our co-op. Provide feedback to the Board.Oh. And in case you were thinking that there might be meetings, at which you would be able to hold the co-op leadership publicly accountable, think again. There will be tables. Where you can have a chat with one or two folks. Away from the glare of any transparency or openness.I would respectfully suggest that you might want to consider the following as a response to the Board missive:1) Shop more at WSM. And take more of an active role in the co-op. So that plans like this are not just dumped on you.2) Take part in the current feedback exercise. Write to: board@weaverstreetmarket.coop. Please don't let important decisions about our community co-op be taken by a self-selected few just because you allow them to do so by default.3) Ask that that the first financial priority for 2012 be a sustainable profit, and an immediate plan to eliminate the existing $8 million debt – a plan that does not impose further burden on your long-suffering workforce.4) Ask that the second financial priority be an improvement in the condition of workers to be agreed with the workers.5) Ask that the third financial priority be that no Capital Plan be implemented until it has been agreed by workers and consumers, and simply refuse to allow 80% of your patronage dividend to be retained until such consent has been given.6) Ask that the fourth financial priority be an absolute moratorium on any and all spending on or borrowing for the Capital Plan until such time as the current debt has been eliminated in full; consultation has concluded on the Capital Plan; and the grievances of the workforce have been addressed.I too believe that our community can only benefit by having a thriving, sustainable co-op. I too believe that it requires a sound capital base. But I also believe that our community worker-consumer co-op can only thrive when it has a happy workforce, and a consumer base that is respected and included in important decision-making.We are a co-op for a reason. And that is because we expect more of ourselves than to be thinking merely of making money. We are supposed also to be thinking of the social impact of our business on our owners, consumer and our workers. That is why we pride ourselves on having a triple bottom line: social and environmental, as well as financial.It is time to take as much care of the social and environmental bottom lines as we do the financial. Either we have the funds to do so, or our Board should not be sending out missives saying we have returned to financial health.Please provide the Board with your feedback. And when you think of borrowing, please be thinking only of 'borrowing' my suggested financial priorities for FY 2012 … !!

In among all the erroneous chatter the Board and corporate office of WSM are currently sending to consumer-owners about the supposed financial health of WSM, those of you who are consumer-owners will by now have worked out that it is not just the workers of WSM who are suffering financial woes. In contrast to the Board and corporate office's declarations of financial nirvana.Tucked away at the back of the expensive-looking Board brochure that just thudded its way into your mailbox is the information that, in return for the WSM Board and corporate office taking away your 5% consumer-owner discount two years ago, they have just decided to give you a dividend of - wait for it - $3.Of course, we are told, the amount of your dividend is as low as it is so that you can further help to build the financial strength of our community co-op. Um. Arrant nonsense.And that the discount-to-dividend process is a nationwide phenomenon, designed to strengthen co-op's all across the nation by encouraging much-needed loyalty in co-op's. Er. Half true.The WSM dividend is low in order to help build the strength of WSM? Hmm. The dividend is low:1) Because we are still paying off $2 million a year on the undemocratically-raised debt, that was used to finance the failed capital expansion of 2007/2008. And, unless consumer-owners use the opportunity of the current feedback exercise to request change, we will be paying off at that rate for the next four years.I continue to suggest that the sensible way forward is immediately to establish a Board Committee of Owners to undertake a thorough review of the debt, and to make recommendations as to its early disposal.This would free up $2 million a year, which could then be used to invest in much-needed improvements, reward long-suffering owners with real dividends, and improve the lot of your hard-working, over-stressed workforce.I first put forward the idea of such a Committee at the Annual Meeting in 2008 (um, we no longer have Annual Meetings; we have 'tables'). The Meeting agreed. The Board and the corporate office then undemocratically overturned the decision of the Annual Meeting of Owners. And here we are. With a $3 dividend.2) Because the bulk of this year's financial 'profit' is being retained by the WSM corporate office, to build a capital fund, against which more monies will be borrowed (yup - MORE debt), in order to finance unspecified, undiscussed capital projects.I have suggested that the Capital Plan first be discussed openly. That it should be costed. And that absolutely no funds should be set aside or monies borrowed until owners have approved the Capital Plan, and have given their specific authority to spend monies on it.As for the claim that WSM is merely following the example of other co-op's around the nation, in changing the discount into a necessarily-smaller dividend, I say, 'almost.'The concept is one called 'Economic Owner Linkage,' and was devised by a Professor Brett Fairbairn, with whom I have been in correspondence.Not least when we agreed that Director Elections in a truly open and democratic co-operative are not the be all and end all of democratic expression.Directors do not have carte blanche to do what they like. Their election represents merely the first step in co-op democracy.Elections choose the folks we co-operators want to have structure the ongoing democratic conversation within our co-op.Frankly, there is next to no conversation within our co-op. Conversation suggests two-way, immediate, accountable dialogue, where the outcome is determined by all those taking part in the conversation, not just a corporate office or Board operating a veto at the conclusion of the exercise.Specifically, it is not one-way 'feedback.' Nor is it a 'Suggestions Box.'The essence of 'Economic Owner Linkage,' if it is properly implemented, is that it is a deal.In return for owners agreeing to have the return on their investment based upon the performance of the co-op, the co-op opens up the democratic process, to ensure that owners actually control that performance.The Board of WSM are well aware of this. They attached Brett's report on the subject to one of their Board Minutes.Is there a consumer-owner out there who feels that, in return for replacing 5% with $3, they got more democratic conversation or more control of the performance of the WSM Board and corporate office?Well, if you are a consumer-owner who feels that didn't happen, then now is your chance to ask for it.Complete the WSM Feedback Form. Sigh - it's at least an opportunity to START a conversation.Would you mind if I had a few suggestions for completing the WSM Survey - which can also be found online?Question 1 --  Might I suggest that the most important of the proffered suggestions are (excuse the abbreviations): downtowns, food system, worker conditions, and product quality?Question 2 -- This might be your chance to ask for more democratic control of the performance of WSM, as your promised 'return' on a smaller financial return.You might want a restoration of Annual Meetings, more elected (as aopposed to appointed) Directors, an online discussion forum, or a Consumer-Owner Discussion Group.Question 3 -- Again, might I suggest the important proffered goals are: survival, savings and debt?Question 4 --  (a) The Capital Plan first to be submitted to the ownership for approval; (b) Savings to be spent on new capital projects, only after projects are approved by owners; (c) No more long-term borrowing by WSM without the prior approval of owners; (d) A Board Committee of Owners to be established to review the existing long-term debt of $8 million, and to make recommendations for its early disposal; and (e) [This is a weird one; the WSM Survey touts improving worker conditions in Question 1, but not as a financial goal in Question 3; er, how do you improve worker conditions without it being a financial goal? So ... ] Establish a Committee of Worker-Owners immediately to draw up plans for improving worker conditions.Question 5 -- Up to you!Question 6 -- Ditto!Question 7 -- The last few years have seen the WSM corporate office and its Board concentrate power in the hands of a self-selected few. It is time for this to be reversed, so that workers and consumers in our worker-consumer co-op are truly those who democratically control decision-making and performance in our community co-op.I would suggest you might ask that, once Annual Meetings are restored, motions are allowed. They are not at the moment.I would also suggest that the Board be stripped of the power it gave itself to change By-Laws without the approval of ownership. That's how $10 million was borrowed without owner knowledge in 2007/2008.The path to true, sustainable financial health in our community co-op is to abide by the simple truisms that work for successful co-op's all around the country.Sell what the consumers want, in the way workers want, by putting control in their hands, not in the hands of a self-selected few.Spend only what you earn. Borrow as little as possible. Do nothing if it does not serve the common needs of your consumers and workers.And, if you think you may be stepping outside those sustainable limitations, put in place a process that allows you to do so only after the most stringent, democratic and accountable consultation.Now, try fitting that in the little box provided ... !!

The Chapel Hill News has today very kindly published a short letter from me taking issue with the Board of WSM, and its characterization of the state of happiness among Weaver Street workers.