Do you have a project with an economic and social vocation? The cooperative model marries democracy and efficiency, equity and competitiveness. The solidarity cooperative can be an appealing legal framework for a business venture that seeks to involve different types of members who want to take part in decision-making and become partners.
Introduced to Quebec in 1997, the solidarity cooperative is a collective enterprise that unites different types of members: users, workers and support members. Their goal? To be active decision-makers and partners.
A solidarity cooperative has the following categories of members:
Did you know that there are now more than 500 solidarity cooperatives registered in Quebec? They can be found in a wide range of sectors, including home services, professional services, tourism, leisure, childcare, arts and culture, the environment and local services. For example, La Chope Angus was founded in 2019 as a solidarity cooperative. Since June 2022, it has operated a craft brewery of the same name in Montréal’s Technopôle Angus eco-district.
Overseen by a solidarity cooperative, participatory land management is a valuable tool for protecting land and fostering socioeconomic growth, particularly in remote areas. Two emblematic examples of this model are the Vallée Bras-du-Nord and the Arrière-Pays cooperatives.
Located in Saint-Raymond-de-Portneuf, Vallée Bras-du-Nord is a solidarity cooperative in which employees, tourism service providers and landowners come together to develop sustainable and high-quality local tourism infrastructure. This pioneering cooperative in the Capitale-Nationale region has stood out for almost two decades thanks to its participative land management approach that involves a variety of players, such as tourism businesses, farmers and forestry workers. What’s more, the cooperative fosters social and professional integration by employing youth with troubled backgrounds for the annual maintenance of its 100 km of trails. Students in the outdoor education stream at Louis-Jobin school also benefit from the co-op’s facilities—an example of its positive impact on the local community.
The Arrière-Pays cooperative in the Témiscamingue region adopted an ambition vision from its very first year of operations. This co-op gathers together players in adventure tourism, innovative organic farming and renewable energies to feed the vitality of this remote region. Its wide range of services include hiking, dogsledding, canoe-camping equipment rental and lodging. The cooperative also emphasizes the synergy between people and nature by offering safe, environmentally friendly and innovative experiences.
We have seen that there are three types of members in this type of cooperative: user members (who use the cooperative’s services or products), worker members (who are employed by the cooperative) and support members (who share the cooperative’s objectives and provide support without using the services or working directly in the cooperative).
Each member category has a role and a voice in the governance of the cooperative and has a threefold participation:
Members contribute equitably to the cooperative’s capital. The amount required to become a member varies according to members’ needs and financial capacity, thus encouraging wide-reaching economic participation.
Regardless of the number of shares held or the volume of business done with the cooperative, each member may cast one vote, in keeping with the democratic “one member, one vote” principle. All members may be elected to the board of directors, thus giving everyone a chance to participate meaningfully in governance.
Surpluses are allocated to the reserve to strengthen the cooperative’s financial situation or to be used for development. Members (other than support members) may decide to share part of the surplus as dividends.
In short, this model provides a participative and democratic framework to meet its members’ social, economic and cultural needs. Members are actively involved in management, reinforcing their sense of belonging and collective responsibility.
Solidarity cooperatives offer their members many advantages:
Members exercise democratic power and develop a sense of belonging, thanks to the principles of solidarity, sharing and equity. Each member has a voice in important decisions, and this strengthens cohesion and commitment to the cooperative’s common goals.
Combining economic profitability and a social mission, the structure has the flexibility to adapt to members’ needs. This model not only generates income, it also creates local jobs and provides the community with essential services, as the Vallée Bras-du-Nord and Arrière-Pays cooperatives have shown.
Members of solidarity cooperatives benefit from tax measures that encourage capitalization, limit financial liability and offer the possibility of sharing surpluses among worker and user members. This redistribution of surplus earnings strengthens co-op members’ commitment and ensures profits are shared fairly. In doing so, it promotes the cooperative’s financial stability and longevity.
In short, solidarity cooperatives provide a framework that is conducive to projects with strong economic and social impacts. By combining democracy, equity and competitiveness, they help create sustainable, resilient businesses rooted in their communities. For those looking to get involved in a collective, participatory initiative, the solidarity cooperative is a highly attractive legal and operational option.
In conclusion, this post is part of a series exploring the five types of cooperatives. Our aim is to explain the specific features and advantages of each cooperative model, be it solidarity cooperatives or
In exploring this series, you’ll discover the many facets of these organizations as well as their positive impact on communities and the economy as a whole. If you’d like to learn more about the other types of cooperatives, check out the corresponding posts!