Solidarity Cooperatives: Definition, Operation and Advantages - CDRQ

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July 3, 2024

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Solidarity Cooperatives: Definition, Operation and Advantages

Coopérative

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.
 

What is a solidarity cooperative?

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:

  • User members: Individuals or companies who use the
    cooperative’s services to obtain goods or services
  • Worker members: Individuals employed by the
    cooperative
  • Support members: Individuals or companies with an
    economic, social or cultural interest in the cooperative, but who do not directly use its
    services

 

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.
 

Land management by a solidarity cooperative

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.

 

How the solidarity cooperative works

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:

  • Participating economically

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.

  • Sharing of power

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.

  • Benefiting from surpluses

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.

 

The advantages of the solidarity cooperative

Solidarity cooperatives offer their members many advantages:

  • Democracy and a sense of belonging

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.
 

  • Profitability and a social mission

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.

  • Economic benefits

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.

 

 

Conclusion

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!

 

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