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Monday, February 23, 2004 (7pm) MINUTES APPROVED
Board
Present: Graeme Hussey (President/Board Chair, Human Resources Committee Liaison), Andy Summers (Vice President, Promotions Committee Liaison), Geoff Webb (Treasurer, Finance Committee Liaison), Christie Stephenson (Secretary), Anil Reddi (Chronicle Committee Liaison), Justin McNabb (Food Issues Committee Liaison), Lachlan Story (Member Labour Committee Co-Liaison), Grif Cunningham (Maintenance Committee Liaison), Ed Fielding (Orientation Committee Liaison), and Aysa September (Web Committee Liaison, Member Labour Committee Co-Liaison).
Staff
Present: Sarah Fairley (General Manager)
1. Approval of Agenda
Agreement by consensus to approve the agenda with the addition of an in-camera session as item 3.5
2. Correspondence and Announcements
Graeme indicated he had not received any correspondence from members. Christie noted there had been no email messages send to the board. Graeme announced there would be a meeting on March 1st at 7pm at St. Alban’s to discuss the working member surcharge proposal. Graeme distributed copies of a Co-op Grocer article on point-of-sale-systems for board members information.
3. Minutes
Agreement by consensus to approve the minutes.
3.5 In-Camera Session
Discussion under this item remains confidential. Sarah agreed to file the minutes of this session in the store safe.
4. Committee Reports
Graeme stressed the importance of board members submitting committee liaison reports in advance of the meetings.
4A. Member Labour Committee (Aysa & Lachlan)
Report submitted:
Date of last meeting: February 11th
Date of next meeting: March 10th
Action Items:
- Report back to the ML Committee the Board’s response to the ML proposals from last meeting. Bring the committee’s opinion back to the Board for our Feb. meeting.
- Bring to the ML Committee three new ML-related proposals for discussion. Present to the Board additional proposals, to be talked about and voted on at the Feb. Board meeting.
Announcements to Board and Committees:
- At our last committee meeting I reported to the committee that the Board had (at their January meeting) approved the proposals that we had brought forward to them. The one issue the was brought back to the committee was if we would be supportive of giving all new Karma members 2 hours of credit, regardless of their being working or non-working status. The rationale for the original proposal was that working members would be given this credit so that (instead of doing member labour work in the first month) they would be directed to take some time to learn about member labour: their work options and rules.
The ML Committee discussed what giving this credit to non-working members would look like. There was concern that simply giving new non-working members two hours of credit (ie., allowing them to shop for their first month at the working member rate) would be a problem. However, it was agreed that a non working member could, upon joining, be given a two hour credit to be used IF at some point in the future they choose to convert to working-member status. This would allow them to take the first month of their time to familiarize themselves with the work options and obligations of the Co-op, just like a newly joining working member.
The above scenario has not been a common one in the past (conversions from non-working to working are not frequent) but it was felt by some on the Board to be important. The Committee agrees with this. Please note “Question 1" below. - The ML Committee is in the process of drawing up an implementation plan with specific tasks assigned to different people on the committee. We have set a date of June 01, 2004 as the date for implementing the currently approved changes to the member labour system. I am waiting for the “official” plan to be written up by one of the committee members by next week, but (in really brief format!) the following areas have been identified as critical to an smooth transition to a new system: communication and information to staff, store signage, Chronicle articles (including a special “member labour issue”), web information, member labour policy documentation, and resources needed to convert current member cards to the new system.
- In bringing forward the changes to members labour that we (and the outgoing Board) approved, a number of other ideas have come up over the last two years. When the Board approved what we did in January, directing the ML Committee to move forward on implementation plans, I felt that a few ML-related proposals that had some merit had not been given the time and space to be discussed. My concern was that, given that we are about to embark on a significant effort to implement the current improvements to the ML system, it might make sense to make sure that we looked at every option that had been proposed, so that we could implement everything together.
In discussion with ML Committee members, staff, and some Board members, additional ideas for proposed changes to our current system came up. Given that we have a fairly short time line for implementation of the currently approved changes, I wrote up some possible additional proposals as a starting point, organized a meeting of ML committee members, staff, and some Board members, and had a meeting on Feb. 05th in order to see if there was enough agreement about these ideas to bring them to the Member Labour Committee. With many modifications, we am now bringing three new proposals to the Board for consideration at the February 23rd meeting.
Additional Proposals:
A. Modifying the current "auto-credit" system for Karma Committee work. All committee members are given a monthly credit of 4 hours.
Rationale:
- The rationale for our current system (however clear it might have been in the past) is not clear to many people. Currently, committee members get an “auto-credit” of 2 hours a month, and then an additional 1.5 hours after they leave a committee, for every month they were on a committee.
- The way the current system gives out work credits (awarding them after one leaves the committee) reflects poorly both the actual amount of work being done at the committee level (in some cases) and the expectations that Karma has for committee members’ monthly work commitment. How many hours are members expected to work in an average month? A more “up-front” and transparent system would be good, both for committee members and for our ability to realistically evaluate and plan out what work we want and what we can expect from our committees.
- If we are intending to continue to expand committees and the tasks that they do at Karma, it makes sense to come up with a system that clearly outlines the precise minimal hours that people are expected to do.
- It is hoped that changing the system will emphasize the importance within committees that their work is important, and that it is member labour work, like any other form of member labour.
Rules:
- All Committee members (and Board members) receive an automatic credit of four hours per month. The auto-credit of 4 hours is meant to reflect whatever minimal and predictable labour requirements are part of a committee’s membership - for instance, a two hour meeting a month, plus two hours of work outside of this meeting. If an specific committee determined that its minimal and predictable hours are either more or less than this, a change could be made for this committee.
- If a committee member does significantly more work than four hours a month, averaged out over a given year, it is at the Chairs’ discretion to forward to the Member Secretary additional hours put in by the member, if the members so desires.
Process:
- Hours are reconciled for committee members on a monthly basis, as with all other member labour hours.
Implementation Notes:
- Karma Caucus, and/or Board liaisons are critical to get people on committees to understand and help implement this new way of thinking about and tracking hours.
- Proposal should be sent out to all committee chairs ASAP for their information and feedback. Feedback should be directed to committee Board liaisons, or the ML Committee liaison, hopefully in advance of the February 23rd meeting.
- With Board approval, implementation date could be set for June 01st - in order to come out with other approved changes to member labour, and the communication strategies that we are planning.
B. Giving non-working members two options: a general surcharge, OR a flat monthly fee equivalent to the Work Shift Cash Equivalent (of $ 9.00 per hour, at this point).
Rationale:
- The non-working surcharge rate (12%) was arrived at using the average non-working member as the basis of calculations. The intent was to approximate with the surcharge the contribution of working members to the co-op. Those non-working members who shop a lot at Karma (perhaps only a small number) will be in the position of paying out more than the cash equivalent of two hours of member labour per month. It is debatable if this is fair, and a “flat fee” option would rectify this.
- Having this option would address the concern that some members may intentionally join as “working members”, but intend NOT to work, and simply pay off their hours regularly. This a possibility under the new system in theory, though in practice, there does not seem to be much concern that it would happen.
- Having a flat fee might encourage some non-working members to shop more, if they are already inclined to shop at Karma, but are deterred by the higher surcharge. This is only a speculation! The average non-working member spends about 1/3 less than an average working member. If a non-working member spends more than approximately $150 a month at Karma, it would make good economic sense for them to choose a flat monthly fee, as opposed to paying the surcharge.
- Regardless of large numbers of people using it, it is a “diplomatic” option to make available when currently increasing the non-working member surcharge. It emphasizes the parallels between working and non-working membership, as the directly equal contribution of each is highlighted. This idea gives non working members an additional option.
Rules:
- Non-working members (all of whom would pay the surcharge by default) have the option, at their first shop in a given month, of paying the equivalent of the monthly “work shift cash equivalent”, then shopping at the working member mark-up rate for that month.
Process:
- Ideally, we would want a system where a cashier, having entered on the cash register the payment (using a new button “$9/One work hour equivalent”), would then put a stamp somewhere on the member’s card indicating that they could shop at the working member’s mark-up for the rest of that month.
Implementation Notes:
- Non-working member labour cards need to be re-done to deal with the new options given to non-working members. It is important for cashiers to be trained and empowered to track and enforce these categories. Extra cashier training literature and a staff meeting needed.
- Out-reach to non-working members is needed so that they are informed of these options as the June 01 date approaches.
C. Having two membership options: a person who joins as a single member, who does 2 hours a month, and pays one $70 loan, OR, joining as a unit of two adult members, who do 3 hours of work a month between them, and pay a $100 loan.
Please note that in the case of the “two adult” membership, these people do not need to be a social “family” or need to live in the same residence. They are simply a unit who have decided to link themselves in their commitments to the Co-op.
Rationale:
- The initial rationale for looking at Karma households was initially an economic one of increasing sales. Staff members, based on their experience and conversations in the store, feel that we could increase our sales (perhaps significantly) if we looked at changing our household system. The issue has to do with current Karma “households” not resonating well with the shopping patterns of actual residential “households”. Thus, Karma members (or those people attached to Karma member households) end up spending money elsewhere, when we maybe could be getting them to spend it at Karma. Thus, for instance, a family runs out of milk, or is doing their weekly big shop. If the Karma member in the household is busy or out, since the other members can’t shop at Karma, they go somewhere else instead, buying things for everyone at Loblaws, not at Karma.
- Up until the last few years, Karma members were only supposed to shop for themselves, their dependents, and other (adult) members, who were also Karma members. In practice, this is a fantasy, and in addition, it is impossible to enforce. In the last few years (and I’m not sure how, when, or who was involved), it was acknowledged that there are many Karma members (and potential members) are living in situations where they shop for non Karma members. It was decided to officially allow people to shop for non-Karma members. How well this information was/is conveyed to old and new members (by the Orientation committee, Karma documents, staff, etc.) is open for discussion! Sarah Fairley informs me we have not updated some of our “official” policy documents since 1995.
- I don’t have precise numbers on how many current members live with (and shop for) non Karma members, and how many of these non-members shop at other places besides Karma. Our sense, however, is that this is quite common. The proposed new system hopefully facilitates more shopping at Karma by encouraging these non members to become Karma members. The open ended “double membership” requirements are intended to avoid being unfair to any particular demographic of Karma member.
Rules:
- Upon joining as a working member, people choose either a single or double membership. A single membership requires 2 hours of work a month and a $70 loan. A Double membership requires 3 hours of work a month between two members and a $100 loan.
- If the double membership is chosen, both members can shop at Karma. Even though one member is the official “loan holder” (this is current practice), both members must attend a Karma orientation session, and both members must pay the annual fee (currently, $17).
Process:
- If approved to be worked into the June 01 implementation plan.
Implementation Notes:
- ML Co-ordinator (Sara Pulins) needs to evaluate and plan for some members wanting to do a 3 hour shift, and/or not being automatically assigned a monthly work shift by their work-shift co-ordinator.
- Policy would have to be formulated about how to deal with current members who might desire to “consolidate” their memberships with other members. Reclaiming loans in any number would be disastrous to the co-op at this time. Also, while it is not expected that this change would lead to a substantial decrease in available member labour hours, it should be monitored.
Questions for Board:
- Do we want to make it an option for ANY non-working member (newly joined OR older non-working member) to be given two hours credit upon switching to working status, in order to encourage people to familiarize themselves with the options and obligations of working-member status?
- Please note that although these new proposals are member labour related, they offer a significant change from our current system and have broad repercussions for the Co-op. Please take the time to consider their implications in general, and for your particular Karma committee. Furthermore, successful implementation of these changes will require all Board members to put in some extra time and energy over the next 4-5 months.
- Changes to our current way of defining household membership (Proposal “C”) are being proposed in part as a way to both increase our membership and the amount of shopping that current members do at our store. Do you have additional input about the possible consequences of this change?
Other notes:
- Please note that proposals B and C effect each other if approved -- thus a two-person membership (which owes 3 hours a month) would pay the equivalent of 3 hours as their work shift cash equivalent ($27)in a month, if they wanted to shop at the working-level surcharge...
- There is an additional Member Labour “sub-committee” meeting that has been organized for this week. Its purpose it to redesign the Member Cards (in the box by the cash). I am out of town right now, so I cannot give any more information on this, but I will provide a verbal report at our Feb 23rd meeting.
Discussion: proposal on modifying the current "auto-credit" system so all committee members given a 4-hour monthly credit.
Sarah said the reason for suggesting four hours instead of two was to stress that this was the commitment required to carry out the work of a committee member and that it was not enough to simply attend the meetings. Andy asked if the auto-credit system could simply be eliminated. Graeme expressed concern that it would additional work load for committee chairs and the member labour co-ordinator. Christie expressed concern that the proposal might undervalue the contribution of in-store labour by granting additional credit to committee and board members. Lachlin said it was intended to encourage the development of a culture of expectation of a contribution of work between meetings.
There was consensus to adopt the recommendation of the committee.
Discussion: proposal on giving non-working members option of a general surcharge or a flat monthly fee.
Geoff said he would like to see the financial implications of this proposal and suggested not making the change until the finance committee had had the chance to review it. Sarah suggested it would be impossible to predict precisely the impact. Aysa pointed out that there were not a great number of non-working members with high monthly expenditures. Andy asked if implementing it for a trial period would help.
There was consensus to allow the finance committee time to provide feedback on the proposal, and barring significant concerns, to adopt the recommendation of the committee.
Discussion: proposal on having membership option to join as a single member (2 hours a month and $70 loan) or as unit of two adult members (3 hours a month and $100 loan).
Aysa questioned the ability of board to make the change under the current bylaws. Andy confirmed it was outside the scope of the board’s mandate and would have to be voted upon at a meeting of the membership.
There was consensus to present the proposal at the 2004 annual general meeting.
4B. Chronicle Committee (Anil)
No report submitted
Discussion
Anil said he would be going to the next meeting to be held Wednesday of that week.
4C. Finance Committee (Geoff)
No report submitted
4D. Food Issues Committee (Justin)
Report submitted:
Date of Last Meeting: February 9
Date of Next meeting: March 8
Action Items:
- A working draft of the product scoring system was completed by John V. The product scoring system tests a product against the values stated in Karma’s Product Policy. The committee examined it closely and decided that there were several points which require more research. For example, how do we apply a numerical value to “the exploitation of labour”? Or, what is an acceptable degree of exploitation?
- Testing the scoring system against a variety of products and comparing the outcomes.
4E. Maintenance Committee (Grif)
Report submitted:
Date of Last Meeting: February 3
Date of Next meeting: unknown
Action Items:
- Committee met to discuss the mandate of the committee and the next steps.
Next Steps:
- Identify all possible maintenance projects. The committee will do two to three projects in the coming months and report back on the successes and failures
- Prioritize projects
- Identify resources
- Co-ordinate projects with people
4F. Orientation Committee (Ed)
No report submitted
4G. Promotions Committee (Andy)
Report submitted:
Date of last Meeting: January 10
Date of next Meeting: February 21
Action Items:
- Pending mandate review
Announcements to the board and committees:
- Caucus Evaluations available
- Discussions from Caucus as to next steps
Other Notes:
- No meeting of Promotions Committee until 2 days prior to Board meeting
- Karma Coffee Klatch surveys positive
- Karma Caucus survey results positive.
4H. Web Committee (Aysa)
Report submitted:
Date of last meeting: 18 December 2003
Date of next meeting: sometime in late March 2004
Action Items:
- Develop an effective interface to facilitate site updates by other committees, particularly Promotions.
- Continue to update the site as new material is submitted by other committees and staff.
Announcements to the board and committees:
- A new member has expressed interest in joining the committee.
- The Web site has been updated with material from the Promotions Committee.
Questions for the board:
- Is anyone producing electronic versions of Karma's by-laws, policies, or anything else that should go on the Web site?
4I. Human Resources Committee (Graeme)
Report submitted:
Date of Last Meeting: February 16
Date of Next Meeting: undecided
Actions Items:
- Committee discussed ways to support the general manager and the staff. Ideas included: surveying the staff to find out how we can support them; developing more board and committee accountability; stress management sessions for staff; providing a mentor for the general manager (exterior to Karma); job description review for Sarah
- Developing a new contract and job description for the general manager. Will be working with Geoff and Andy to use their human resource experience for this.
- In the initial stages of developing human resources policies as well as other supporting materials for staff
Discussion
Graeme noted that he was now the committee liaison and Caitlin would serve as the committee chair.
5. Executive Reports
5A. President (Graeme)
Report submitted:
Action Items:
- Refer to human resources committee for explanation of specific items related to the human resources
- Developed a standard template for the committee, executive and general manager reports to the board
- Met with the general manager and discussed various initiatives. Can provide details if desired.
- In the process of working co-ordinating the redesign of the north and east outside walls of Karma in the spring. A new spring look.
- Initiated a policy review and development process. It is expected that this initiative will last for several months and will be assisted by the vice president, various board members and staff
- Working with the treasurer, staff and other members to investigate the idea of a “point of sales” system for the store.
- Working on developing a generic committee policy template that will be adapted by committees. The template is primarily based on the committees discussion item at the December board meeting.
- Working on developing a template for a board policy that will present responsibilities and minimum requirements. Will be part of the board binder, which will be completely redesigned this year.
Announcements to the board and committees:
- Organizing a meeting to discuss the non-working member surcharge for Monday March 1 at St. Alban’s school at 7 PM. All are welcome. I will identify key members who need to be invited.
- Will be attending appropriate committee meetings to further develop the cash flow ideas that came out the December board retreat in the next month to two months.
Questions for the board:
- Can we implement the new two person membership loan as soon as possible rather than June 1?
- Can we have another one-day board retreat in the late spring or summer?
- How do we build the and enhance the Karma community?
Other Notes:
- Attended human resources, maintenance, member labour and promotions committee meetings.
- Trying to discuss member labour changes with Brian Iler, but have been unable to reach him.
- Will be sending out member labour proposals to an identified cross-section of Karma members for feedback
Discussion
The questions for the board were deferred for the next meeting.
Graeme added that a non-member is working as a volunteer on a branding/marketing plan for Karma, which the development of a brochure being the top priority.
5B. Vice President (Andy)
Report submitted:
Action Items:
- Policy review requirement, discuss
- Senior work exemption, equivalent credit, members <10, no predicted impact to work requirement
Questions for the board:
- See above for senior work exemption
Other Notes:
- Proposal: That all members of Karma coop in good standing and have reached the age of 65 be permitted to be exempt from providing labour and still remain credited as an active working member in good standing.
- Proposal: That all members of Karma Coop in good standing and who identify themselves as requiring accommodation under the Ontario Human Rights Code and where Karma is not able to modify the work requirement, in duties or hours, be permitted to be exempt from providing labour and still remain credited as an active working member in good standing.
Discussion
Andy noted that he would submit a formal proposal to the next meeting as part of a greater membership policy.
5C. Treasurer (Geoff)
No report submitted
Discussion
Graeme indicated that he felt it was critical for board members to get financial reporting in advance of the board meetings. Geoff said he will ensure that materials are available prior to the meetings as Victoria typically completes the statements on the Tuesday prior to the Monday board meetings.
5D. Secretary (Christie)
Report submitted:
Action Items:
- Draft January 2004 board meeting minutes and distributed to directors for review.
- Amended December 2003 board meeting minutes, distributed electronically to board members, submitted to web site, and posted at store.
- Checked board@karmacoop.org account for messages intended for the board
Discussion Christie noted that she had also submitted list of financial policies for the board policy development process.
She also indicated she would be meeting with the member who is undertaking the Karma documentation and archiving project. Andy suggested that there may be other board members interested in attending the meeting and requested that she notify members of when the meeting would be held.
She proposed a motion to strike the Annual General Meeting committee which she will be the board liaison to. She noted that she would advertise for volunteers to serve on the committee for some or all of the time period between now and when the meeting is held with the expectation that their tasks would include visiting prospective sites, booking a location, establishing a budget for the event, undertaking a bylaw review, planning an information session for prospective board candidates.
There was consensus to strike a committee to organize the 2004 Karma Annual General Meeting.
6. Manager's Report (Sarah)
Report submitted:
Payments to the receiver general are up to date.
Retail sales tax and WSIB payments are up to date.
Sales: Sales appear to be above target for the month of February.
Staff: There are no significant staff changes to report. There have been no resignations, hires or significant changes in responsibilities. Average wages for staff increased in January due to raises awarded to staff who passed their probationary period in December. Michael Armstrong is on a two week parental leave ending Feb 29th. Mike Haliechuk is assuming the role of produce manager during this time.
Capital Changes: There are no capital expenditures to report.
Operational Changes: There are no operational changes to report.
Member Labour: Snow storms throughout the month of January resulted in an increase in the number of unfilled shifts. Unfilled shifts continue to be a significant problem at the beginning and end of each month.
Miscellaneous Items: Liability insurance and loan applications are still in progress. An updated budget for 2003-2004 is the last item needed to complete both of these applications.
Announcements and Questions to the board and committees: Nothing to report
Discussion
Sarah noted that she was no longer significantly concerned about the staff performance issues that she had previously raised. Andy suggested that the board did not need to be apprised of individual performance concerns.
Sarah indicated that sales appeared to be on track to be above target for February.
Justin asked if Karma had ever looked into grants. Graeme said he already had begun to do so.
7. Business Arising
7A. Marketing plan and member’s drive
Graeme said the first issue to determine is whether or not Karma needs a membership drive at all. Decided by consensus to defer the issue indefinitely unless such time as someone raised it again.
7B. Publishing, communication and business planning committees
See comments in President’s report.
Christie asked if board meetings could be extended to allow for more time. There was a suggestion that some additional meeting be held to allow time to cover more issues, such as policy development or financial recovery. It was agreed that the idea could be revisited.
8. Other Business
Agreement by consensus to adjourn.