Westview Co-op general manager Dennis Laing says if a proposed merger of Westview and the Drumheller Co-op does take place, no current Olds workers will lose employment ñ although their jobs may change.
He says redundant positions will be eliminated in the future, but that will occur through attrition (they won't be filled as employees quit for whatever reason).
In addition, Laing says the headquarters of the new entity will be in Olds, at least in the near future.
"For the time being, nothing will close. But nothing will expand, either," he said during an interview with the Albertan.
There may be more mergers in the future, too.
"I certainly would not rule out any possibility of that," Laing said.
The two co-ops announced the proposed merger in a news release last week.
If members of both organizations ratify the merger, the two entities will become one effective Feb. 1 next year, under the name Westview Co-operative Association limited.
Meetings to explain the proposal and enable members to vote on it will be held in Olds on Oct. 19, 7 p.m. at the Pomeroy Inn & Suites and the day before that at 7 p.m. in Drumheller.
When asked if Westview Co-op employees in Olds will lose their jobs if the merger goes ahead, Laing said, "both sides have committed (that) every current team member will have a home in the new Co-op."
"They just may not be doing what they're doing today," he added. "It will allow for the reallocation of some resources to allow for some specialized team members, rather than a few team members wearing far too many hats."
Laing said merger discussions between the two boards of directors began about a year ago.
He said from Westview's viewpoint, there are two advantages to the two joining hands.
"Drumheller has a home and building solutions store and agro centre that complements our offering; it's things that we don't offer already, so we're diversifying our sales," he said.
"By spreading out our trading area over a larger geographical distance, because we are primarily dependent on agriculture for revenues, it allows for poor growing conditions in one part of the geograhic area while the other side may have a better year."
Laing said another factor driving the merger is that companies selling the same products Co-ops do are getting larger all the time, providing them with stronger buyer power so they can offer goods at lower prices. Westview Co-op has to do the same.
"Our biggest strength as a Co-op system is also our biggest weakness; and that's autonomy," he said. "So by ourselves, yes, we are strong, but we don't have the buying power of the Sobeys, the Loblaws, the Lowes, or any of the large companies."
"By joining forces, it increases our buying power. It's good for the system; it's good for the membership," he added. "We've identified synergies in this amalgamation for annual savings of in excess of $200,000."
"For example, when we have rolling stock and that sort of thing, each Co-op has their own set. And lots of times, these trucks or these vehicles, are meeting each other on the road and really, the drivers are waving to each other. It's not efficient," Laing said.
"By joining forces, it drives efficiencies into business where we can actually compete and remain sustainable in the long run."
Laing said Westview could have joined with other Co-ops, in places like Calgary, Rocky Mountain House or Red Deer. However, the discussions began with Drumheller. Both sides agreed to pursue those to see where they'd lead ñ and they led to the proposed merger.
"For the time being, nothing will close. But nothing will expand, either."DENNIS LAINGGM WESTVIEW CO-OP
