Economic relationships are implicit in any business, and economics relate to more than just money. There is a range of systems in which economic trade occurs, so it’s important to differentiate a cooperative’s role in the market place. A co-op is owned by and exists to meet the needs of its community of owners. We operate in competition with corporate retailers, whose purpose is to maximize return on capital. While they may sell similar goods and services, “Equitable economic relationships” highlights this differentiation in the market.
“Equitable economic relationships” means we work to ensure that all who are involved in providing goods and services to our community are treated fairly and without exploitation. This at times feels untenable. The food industry is fundamentally inequitable, and consumers expect that food will be inexpensive. When you attempt to be more equitable throughout the supply chain, the cost goes up and so does the price. This is a dynamic tension and is one of the greatest challenges in working toward our Ends.
The “real cost of food” is an interrelated web of economic, environmental, and social costs that are usually not reflected in price tags at the grocery store. This is in part what makes it so difficult for a local, natural foods retailer like Seward Community Coop to compete as corporate competition increases. We prioritize purchasing from local “Community Foods” producers when global commodities and processed foods are subsidized; We source from sustainable and organic growers who steward natural resources, despite cheap products available that externalize these costs; We are a union employer and provide competitive health insurance, paid vacation time, and many other benefits when many employers in the food industry do not.
Employees are a key stakeholder related to equitable economic relationships. This past fall Seward Community Co-op and our employees’ union, UFCW Local 663, unanimously ratified a three-year contract, which resulted in a material increase to incomes for our workers and has been cited as industry leading pay. The co-op’s starting wage for entry level positions that required no previous experience increased from $15.50 to $17.65, well over the 2024 Minneapolis minimum wage of $15.57. This increase of $2.15/hour applied to all pay levels and years-of-service of staff in the union, and will increase to $5/hour over the three-year contract term.
“As difficult as negotiations can be, the co-op’s position has always been to offer the best wages possible while being responsible to our owners and customers. We believe that this new contract balances our desire to provide the best possible workplace experience with management’s responsibility to ensure the long-term financial sustainability of our community-owned co-op. I am proud that we were able to come to an agreement rooted in our shared values.”
–Ray Williams, General Manager
Measure 1: We strive to make Seward Co-op a desirable place to work. We cultivate a collaborative and respectful relationship between leadership and our employee’s union, UFCW Local 663, to regularly negotiate a mutually beneficial contract. We develop staff to help build the cooperative economy and contribute to its highest ideals.
• 200 total employees on June 30, 153 are in the bargaining unit.
• 137 employees (68.5%) are eligible for healthcare (full time) and 176 (88%) are eligible for a 401k (over 18 and worked over 1000 hours).
• Starting wage is $17.65 and median bargaining unit wage is $22.65 as of June 30.
• 93 employees have worked for the co-op for more than 3 years (more than 5 years: 81; more than 9 years: 34).
• 275 hours of learning, training, and development invested in employees.
One of our efforts to grow an equitable economy that builds shared assets and community well-being is our in-house brand, “Community Foods: Values Every Day”. Community Foods is a labeling program featuring producers that best align with our cooperative values and mission to sustain a healthy community. With Community Foods, we focus on the stories of producers that support Seward Co-op's Ends. Community Foods purchases are important, everyday investments in a sustainable and equitable food system. To qualify for the Seward Co-op Community Foods label, producers must meet at least two of the following criteria:
Local—producers from Minnesota, Wisconsin and Iowa.
Small-scale—products direct from producers.
Cooperative—businesses run by and for people, with democratic governance and profits shared proportionate to use.
Inclusive— farms or businesses owned by people who identify as Black, indigenous, people of color, women and other historically underrepresented groups.
Sustainable—producers who are stewards of the land and environment.
Measure 2: We contribute to a more equitable economy by investing time to support emerging vendors and offering quality products through intentional sourcing.
• $16,829,819 in Community Foods products sold (41.2% of sales).
• 364 Community Foods producers on June 30, 2024. 24 are new this year.
• $1,882,637 in fair trade products sold (4.6% of sales).
It’s worth noting that our Community Foods program results in another dynamic tension—the challenge of balancing an inclusive, equitable supply chain with many vendors and the need to efficiently use staff time and not add too much cost to the product from excess handling. Conventional grocers keep costs low, in part by limiting the number of distributors they work with, often relying primarily on one distributor for almost all the products in their stores. At Seward Co-op, we order from 333 distributors. That increase in variety is also an increase in complexity, which requires time and skill to manage. New-to-market and historically disadvantaged vendors often require more time investment, however, we see this as an important opportunity to support these producers in developing their businesses.
“As the Grocery Buyer for Seward Co-op, I’m always looking to build new relationships with vendors who can enrich the stores’ offerings, especially with vendors who fall under the Community Foods umbrella. Community Foods is our unique labeling program that designates producers who most strongly align with our values. This past year, I was very excited to bring in a hyper-local Community Foods vendor: Jakeeno’s Pizza and Pasta. Jakeeno’s is a second-generation family-owned business that’s run by Patty and Amy Keegan, the daughters of the South Minneapolis restaurant’s original founders. Their delicious lineup of frozen pizzas, plus their jarred pizza and pasta sauces, elevates what we offer at Seward Co-op, and selling their products is another way to keep money in the community. I hope that beyond their pizzas selling well at the stores, people in our community will visit and support their restaurant too. It’s so close to the Friendship store! Ultimately, my hope for any vendor relationship is that we lift each other up, and that we’re all stronger for it.”
- Brian, Grocery Buyer
Again, balancing equity in the supply chain and price for consumers is one of the most challenging, dynamic tensions that we face as a co-op. Higher prices are a barrier to shop at the co-op. When a natural foods co-op attempts to carry less expensive conventional products, there are significant sourcing barriers. For example, it took a major community crisis to finally get SuperValu to deliver to our stores. Because of our low volume, we pay a much higher price for their products than other retailers. In addition, when we carry cheaper, conventional items, we may be in conflict with other aspects of our Ends and/or face adverse customer reaction. Our needs-based programs, including Nourish, which highlights “everyday low price” items, are designed to help mitigate this and increase access for those in need.
Measure 3: We make our products accessible and available at a range of price points.
• $1,319,404 in SNAP and WIC transactions (3% of sales).
• $1,723,604 Nourish “everyday low price” products sold (4.2% of sales).
• $4,637,605 in needs-based discount transactions (11.4% of sales) for a cumulative discount of $463,760.