|
|
|
Localism and Rochdale Co-operation: The Junee District Co-operative Society
Nikola Balnave and Greg Patmore*
Despite the disappearance of many Rochdale co-operatives in Australia, the Junee District Co-operative Society founded in 1923 continues to thrive. The Co-op was a non-union workplace for most of its history and did not become involved in the broader co-operative movement until the late 1970s. This article examines the history of the Co-op to understand why it has survived and prospered, despite facing competition from local private-sector retailers and one major chain store. Of particular note is that the Co-op operated in a town whose population has generally declined since the 1930s. The threat of competition from large chain stores has therefore decreased over the years due to the constrained market. Recognition of the need to modernise retailing methods has also been a factor in the Co-op's longevity. However, of central importance is the issue of localism and the reciprocal relationship that the Co-op has developed with the town of Junee. The financial survival of the Co-op became linked to economic sustainability of the town.
|
1
|
| Despite the disappearance of many retail co-operatives in Australia, the Junee District Co-operative Society (hereafter the Co-op), which is situated in the Riverina region of New South Wales, continues to thrive. This article examines the history of the Co-op to understand why it has survived and prospered, despite facing competition from local private-sector, for-profit retailers and one major chain store. Of particular note is that the Co-op operates in a town whose population has generally declined since the 1930s. The threat of competition from large chain stores has therefore decreased over the years due to the constrained market. Recognition of the need to modernise retailing methods has also been a factor in the Co-op's longevity. However, of central importance is the issue of locality and the reciprocal relationship that the Co-op has developed with the town of Junee. |
2
|
|
Indeed, the Co-op has drawn strength from its close ties with the local community. It built links with other local businesses through organisations such as the local Chambers of Commerce and Rotary. Its prosperity became increasingly tied to the prosperity of the town. Like other Junee businesses it highlighted the importance of shopping locally. From the 1980s it even changed its retail activities to ensure that a viable range of businesses still operated in the town and that consumers did not do their shopping in the nearby large regional centre of Wagga Wagga. This promotion of localism, 'a sense of place which can influence behaviour,'1 became an integral part of the Co-op's survival. |
3
|
|
This article will initially examine the concepts of co-operation and localism. It will focus on Rochdale consumer co-operation and its impact on Australia. The concept of localism will be expanded from the focus on production to consumption, highlighting buy-local campaigns and opposition to hawkers and travelling sales representatives. The article will then provide an overview of the development of Junee. It highlights the significance of the railways and the surrounding rural activities for the town's economy. Railway workers played a key role in the foundation of the Junee Co-op and farmers became significant as members and customers. The final two sections then look in depth at the history of the Co-op with introduction of self-service in 1962 being a watershed. It will examine issues relating to membership, business practices, employee relations, community relations and the broader co-operative movement. |
4
|
| |
|
Concepts and Literature | |
| As a generic concept, the definition of co-operation is vague and has a wide range of meanings. In the 1890s, it could mean more harmonious relations between capital and labour through more `amicable' industrial relations procedures and profit sharing. It also stood for the replacement of capitalism through production enterprises owned and managed by workers, or the organisation of consumers in co-operative stores. It covered a variety of land settlement schemes that arose in Australia during the 1890s against a background of high unemployment and social experimentation. These schemes encompassed both individual ownership and joint ownership. Employers sponsored 'co-operative' company stores in towns such as Port Pirie in 1917 and Port Kembla in 1918. While these company stores could make locations more attractive to workers by broadening the range of retail services and lowering the cost of living, they also prevented workers from obtaining credit during industrial disputes and minimised wage demands by controlling prices.2 By the early 1950s, one definition of the Australian co-operative movement included Rochdale consumer co-operatives, producer co-operatives, building societies, credit unions, community advancement societies, agricultural co-operatives and friendly societies. Co-operation was viewed as a way of `helping each other', which emphasised not only `self help but mutual help'.3 In 1988, a NSW Government agency proclaimed that the `essential difference between co-operatives and other forms of economic enterprise is the subordination of business techniques to ethical ideas. The focus is on service and reach rather than maximising profits'.4 |
5
|
|
The Rochdale consumer co-operatives were founded on the basis of a clear set of principles. Following an unsuccessful strike in 1844, 28 flannel weavers in Rochdale, England started the movement to combat low wages, high prices and poor quality food. Their interest in co-operation was built upon the foundations laid by British manufacturer and social reformer Robert Owen, who believed that ideal communities based on co-operation rather than competition would eliminate unemployment and pauperism, and create a prosperous and harmonious community. The principles for the Rochdale co-operatives included: the provision of capital by members at a fixed rate of interest; unadulterated or pure food to be supplied, with the full weight and measure given; market prices; cash purchases only and no credit; a dividend on purchases or `divvy' based on profits was to be divided among members in proportion to the amount of purchases; management to be based on democratic principles with `one member one vote' rather than `one vote one share'; and that a share of profits should be allotted to education.5 |
6
|
|
The Rochdale movement in England grew, despite a number of legal and economic obstacles. Private retailers attempted to limit competition from the co-operatives by persuading wholesalers to stop or restrict supplies to the co-operatives. There were also concerns about relying upon private manufacturers more concerned with profits than product quality. So the retail co-operatives established a Co-operative Wholesale Society (CWS) in England in 1863 and Scotland in 1868. The wholesalers also operated on Rochdale principles such as a fixed rate of interest on capital and a `divvy'. The wholesale societies ultimately became global enterprises with purchases of primary products from countries such as Australia and Canada and tea plantations in Sri Lanka and India. The English CWS also moved into banking and insurance. The retail co-operatives formed a Co-operative Union in 1872 for education, legal, propaganda and political purposes. A notable outcome of the Co-operative Union activities was the formation in 1883 of the Women's Co-operative Guild, which aimed to promote an interest by women in the co-operative movement and also protect female employees. Retail co-operatives even formed a Co-operative Party in 1917, which formally affiliated with the British Labour Party in 1927. By 1948 there were 1,030 retail co-operatives in the United Kingdom with 10,162,000 members.6 |
7
|
|
British immigrants played an important role in bringing the Rochdale principles to Australia. Retail co-operatives became a feature of coal-mining districts such as the Hunter Valley, the Illawarra, the Lithgow Valley, Wonthaggi in Victoria and Collie in Western Australia. There were Rochdale co-operatives outside these areas. Particularly notable was the Adelaide society, which began in May 1868 and had 9,412 members by 1923. In 1923, there were 152 consumers' societies in Australia, with a membership of 110,000 and a capital of £1,800,000. New South Wales and South Australia were the strongholds of these consumer societies. Even during the virtual collapse of the Rochdale co-operatives during the 1970s and 1980s the Newcastle and Suburban Co-operative achieved a peak membership of 95,000 in mid 1978. The Hunter Valley retail co-ops also founded the New South Wales Co-operative Wholesale Society (hereafter NSW CWS) in 1912. The NSW CWS set up a broom factory in Newcastle in 1914, and packed bulk goods such as soap and tea under its own name. It imported tea from the English CWS. It published the Co-operative News, which was the main journal for the co-operative movement, from 1923 to 1959. By 1949, the NSW CSW had 110 affiliates, with some in Victoria. Not all Rochdale co-operatives necessarily joined the CWS. The NSW CWS eventually ceased operations in 1979. There were also Women's Co-operative Guilds in NSW and South Australia. The movement developed its own leaders such as George Booth, Margaret Jones and Tom Shonk. While there was some discussion of the Rochdale co-operatives forming a Co-operative Party and a Co-operative Bank, this never eventuated in Australia. Although the Australian movement did not achieve the success of its British counterparts, it was significant for workers and their families in a number of localities.7 |
8
|
|
There have been many reasons put forward for the virtual collapse of the Rochdale co-operative movement in Australia. There were ideological issues. The ideology of the co-operative movement ranged from what may be termed `business co-operativism', which focussed on the `divvy' and the return of capital, to a fundamental belief in the need to replace capitalism with a Co-operative Commonwealth `of decentralised, autonomous co-operative enterprise in primary, secondary and tertiary industry linked democratically through a Co-operative Union to other democratic bodies and directed by policies set at a Co-operative Congress'.8 These divisions had major implications for the Rochdale movement in Australia, which was unsuccessful in establishing a permanent national organisation. The Rochdale movement also claimed it was non-political and `classless', to avoid divisions over allegiances to the Labor Party, Communist Party and even non-Labor Parties. This non-political stance created suspicions on both the Right and Left, particularly during crises such as the Labor Party split of the 1950s. The desire of the Australian Rochdales to be part of a broader international movement also created difficulties. Gary Lewis argues, in part, that the reliance of the NSW CWS on higher-price English CWS imports may have reduced the competitiveness of local Rochdales.9 |
9
|
|
There are general and specific criticisms of the management of the Rochdale co-operatives. There was the potential for tension between shareholders, management committees and appointed managers that led to poor business decisions. Shareholders pre-occupied with economic returns expected high dividends, or 'divvies' as they were more commonly termed, and a satisfactory return on capital. There were expectations of liberal credit policies, high quality goods and fair prices. Managers wanted to retain surpluses to allow for investment and expansion. Some managers saw themselves as businessmen first and co-operators second. There were also continuing concerns about the competence of managers and calls for training programmes. The democratic structure of the Rochdale co-operatives provided shareholders with opportunities to express their displeasure with the management. There are examples of shareholders, such as at the Lithgow Co-operative Society in 1925, removing management committees and managers that did not deliver a reasonable return, and raising the price on staples such as bread or providing poor quality merchandise.10 |
10
|
|
The nature of labour relations was complicated in retail co-operatives. The Rochdale co-operatives claimed that they treated their employers better than the private sector because they were not preoccupied with profits. The relationship between employees and management was complicated further by the ability of workers to become shareholders through the purchase of shares. There was also the question of nepotism in recruitment, particularly as many co-operatives operated in small towns with limited local labour markets.11 These factors created the context for a liberal approach to labour relations, weakening management's ability to deal with employee problems and causing them to bend to the needs of employees at the expense of non-employee shareholders. |
11
|
|
The Rochdale co-operative movement also failed to establish a close official relationship with the labour movement. The co-operative movement regularly appealed for a greater link with the labour movement, urging unions to invest funds in co-operatives in preparation for industrial action. In turn, there are examples of Rochdale co-operatives, such as the Woonona Industrial Co-operative Society in the Illawarra region of New South Wales, providing credit to striking workers and encouraging union closed shops. Calls within the Rochdale movement for unions of co-operative employees and the Co-operative Party did not please trade unions and the Labor Party. There were also concerns about the political effectiveness of the Rochdale movement in challenging capitalism and fears that the co-operatives were reinforcing capitalism through business co-operativism. Despite the claims to the contrary, some unions believed that in the treatment of workers there was little difference between the co-operatives and the private sector.12 |
12
|
|
There is the issue of competition from the private, for-profit sector, particularly where Rochdale co-operatives posed a threat to the financial viability of these private sector storekeepers. There was direct competition, which involved price wars, bribery and collusion with wholesalers aimed at crippling and bankrupting the co-operative stores. There was indirect competition associated with the changing nature of retailing. Lewis has recognised that the ethnic diversity associated with post-war immigration introduced `new styles, new approaches and new demand' in Australian retailing. The ability of the Rochdale co-operatives to deal with these challenges was a key to their survival and also maybe a partial explanation of their collapse in a number of localities. The rise of chain stores, cash and carry, supermarkets and shopping centres are examples of this.13 |
13
|
|
While the Rochdale movement has generally collapsed, a number still survive in rural areas. One of the largest is Nuriootpa in the Barossa Valley, which was founded in 1943 and currently boasts 13,000 members.14 One reason for the survival of these rural Rochdales could be their ability to link the Co-op's prosperity with the future prosperity of the local community. They tap into a sense of place or `localism'. |
14
|
|
'Localism', which involves a sense of place, highlights spatial organisation. It is based on economic infrastructure and social infrastructure. Economic infrastructure provides employment and income. It includes roads, factories, houses, mines and railways concentrated in a particular space. Social infrastructure is built on family, neighbourhood, work and social interaction within a particular space. These networks build familiarity and dependence, providing a basis for movements which may either boost local interests or defend a local `way of life' against `outsiders'. Community leaders may consider union organisers to be `outsiders' who threaten local harmony. Equally, an `outsider' can be an employer who purchases a local business and runs it from another place. The employer may challenge `localism' by making decisions on the basis of a national rather than local economy and ignoring local custom and practice. Rochdale co-operatives, because they are owned by local residents, could use this against chain stores such as Coles and Woolworths.15 |
15
|
|
There is disagreement over who benefits from `localism'. Some sociologists claim that the town's elite may promote `localism' to service the needs of capital and obscure local class inequality. Others note that 'localism' may also be a liberating force that promotes change because it highlights the economic and social inequalities between a locality and elsewhere.16 These perspectives can be synthesised in that `localism' can have both positive and negative implications for labour and the local community. As Iris Young argues, `liberating politics should conceive the social processes in which we move as a multiplicity of actions and structures, which cohere and contradict, some of them exploitative and some of them liberating.'17 |
16
|
|
There are three important qualifications in discussing `localism'. First, `localism' does not deny the importance of identities based on class, gender, race or sexual preference. While labour historians have shifted away from primary focus on class, they recognise that class relationships remain a major social dynamic.18 Class interacts with other social identities `and can be either a source of richness or a source of conflict, or both'.19 Second, `localism' may not be shared by all people in the same space. The town's elite may promote `localism' to attract industrial development. However, groups suffering discrimination or having minimum influence in Australian towns, such as Aborigines and Chinese, may feel little enthusiasm for movements based on `localism'. Third, `localism' does not prevent locals searching for solutions to problems outside their particular space. The locality is not completely isolated from the broader political and economic context, and the external environment may have a significant impact. Locals may seek state or federal legislation to redress grievances. There may not be sufficient local capital to create employment opportunities or maintain existing jobs. Locals will have to convince outside companies or the state to provide capital investment. They will try to find solutions that best meet their local interests during periods of economic crisis or an industrial dispute.20 |
17
|
|
While `localism' can influence issues relating to production such as labour recruitment and labour organisation, it can also affect consumption. At one extreme are the `buy local' campaigns to ensure that residents of particular communities purchase from local businesses and they do not spend money elsewhere. These campaigns are designed to preserve local job opportunities and maintain viable communities. At another extreme is the hostility to itinerant sales representatives or `hawkers'. In efforts to protect local jobs, local business people have in the past portrayed male hawkers as `frightening women' by going door to door or deceiving consumers by selling items of deceptive quality and quantity. The Barrier Industrial Council banned door-to-door sales due to its negative impact on employment in the town. Locals may also direct hostility towards firms outside the locality that sell goods through mail order catalogues or more recently the Internet.21 The article will now explicitly focus on the interplay of localism and Rochdale co-operation in Junee. |
18
|
| |
|
The Local Economy and Industry Structure | |
The population of Junee was 20 in 1876.22 As Table 1 indicates, the population grew to 1,682 in 1891 and Junee reached its peak census population of 4,213 in 1933. Since then there has been downward trend in the population of the town. This declining population posed a major threat to the viability of the town, particularly with the growth of the nearby regional centre of Wagga Wagga since World War II. It fuelled campaigns by the Junee business community and the municipal council to `buy local' and promote industry.23
|
19
|
Table 1: Population of Junee at every census since 1891
| Year |
Population |
1891
1901
1911
1921
1933
1947
1954
1961
1966
1971
1976
1981
1986
1991
1996
2001 |
1,682
2,190
2,531
3,560
4,213
4,010
4,064
3,980
3,904
3,772
4,005
3,993
3,720
3,673
3,681
3,592 |
Source: J. Ferry, Junee and the Great Southern Railway, Junee Shire Council, 2001,p. 42; ABS 2001 Census Data: Junee (Urban Centre/Locality)
|
|
|
24Junee owes its early growth primarily to the arrival of the railway. It is midway between Sydney and Melbourne on the main Southern line (previously named the Great Southern line) and is the junction of the line to Narrandera and Griffith. Prior to the arrival of the railway, Junee was described as 'a postal township ... in the midst of fine undulating country. The entire district is a pastoral one, there being very little land under cultivation.'25 The arrival of the railway on 6 July 1878 was to have a dramatic impact on Junee, turning it into a booming regional town. The government increased its railway operations at Junee, establishing a locomotive depot in 1881 and shifting the staff at the existing depot in South Wagga Wagga to Junee. In 1883, a gas works was erected to light the railway platform and yards. The remaining staffs at the locomotive depot at Bowmen (North Wagga Wagga) were relocated to Junee in 1884, and in the same year a goods shed, a loading stage, a brick gatehouse and a three-ton crane were erected. Four brick and four wooden cottages were also built for married railway employees. Single men were provided with tents and expected to find their own board.26 |
20
|
|
Modifications and improvements continued over the following years, and with the completion of the Bethungra spiral and duplication of the main line north in the early 1940s, it was realised that a new and larger locomotive depot was required. The resulting 42 road capacity roundhouse was officially opened on 29 September 1947. The roundhouse employed 350 men working 24 hours a day, and its closure on 9 July 1993 was 'a massive blow to the community'.27 |
21
|
|
From the beginning, Junee had a considerable railway population, which significantly contributed to the growth of the town. The railways employed more than half the town's population in its heyday.28 The early population boom occurred despite the unavailability of land in the early years. The government had not secured sufficient land around the railway station for public purposes, and the conditional holder of the land, C.W. Crawley, initially refused to sell. This also meant that the town developed on both sides of the track, since much of Crawley's land on the western side was unavailable for purchase for many years.29 |
22
|
|
One sign of Junee's early boom was the speed at which it moved from its proclamation as a village in 1883 to the incorporation of the Junee Borough Council in 1886. This gave the town a representative voice in its dealings with governments in Sydney and the NSW Department of Railways. The levying of rates also provided money for the development of town infrastructure and recreational amenities. In 1906, the Shire of Illabo was proclaimed and a council duly elected. Junee became the headquarters for this rural shire, consolidating the links between the town and its surrounding agricultural district.30 |
23
|
While in earlier years the surrounding country had been used for pastoralism, the coming of the railways and the Crown Land Act in 1884, designed to encourage closer settlement, opened up this land to agriculture, especially wheat. As Ferry contended, this change made Junee into something more than a railway town in the first two decades of its existence. He noted that:
Pastoralism did not produce big towns ... However, intensive agriculture, especially wheat farming, was very beneficial for nearby towns as smaller farmers tended to deal locally, and wheat and other crops presented greater opportunities for local secondary industries such as milling and wine making.31
Junee thus became integrated into the agricultural production of its district. Ferry has argued that Junee's growth in the early decades owes as much to closer settlement and the related change in the nature of primary production as to the expansion of railway operations. Farming also helped the town have a more diversified economy compared to other NSW railway towns such as Werris Creek, which fared far worse from the post-war reduction of railway employment than Junee.32 |
24
|
|
Junee's growing population also attracted service industries. Two newspapers, the Southern Cross and the Junee Democrat, were being published by 1889. The Junee Cottage Hospital was opened in 1890, and the present hospital was completed in 1929. Nurses' quarters and a maternity unit were added by 1943. The Bank of New South Wales began operating in Junee in January 1885 but did not get onto a sound footing until the 1890s, when newly arrived wheat farmers gave the bank their custom. The Commercial Bank of Australia also established early operations in Junee.33 |
25
|
|
Throughout most of its history, Junee has had six hotels, each with a particular relationship to the railways. Three of these — the Commercial, Loftus and the Railway (later the Junee) — were established close to the railway station and relied on train passengers for their custom, particularly those changing lines. The Union Club (later the Red Cow) was closely situated to the old Locomotive Depot and was a railwayman's pub. It provided accommodation for boarders, particularly single men working in the sheds. The Locomotive Hotel also provided lodging for railway workers, and relied on railway men and chaff cutters for its bar trade. The Broadway was badly sited on the west side of the tracks and had difficulty attracting a loyal clientele. The history of these hotels clearly demonstrates their susceptibility to changes in railway activity.34 |
26
|
|
The retail sector developed rapidly in Junee to service the farming community and the considerable number of railway workers. Locals recount that you could buy 'just about anything' in Junee. There was no reason to travel to Wagga Wagga for shopping purposes. The large general stores in the early 1900s included J.S. Taylor's, Keasts and Gilpins. Local butchers and bakers also thrived. Unlike other rural towns, these businesses did not form a commercial strip of a main street. Rather, they were constructed on both sides of the tracks, resulting in a 'Broadway of boulevarde proportions on one side of the track, and a town square on the other'.35 Taylor is well remembered for providing credit to farmers. He would carry a family account for 12 months, requesting payment after harvest each year. Memories of Taylor are mixed. Many locals have fond recollections of Taylor assisting their families. Others remember the darker side of debt. One local has 'always wanted to know how many properties he actually had his finger on'.36 Another recounts: 'He got a lot of people into trouble during the depression times. He just foreclosed on them.'37 |
27
|
|
Secondary industries did not develop in Junee for many decades. The railways did little to encourage this development, and by the 1930s contracted little work outside their own establishment. Until the Tenendra Water Supply Scheme was completed in 1913, opportunities for industrial development were also stalled by the water shortage in Junee. A Flour Mill was eventually established in Junee in the mid 1930s. Other forms of secondary industry appeared over the following years including a clothing factory, a straw envelope factory, cordial factories and a liquorice factory. Throughout its history, Junee also had several blacksmiths, garages, an egg marketing board, a winery and a foundry. Further, the NSW Government approved the establishment of a private prison in Junee in 1993 to help sustain the local economy.38 |
28
|
|
While the railways were important for the local economy, they also shaped the social and political character of the town. The railway was a major focus of many town activities beyond working hours. From the early years, railway-based recreational and professional organisations were formed and used railway facilities for their functions such as annual balls. A particular favourite was the Railway Refreshment Rooms. A branch of the Railway and Tramway Institute was officially opened in Junee on 10 November 1916. By the end of the following year, membership had reached 260. The old Junee School of Arts was purchased for the Institute Library in 1920. The Municipal Council contributed an annual sum to library. As a result of the 14-person committee controlling the library, three were town (non-railway) delegates, the other 11 consisting of railway representatives from various branches. In 1978, the Junee Institute Library was one of six that remained active in New South Wales, and membership totalled 516. The Institute also conducted typing and shorthand classes, and provided other tuition such as sewing. It provided a hall for public activities and functions, and operated the railway-built tennis courts. The railway vote also helped make Junee a Labor town in state and federal elections for many years. Indeed, while the seat of Wagga Wagga was traditionally Country Party territory, the inclusion of Junee in the electorate saw it fall to Labor in the 1941 state elections. Eddie Graham won the seat and retained it until his death in 1957 when it reverted to the Liberal Party in the by-election (and has since remained with that party). Junee booths, nevertheless, remained strongly committed to Labor.39 |
29
|
|
Overall, in many ways Junee developed as a typical railway town. However, the importance of primary production to the local economy should not be understated. Indeed, since the early boom, the town remained economically viable despite significant changes in railway operations. |
30
|
| |
|
The Early Years 1923–62 | |
| The Junee District Co-operative Society opened for business on Monday 2 July 1923 and was legally registered under the 1901 NSW Building and Co-operative Societies Act on 24 October 1923. However, there were Co-operative societies in Junee well before this date. The Co-operative spirit of the people of Junee is notable as early as 1907 when the Junee Co-operative Society was established. This society was seemingly successful and supported early moves to establish the NSW CWS. This contrasts to the attitude of the later Junee District Co-operative, which did not affiliate with the NSW CWS. The earlier Junee District Co-operative remained in operation until 14 July 1910, when the store burnt down. This was the fate of many stores in Junee during these early years, the lack of water available to the Fire Brigade being a major issue in the town.40 |
31
|
|
A branch of the Railway and Tramways (R&T) Co-operative Society was operating in Junee in 1921. The R&T Co-operative, which was registered as a co-operative in 1920 under the 1901 NSW Building and Co-operative Societies Act differed from Rochdale consumer co-operatives in that it sold at cost. The Junee branch had its store in Broadway and emphasised the principle of `no profit' with goods supplied directly from the manufacturers. While these branches were familiar to many country towns, Junee was one of the more successful. In December 1921, the R&T Society had 53 branches. However, by March 1923 this had dropped to 15, with Junee being one of only three to be financially viable.41 |
32
|
|
A group of Junee residents chose to purchase the local branch of the R&T Co-operative Society in June 1923, four months before the R&T Co-operative Society went into liquidation. While the Junee Co-op registered under existing legislation, the interest of locals in retail co-operatives may have been heightened by the broader political debates in New South Wales about clarifying the legal status of co-operatives. These debates led to the passage of the Co-operation, Community Settlement and Rural Credit Act, which came into effect on 3 January 1924. The Junee & District Co-operative Society Ltd had 40 members by 30 June 1925, and for the 1924–25 financial year it made a surplus of £647 on sales of £12,364. It paid out £14 in interest on capital and £100 in dividends on purchases to members. The Co-op's first premises were the former R&T Co-op Society's stores in Broadway. Over the next few years, the Co-op moved to Main Street and then leased the Lorne Street premises in 1931.42 |
33
|
|
Surviving membership data indicates that the membership of the Co-op remained very stable for most of the period prior to 1962. Membership was generally in the mid-90s up to the 1950s. Membership seems to have slightly fallen in 1950s, with one newspaper report citing 80 members in February 1956.43 |
34
|
As Table 2 indicates, the exception to this occurred during the 1930s' Depression, when membership peaked during 1930–31, with 144 members on 30 June 1931. This expansion of the Junee membership stands in contrast to the general experience of Rochdale co-operatives during this period. Lewis has calculated that the membership of Rochdale co-operatives fell by more than half from 60,000 in 1929 to 24,000. As previously noted, the harsh credit policies of local private stores such as Taylor's may have given the Co-op an advantage, with its `divvies' and rebates on share capital. Indeed, despite the Depression, the Co-op was able to return surpluses from 1928 to 1936.44
|
35
|
Table 2: Membership and Financial Performance of Junee District Co-operative as at 30 June, 1928–35
| Year |
Membership |
Surplus/Loss (-) £ |
1928–29
1929–30
1930–31
1931–32
1932–33
1933–34
1934–35
1935–36 |
95
125
144
138
138
117
95
96 |
1,626
1,318
976
660
475
229
161
568 |
Source: Reports of the NSW Registrar of Co-operatives
|
|
|
There was continuity in the leadership in the Co-op during its early years. Early activists in the Co-op included Thomas Grimmond, Robert Joyce, Robert Penfold and Alfred Millson. They were primarily railway employees. Joyce was an ALP member, who was elected as an alderman on the Junee Municipal Council on a number of occasions. Grimmond was active in the Protestant Alliance Friendly Society and St Luke's Church of England. Joyce and Grimmond remained active in the Co-op until their respective deaths in November 1955 and January 1956.45 |
36
|
|
Frederick Schremmer was the first manager of the Co-op. He was born in June 1889 at Wagga Wagga to German-born parents. His family ran a dairy farm on the outskirts of Wagga. He worked at the nearby Coolamon Co-operative Society and J.S. Taylor's in Junee prior to working at the Junee Co-operative. Fred Schremmer guided the Co-op to financial stability through at least two financial crises. He retired as manager in 1956, but was retained as an advisor by the board of directors until his death in May 1957. His son Toddy briefly succeeded him as manager.46 |
37
|
|
While railway employees were significant in the formation of the Co-op, the membership had diversified by the early 1960s. In 1962, railway workers remained an important group of members, but shareholder records indicate that farmers, graziers and local businessmen were also significant. A garage proprietor, the produce merchant, the grain merchant and the manager of the flourmill were members. Retailers of sports goods and canvas goods in Junee joined the Co-op. Other important groups of members included housewives and retirees. Local professionals such as a doctor and the Catholic priest also joined the Co-op. There is little surviving evidence on the level of participation of the members. A special meeting of shareholders in February 1956 to consider Schremmer's retirement and discuss the continuation of the Co-op attracted half of the Co-op's 80 members.47 |
38
|
|
From the early years, the society supplied groceries, kitchenware, farmers' needs and hardware to its members. In 1933, the Co-op successfully applied to the Junee Municipal Council for the installation of a petrol pump and a licence to sell smallgoods. In November 1946, the Co-op installed what was claimed to be the largest refrigerator in town to supply customers with a range of smallgoods. In May 1957, to help pensioners cope with the increases in the cost of living, the Co-op introduced fortnightly pensioners' specials on basics such as plain flour, potatoes, butter and tea. These pensioners' specials were discontinued in November 1958. Free delivery services also attracted the custom of the less mobile, particularly the elderly. In October 1958, the Co-op began advertising a service whereby an `orderman' would visit customers in their homes and have their order delivered the same afternoon. Members could also call in their order from home and have it delivered the same afternoon.48 |
39
|
|
There is little known about the Co-op's relationship with its employees during this period. There was no union presence at the Co-op prior to 1962, despite the support of the local railway union branches for state legislation for compulsory unionism during the early 1950s. The Co-op only had a small number of employees, with only a manager and two staff in 1960. Schremmer did disagree with unions over the issue of the Saturday afternoon shutdown of shops. He supported other retailers and farmers in their demand for a Wednesday afternoon shutdown as an alternative. Farmers preferred to come into town on Saturday afternoon to do their shopping and stay overnight or return home in the evening. They argued that this allowed them to take advantage of daylight hours. Unions supported the Saturday half-day as it allowed shop assistants to have a longer weekend.49 |
40
|
|
The Co-op maintained generally good relationships with other stores in Junee and the local Chamber of Commerce. As previously noted, some local business people were members of the Co-op. Schremmer played a very active role in the Anniversary Day Sports Committee, which was associated with the Junee Chamber of Commerce. The committee ran a carnival in Junee for a number of years, the proceeds from which funded improvements to a major sportsground in the town. The Chamber of Commerce tried to ensure common opening and closing times. The Co-op's members benefited from a reduction in the price of sugar in July 1955, following successful negotiations between the Chamber and the NSW Government Railways to reduce the freight rate of the product to Junee. The Chamber of Commerce and the local newspaper, the Junee Southern Cross, promoted localism through emphasising the need to shop locally. The newspaper emphasised in January 1936 that local shopping meant prosperity for Junee and an increase in property values for both the town and nearby rural properties. The Co-op joined this cause. Captured in a photograph, the slogan 'Buy Locally — Create Employment' was the message highlighted in large letters on the front of the Co-op's float in a 1947 street procession.50 |
41
|
|
There were, however, limits to the alliance between retailers in the town. The chain store, G.J. Coles, opened a branch directly adjacent to the Co-op in Lorne St in 1956. It occasionally ran advertisements on the same page of the Junee Southern Cross as the Co-op, with specials that undercut Co-op specials on goods such as Kraft cheese. The Co-op also refused to adopt a recommendation by the Chamber in February 1956 to shift the lunchtime closure of all shops in the town from 1.00pm to 2.00pm to 12.30pm to 1.30pm. The Co-op was concerned that this would disadvantage the children of rural families at the Junee Intermediate High School, who lodged their orders and collected them to take home on the bus later that afternoon. The lunch hour at the High School would have coincided with the proposed lunchtime shutdown.51 |
42
|
|
Both Schremmer and the Junee Co-operative played an active role in the community. Schremmer helped administer the local and district rugby league. He held the positions of grandmaster and secretary in the local lodge of the Manchester Unity Independent Order of Oddfellows and raised funds for the Junee celebration of the coronation of King George in 1936. The Co-op donated 10/6 towards the celebrations. The Co-op won the best trade float in the procession celebrating the golden jubilee of the town in September 1936 and won similar awards for processions in the 1940s. During World War II the Co-op sponsored community dances and Victory war-loan drives.52 |
43
|
|
The Junee Co-op remained outside the broader co-operative movement during this period. Except for advertising in the Junee Southern Cross that included the slogan `Co-operation Means United to Assist' in 1942–43, the Co-op made little reference to its co-operative status to attract consumers. While it occasionally sold NSW CWS products such as soap, it did not join the NSW CWS. It preferred to deal with private commercial wholesalers. There was also no branch of the Women's Co-operative Guild in Junee.53 |
44
|
|
By the late 1950s, the Co-op was facing major financial problems. According to locals, the store was filthy and dingy, with the manager only allowing the electric light to be turned on when a customer entered the premises. In 1960, a Junee Municipal Council health inspector condemned 70 per cent of stock, some of which dated from before World War II. In addition, the Co-op was faced with competition from Coles and also with the emergence of self-service. At this point in its history, the Co-op bought most of its merchandise in bulk, and then weighed and dispensed in paper bags over the counter. Customers could even bring their own bottles to be filled by the shop assistant with liquids such as vinegar and methylated spirits. Even with the greater availability of goods in cans, packets and smaller bottles, the customers received their goods over the counter.54 |
45
|
|
Self-service and supermarkets allowed retailers to cut costs through greater turnover and reduced average labour costs. They also reflected the growing use of the motor vehicle and the refrigerator. Cars allowed families to purchase and carry a weekly supply of food purchases home. The car also challenged the viability of Junee as a shopping centre, as locals could readily drive to the nearby larger centre of Wagga Wagga. In addition, refrigerators removed the need for daily purchases as customers could store food for longer.55 |
46
|
|
Slattery's was the first store to introduce self-service to Junee in October 1958 and attracted a great deal of patronage on its first day of opening. It also competed with the Co-op by offering `free delivery at self-service prices'. The long-established Taylor's soon followed with the opening of a `self-service food centre' in November 1958. Taylor's also allowed customers to telephone orders for delivery. The Co-op, despite its emphasis on `friendly service' and `quality goods at low prices', faced fierce competition. After facing growing losses from 1959 to 1961, the Co-op finally introduced self-service trading in September 1962 and immediately returned a slight surplus for that year.56 |
47
|
| |
|
The Co-operative Since 1962 | |
| The adoption of self-service in 1962 had a major impact on the membership of the Co-operative. Membership grew dramatically and reached 324 by 1966. Of these members, 78 per cent joined in the period 1963–66. By June 1971, membership had grown to 1,081. Recruitment campaigns involved advertising in the local press and club newsletters. The Secretary wrote to non-shareholders with accounts urging them to join. In July 1983, it became Co-op policy that non-shareholders who operated charge accounts had to become members. One method to attract the custom and membership of railway workers was a long-standing policy of cashing their cheques on payday, which was every second Friday. Revenue also grew with the Co-op's sales exceeding $1,000,000 in 1978–79. Staff numbers remained fairly static during the 1970s, being 18 in June 1972 and in June 1981, including casuals. The Co-op also increased its dominance in the town's retailing with, for example, the departure of Coles in 1971.57 |
48
|
The dramatic growth of membership in the mid-1960s did not limit its diversity. Of the 324 Co-op members in 1966, there is occupational data for 290. As Table 3 indicates, the major groups in descending order were railway employees, home duties, farmers and graziers, retirees and business people. While women generally tended to do the shopping, they formed 28 per cent of the membership. Female members primarily listed home duties as their occupation, although there were eight farmers and graziers, three railway employees and two shop assistants. The members of the Co-op included key individuals such as the Mayor, the editor of the Junee Southern Cross, the Junee stationmaster and the Junee Town Clerk. Eighty-eight per cent of the members of the Co-op lived in Junee.58
|
49
|
Table 3: Occupations of Members of the Junee District Co-operative Society, 1966
| Occupation |
Percentage of Members (rounded figures) |
Railway Employees
Home Duties
Farmers and Graziers
Retirees
Business Owners and Managers
Local Government Employees
Mechanics
Shop Assistants
Builders
Others |
27
20
18
8
6
2
2
2
2
15 |
Source: Junee District Co-operative Shareholder Register, 1966 (JDCS)
|
|
Since the early 1990s, the Co-op has continued to grow. As Table 4 highlights, there has been a continuing increase in the number of shareholders and a dramatic growth in the number of employees. The growing dominance of the Co-op in the town was capped with the demise of Scotties, the last surviving rival supermarket, in 2004. Turnover increased by 260 per cent between 1991 and 2005. The operating profit, however, has fluctuated since 1991 and there were losses recorded for several years. Indeed, profit as a percentage of turnover peaked in 1993–94 with 2.5 per cent, compared with the latest figure of 1.2 per cent for the 2004/05 financial year. These fluctuating financial fortunes pose limits on the Co-op's ability to modernise. The Co-op paid out its last `divvy' on cash purchases and interest on shareholders' capital for the financial year 1993–94. It has moved to policy of `members discount days and weeks', when shareholders gain price reductions, which amounted to $20,690 in the 2004–05 financial year. The board of directors also preferred to focus their attention on reducing the Co-op's bank debt.59
|
50
|
Table 4: Junee District Co-operative Data — 1991–2005
| Financial Year |
Turnover |
Operating Profit/(Loss) |
Shareholders 30/6 |
Employees 30/6 |
1991–92
1992–93
1993–94
1994–95
1995–96
1996–97
1997–98
1998–99
1999–2000
2000–01
2001–02
2002–03
2003–04
2004–05 |
2,969,218
3,429,218
4,280,478
4,643,142
4,967,094
4,933,849
4,979,006
5,431,636
5,827,422
6,175,926
6,642,799
6,651,109
7,513,646
7,939,569 |
(42,010)
56,522
108,336
10,792
(50,310)
55,393
103,296
101,051
(86,196)
69,906
(60,621)
13,632
35,422
93,093 |
1,160
1,179
1,199
1,232
1,252
1,258
1,268
1,286
1,316
1,366
1,401
N/A
N/A
N/A |
N/A
22
23
26
40
34
33
33
42
49
45
45
47
53 |
Source: Annual Reports to NSW Registry of Co-operatives and Associations, 1991–2005
|
|
|
The stability of the leadership of the co-operative continued after 1962. The secretary-managers generally held long periods of office. They were Brian Rosengreen (1960–79), Rod Kilby (1980–85) and Ian Cooper (since 1985). There was one secretary-manager who served for only five months in 1979–80. Directors continued to serve on the Board for long periods in the Co-op's history. For example, Mrs D. Shaw retired in 2002 after 30 years of service. Similarly, Mr L. Shultz was a director from November 1972 until his death in October 1999, and was chairman from October 1984 until November 1996. They also came primarily from backgrounds in small business and farming, and gave strong support to the managers' efforts to run the Co-op on business lines.60 |
51
|
While the membership grew, there were problems with the participation of members in the governance of the Co-op. As Table 5 indicates, there was minimal attendance at AGMs in the period 1971–81. Average attendance was 12 for this period and the 1971 attendance represented less than one per cent of the total membership. The directors and manager formed a sizeable proportion of the attendees. Staff, who could join the Co-op, also attended. The slightly higher attendance in 1980 was in the wake of some instability in the management of the Co-op, due to several changes in the secretary-manager and some dissatisfaction over the close of the Food Barn venture, which will be examined later. The Junee Co-op in 1984 decided it was a waste of money to send AGM notices at all members. It tried unsuccessfully to have its rules and the legislation altered to allow notice of AGMs through the local newspapers instead.61
|
52
|
Table 5: AGM Participation — 1971–81
| Year |
Directors/Secretary-Manager |
Other Members |
Total |
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981 |
4
4
3
5
5
5
5
5
4
5
5 |
6
9
7
9
5
7
6
8
6
14
6 |
10
13
10
14
10
12
11
13
10
19
11 |
Source: AGM Minutes, 1971–81 (JDCS)
|
|
|
One exception to the low-level participation of members in the governance of the Co-op occurred in 2004. Some members were concerned about moving the Co-op from its Lorne Street premises, which the Co-op owned, to more modern and spacious leased premises on Broadway. While there were concerns about the financial implications of the move, the directors were concerned that another supermarket linked to a retail chain would move into the new premises and challenge the Co-op. One special meeting on the issue attracted over 150 members and directors were able to persuade the members to overwhelmingly support the move.62 |
53
|
|
The growing membership and improved turnover led the Co-op to expand its property holdings. The Lorne Street premises were purchased in June 1965. During the 1960s, it was decided that additional trading space was required. After an unsuccessful approach to Coles in 1967 for the purchase of their adjoining premises, other avenues for expansion were considered, including the move to a new site. It was not until 1971, when Coles relented about selling the adjoining property, that the space problem was solved. In February 2006, it moved back to Broadway, where it has larger and more modern premises, with a large car park.63 |
54
|
|
The Co-op introduced new technology, financial practices and marketing methods to stay competitive. In August 1975, it was decided to purchase an electronic ordering system for groceries and two electronic cash registers to facilitate the recording of member's purchases by computer. This led to considerable savings in wages. The Co-op also moved to accept credit cards when the directors decided in June 1976 to participate in 'Bankcard'. Management shifted members' debt from individual store accounts to their own credit card accounts in 1989 with no loss of customers. This allowed the Co-op to eliminate a debt of approximately $100,000 at the end of each month in individual accounts. In February 1979, the Co-op decided to computerise fully all shareholders' capital and deposit accounts. Scanning registers commenced operating in November 1991. The Co-op's willingness to modernise retailing methods and eliminate shareholder debt aided its longevity.64 |
55
|
|
The Co-op also varied the price and range of products to stay competitive. In March 1978, it decided to match local competition on the price of beer. The Board of Directors also decided in July 1981 to monitor Wagga Wagga's Wednesday press to cut prices wherever possible when a distinctive price difference arose between Wagga shops and the Co-op. The petrol bowser at the front of the store was dispensed with in the mid-1970s, and the hardware section was wound up in 1981. In 1972, a liquor licence was purchased from John Meagher & Co., and the delicatessen department opened in 1973. While these business choices have assisted the society to move forward, the decision to open the Junee Food Barn in Lisgar Street proved less wise. Opened in October 1978, the Food Barn failed to attract patronage and the business it did receive was in direct competition with the main Co-op store. The Food Barn ceased trading on 27 June 1980 and the Co-op sold the premises in November 1980. In addition, the Co-op supplied the Junee Correctional Facility with toilet paper, tobacco and canteen stock. While initially a successful venture, the relationship with the Correctional Facility proved unprofitable and was terminated in 2004.65 |
56
|
|
The opening hours of the Co-op have also varied over the years, in line with the consumer needs of Junee and changing legislation. Saturday afternoon trading commenced on 23 May 1992. In 1994, the idea of opening an out-of-hours store in Belmore Street was discussed, but it was decided that opening the Lorne Street store for longer hours was a wiser option. The result was Sunday trading which commenced on 17 September 1995. This also saw an increase in the number of casual staff employed by the Co-op. When the Co-op became the only supermarket in Junee in 2004, it increased its hours of operation.66 |
57
|
|
The Co-op has adopted a range a policies to maintain and increase staff morale. The Co-op provided employment opportunities for local youths. Local high-school students entered employment as casuals outside school hours. If an opportunity for permanent employment arose, then they were encouraged to apply and generally hired. There were various schemes to motivate staff. The opportunity for promotion served as a performance motivator. Indeed, the current manager, Ian Cooper, began at the Co-op as a delivery employee in 1974, and rose to his present position through a series of promotions. Christmas bonuses have been given to staff, more recently in the form of a carton of beer or goods to the same value. The Co-op commenced a staff superannuation scheme in March 1978, based on a contribution of five per cent by the employee and five per cent by the Co-op. The directors invited nine staff to participate initially in the scheme. In addition, the Co-op decided to provide lettering on jumpers for the `Co-op Killers' Touch Football Team in August 1981 and sponsor a staff indoor cricket team in March 1987 with appropriately lettered T-shirts. The Co-op was willing to fund staff undertaking accountancy courses at Wagga Technical College.67 |
58
|
|
The Co-op, like other employers, disciplined staff. Management dismissed any employees involved in `dishonest behaviour'. The Board of Directors found it necessary in June 1981, following a sluggish growth in revenue, to advise staff that retrenchments could become necessary and that they should `pull together'. The board also made it clear that those employees who failed to do so could lose their jobs.68 |
59
|
|
While unions were not discouraged, the co-operative remained a non-union workplace until 1979. While manager Brian Rosengreen did not discourage the Shop and Distributive and Allied Employees' Association (SDA) from meeting with employees, he advised the union officials not to meet with staff inside working hours. Employees initially refused to meet with the official, but with the resignation of Brian Rosengreen, they became concerned about their future employment and joined the union. Then the Co-op collected the subscriptions of SDA members and paid their commission into general revenue. However, there was a confrontation during the early 1980s with the female SDA delegate, which led to her dismissal by the Co-op and reinstatement at the behest of the union. The delegate subsequently resigned. There was a small number of union members at Co-op until 2003, when the last employee left the union.69 |
60
|
|
The Co-op continued to promote the local community. The Co-op from the 1980s also became actively involved in ensuring that Junee remained a viable centre for retailing that sold a full range of products. It was feared that if Junee was unable to provide local consumers with a full range of products then business, jobs and facilities would be lost to nearby Wagga Wagga, which was only 20 minutes away by car. In July 1983 the Co-op added the slogan 'Shop Locally — If You Don't Use It, You Lose It' to its weekly advertising in the Junee Southern Cross. In June 1982, the directors decided to stock manchester, following the closure of Trims Pty Ltd in Junee. Other local businesses were consulted to see if they were interested in stocking manchester before the decision was made. Similarly, rather than see it close down, the Co-op purchased the Retravision (then Sykes Electronics) store on the adjoining Lorne Street premises in May 1995 and operated it for nine years. Shareholders were able to use their Co-op shareholder number when purchasing goods at Retravision during this period. The Retravision store was sold to a former employee of the Co-op in September 2004. The Co-op also established a branch of Westpac in June 2000, as the local branch of the bank was closing. It did not compete with the local baker and butcher, and instead formed an agreement to sell their products, such as pre-packaged meat, for a commission. The Co-op, to protect local business, also agitated against the activities of hawkers.70 |
61
|
|
The Co-op has also endeavoured to maintain a good relationship with local businesses and community over the years. Rod Kilby, former manager, highlights the importance of the local Rotary Club, of which he was President, in building links with the business community. The Co-op has continued to be an active member of the local Chamber of Commerce. It has participated in efforts by the local business community to assist maintaining the viability of Junee as a retail centre through emphasising the need to `buy locally'. As in the early years, there was competition with other retailers in the town, and occasional differences with the Chamber of Commerce. One notable instance of competition was the 'butter war' with the rival store of John Meagher & Co. Each store tried to undercut the other on the price of butter, to the point where the Co-op was prepared to give the butter away. Meagher ceased trading in Junee in 1971. In March 1984, the directors rejected an approach by the Chamber of Commerce to open on Easter Saturday morning. The Co-op also strengthened its links to the broader Junee community through donations to a variety of community organisations including agricultural societies, sporting clubs, schools and the Junee Hospital Auxiliary.71 |
62
|
|
The Junee Co-op continued its association with the private sector. In July 1979, the Co-op decided to join the Retail Traders Association of New South Wales. While it did obtain some products from the NSW CWS, it remained unaffiliated until the demise of the NSW CWS in 1979. Brian Rosengreen saw the NSW CWS as an inferior supplier to the private wholesaler Foodland. The Co-op promoted itself as a member of Foodland Stores from 1962 and is currently a member of the Independent Grocers of Australia (IGA). The IGA is an offshoot of the Independent Grocers Alliance, which is an alliance between wholesalers, retailers and manufacturers founded in the USA in 1926. The Alliance became the vehicle for protecting and strengthening the relationship of the three groups against the growth of the chain stores. David Holdings, now Metcash Trading Limited, brought IGA to Australia in 1988. While IGA distributes other brands, it markets it own labels such as `Black and Gold'. Despite its national character, IGA emphasises its links to the local community through its `local heroes' television campaigns and `community chest' contributions to local organisations.72 |
63
|
|
While it remained linked to private wholesalers, the Co-op did occasionally emphasise the benefits of co-operation. When the Co-op adopted self-service in 1962, its advertising highlighted that if you became a shareholder you became a `part-owner'. There was also a greater interest in the broader co-operative movement from the 1970s. Ron Kilby, the former manager, emphasised the benefits of co-operative stores to potential members and existing members in terms of greater opportunities for participation in management, cheaper prices and dividends. In January 1979, the Co-op joined the Co-operative Federation of New South Wales (CFNSW), which became the Australian Association of Co-operatives (AAC) in 1986. With the collapse of the NSW CWS, the CFNSW in the early 1980s did float the idea of forming a co-operative grocery-buying group. Initially the Junee Co-op took no action in the matter, preferring its existing relationship with Foodland. It did, however, send a delegation to discuss the matter at Griffith in July 1982 and January 1983. The Co-op also contributed $300 to a feasibility study. In February 1983, however, the Co-op decided not to participate in the scheme. The Junee Co-op also refused to support the push by the CFNSW for a co-operative bank. The AAC eventually collapsed in 1993 due to financial problems associated with its banking services in New South Wales and a number of co-operatives, including Junee, lost money. In the wake of the collapse of the AAC the CFNSW was reformed. The Co-op eventually affiliated with the reformed organisation, which lobbies governmental agencies and provides advice on legal and financial matters.73 |
64
|
| |
|
Conclusion | |
| Rochdale co-operative societies have played an integral role in the lives of many Australians, not only in mining areas, but also in rural regions, and metropolitan and suburban centres. The record of survival for these co-ops is not positive. Some failed to attract members, while many that did were unable to ward off the real threat of private for-profit competitors. Many co-ops, like other enterprises, fell victim to poor business decisions. The Junee District Co-operative Society is an example of a Rochdale that has not only survived, but has prospered. This article has examined the history of this Co-op and suggested a number of reasons for its success. |
65
|
|
Many factors have contributed to the survival and prosperity of the Junee Co-op. The stability of leadership has been a central feature of the Co-op throughout its history. Key decision makers have thus been strongly committed to the success of the Co-op and developed an 'organisational memory' which assisted them in formulating policy and strategy. The directors have also come primarily from backgrounds in small business and farming, which led them to support the business approach adopted by the Co-op managers, despite the directors' ultimate control of the governance of the Junee Co-op. The leadership has successfully balanced the needs of shareholders, employees and the Co-op, and recognised the need to adapt to the changing environment. A key example was the decision to introduce self-service in the early 1960s. The decision not to become involved in the ultimately risky ventures of the broader co-operative movement such as the NSW CWS also played a positive role in the survival of the Co-op. |
66
|
|
The survival and prosperity of the Junee Co-op needs to be placed in the context of 'localism'. The Co-op and its leadership have played an active role in the community, and formed networks with local businesses and the Chamber of Commerce. While railway workers have formed a significant proportion of membership over the years, the policies of the Co-op have not always coincided with those of the labour movement. Rather, the Co-op has had an eye to the retail needs of the local community when formulating policy. Refusal to follow directives in terms of Saturday afternoon shutdown and lunchtime closure is one example of this 'locality' stance. As a result, the market directions and choices of the Co-op over the years have encouraged residents to 'shop local' rather than at other regional centres. In recent years, the strategy for maintaining (or at least containing) local shopping is evident in the stocking of additional lines, the purchase of Retravision and acting as an agent for Westpac. This has contributed to the survival of the Junee Co-op, and also to the preservation of local job opportunities and to the sustainability of Junee as a viable rural community. |
67
|
|
Nikola Balnave is a senior lecturer in the School of Management at the University of Western Sydney. She completed her PhD in 2002 on Industrial Welfarism in Australia, and has published a number of journal articles and conference papers on this topic. Her current research is focussed on Rochdale consumer co-operatives, and their historical and contemporary significance to regional Australia. <n.balnave@uws.edu.au>
Greg Patmore is editor of Labour History, and director of the Business and Labour History Group, Faculty of Economics and Business, University of Sydney. He serves on the governing council of the History Co-operative which is based at the University of Illinois. With Ray Markey, Greg has an Australian Research Council Discovery Grant to examine the history of non-union employee participation and is ALSO currently working with Harry Knowles and John Shields of the Business and Labour History Group on a commissioned history of Citigroup in Australia. <g.patmore@econ.usyd.edu.au>
Endnotes
* This paper has been peer-reviewed by two anonymous referees for Labour History.
1. G. Patmore, `Localism and Labour; Lithgow 1869–1932', Labour History, no. 78, 2000, p. 53.
2. N. Balnave, Industrial Welfarism In Australia, 1890–1965, PhD thesis, University of Sydney, 2002, ch. 9; E. Eklund, `The "Anxious Class"? Storekeepers and the Working Class in Australia, 1900–1940', in R. Markey (ed.), Labour and Community: Historical Essays, University of Wollongong Press, Wollongong, 2001, p. 233; R. Markey, `New South Wales Trade Unions and the "Co-operative Principle" in the 1890s', Labour History, no. 49, 1985, p. 51.
3. E. Entwisle (ed.), The Jubilee Co-operative Handbook of NSW, Co-operative Institute, Sydney, 1952, pp. 3–4.
4. NSW Ministerial Council on Future Directions for Co-operatives, Co-ops in New South Wales: A Guide to Who They Are, What They Do, Their Products and Services, NSW Ministerial Council on Future Directions for Co-operatives, Sydney, 1988, p. 13.
5. H. Heaton, Modern Economic History with Special Reference to Australia, 3rd edn, Workers' Educational Association of South Australia, Adelaide, 1925, pp. 296–99; G.J. Lewis, A Middle Way: Rochdale Co-operation in New South Wales 1859–1986, Australian Association of Co-operatives Ltd, Sydney, 1992, pp. xv–xvii.
6. A.M.G. Carr-Saunders, P. Sargant Florence and R. Peers, Consumers' Co-operation in Great Britain. An Examination of the British Co-operative Movement, 3 rd edn, George Allen and Unwin, London, 1940, pp. 156–57; G.D.H. Cole, The British Co-operative Movement in a Socialist Society, George Allen & Unwin, London, 1951, p. 24; Heaton, Modern Economic History, pp. 300–03; M. Hilson, `Consumers and Politics: The Co-operative Movement in Plymouth, 1890–1920', Labour History Review, vol. 67, no. 1, 2002, pp. 7–27.
7. F.R.E. Mauldon, A Study in Social Economics: The Hunter River Valley New South Wales, WEA NSW, Melbourne, 1927, pp. 164–65; D.P. Hampton, Retail Co-operatives in the Lower Hunter Valley, Newcastle Region Public Library, Newcastle, 1986, pp. 43, 45–8; Heaton, Modern Economic History, pp. 305–06; Lewis, A Middle Way, pp. 80–1, 199–203, 206; Co-operative News, 1 November 1923, p. 6; 1 September 1929, p. 3; 1 April 1944, p. 18; 1 August 1948, p. 16; 1 September 1958, p. 4.
8. Lewis, A Middle Way, p. 241.
9. Heaton, Modern Economic History, p. 297; Lewis, A Middle Way, pp. 140, 190, 201, 210; Co-operative News, 1 October 1941, p. 7; 1 November 1953, p. 4.
10. Lithgow Co-operative Society Committee Minutes, 14 April 1925, Lithgow City Library (hereafter LCL); Lithgow Co-operative Society Research Group, The Life and Times, p. 197. See also for dispute over quality of merchandise, Hampton, Retail Co-operatives, p. 20.
11. Co-operative News, 1 April 1924, p. 2; Patmore, `Localism and Labour', pp. 54–5.
12. N. Arrowsmith and R. Markey, `Co-operation in Australia and the Illawarra', in R. Hood and R. Markey (eds), Labour and Community: Proceedings of the Sixth National Conference of the Australian Society for the Study of Labour History, Illawarra Branch, Australian Society for the Study of Labour History, Wollongong, 1999, p. 203; Co-operative News, 1 May 1946, p. 12; Lewis, A Middle Way, pp. 105–06, 198, 234–35.
13. Co-operative News, 1 April 1950, p. 18; Lewis, A Middle Way, p. 207.
14. <http://www.communitystore.com.au/>, accessed 10 March 2006.
15. E. Eklund, `We are of age: Class, Locality and Region at Port Kembla, 1900 to 1940', Labour History, no. 66, 1994, pp. 72–3; G. Patmore, `Labour-Community Coalitions and State Enterprise: Retrenchment at the Lithgow Small Arms Factory 1918–1932', Journal of Industrial Relations, vol. 39, no. 2, 1997, pp. 218–43.
16. I. Gray, Politics in Place. Social Power Relations in an Australian Country Town, Cambridge, 1991, pp. 161–2; M. Mowbray, `The Medicinal Properties of Localism', in R. Thorpe and J. Petruchenia (eds), Community Work or Social Change?, Routledge and Kegan Paul, London, 1985, pp. 41–58.
17. I.M. Young, `The Ideal of Community and the Politics of Difference', Social Theory and Practice, vol. 12, no. 1, pp. 17.
18. R.W. Connell and T. Irving, Class Structure in Australian History: Poverty and Progress, 2nd edn, Longman Cheshire, Melbourne, 1992, pp. 20–2.
19. D. Massey, Space, Place and Gender, Cambridge, UK, 1994, p. 153.
20. J. Benson and K. Hince, `Understanding Regional Industrial Relations Systems', in L. Pullin, M. Fastenau and D. Mortimer (eds), Regional Employment Relations: Contemporary Research, Sydney, 1996, pp. 44–6; E. McEwen, `The Ties that Divide', in V. Burgmann and J. Lee (eds), Staining the Wattle: A People's History of Australia since 1788, McPhee Gribble/Penguin, Melbourne, 1988, pp. 32–4.
21. W.A. Howard, Barrier Bulwark: The Life and Times of Shorty O'Neil, Willry, Kew, 1990, p. 166; Junee Southern Cross, 10 December 1958, p. 1.
22. Stanley and Bennett, Junee Railway Centenary; Junee Municipal Jubilee Official History and Programme of Events, Junee Southern Cross Print, 1936.
23. Junee Southern Cross, 1 July 1957, p. 1; Junee Municipal Council Minutes, 28 December 1932, 29 March 1960 (held by Junee Shire Council).
24. <http://www.abs.gov.au/ausstats/abs@cpp.nsf/DetailsPage/UCL1420002001?OpenDocument&tabname=Details&prodno=UCL142000&issue=2001&num=&view=Basic%20Community%20Profile>, accessed 15.3.06.
25. A. Stanley and C. Bennett, Junee Railway Centenary, 1878–1978, No publisher or date.
26. Ibid., pp. 14, 38.
27. G.E. Commens, 'Message from the Chairman', in Loran and T. Woodland, Junee Roundhouse. 50 Glorious Years, Railmac Publications, Elizabeth, SA, 1997.
28. Ferry, Junee and the Great Southern Railway, pp. 37–8.
29. Ibid., p. 39.
30. Ibid., pp. 44–5.
31. Ibid., p. 44.
32. R. Bromby, The Railway Age in Australia, Lothian Books, South Melbourne, 2004, pp. 56–8; G. Commens, 'Message from the Chairman' and R. Love, 'Junee Locomotive Depot. A Short History', in Ryan and Woodland (eds), Junee Roundhouse; Ferry, Junee and the Great Southern Railway, p. 49.
33. Stanley and Bennett, Junee Railway Centenary; Ferry, Junee and the Great Southern Railway, p. 49.
34. Ferry, Junee and the Great Southern Railway, p. 51.
35. Ibid., p. 9.
36. S. Morris (ed.), Junee: Speaking of the Past Vol. 2, Junee Shire Arts Council, 2001, p. 170.
37. Ibid., p. 171.
38. Ferry, Junee and the Great Southern Railway, pp. 46–8; N. Blacklow, The Accidental Politician: Edgar Hugh Graham, fourW press, Wagga Wagga, 2005, pp. 13, 50, 202.
39. Stanley and Bennett, Junee Railway Centenary; Ferry, Junee and the Great Southern Railway, pp. 55–7.
40. Junee District Co-operative Society, `A History of Junee District Co-operative Society Limited', unpublished typescript, p. 1, held by the Junee District Co-operative Society (hereafter JDCS); Junee Southern Cross, 29 June 1923, p. 2; W. O'Neil, `History of the Co-operative Wholesale Society of New South Wales. From 1912 to 1948', unpublished typescript, University of Newcastle Archives, B8045.
41. Junee Southern Cross, 26 September 1921, p. 4, 30 August 1922, p. 3, 21 May 1923, p. 5; W.K. McConnell, `Consumers' Co-operation in New South Wales', The Economic Record, vol. v, no. 9, 1929, p. 269; Report of the Registrar for Friendly Societies, Trade unions, building societies, co-operative societies, and transactions under the Workmen's Compensation Acts for the Eighteen Months Ended 30th June 1921, NSW Government Printer, Sydney, 1922, p. 19; The Storekeeper, 27 March 1923, p. 58.
42. Junee Southern Cross, 29 June 1923, p. 2; 22 December 1927, p. 3; JDCS, `A History of Junee District Co-operative Society Limited', p. 1; Lewis, A Middle Way, ch. 6.
43. Junee Southern Cross, 24 February 1956, p. 8.
44. Lewis, A Middle Way, p. 133.
45. Commonwealth Electoral Roll, Subdivision of Junee, Division of Riverina, 1925, pp. 18, 23, 31, 36; Junee District Co-operative Society, Initial Application for Registration, Certificate of Incorporation, Registry of Co-operatives and Associations, NSW Office of Fair Trading, NSW Department of Commerce, Bathurst; Junee Southern Cross, 9 November 1955, p. 4; 9 January 1956, p. 2.
46. Information supplied by Paul Schremmer, nephew, Hunters Hill, 11 November 2005; Junee Southern Cross, 22 May 1957, p. 1.
47. Interview with Brian Rosengreen, former manager, Griffith, 29 March 2006; Junee District Co-operative Shareholder Register, 1966 (JDCS); Junee Southern Cross, 17 February 1958, p. 4, 24 February 1956, p. 8.
48. JDCS, `A History of Junee District Co-operative Society Limited', p. 1; Junee Municipal Council Minutes, 28 March 1933, 11 April 1933, 18 July 1933; Junee Southern Cross, 19 December 1934, p. 3, 13 March 1935, p. 4, 26 September 1936, p. 5, 6 November 1946, p. 4, 3 June 1957, p. 4, 22 October 1958, p. 4.
49. Junee Southern Cross, 20 November 1935, p. 4, 28 October 1953, p. 4, 22 March 1957, p. 4; The Storekeeper, 27 February 1925, p. 79.
50. Junee Southern Cross, 22 January 1936, p. 1, 8 July 1955, pp. 1, 8 July 1955, pp. 1, 4, 22 May 1957, p. 1.
51. Junee Southern Cross, 24 February 1956, p. 1, 15 October 1956, p. 1, 24 September 1958, p. 4.
52. Junee Southern Cross, 28 September 1936, p. 3, 30 April 1937, p. 2, 27 October 1941, p. 2, 23 October 1942, p. 3, 8 October 1947, p. 4, 22 May 1957, p. 1.
53. Junee Southern Cross, 13 March 1935, p. 3, 30 September 1942, p. 2.
54. Interview with Brian Rosengreen, former manager, Griffith, 29 March 2006; JDCS, `A History of Junee District Co-operative Society Limited', p. 1; Junee Southern Cross, 13 March 1935, p. 3, 13 October 1943, p. 2.
55. M. Symons, One Continuous Picnic: A History of Eating in Australia, Duck Press, Adelaide, 1982, pp. 177–79.
56. JDCS, Balance Sheets, 30 June 1961, 30 June 1962; Junee Southern Cross, 15 October 1958, p. 1; 24 October 1958, p. 1, 31 October 1958, p. 1, 19 November 1958, p. 4, 3 December 1958, p. 4, 17 December 1958, p. 4, 19 September 1962, p. 2.
57. JDCS, AGM Minutes, 30 September 1971, 29 September 1972, 23 September 1981; Board of Directors Minutes, 14 June 1978, 15 September 1980, 22 July 1981; JDCS, 'A History of Junee District Co-operative Society Limited', p. 2; Junee District Co-operative Shareholder Register, 1966; Junee Southern Cross, 2 July 1981, p. 3.
58. Junee District Co-operative Shareholder Register, 1966; Telephone Interview with Rod Kilby, former manager, 16 February 2006.
59. Annual Reports to NSW Registry of Co-operatives and Associations, 1991–2005; Interview with Ian Cooper, current manager, Junee, 14 February 2005.
60. Interview with Brian Rosengreen, former manager, Griffith, 29 March 2006; JDCS, `A History of Junee District Co-operative Society Limited', p. 2; JDCS, Board of Directors Minutes, 14 October 1999, 12 September 2002.
61. JDCS, Board of Directors Minutes, 22 February 1984.
62. Interviews with Frank Carter, director, Junee, 31 March 2006, Robert Hirst, chair of the board, Junee, 30 March 2006, Sharon Jeffries and Barbara Walker, employees, Junee, 30 March 2006; Junee Southern Cross, 19 February 2004, p. 1, 4 March 2004, p.7, 1 April 2004, pp. 1, 3, 8 April 2004, p. 2, 20 May 2004, p. 5.
63. JDCS, `A History of Junee District Co-operative Society Limited', p. 1; JDCS, Board of Directors Minutes, 20 October 1967, 30 June 1971.
64. JDCS, AGM, 25 August 1976; Board of Directors Minutes, 21 August 1975, 22 June 1976, 19 February 1979, 31 October 1991; JDCS, `A History of Junee District Co-operative Society Limited', p. 2.
65. Interview with Ian Cooper, current manager, Junee, 14 February 2005; JDCS, AGM, 19 September 1979, Board of Directors Minutes, 13 March 1978, 2 July 1981, 22 June 2004; JDCS, `A History of Junee District Co-operative Society Limited', p. 2.
66. Interview with Ian Cooper, current manager, Junee, 14 February 2005; JDCS, Board of Directors Minutes, 13 May 1992, 6 June 1994, 25 August 1994, 24 August 1995.
67. JDCS, Board of Directors Minutes, 10 February 1976, 13 March 1978, 25 February 1980, 26 August 1981, 4 March 1987; JDCS, `A History of Junee District Co-operative Society Limited', p. 2; Telephone Interview with Rod Kilby, former manager, 16 February 2006.
68. JDCS, Board of Directors Minutes, 25 February 1980, 27 May 1981, 24 June 1981.
69. Interviews with Ian Cooper, current manager, Junee, 14 February 2005, Brian Rosengreen, former manager, Griffith, 29 March 2006, Sharon Jeffries and Barbara Walker, employees, Junee, 30 March 2006; JDCS, Board of Directors Minutes, 7 January 1980; Telephone Interview with Rod Kilby, former manager, 16 February 2006;
70. JDCS, Board of Directors Minutes, 5 May 1982, 28 June 1982 (special), 25 May 1983, 27 July 1983, 24 October 1984, 11 February 1995, 5 May 1995, 27 January 2000, 24 February 2000, 30 March 2000, 3 June 2004; Telephone Interview with Rod Kilby, former manager, 16 February 2006.
71. Interview with Brian Rosengreen, former manager, Griffith, 29 March 2006; JDCS, Board of Directors Minutes, 21 August 1973, 25 May 1976, 15 September 1980, 28 March 1984, 8 April 1987; Telephone Interview with Rod Kilby, former manager, 16 February 2006.
72. Interview with Brian Rosengreen, former manager, Griffith, 29 March 2006; IGA website, <http://www.iga.net.au>, accessed 16 February 2006; JDCS, Board of Directors Minutes, 23 July 1979, 15 September 1980; Junee Southern Cross, 19 September 1962, p. 2.
73. T. Gill, The Golden Years: History of the Co-operative Federation of Victoria Ltd. 1993–1996, p. 2. <http://www.coopdevelopment.org.au/cfvhistory.html>, accessed 24.1.06; D. Griffiths, Co-op History. Co-operation Between Cooperatives, pp. 4–5. <http://www.australia.coop/publish/printer_240.php>, accessed 12.2.06; Interview with Frank Carter, director, Junee, 31 March 2006; JDCS, Board of Directors Minutes, 24 October 1978, 15 September 1980, 31 March 1982, 26 May 1982, 28 July 1982, 25 January 1983, 23 February 1983; Junee Southern Cross, 19 September 1962, p.2; Telephone Interviews with Rod Kilby, former manager, 16 February 2006, Helen McCall, Executive Officer, Co-operative Federation of NSW, 17 February 2006.
|
Content in the History Cooperative database is intended for personal, noncommercial use only. You may not reproduce, publish, distribute, transmit, participate in the transfer or sale of, modify, create derivative works from, display, or in any way exploit the History Cooperative database in whole or in part without the written permission of the copyright holder.
|