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Who really owns GreenStar?


Author: Paul Glover

Topic: Articles

GreenStar members who want to own a health food store whose products contain reliably healthy ingredients and whose sales enrich corporations we respect; who want to be fully informed of product contents, origins and alternative brands; and who want to have a significant voice in GreenStar's future, should understand that this month and next are the most critical in GreenStar's 31-year history.

During recent years, multinationals like Monsanto, ExxonMobil, Wal-Mart and McDonald's have invested in organic food and 'natural' products. As a result, chemicals which cause cancer, fetal defects, hyperthyroidism and/or skin irritation are found on our shelves (methylparaben, benomyl, carbomer 940, cetrimonium bromide, manozeb, propiconazole, propylene glycol, glutamic acid, sodium hydroxymethyl glycinate, stearalkonium chloride, Thiophan methyl, Tridemorph, Triethanolamine, etc). Some, like sorbitan stearate, are slaughterhouse byproducts.

Most GreenStar councilmembers and staff want to reverse these trends and to make sure we can trust our co-op for healthful eating. They prefer to provide genuinely healthy foods made by independent and regional brands. They prefer to provide product line information to members, and broader choices, so we can shop intelligently.

Some councilmembers and staff, however, have not only resisted displaying such product line information prominently in the store, they seek to expand GreenStar's dependence on such corporate foods and to reduce the authority of members. They prefer that GreenStar be "inclusive," apparently of shoppers careless of health.

Their hostility to co-op democracy is so great that they seek to overthrow our right to change co-op policy by initiating referenda. Though this right is embedded in GreenStar's bylaws, these councilmembers selected a lawyer to declare that such referenda are contrary to New York State law.

But Gary Trechel, the Senior Counsel (chief lawyer) for New York's Division of Corporations, NYS Dept of State, says: "unless your bylaws are changed by referendum as required in the current bylaws, then absent a court order the current bylaws regulating member-initiated referenda must apply. I find nothing in the law which prohibits member-initiated referenda and nothing which distinguishes a cooperative corporation from other corporations in this regard." (telephone conversation 8/22/02)

Laddie Luschan, a Vermont lawyer who specializes in co-op & nonprofit law nationally, says that he has "considerable doubt about the opinion that the member referendum bylaw provision is illegal. I believe member referenda should be regarded as presumptively legal until the bylaw is changed."

According to Tim Bartlett, General Manager of Lexington Co-op in Buffalo, NY, their bylaws state: "decisions of council may be overruled by a two-thirds vote of members present at an annual or special meeting of owners. Members may require a special meeting by submitting a petition signed by 25 members. These bylaws were reviewed recently by their lawyer and found to be in compliance with NYS law.

Park Slope Coop in Brooklyn welcomes direct member control: http://foodcoop.com/HowItWorks/index.htm Most decisions are made by members at monthly membership meetings, and their council is expected to ratify decisions made by members. Park Slope is a bigger co-op than GreenStar.

Undeterred, GreenStar council member John Rowehl suggests that members are not capable of directing their co-op. He recently distributed to fellow councilmembers (8/02) his favorite chapter from "The Blackwell Guide to Social & Political Philosophy," which says "much social science has established that ordinary citizens have a low level of political knowledge. They can be thought of as suffering from rational ignorance." Thus, "direct consultation of the mass public, realizing political equality, would sacrifice deliberative discussion" (ch. 10, p. 228). Rowehl berated members who did not vote in the April Council election (GreenLeaf May '02), following the highest turnout in GreenStar's history.

Although recent GreenStar council elections gained an 8-7 majority for those favoring product line information and member authority, one of these councilmembers has since left Ithaca and three others have been absent for critical votes. This has given the old guard renewed authority, and they seek to fill this vacancy with someone agreeable to them.

Members therefore cannot rely on Council to preserve our rights and GreenStar's reputation as a health food store. Members need to assert these rights directly and to replace council members who challenge them.

OUR RIGHTS: (bylaws are available free to members-- bylaws Section VI, D):

We can amend GreenStar's bylaws to require that Council vacancies are filled by general election rather than by Council itself. "Proposals for amendment, repeal or replacement of the Bylaws shall be made by... petition of 40 members in good standing." "Any proposed changes to the Bylaws shall be presented at a Membership Meeting, where all members who attend shall be entitled to discuss and vote on the proposal." "Any proposed change to the Bylaws shall require for passage the affirmative vote of at least two-thirds of those members who cast valid votes."

SAMPLE LANGUAGE: "GreenStar Council vacancies shall be filled by general election among members. Such elections shall take place within three months of any Council vacancy."

If the Council-sponsored "red meat" referendum is passed by members without the presence of the member-sponsored "red meat #2" referendum, then we can call a Special Membership Meeting. A referendum decision may be overruled by a Membership Meeting or another referendum, but not by Council.

Shape the agenda of Membership Meetings by a majority vote of those attending (bylaws Section VII C.3) . We can require discusssion of product line, member-initated referenda, and editorial control of GreenLeaf. We can propose non-binding recommendations for Council, as for filling Council vacancies, endorsing member-initiated referenda, establishing a GreenLeaf Committee and Member Education Committee.

Ultimately, we can call a special meeting (with 40 signatures) to remove those council members who challenge our right to initiate referenda (requiring petition by 5% of current members and vote of 2/3 majority.

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TEXT OF RED MEAT #2 REFERENDUM THAT COUNCIL HAS NOT RELEASED FOR VOTE:

"If the GreenStar referendum passes which permits GreenStar to sell red meat/pork, then GreenStar may sell red meat/pork only from animals raised on family-owned farmsteads within forty (40) miles of the city of Ithaca, New York. Such animals shall be exclusively fed on grains, cereals, hay, vegetable scraps and/or pasture certified organic by Northeast Organic Farmers Association of New York (NOFANY) or so verified by GreenStar member volunteers. Water sources shall be likewise evaluated.

"All farmsteads selling red meat/pork to GreenStar shall sign an agreement to be visited unannounced twice yearly by GreenStar member volunteers, so that living conditions of animals, their water sources and method/s of slaughter may be monitored. Reports shall be published in GreenLeaf.

"Passage of this referendum shall countervail relevant clauses of the original red meat/pork referendum."

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CANDIDATES FOR GREENSTAR COUNCIL ARE NEEDED to fill a vacancy, until April 2003. To apply, get an application from Greenstar's front desk and deliver it promptly to Jennifer Dotson jedotson@clarityconnect.com

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NEXT GREENSTAR COUNCIL MEETING is SEPTEMBER 10 at 6:30pm at DSS Building, 320 West State St. With a little effort, we can retain owership of our co-op.

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INDEPENDENT ORGANIC BRANDS GREENSTAR COULD STOCK:
http://www.ithacanews.org/goodfood.html

GREENSTAR'S GREENFUTURE: http://www.ithacanews.org/greenfuture.html

GREENSTAR'S PRODUCT LINE: http://www.ithacanews.org/cobbler.html

RESTORING HEALTH TO HEALTH FOODS: http://www.ithacanews.org/greenleaf.html

GREENSTAR & MULTINATIONAL BRANDS: http://www.ithacanews.org/greenstarstock.html

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