Co-operative
Development

The Problem

People don't own their work nor the value they create.

The Promise

The NCP will make sure it's easy to own your own work and your own value in Saskatchewan.

The Plan

The NCP will introduce amendments to existing legislation, as well as two new Acts:

• The Saskatchewan Co-operative Development Agency Act
• The Saskatchewan Right of Worker First Refusal Act

These acts will give people the tools they need to own their work, own their value, and own their dignity.

The Saskatchewan Co-operative Development Agency Act:

This Act will establish the Saskatchewan Co-operative Development Agency (SCDA). The SCDA will be mandated to help anyone form a co-op in Saskatchewan, either by converting an existing business or starting something new. The SCDA will act as a one-stop shop for regular support, financial brokering, and conversion support.

The SCDA will have dedicated units for helping to convert existing businesses into co-ops, in particular those exercising their Right of First Refusal, by helping current employees know their rights, and use those rights to collectively purchase their place of employment.

The SCDA will act as a brokerage, working with local banks or credit unions to find the best possible rates for co-ops requiring business loans for operations or for conversions. Fees for brokering or other services by the SCDA will be kept low for small or start-up co-ops and will scale based on the size of the co-op and the complexity of any buyouts.

Should no bank or credit union offer reasonable funding, the Saskatchewan Financial Group will be used as a last resort. The Saskatchewan Financial Group will develop loan guarantee programs specifically for worker buyouts facilitated by the SCDA, ensuring financing is available for viable conversions.

• See Policy 17 - Financial Sovereignty for more.

The SCDA will provide workshops and training for new or potential co-op owners so they can hit the ground running. Templates will be provided for the regular requirements of every co-op or business in a variety of areas, including:

• Regulations
• Bylaws
• Membership agreements
• Basic HR
• Payroll
• Board training
• Board charters
• Voting rules
• Market access
• Marketing
• Annual Meetings
• Conflict of Interest Policies

The Right of Worker First Refusal Act:

All business owners must file a Notice of Intent and submit relevant business information with the Fair Work Authority (FWA) whenever they intend to:

• Sell assets exceeding 40% of total business value, as determined by the most recent financial statements or independent valuation
• Pause operations for a long-term timeframe
• Permanently close the business
• Move operations to another location outside of Saskatchewan
• File for bankruptcy and receivership

If the sale or transfer is to a family member, then the FWA will expedite the approval. If no family wishes to be involved, the FWA will pause the sale or closure for 180 days. They will then inform the Saskatchewan Co-operative Development Agency (SCDA) of the Notice of Intent and give them the relevant business and employee contact information.

To be clear, transfers to a genuine family successor may be approved on an expedited basis. However, sham family transfers, nominee arrangements, related-party transactions, and below-market deals designed to evade the Right of First Refusal shall be treated as full sales subject to Fair Work Authority scrutiny and review.

In the event of the death of a Business Owner, the estate and surviving family members will be treated equivalently to a voluntary family transfer and the FWA will approve the transition immediately. Where no family member wishes to take over and the business is assessed by the FWA — in consultation with the SCDA — to be non-viable for worker conversion (including circumstances where the financial, operational, or workforce conditions make a successful employee buyout unreasonable), the FWA may waive the 180-day exclusivity window and release the estate from the Notice of Intent obligations. The SCDA may still offer voluntary support to any interested employees, but no bid will be compelled. The purpose of this exemption is to avoid placing undue burden on grieving families or prolonging the wind-down of a business that cannot be reasonably saved, and it shall be applied with compassion and practicality.

During this 180-day window, the SCDA will contact employees who currently work at the business and have worked there for more than one year, whether full-time or part-time, and inform them of their Right of First Refusal to collectively, with other employees of the same or higher seniority, purchase the business that employs them. During this 180-day window, no sale may be completed, and no exclusive agreement may be entered into with another buyer, unless the employees formally decline to exercise their Right of First Refusal or the Fair Work Authority determines that the employees are not pursuing a serious bid in good faith.

Furthermore, if within 12 months following the end of the 180-day exclusivity window, the owner receives a bona fide third-party offer on substantially similar terms, that offer must be disclosed to eligible employees so they may choose whether to match it. Where the employee offer and the third-party offer are substantially equivalent, the owner must give preference to the employee offer.

The Fair Work Authority will determine whether offers are substantially equivalent, considering total value, payment terms, and conditions. Guidance on equivalency standards will be published by regulation.

Any employees who are interested in purchasing the business to transition it into a co-operative will have the full backing of the SCDA to make a serious bid. If no bid is made by the employees and the exclusivity period ends, then business owners are free to sell to anyone.

Related-party and below-market deals are considered full sales subject to the Right of First Refusal and FWA scrutiny.

This Act applies to businesses with five or more employees. Sole proprietors and businesses with fewer than five employees are exempt from the Notice of Intent requirement but may voluntarily engage the SCDA for succession planning.

Businesses operating under franchise agreements are subject to the terms of those agreements, which may limit conversion options.

For successful conversions to worker-owned co-ops, the financing terms will include a grace period on principal repayment for the first three years to give the worker-owners time to build the business and achieve profitability.

The Funding

The Saskatchewan Co-operative Development Agency will be funded through a combination of General Revenue Fund support, modest consulting and brokerage fees, and dedicated capitalization for co-operative financing support.

The main fiscal exposure in this policy is not day-to-day administration, but financing support for viable worker buyouts. Loan guarantees, last-resort financing, and other conversion support provided through the Saskatchewan Financial Group will be capped, regulated, and reported publicly, with priority given to viable conversions that preserve jobs, maintain productive assets, and keep ownership rooted in Saskatchewan.

What It Means For You

It means you own your work.

It means you own your value.

It means you own your dignity.

FAQ

• What is a co-operative?
• A co-operative is a business owned and governed by the people who work there or use its services. Each member gets a vote, and profits are shared among the members rather than distant shareholders.


• What is the Right of Worker First Refusal?
• When a business with five or more employees is being sold, closed, or relocated, employees who have worked there for more than a year get the first opportunity to collectively purchase the business and convert it into a co-op. They have a 180-day exclusivity window to make their bid.


• Does this apply to family sales?
• No. If the sale or transfer is to a family member, the Fair Work Authority will expedite the approval. The Right of First Refusal only applies when no family member wishes to take over.


• What happens if the owner passes away?
• The estate and family are treated the same as a family transfer and the FWA will approve the transition right away. If no family wants to take over and the FWA determines, in consultation with the SCDA, that a worker buyout isn't realistic, the FWA can waive the 180-day process entirely. Employees can still get support from the SCDA if they want to explore options, but nothing is forced. The goal is never to make a difficult time harder for families.


• What if the employees don't want to buy the business?
• It is completely voluntary. If no employees are interested, the exclusivity period ends and the owner is free to sell to anyone.


• What does the Saskatchewan Co-operative Development Agency do?
• The SCDA is a one-stop shop for anyone who wants to form a co-op. It helps with conversions, start-ups, financial brokering, workshops, training, and provides templates for everything from bylaws to payroll.


• What about franchise businesses?
• Businesses operating under franchise agreements are subject to the terms of those agreements, which may limit conversion options.