The Value of Work

Annual Report - Fall 2010

Sarah Walz, New Pioneer Board President

“The Cooperative fully recognizes the value and dignity of work and shall place a high priority on the health, welfare, and happiness of all its employees. The Cooperative shall strive to set a community standard for the best possible working conditions, training, wages, benefits, and opportunities for advancement for its employees.”

As I write this article, just two weeks before Labor Day, I couldn’t help reflecting on this core value included in the Co-op’s mission statement.* The value we place upon our employees is one more thing that sets New Pioneer apart from other grocery stores—both conventional and natural food stores.

New Pioneer currently employs 170 people: 55 work in Iowa City; 94 work in Coralville. The higher count at Coralville includes our bakery and deli department (36 workers), which is housed there. Our administrative office in Iowa City employs another 21 workers. 

New Pioneer places a priority on full-time employment and so 75% of our workers are full-time (working a minimum of 36 hours per week). The industry average for food co-ops is 50% full-time.

The lowest starting wage for employees is $9.00 dollars an hour. Pay steps up after 90 days of employment, which is also when full-time employees become eligible for health and dental insurance. Full-time employees also receive paid vacation, holidays, personal time, and parental leave. Employee pay and benefits are reviewed annually by the Board to ensure that we are paying a competitive wage for all jobs at the Co-op.

For a number of years, New Pi has provided a 401(k) contribution to assist our employees in saving for retirement. The traditional match from the Co-op has been 3%. Last year the Board approved an increase to 4% as recommended by the general manager. This year, again at the recommendation of the general manager, the contribution has been raised to 5%.

Despite the economic downturn in fall 2008 and winter 2009, when New Pi experienced a precipitous drop in sales, careful planning by our general manager and the resilience of our staff got us through this uncertain period with no layoffs, wage freezes, or cuts in benefits. Schedules and shifts were tightly monitored, but by late spring 2009 sales bounced back and the Co-op again began to grow consistently in sales and membership. With this growth additional staff have been hired. 

The Board of Directors singled out staff development as one of the Co-op’s top three priority areas in its strategic plan. This includes training to better serve our members as well as skill development to allow employees to advance professionally within the Co-op. It is, after all, the employees who provide the service and make the decisions that keep the membership happy and the Co-op growing. I encourage you to read the report in this issue (page 14) from Customer Service Manager Genie Maybanks that summarizes these efforts.

In a recent report to staff, our General Manager, Matt Hartz wrote “As a cooperative, New Pioneer is a values-based business in that it operates with goals beyond just financial return. It is not just about selling food, but rather ‘selling food in a certain way.’” The way we do business, and the way members shop, really does make a difference.  During these uncertain economic times, as national unemployment numbers remain high and consumer confidence low, New Pioneer Co-op continues to grow:

• we are adding new members and new staff (more than 2,000 new members joined this year);
• we are stimulating the market for local and organic food (72% growth in locally produced food over five years);
• we are providing financial support for local growers who wish to become
certified organic;
• we are adding more community garden space (doubling the size of the Earth Source gardens this year);
• we are holding down gross margin to stay price competitive;
• we are donating more money to local charities (especially through our pre-Thanksgiving benefit).

Your Co-op is accomplishing all these things AND we are setting a community standard for working conditions, training, wages, benefits, and opportunities for advancement for our employees. 

* For members who may be unfamiliar with the mission statement or for those who wish to refresh their memories, the mission statement is printed on the inside cover of every issue of the Catalyst.