the facts about the relationship between fechimm and the cqch

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THE FACTS ABOUT THE RELATIONSHIP BETWEEN FECHIMM AND THE CQCH At an extraordinary general assembly on November 8 and 9, FECHIMM’s members adopted a resolution that paves the way for their withdrawal from the Confédération québécoise des coopératives d’habitation (CQCH) at the end of their membership contract in the fall of 2014. A majority of the delegates from the participating cooperatives have given their support to an amended version of the proposal submitted by the Board of Directors. It stipulates that FECHIMM will not renew its membership to the CQCH at the end of its contract in October 2014 unless the CQCH submits proposals for correcting the democratic deficit and governance issues within the Confederation. You have probably received in the last few days the magazine «L’Écho-hop d’habitation » and the insert entitled "Splitup and alternative" in which the Confederation claims that FECHIMM "deliberately chose a split-up option with the core values that should, on the contrary, bring us together." In this document, we are offering you answers to questions generated by this situation and the claims from the CQCH. IS FECHIM STILL A MEMBER OF THE CQCH? As the membership renewal is due only in October 2014, well after the next annual general assembly of the Federation, FECHIMM is still a member of the CQCH,. The resolution adopted at the 2013 EGA stated that the decision not to renew the membership could be reviewed if the CQCH submits proposals addressing the raised issues. It is therefore wrong to claim that FECHIMM is not open to dialogue and that it excludes all forms of mediation to resolve the dispute. FECHIMM’s disaffiliation from the CQCH can still be avoided. The Board of Directors of the Federation is ready to listen to any proposals that could help break the impasse that has developed. DO THE MEMBERS OF FECHIMM STILL HAVE ACCESS TO ECONOMIC ADVANTAGES FROM THE GROUP PURCHASING PLANS AND OTHER SERVICES FROM THE CQCH ? As FECHIMM is still a member of the CQCH, its member cooperatives can take advantage of all the services offered by the CQCH along with those developed by FECHIMM such as management assistance, education services, support for construction work, telephone counseling service, support for community life and information. Also, group purchasing plans initiated by FECHIMM, including agreements with Communauto, Insertech, Les entreprises Maheu and Guard-X (NEW) are not affected by this situation. WHAT HAPPENS TO THE PURCHASING GROUP PLANS AFTER OCTOBER 2014 ? Given the importance of the market that represent FECHIMM cooperatives, we already have the certainty that agreements may be renewed with the Confederation or negotiated independently by FECHIMM. Such negotiations are currently underway and we already have assurances that will be communicated to members of FECHIMM soon. We should obtain very competitive offers.

SHOULD OUR HOUSING COOPERATIVE BECOME AN AUXILIARY MEMBER OF THE CQCH ? Your co-op has no interest at all in becoming an auxiliary member of the CQCH since it has access to all services offered by the Confederation and because the auxiliary member status confers no democratic power. You should also be aware that this offer made by the CQCH to the cooperatives of the Metropolitan Montreal goes against its own rules of governance as its internal bylaws specifies in section 3.2.2 that it cannot accept as auxiliary members any housing cooperative located in regions where there is already a federation. FECHIMM also challenges the legality of the CQCH soliciting its members. WHY DOES FECHIMM WANT TO WITHDRAW FROM THE CQCH ? The will of the CQCH and other regional federations to develop housing cooperatives promoting access to homeownership is one of the elements that contributed to deter parties. While respecting the right of other federations to work on this type of project, FECHIMM does not want the CQCH to devote time and money in promoting this type of project. In compliance with the democratic decision of the general assembly of its members, the Board of Directors of the Federation is also against public funds being used to finance such projects. The difference of opinions between FECHIMM and the CQCH on this issue have resurrected a debate on the representativeness of FECHIMM at the Confederation. While cooperatives members of FECHIMM represent about half of the members of the CQCH, the Federation accounts for only 30% of the votes on the Board of Directors and at the General Assembly of the CQCH. That is why the CQCH can go ahead with its project of cooperatives promoting homeownership despite FECHIMM’s opposition. It is to this democratic deficit, contrary to the cooperative principles upheld by the Conseil québécois de la coopération et de la mutualité, that members of FECHIMM responded with a resolution that paves the way for the withdrawal of the Federation from the Confédération québécoise des coopératives d’habitation, at the end of its membership contract in the fall of 2014. IS THE DELAY IN THE DELIVERY OF THE MULTISERVICES CARDS BECAUSE OF THIS DISPUTE BETWEEN FECHIMM AND THE CQCH ? No, according to the information we were sent, the delay also affects cooperatives in other regions. The CQCH should send the Multiservices cards before the end of January 2014. HOW CAN I OBTAIN MORE INFORMATION ON FECHIMM’S POSITION CONCERNING THIS ISSUE ? We invite you to visit the special section of our website at www.fechimm.coop/CQCH. You can also get in touch with us by email at [email protected] or by phone at 514-843-6929, ext. 221.