UMSU businesses made more than $250k last year

UMSU businesses on campus consist of GPA’s, Archives, Answers, Degrees restaurant, the Digital Copy Centre and IQs. All of these services are managed and owned by UMSU.

According to UMSU president Jonny Sopotiuk, the businesses that are provided by the students’ union are intended to provide students with services at a fair price rather than make a profit.

“It’s important to note that all of our businesses are run on a service model, not a profit model. This is to provide high-quality service at the lowest possible price for our members: students,” said Sopotiuk.

UMSU also provides a number of jobs for students when filling the positions that are needed to run UMSU services. “The businesses also offer over 100 part-time on campus jobs that pay above minimum wage,” said Sopotiuk. The starting wage at UMSU businesses is $9 per hour, and the minimum wage is currently $8.50.

Sopotiuk stated that despite the fact that not all UMSU businesses make a profit, more profitable businesses balance out the losses.

“Often Answers runs at a loss [ . . . ] The Digital Copy Centre on the other hand generates revenue, which helps to offset the costs of services such as Answers,” said Sopotiuk.

Jason Waldner a management student at the U of M stated that some UMSU businesses are more important than others, “I have yet to ‘use’ Answers,” said Waldner “I've been to IQ's twice in four years, and very rarely go to GPA's.”

Waldner said he has only found two businesses on campus useful: “The Copy Centre is very valuable as well as Degrees. I would like to see the menu at Degrees expand.”

According to Sopotiuk, all profits made from UMSU businesses go directly back into the union and services provided by UMSU. Allocating the money is usually decided by a majority vote of UMSU council.

“Archives Used Bookstore, Degrees restaurant, [the] Digital Copy Centre, GPA’s and IQs are all projected to have surpluses this year while maintaining low prices,” said Sopotiuk.

According to the 2008-09 UMSU budget, some of the most profitable businesses on campus are IQs, projected to make $68,460; GPAs, projected to make $72,825; and the Digital Copy Centre projected to make the most, at an estimated $150,000.

The less profitable businesses run by UMSU were Degrees, estimated to make only $10,000 while Answers is looking at an estimated $14,245 in losses.

According to Jared Dudar, fourth-year arts student at the University of Manitoba, “The best place for UMSU to use the profits from the businesses is probably either in events or improving services at said UMSU businesses (I'm sure they've got at least one or two new businesses waiting to be created). Although it would be nice if they had some sort of textbook-subsidizing program.”

Sarah Makenbach, University 1 student at the U of M said he thinks that the profits from UMSU businesses should be given to students to help pay for post-secondary education, “The profits earned there should be put towards scholarships and bursaries, for those that have either truly earned the gift, or truly need it.”

Businesses like Answers have the priority of providing students with services, instead of providing a profit, “answering questions, selling tickets for faculty council and student group events.” These services are not profitable for UMSU, said Sopotiuk.

In total the amount of income estimated for UMSU businesses this year is $320,745.