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Magazine > Industry News > News Content

Most associations accepting new JA agreement

9/19/2009 3:16:56 PM

New York--More than 30 of the 39 state and regional Jewelers of America (JA)-affiliated associations have agreed to move forward with JA's new partnership agreement, and others have announced they are in process of doing so, JA announced this week.

According to a release from JA, the New York-based organization is making "significant progress" toward its goal of successful, future partnerships with state and regional jewelers associations.

In June, JA announced it was restructuring its relationships with affiliate associations and presented the state and regional associations with revised agreements that reflected a better business model while still providing support to those that remained aligned with JA, the release states.

Historically, retailers paid a flat fee that gave them joint membership in JA and their state or regional association.

JA then remitted the bulk of the money, more than 80 percent, to the local associations.

However, under the new agreement--which is now in effect--retailers have to pay higher, separate fees to belong to each organization.

When it was announced, the change touched off a flurry of concern that retailers might not choose to belong to both, and smaller associations that have fewer resources and therefore can't provide as much added value to members wouldn't survive.

"Jewelers of America is pleased that the majority of the state associations have signed the new agreements quickly, and we believe that almost all associations will follow suit in the coming weeks," JA President and Chief Executive Officer Matthew A. Runci said in the release. "We remain committed to strengthening the state and regional associations, so that they may better serve the needs of industry professionals on local and regional issues."

Runci said to that end, JA is exploring the concept of an Affinity Support Group Fund.

The primary goal of the fund would be to provide state and regional associations with a supplemental source of capital in 2010 and beyond for initiatives that would have a direct impact on their members, encouraging institutional change that leads to financially stable and effective organizations, he said.

In the meantime, JA will continue to develop new benefits for individual JA member businesses, the release states, and look for ways to strengthen partnerships with state and regional associations.

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