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ENTERPRISE
Editor
Roberta Staley
Art Director
John Ngan
Production Manager
lzobel Naval
Contributing Editor
Laure en Griffin
Contributing Writer5
Diane Luckow
Laurie Stephens
Judy Waytiuk
Managing Editor
Gayle Stevenson
For Information concerning
Enterprise contact:
Credit Union Centra l o f
Brit is h Columb ia
Creative Services
1441 Creekside Drive
Vancouver ec
Canada v6J 4'7
Tel 604 730 6359
Fax 604 730 6434
To advertise in En terprise, contact:
Advert ising In Print
938 Howe Street
Suite 710
Vancouver ec
Canada v6z 1N9
Tel 604 681 1811
Fax 604 681 0456
Enterprise is published by
Credit Union Central BC.
CREDIT UNION CENTRAL OF BfUTISH COLUMBIA
Board of Direc tors
Chairperson
Jack Whittaker
Vice-Chairperson
Henry Jansen
Keith Brain
Ch ristine Brodie
Valerie Gauvin
Pearl Graham
Jill Kelly
Catherine McCreary
Ross Montgomery
Philip Moore
Lo rne Myhra
Do ug Stanley
Jay Strong
Michael Tarr
BC CREDlf UNION SYSTEM
Peer Group Executives
Group One (Nort/1/ine)
Nechako Valley - K. Dickso n
Prince George Savings - B. Bentley•
Spruce - F. Wagner
Terrace & District - V. Gauvin
Williams Lake & District - W. Collins
Group Two (Okanacan)
Interior Savings - 0 . Grant•
Osoyoos -J. Whittaker
Revelstoke - R. Holland
Salmon Arm Savings - M. Wagner
Summerland and District - L Campana
Valley First - L. Goodlso n
November 2003
..
Volume 63 Number 6
Group Three (Kootenay)
For subscriptions, contact lzobel Naval:
604 730 6358 or [email protected].
Subscription rates (in CON dollars):
$25 per year (Canada); $27 per year (us11);
$30 per year (Overseas).
Opinions expressed in this publication are
not neceS>arily those of the publisher or
e ditor. The inclusion of an advertise ment
does no t im ply endorsement of the
product or service by t he magazine or
Central. Enterprise wi ll not knowing ly
carry false or mis leading advertising.
The magazine reserves the right to refuse
any advertisement. The contents are
covered by copyright and all rights are
reserved. No material in this publica tion
may be reproduced in a ny form without
permi ssion.
ISSN 0319-8626
Cover photo
A glittering rainbow spfillhes Okanagan
Mountain with colour following desperately
needed rainfall after wildfires forced mass
evacuations and razed hundreds of homes
in BC last summer.
(Photo: Andy Cla1k/Rcutcrs)
Castlegar Savings - L. Myhra
Castlegar Savings - 8. Gerrand
Columbia Valley - M. Magnusson
Creston and District - L. Eckersley
East Kootenay Community - D. Holt
Grand Forks District Savings - C. Manson
Kootenay Savings - W . Bottcher
Nelson & District - S. Gilfillan•
COVER STORY
Group Four (Vancouver Island)
Coastal Comm unity - R. Bennie
Comox Valley - R. Grundison
Evergreen Savings - R. Allen
Greater Victoria Savings - B. Bittne r
Island Savings - P. Graham
Island Savings - S. Service •
Quadra - S. Halliday
We were hanging in a fine balance.
It feels like a nightmare, but it reall
did happen.
Karina Scott
Group Five
Coast Capital Savings
Envision
Gulf and Fraser Fishermen's
North Shore
Prospera
Vanco uver City Savings
Westminster Savings - R. Montgomery'
Group Six
Aldergrove - N. Ranson
Com munity Savings - D.R. Parkinso n
Greater Vancouver Community - P. Moore
Mount Lehman - G. Blishen
United Savings - E. Macintosh•
V.P. - R. Hoffman
' Denoter Chairperson
24 Summer Extreme
Roaring forest fires, mad cow disease,
drought and hurricanes - and the credit
unions t hat endured it all.
Roberta Staley
FEATURES
DEPARTMENTS
PRAIRIE VIEW
10
Without Reserve
O NTARIO PERSPECTIVE
1s
Cred it uni ons wou ld do well to create
The worst plague in the history of mankind
partnerships with the largely untapped First
is decimating the peoples of Africa. Some
Nations market.
Canadians from the credit union system are
Judy Waytiuk
hel ping fight the spread of HIV/AIDS.
Laurie Stephens
New Horizons
In the wake of a royal commission,
7 Letters
8 Small Tall<
Great Christ mas gifts for t he geek who has
everyth ing, $10 million to small business
and Ontario 's top manager.
ATLANTIC CA NADA
14
6 Editorial
Beyond Borders
OFFICE AFFAI RS
34
Roberta Staley
Stress Fractures
38 l.T. Girl
Newfoundland and Labrador look
Coping (or not) with the st ress of mergers,
toward a brighter future.
technological change and, dare we say,
overwork.
the e-too l box.
Laureen Griffin
Diane Luckow
Laureen Griffin
You can never have too many t ools for
Letters
BAD RAP
While I appreciated your coverage of t he
GET CRAC l<IN'
Replacing a GM from within the BC system has
leadership, for some time to come. Whi le I plan
Saskatchewan credit union initiative on
been problematic in the last few years, with
colleagues are preparing for retirem ent. So rest
personnel development ("People Wanted,"
most positions being filled by people from
assured the jobs will be there waiting for the
September 2003), I was very concerned with
outside of the province, or hired away from
future leaders of BC's small credit unions to
your negative description of our province. We
other financial institutions. With a skilled pool
assume. Future leaders, get off your butts and
may have some skilled labour shortages and
of talent available within the system, why is this
crack those books, or fire up that computer,
some demographic issues in our province but
so? The BC system is preparing the leaders of
references from the "Saskatchewan Ghost Towns"
tomorrow. The educational opportunities are
or join t hat community organization or service
club. The more, the better. The opportunities
website and suggesting that there is an "exodus
t here and waiting for the majority of system
await those who prepare, and the rewards are
from Saskatchewan" is unwarranted. You have
employees that are interested. So th e system is
worth the hard work.
again reinforced the national stereotype of
doing its job. It's up to the people who work
Steven Halliday, GM
with in t he system to prepare themselves to take
Quadra Credit Union
Qua thiaski, BC
growth in
over. Statistics and projections clearly indicate
that we are not headed towards one big " BC
2003 and 2004 and continue as a province with
Credit Union" any time soon. Studies indicate
Enterprise welcomes your feedback; please send
one of the lowest CPI increases and unemploy-
that there will still be a number of smaller
your letters to rstalcy@ cucbc.com.
ment rates. We have many local and provincial
credit unions in the provin ce that will need
our province.
The Conference Board of Canada forecasts
Saskatchewan to lead Canada in
GDP
to be around for quite a while yet, many of my
initiatives aimed at increasing and diversifying
our economic activity and growing our province.
Saskatchewan is a vibrant province that has
many economic, social and cultural ben efits. It is
a great place to live, work and raise a family and
we will welcome all those who have left our fine
/(VI /-\cl J /-\
province or any newcomers to Saskat chewan
to enjoy our quality of life.
Kevin Lukey. CEO
Cornerst one Credit Union
Yorkton, Sask.
THE BEAT GOES ON
I received the September 2003 issue of
Enterprise and read it cover t o cover. The lead
article "He Got Game," about Prospera Cred it
Union's l<eith Pui u, is ponderi ngly interesting.
I've been working for provincial, state and
national credit union organizations practically
all my life but seldom have I come across a
credit union pub lication that really marches
to the beat of the times. Enterprise makes an
excellent effort in t his regard .
Diedrich Reimer
Altona Credit Union
Altona, Man.
''Don't anybody move: this is a merger."
N OV. 2003 • ENTERPRISE
7
Small Talk
TOP MANAGER
Ontario's Windsor Family Credit Union president and CEO Martin J. l<omsa tool< home
the Manager of the Year Award from the
Credit Union Managers Association of Ontario
(CUMA) and Level Five Strategic Partners Inc.
The award recognizes Ontario managers who
exemplify a high standard of leadership and
service to credit unions. l<omsa has been
w ith Windsor Family since 1986 and has overseen growth to more than $400 million from
$40 million.
$10 MILLION IN
SMALL BUSINESS LENDING
Secretary of State Stephen Owen, Minister
for Western Economic Diversification (WED) ,
announced the launch of GrowthStart, a
$10 million development fund capitalized by
10 BC credit unions to provide much-needed
financing for small business startups in outlying regions of the province.
GrowthStart is a partnership between
the Savings and Credit Unions of British
Columbia, WED and BC's Community Futures
Development Corporations. The fund will provide financing of up to $soo,ooo to promising
8
ENTERP RISE • NOV. 2003
new businesses in rural BC that don't qualify
for traditional financing. "Small businesses
are at t he heart of BC's economy as 98 percent
of all BC businesses have less than 50 employees," says Owen.
NOW YOU'LL NEVER DUCI<
COMPUTER S PAM
Lool<ing for a smart Christmas g ift for your
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Microsoft Corp. have a ligned to combin e
the power of a desktop on a mobile phone.
Dubbed Smartphones, the commun ication
device a llows customers to manage their
email, calender and contacts, download
digital music and view video clips, among
other functions.
DUCI<! MORE INCOMING!
Got more than one techno geek on the
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Us ing Microsoft technology, it features
an illuminated touch screen that g ives the
wearer personalized Web information as
well as stock quotes, instant messaging,
spo rts , etc.
N OV. 200 3 • ENTERP RI SE
9
0 N W 1 NN1 PEG' s tree-lined Broadway
Avenue, edged with tall buildings housing
financial firms and government offices, a dirtspattered suv swings into the eastbound curb
lane, brakes, and disgorges its passenger, a
painfully thin aboriginal woman who beelines
into Me-Dian Credit Union.
Most likely, the woman is making a small cash
deposit or withdrawal. Almost half of Me-Dian's
$15 million in deposits sits in chequing accounts,
since few of its 3,000 members have money to
save. Serving individual members of the aboriginal community is high-maintenance work,
but Me-Dian president Len Flett, a Manitoban,
believes the potential rewards are great. Canada's
633 reserves receive over $6 billion a year in
federa l funding, and pending treaty land claim
settlements could ultimately top $20 billion.
"The hard truth of the matter is, aboriginal businesses and investments will be worth billions of
dollars," Flett says. And, he adds, access to finan cial services is critical for First Nations economic
development.
"For t11e most part, aboriginal communities,
corporations, businesses and people do not
have ready access to credit," says Flett. "That's
one of the things impeding First Nations development. It's o nly been very recently that the
financial institutions have slowly begun to open
their doors."
First Nations, despite the billions of dollars
flowing, or about to flow, to tribal councils, have
been among t11e most economically depressed
groups in Canada. On many reserves in Canada,
the social conditions are nothing short of appalling. Poverty rates in Canada among aboriginals
average 55 percent. On reserves, it is worse.
One 1997 British Columbia study reported that
80 percent of First Nations children in the province lived in poverty.
Newly elected Assembly of First Nations
National Chief Phil Fontaine, another Manito ban,
emphasizes the impo rtant role the financial world
can play in fighting this massive social problem.
"We need to recognize the critical importance
that a supportive finan cial sector plays in realizing economic opportunities for First Nations."
Fontaine declines specific comment on credit
unions and Fi rst Nations economic development, but says that, "as national chief, I encourage strong partnerships between the Canadian
financial sector and First Nation individuals,
governments and government organizations."
But Flett worries credit unions aren't positioned to build those partnerships. "The banks
are a lot more nimble, more entrepreneurial,"
says Flett. "They actively pursue aboriginal business, whereas the credit unions don't."
C redit unions should, however. Canada's
aboriginal population, considerably younger
and growing faster than mainstream Canada's, is
slowly becoming better equipped for individual
economic success. Aboriginals are approaching
Canadian norms for ed ucation levels and arc
leaving reserves to seek jobs in urban centres.
From 1981 to 1991, Canada's urban aboriginal
po pulation grew by 62 percent, compared to
11 percent for other urban Canadians. Most of
financia l institutions the three signing bands
were authorized to use. It must have been a
simple oversight, say credit union officials, who
only recently noticed the omission.
When the Federation of Saskatchewan Indian
Nations' Saskatchewan Indian Equity Fund
decided in the early 1990s to create its own
financial institution by forging an outside alliance, it looked at credit unions. "The proposal
that we made," says Credit Union Central of
Saskatchewan cno Sid Bildfell, "was a credit
union model, and they chose not to pursue that
model at that time. What we did say is that if
they were interested, if that's what they wanted,
we would be available."
But "just being there is not good enough,"
says Flett. "You have to get out there and bring
them in. For the most part, aboriginal people
have always been marginalized, and for the most
part they still arc. And they've become used to
it. They're not going to step into unknown territory. Nobody likes unknown territory."
Jn 1994, the Saskatchewa n aboriginals chose
the Toronto-Dominion Bank to back tl1e First
Nations Bank of Canada, which was fo rmed two
years later. First Nations Bank board chair Keith
Martell says, " the number one consideration
in not choosing credit unions was the need for a
national network. We fe lt we required involvement from First Nations groups on a wider scale
than one province or one region. We wanted to
be able to go to our clients anywhere."
Those clients are usually large tribal councils
or groups, Martell adds. "There isn't a lot of
For the most part, aboriginal communities, corporations,
businesses and people do not have ready access to credit.
That's one of the things impeding First Nations development. It's only been very recently that the financial instftutions have slowly begun to open their doors.
that growth is occurring in Western cities. By
2040, projections show Saskatchewan's urban
population could be as much as 30 percent
aboriginal.
Saskatchewan and Manitoba have the highest
percentage (14 percent) of aboriginal populations in Canada outside of tl1e North. But so
low is the credit union profile in the minds of
aboriginal organizations - and perhaps government - that one 1997 Manitoba agreement failed
to include credit unions on the list of accredited
• Len Flett
personal wealth now. Most developments are
in the hands of larger aboriginal organizations the James Bay Cree, Saskatchewan First Nations
Group, or the Tribal Council Investments
Group out of Manitoba. It's institutional money,
and their needs arc more than what a community credit union would likely be able to offer."
Garth Manness, CEO of Credit Union
Central of Manitoba, agrees. "We don't have a
solution, in large part because there's still a level
of independence that credit unions have. You
NOV. 2003 • ENTERPRISE
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ENTERPRISE • NOV . 2003
need to bring a lot of people together in order to
come to an understanding."
So far, Bildfell says individual credit unions
seem to be doing fine attracting aboriginal
clients on a local scale. "I'll bet you if we went
through all the credit unions near reserve
communities, you'd find a lot of outreach going
on." Saskatchewan Central financed Canada's
first aboriginal university campus in Regina, and
he's satisfied that the province's credit unions
have solid relationships with native peoples.
"Whether it's treaty settlement funding, new
product development, creating a new business,
or whatever that development is, the credit
unions have been actively involved for many,
many years in the aboriginal community."
Since 1996, the native population of North
Battleford, Sask., has blossomed to 18.5 percent
from three percent. Nearly 30 percent of the
local population is First Nations or Metis,
says Battlefords Credit Union Ltd. CEO Brian
Maunula. "We work quite closely with them,
mainly through the Battlefords Tribal Council."
But although Battlefords has $350 million under
management with more than 21,500 members in
10 service locations, a solid relationship with tl1e
Tribal Council, and a lending officer dedicated
to First Nation business, it still represents just
six percent of the credit union's loans portfolio.
Battlefords has had a tough time making
further inroads. Two nearby reserves recently
settled on a total of $92 million in treaty land
entitlement settlements, but "that money can
only go to an on-reserve organization," says
Maunula. Battlefords does not have an onreserve branch. "What the banks have done is
create an on-reserve bank somewhere in Canada,
and that entitles them to that money," he says.
Battlefords also has few aboriginal employees.
"We've had a difficult time retaining them," says
Maunula. "Once they get the experience, we lose
them back to reserves because of the salary levels.
And we have a difficult time trying to compete
for the people with the education and skill levels
that we're looking for. There's strong demand
for those people."
But it can be done. In Winnipeg, where
56,000 aboriginals make up eight percent of the
population, 11 percent of Assiniboine Credit
Union workers are aboriginal. "We seek out
aboriginal candidates in a variety of ways," says
Randa Stewart, Assiniboine's director of marketing and communications. "We attend aboriginal
job fairs. Whenever we advertise for jobs, we
circulate them to aboriginal employment and
training agencies as well as to the credit unions
and publicly."
Credit unions that want First Nations
business need to make that message clear.
Assiniboine has do ne that by reaching out
constantly to involve the aboriginal community.
The credit union has had an aboriginal board
member for more than a decade. Its board chair
is a regional director of the Canadian Hum an
Rights Commission. Marketing materials prominently portray visible minorities. The credit
unio n's Co-operative Business Development
Pilot Project helps struggling small co-ops into
financial viability, and two of its five projects,
Neechi Foods Co-op and Northern Star Worker
Co-op, are run by aboriginals.
"We have purchasing policies where if something is available from aboriginal suppliers, we
do that. We have a community project grants
fund, where once a year we receive applications
from proposed startup businesses," says Stewart.
"Grants are capped at $2,000, and the applicants
are overwhelmingly aboriginal."
Assinibo ine opened a branch in a location
the banks had abandoned- Winnipeg's West
Broadway area, where soup kitchens sit beside
housing projects that help the largely aboriginal
poor buy homes. Assiniboine supports land
acquisition, provides mortgages, pays CMHC
fees, and is similarly involved in the city's North
End, where more aboriginal families arc concentrated. The branch has been so well received that
its growth has exceeded business plan projections.
Part of Assiniboine's approach flows from
its social responsibility mandate. "The commit-
in their investments, and the way they spend
their money," she points out. "People tell us in
surveys that they're coming to us because of
the work we're doing in the community."
The growth in population of aboriginals in
Manitoba and particularly Winnipeg in the next
10 years is goi ng to be high, says Stewart. "If we
don't start to value, appreciate, hire, train, senre
We need to recognize the critical importance that a
supportive financial sector plays in realizing economic
opportunities for First Nations. As national chief, I
encourage strong partnerships between the Canadian
financial sector and First Nation individuals ...
ment we make to our community says with
our support, o ur work, and our hiring practices
we can change lives individually, contribute to
distressed communities, and bring them back
to life," says Stewart. But there's hard-nosed
business reasoning at work, too. "These days,
people want to be consumers who follow their
values. T hey want to be socially responsible
• Phil Fontaine
and respect aboriginals, we're going to be left
behind - because they're going to make a major
contribution. You can be sure that, as the face
of Winnipeg changes, they will know who their
fr iends are."
Those friends, adds Flett, need to declare
themselves, now. !]
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13
l N 1949, Newfou ndland and Labrador brought a
hefty dowry to its union with Canada: oil, fo rests,
nickel, hydroelectric power and seemingly
endless supplies of cod and other fish. Its spouse
was well-pleased and showered Newfoundland
and Labrador with roads, schools and hospitals.
Yet, now past their golden anniversary, the two
can look back on an acrimonious coupling that
has plundered Newfoundland's resources and
given birth to the Canadian province with
the highest unemployment rate, highest rate of
taxation, highest per capita debt, highest rate
of out-migration and lowest per capita income.
Was it time for a divorce?
Unh-unh, said The Royal Commission
on Strengthening and Renewing our Place in
Canada, on the future of the province within the
country. Appointed by forme r Newfoundland
and Labrador premier Roger Grimes, the
i4-month commission released its findings
last June. In one of its polls, the com mission
found that 88 percent of Newfoundlanders
prefer the devil they know to striking out on
thei r own. Instead, the commission, chaired
by Victor L. Young, recommended that Ottawa
and the province concentrate on getting things
done. Beyond some straightforward marriage
counsell ing (respect one another, stop rehashing past grievances, look to the fu ture), the
commission offered cooperative federalism as
the path to a stronger province. For example, it
N OV. 2003 • ENTERPRISE
15
ATLANTIC COAST
The motif of the provincial flag
of Newfoundland and Labrador
symbolizes the province's past,
present and future . Created
by internat ionally acclaimed
Newfoundland artist Christopher
recommended revising the 1985 Atlantic Accord
(which promised the province the lion's share
of its oil revenue, but then clawed back more
than 75 percent with a reduction in equalization
paymen ts) and instructed the provincial government to swallow hard and get its fiscal house
in shape.
Private business development and the role of
financial institutions were conspicuously absent
in these recommendations. "That was outside
of our mandate, which was to deal with the rela-
Pratt, it represents t he province's
Commonwealth heritage, its
islands, the sacrifice of war
veterans and its connection to
the fishing industries and the
sea. Its most prominent feature
The credit w1ions in the province are
certainly affected by the loss of people, the high
unemployment rate and the provincial debt.
Rural communities are shrinking almost as
fast as the cod stocks on which many of them
depended, and the banks, smelling smaller
profits, are deserting the smaller towns. Some
credit unions are taking over the old bank
buildings. "We've opened two new branches in
towns vacated by the banks," says Cory Munden,
general manager of Codroy Valley Credit Union.
Rural communities are shrinking almost as fast as
the cod stocks on which many of them depended,
and the banks, smelling smaller profits, are deserting
the smaller towns.
tionship between the two levels of government,"
says Young." Besides," he continues, "an industrial development strategy, cooperative strategy
or banking strategy hinges on the resolution of
these larger issues." Before the Newfoundland
and Labrador government can lower taxes,
reduce its deficit and offer attractive incentives
to business, it must get a greater share of the
revenues produced by its natural resources.
Maybe. But the credit union sector isn't waiting
for the grand reconciliation scene.
16
ENTERPRISE • NOV. 2003
Three of its branches are in communities that
have no other financial institution.
Eagle River Credit Union was found ed in
1984 by outraged residents of L'Anse au Loup
when Bank of Montreal withdrew from their
town. Eagle River has thrived, opening four
more branches, three in Labrador. While credit
unions are filling a gap in some rural areas, in
others it just isn't feasible. "The banks tie up
their commercial customers and take them
along, leaving behind an ATM for consumers,"
is the gold arrow, symbolizing
inhabitants' hope for a bright
future . It is a year since the
Royal Commission on Renewing
and Strengthening Our Place
in Canada began reflections
says Ray Hopkins, CEO ofNewfowidland and
Labrador Credit Union. "All that's left are
scraps, making it difficult for another financial
institution to go in."
In addition to offering employment and
service to rural areas, some cred it un ions are
trying to encourage people to stay by working
with students who are having trouble paying
their student loans. The inability to repay these
loans is a major reason younger people leave
the province. (About 70,000 residents have left
in the past decade.) Most financial institutions
had to stop providing Canada Student Loans
when the federal government withdrew its
guarantee because the default rate was huge.
Newfoundland and Labrador Credit Union,
however, is continuing to provide its own
student loans to children of long-time members.
"The parents have to co-sign the loan," says
H opkins, "but we will work with the students
to arrange interest-only payment for six-to-nine
months after graduation to give them a chance
to find a job."
Commercial loans seem like the m ost
straightforward way for credit unions to help
revitalize Newfoundland and Labrador's
economy. Very small businesses are big in
Newfoundland. A.M.P.T. Kelp and Seaweed
Products is typical of the new businesses being
opened. Owner Roger Organ serviced the fish ing
industry for 25 years but had to find something
What if?
There was a financial
service that:
• every member needed
• helped you really get to know
your members
• revealed additional service
opportunities
• was easy to deliver
• provided great
upon the province's role within
Confederation. The commission's
find ings are expected to help
bring a bout economic revival
and prospe rity, thus fulfillin g the
province's optimis tic idea ls.
returns
• kept your
member
coming back
to you
new when the fishery closed for the first time,
in 1990. He started making seaweed chutney
and salsa for humans, and seaweed food supplements fo r pets. "It's totally new for North
America," he says, "and it'.s very tough going."
Annual sales are less than $100,000. Organ has
only two employees, except during the harvesting season when his staffing can swell to 12. He is
under-capitalized and very short on marketing
funds. The banks aren't interested in dealing
with him because his operation is very high risk,
but he does have an operating line of credit at
Codroy Valley.
Codroy Valley can extend an operating line
of credit to A.M.P.l. but it is unable to lend
the funds necessary to really expand the business. O nly Eagle River and Newfoundland
and Labrador credit unions are authorized to
make commercial loans for more than $25,000.
"Most of our credit unions are small and lack
the capital and experienced commercial loans
staff to lend to businesses," says Winston Morris,
superintendent of credit unions and chair of the
Credit Union Deposit Guarantee Corporation.
"Commercial lending has been a problem for
us in the past," Morris says, "and we have to be
very careful so that it won't be again."
Eagle River started its commercial loans
program by contracting the services of an
experienced commercial lender. By making
commercial loans to retailers, tourism operators
and municipal governments, Eagle River is helping to keep its commun ities afloat. More credit
unions could fo llow Eagle River's lead, sharing
the expenses of an expert and training staff and
eventually even syndicating loans. But with the
system splintered, most credit unions are unable
to strengthen or renew their communities with
large loans.
While the rural communities with their low
populations and often- rem ote locations suffer
the most from the government's deficit, the
capital of St. John's is thriving with off-shore oil
developments. St. John's-based Newfoundland
and Labrador C redit Unio n is able to invest in
condominium development and housing subdivisions. Soon that credit union may have even
more opportunities to invest locally; Canadian
Business recently named St. John's the third best
city in Canada in which to do business.
Oil and nickel are pumping money into the
provincial economy, leading to a steadily rising
gross domestic product. If the royal commission report ca n spur the politicians to a renewal
of their marriage vows and a more productive
union, the credit unions of Newfoundland
and Labrador may be in the right place at the
right time. .!l
NOV. 2003 • ENTERPR ISE
17
W H ll N Nina Arvanitidis travelled to Ghana to
which recognized that its 240 credit unions and
help deliver an AIDS education program funded
120,000-plus members represented an ideal
by the Co-operative Development Foundation
network fo r delivering the AIDS message, particularly in rural villages where a credit union is the
of Canada (GDF), she encountered a simple,
ancient custom that poses a threat to the battle
only financial institution to be found.
against the deadly virus.
About $160,000 in funding was secured
The tradition of cutting patterns of notches
for the 18-month program that educated credit
union members about the disease and gave them
onto the checks and chins of Ghanaian children the knowledge and tools to pass along to others
called tribal cuttings, or scarification - is meant
as a "beautifying enhancement," says Arvanitidis, in their local communities. The project had a
27, of Markham, Ont. Performed by tribal elders
number of backers. The Ca nadian International
Development Agency (CIDA), which supports
in villages throughout the West African country,
the ccA's internship program, covered a large
the marks are made with sharp utensils that
part of the project's costs, while the Ontario
draw blood with each cut. "But there's not a lot
of control around sterilization," Arvanitidis says, Credit Union Charitable Foundation (o cucF)
donated $40,000. HEPCOE Credit Union in
and that poses a huge risk in a region where the
AIDS infection rate is high.
Ontario and Prairie Centre Credit Union in
Ghana, a nation of 20 million, is fo rtunate
Saskatchewan contributed $17,500 and $3,600
by comparison to many of its neighbours; its
respectively - the only two credit unions to
infection rate is about 3.6 percent, or about
directly support the project.
There's no denying the importance of the
250 new cases each day. (In some sub-Saharan
countries, nearly 40 percent of the population
work of the ccA in Ghana and in other developis afflicted with AIDS - an epidemic that eclipses
ing countries in which AIDS is overwhelmingly
a heterosexual disease. The epidemic, fed by
the Black Plague, which wiped out 40 million
people, or one third of Europe's population,
poverty, war and lack of education, is nothing
in the 14th century.) Without quick action by
short of a social and economic catastrophe.
Given the credit union movement's historical
the national government and international
commitment to corporate social responsibility,
social agecies, Ghana runs the risk of becoming
another African country where the social and
should more credit unions contribute to intereconomic systems are being devastated by the
national aid efforts? Should the boundaries
decimation of an entire generation. That's where that define community extend to other parts
the GDF and its sister organization, the Canadian
of the world?
Co-operative Association (ccA), come in. The
"Within the system, there has been, quite
frankly, a reluctance to go beyond our borders,"
GDF raises funds for international aid work,
while the ccA delivers programs in partnership
admits Hany Joosten, Chair of the ocucF.
with local organizations.
"There has to be some thinking there." Joosten's
Arvanitidis' work as an ccA intern took her
own credit union, St. Willibrord Community
to Ghana in September 2002, where she helped
Credit Union, is a system leader in social
administer one part of a multi-agency, governresponsibility. Yet it too grappled with the
ment-backed program to educate the populace
issue, consulting the membership about "how
about how to avoid contracting and spreading
to divide the profit pie" at a series of town
m v/ AIDS. CCA's local delivery partner was
hall meetings. The consensus, and subsequent
the Credit Union Association of Ghana (CUA),
decision by the credit union's board, was that
local community development was the priority.
"People need to see where their money is going," explains Joosten, whose credit union also
supports the ocucF with dollars and resources.
"Nothing really beats that hands-on experience."
As Arvanitidis travelled the pot-holed roads
through some of the more remote parts of
Ghana during her 11-month internship, she saw
first-hand tl1e dire need for education programs
and how resources from the cooperative sector
can be put to good use. Tribal cuttings were
just one custom she encountered that posed a
challenge; there were a host of other cultural
behaviours that had to be addressed as well.
Ghana is a polygamous society in which men
often have more than one spouse or have multiple girlfriends. Prostitution is also common,
as it is in most developing countries where the
means for women to earn a living are limited.
Meanwhile, use of condoms is sporadic, because
buying and using them is embarrassing for both
men and women. All of these factors account for
the fa ct that 80 percent of new infections occur
through heterosexual contact. (Homosexuality
is taboo in Ghana and not considered a highrisk factor. )
Arvanitidis also found that personal hygiene
practices were risky. Hair is cut by a razor
blade taped to a comb that is used repeatedly
by different people. Women love pedicures they use scalpels to cut off dead skin - and it's
not unusual for 100 to be done in a single day without sterilization of the instruments.
Since knowledge of local customs and
dialects was critical to the delivery of the
program, the project team took advantage of
the countiy's extensive credit union network,
recruiting members to deliver the content
to other members and residents.
David Agnew, President and CEO of
UN ICEF Canada, says the work of the ccA in
Ghana is vital because of the " myth and ignorance" surrounding the disease. It's important
NOV. 2003 • ENTERPRISE
19
JR
I
SfATus.
CiET TfST£1J
to get to people before they're sexually active
because "the cost of prevention is a lot cheaper
than the cost of treatment. " A former executive
at Credit Union Central of Ontario, Agnew also
believes the debate about credit unions' moral
obligation to in ternational aid is one that has to
- be taken up in the system.
"Why should credit unions care?'' he asks.
"The more enlightened ones take the view that
your community isn't defined by how far you
can travel by horse in a day. People are in trouble; we have the resources and they don't. In the
end, we're all one big global community. W hat
happens in one part of the world affects us all,"
Agnew says.
There's no debate that the AIDS epidemic
in Africa is a disaster. The latest statistics from
UNAlDS show that, of the 42 m illion people
infected worldwide with the AIDS virus, 29-4
million live in sub-Saharan Africa. More than
IO million African youth will have lost one or
both parents by the year 2010. And about one
million African children have lost their teachers to AIDS. (In comparison, there are 980,000
people living with HIV/ AIDS in North Am erica.)
"One of the real tragedies of HI vI AlDS is that
it is hollowing out Africa," says Agnew, who
has toured a number of developing countries
in Africa in recent months to assess the risk of
war and disease to children. "They're losing a
whole generation. It's the mortality rate amongst
employees that's really terrifying. It's hitting that
band of people in the prime work time and it's
having a h uge impact on the economy and social
structures of these countries."
The epidemic is also fuelling a widening
famine, primarily in southern Africa, as HIV/
AIDS overwhelms the coping resources of entire
communities by killing off the agricultural
workers.
The earliest recorded case of the H I V virus
was found in an adult male in 1959 in what is
22
ENTERPRIS E • NOV. 2003
now the Democratic Republic of the Congo.
A country of three million people, the Congo
currently reports 110,000 adults and children
living with AIDS.
Agnew recalls that during his recent travels
in the Congo - a nation that's also been hard-h it
by war - he came upon a small credit union.
"You're going through this totally war-torn town
and here's this Hands and Globe," he marvels.
For Agnew, the sight drove home the notion
that local networks do indeed exist to assist in
international aid efforts, just as CDF/ccA found
in Ghana with its partner, the national credit
union association CUA.
On the domestic front, Canadians credit
unions can channel aid to a number of cooperative organizations, including the CDP/CCA,
foundations like the ocucF, and the World
Council of Credit Unions (woccu), which is
based in the United States and active in the
development of credit unions worldwide.
"Credit unions have a very important role to
sions and institutional capital, decrease their
delinquency on loans, and implement marketing
and product development strategies.
Johnston says there are three key products
that credit unions need to provide to their
members in an H IV/ AIDS environment. The first
is saving services, "a means to build a financial
safety net to take care of the orphans and do
it while you're well." Members who are HJVpositive also need to save for their own impending health-care costs.
Second, credit unions must provide loans
to members as a way to increase their economic
means. Loans are needed for such expenses as
expanding micro-enterprises and for payiJ1g fees
to send children to school. "What we're seeing
is that credit union micro-lending is extremely
critical to the economic impact ofm v/A1Ds,"
adds Johnston.
Third, credit union members require insurance: loan protection insurance to ensure that
the debt dies with the debtor; life insurance to
The more enlightened [credit unions] take the view
that your community isn't defined by how far you can
travel by horse in a day ... In the end, we're all one big
global community. What happens in one part of the
WO rid
affects US all.
• David Agnew
play in alleviati ng the suffering of those with
AIDs," says Kimberly Johnston, woccu's
marketing and com munications manager. "The
World Council of Credit Unions is the means
by which credit unions can help with AIDS."
WOCCU's work in Africa focuses on building a safe and so und credit union system by
instilling fi nancial discipline. This means helping
cred it unions learn how to build loan-loss provi-
provide for the family after death, and insurance
to look after funeral expenses.
WOCCU's international work helps local
credit union networks provide these critical
services to members so that orphans and family
members aren't left destitute with the death of
a primary wage earner.
Few Canadian credit unions have given
direct financial aid to the international fight
OPPOS ITE :
BELOW:
Thousands of people were
forced to flee their homes as the
Okanagan Mountain wildfire crept
closer to residential l<elowna.
An unbroken Chinese vase is
all that remains of a suburban
l<elowna home destroyed in
a wildfire.
(Photo: Gary Nylander/CP)
(Photo: Andy Clark/Reuters)
DA RY L HEYMING was at his mom Fran Heyming's house for
Sunday dinner in Kelowna, British Columbia when she cheerily remarked,
"Do I ever like your new haircut."
Daryl, 21, hadn't told his mother that he
had joined the 5,000-stro ng troop of firefighters
trying to control the infernos that threatened
communities throughout BC this past summer.
On Aug. 22, two days before that Sunday dinner,
Daryl was on the frontline with other firefighters
when one of the blazes detonated with Mordorlike wrath, jumping fire lines and flowing down
Kelowna's east bank, incinerating more than
200 homes, many worth more than $500,000.
Daryl, who had previously worked as a volunteer
fireman, smiled grimly and looked at his mom,
"Well, I didn't have much choice. When I got in
from fighting the fire the other n1en told me I
had to go and have my head shaved because my
hair was all singed." (Daryl is the grandson of
Peter H eyming, chair of Credit Union Central
of British Columbia from 1977 to 1980. Peter
was also a long-time director and past chair
ofKelowna and District Credit Union, now
Interior Savings.)
Despite protection from his firefighter's
helmet and mask, the heat from the flames had
frizzled Daryl's hair, and turned his face a ruddy
burnt ochre. Daryl looked at Fran and continued, "Mom, we're not fighting the fire; you can't
fight this fire. We're doing what we can, but you
can't fight this fire. "
Fran Heyming, manager of the Rutland
branch of Interior Savings Credit Union in BC,
stared back, trying to keep her voice steady. "I
thought you were digging trenches and filling
gas tanks."
Daryl shook his head. "I only did that for the
first night or two, mom. I've been on the front
lines ever since. They need everybody that they
can get."
Fran forced a smile, " It's probably a good
thing you didn't tell me."
But after that Sunday dinner, whenever
Daryl went to a fire-figh ting shift that could last
48 hours, he would give Fran a call to say, 'Tm
heading out mom; I love you."
Fran Heyming was one of hundreds of
credit union employees in BC and the Prairies
who will long remember the summer of 2003.
In BC, which was under a province-wide state
of emergency from August to mid-September,
the cost of firefighting climbed to more than
$500 million. Livelihoods and homes - many
uninsured - were lost. Property damage, mainly
from the Kelowna and Louis Creek area, topped
about $200 million, according to the Insurance
Bureau of Canada. About 50,000 people from
the Kelowna and Kamloops areas were evacuated. Credit union brokers were refused policies
for new homeowners as insurance companies
NOV. 200 3 • ENTERPRISE
27
COVER STORY
in BC panicked at the speed and voraciousness
of the fires, which eventually consumed 250,000
hectares of forest and 334 homes. Among the
most affected were people like Fran, who lived
with the knowledge that loved ones were risking
their lives daily trying to control the blaze. " It's
still traumatic," Fran says.
East of BC, in the Prairies, a single, ill Alberta
cow, diagnosed last May with bovine spongiform encephalopathy (ssE), caused the United
States to close the border to Canadian beef.
People can develop Creutzfeld-Jakob disease by
eating beef contaminated with the proteins that
cause BSE. The diagnosis sparked an international ban of Canadian beef by 30 countries that
28
ENTERPRISE • NOV. 2003
caused an estimated loss of$u million a day
to the industry.
Central Canada was not immune to
summer's extremes. On Aug. 14, the region
was plw1ged into darkness when the power
grid that provided electricity to northeastern
US and southern Ontario shut down due to
the sudden failure of several transmission lines
in Ohio. Although Toronto's subway trains
were inoperable for the entire weekend following the blackout, credit unions were not negatively affected to any great degree. Monday
was business as usual for credit unions.
In BC, however, the fire necessitated
extraordinary measures. Credit unions and
their staff took in evacuated colleagues, or
tried to keep tabs on them as they moved, gypsylike, to safe haven ahead of the flames. Interior
Savings also did what it could for evacuated
members, giving them a $1,000 line of credit no paperwork, no questions asked. It re-opened
branches in communities without electricity,
buying generators that were often only capable
of powering ATMs and computers, but not the
lights or air conditioning, leaving employees
sweltering in plus-32 c heat.
Valley First Credit Union in Kamloops
responded in several unique ways after evacuees
from surrounding communities began fleeing
into the urban centre. Running away from a
raging forest fire can be exciting, but waiting
around for the green light to return home -
if there is indeed a home to return to - can
be excruciatingly boring. Valley First bought
hundreds of passes to the local theatre for restless kids and parents, says Jackie Horton, vice
president of corporate administration and
human resources.
Valley First also sent shampoo, soap, and
toiletries like shaving gear to the firefighters
battling the Vaseaux Lake blaze in BC, Horton
says. And, like so many other credit unions
througho ut BC, Valley First also raised thousands of dollars for fire relief fu nds.
Other cred it union employees did even more.
Judi Ault, regional manager of operatio ns
for Interior Savings' Tho mpson Region, received
a 7 AM phone call Aug. 1, alertin g her that the
comm unity of Clearwater, where there is a
branch, was without power. A hydro transformer had been damaged by a wildfire. Half an
hour later, Ault received another call. The tiny
com mun ity of Barriere was now, too, without
power. The fire was closing in. By lunchtime,
the town of about 2,500 was evacuated. Then,
Ault received a frantic telephone call. It was
the manager of the Barriere branch, Karina
Scott, who was vacationing in Alberta. Her
Rannoch Moor Farm, a modest horse-breeding
and equestrian centre, lay on the outskirts of
Barriere. Scott's 83-year-old, asth matic fa ther,
Sandy Scott, and an elderly friend were at the
fa rm. Could Ault help, somehow? "I'll try," Ault
replied. But there was nothing, really, she co uld
do. Scott's father and friend had fled the farm,
and Ault could only join the growing swell of
refugees gathering at Sport Mart Place in the
nearby city of Kam loops. It had turned into a
gathering and registration centre for evacuees,
who continued trickling in, like civilians fleeing war, past midnight. It was here that Ault
found more than a dozen missing credit union
employees.
Then, at 12:40 AM, Scott, accompanied by
three pet dogs, her boyfriend Patrick, another
friend, her dad and his buddy, walked into
the Sport Mart Place arena. Driving as fas t as
possible back into BC from Alberta, Scott met
up with her fa ther, then joined the refugees
streaming into Kamloops. Rumours of devastation were ri fe. People whispered that Barriere's
town centre had been destroyed. Altho ugh
that fear was unfounded, o ne rumour was
true - the $s5 million Tolko Industries sawm ill,
which employed 180 local residents, was razed.
(Owners announced last month the mill will
not be rebuilt.) Scott had no idea whether her
farm and small herd of show jumping and
NOV. 20 03 • ENTERPR ISE
29
)
30
ENTERPRISE • NOV. 2003
COVER STO RY
dressage horses had survived. But for now, the
tired group n eeded somewhere to stay. Ault
took them in; her two-storey home burst with
u adults and seven pet dogs.
Scott was determined to rescue her five
horses - if they were still alive. She borrowed
a large horse trailer from a friend and drove to
the barricade blocking the road into Barriere.
Flames were consuming a nearby mountain, and
heavy smoke clouded the air. Scott was allowed
through. Driving to the fa rm , once-familiar
creeks and hills "were unrecognizable," says
Scott. "It looked like a war zone; everyth ing was
black and smoking. I started to shake and was
just hanging onto the steering wheel. My heart
was pounding; I didn't know what I was going
to find."
Then, the riding arena and house roofs
peaked over the horizon. "I started repeating,
'oh my god, oh my god,' " says Scott. Thanks
largely to the efforts of firefighters, who dug
retardant lines around the farm, the flames had
skirted the property. But had the horses survived
the smoke? As she drove onto the property, Scott
spied the casual swish of a tail. "They were all
standing there like nothing happened," Scott
says, with wonder.
The horses neighed in greeting as Scott
jumped from the truck cab. She fo und some
water for the thirsty animals. She first loaded the
two broodmares - one was in foal - and drove
back through the barrier to Noble Creek Ranch,
which was owned by a friend. On the return
trip to pick up the remaining three horses, the
smoke was so thick Scott feared she may not
be allowed thro ugh the barrier again. She was,
however, and delivered the equine trio safely
to her friend's hay ranch.
The next day, there was notice to evacuate
the area where Noble Creek Ranch was located.
But Scott and the ranch owner opted to stay and
fight the blaze, if necessary, with irrigation hoses.
"You have to stop runni ng at some point," says
Scott. "You're going to run out of places to go."
Luckily, the .fire did not come near the ranch,
and Scott trucked her horses a week later back
to Rannoch Moor Farm.
Black stumps and sticks are all that remain
of the stately sweep of evergreens that once
surrounded the property. Scott is in awe at her
luck - she only had to throw out her freezer and
fridge, which were unusable as a result of rotted
contents. Others she knows weren't so lucky.
Two Interior Savings Barriere branch credit
union members, a couple, had their uninsured
house burned to the ground. And the man, a
Tolko sawmill employee, was now out of a job.
"We were hanging in a fin e balance," says
Scott. "It feels like a nightmare, but it really
did happen."
For cattlemen throughout Canada, the nightm are, however, continues.
Like many other credit union managers
across the Prairies, Kathy Vodden, who runs
H artney Credit Union in Manitoba, faces a
worrisome winter. Nearly hal f of the $21-mill ion
credit union's loan portfolio is wrapped up in
the cattle industry. Due to the US blockade,
which showed little indication, by deadline, of
being lifted, Hartney's members are faced with
feeding cattle that would have, by now, been
herded through an abattoir. A partial lifting of
the ban in August, which opened the border
to beef b ut not live cattle, provided some relief.
Manitoba only exports live cattle, as there are
few feedlots in the province. And Manitoban
bovines were far down the list of cattle to be
slaughtered elsewhere, says Vodden.
A drought and grasshopper infestation t hat
stripped bare vast stretches of prairie also meant
that farmers were feeding their cattle precious
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hay and grain intended to get the animals
through the winter, Vodden says.
Hartney sent letters to members, stating that
it would consider extending loan payments o r
restructuring existing debt. The credit union has
also created special loan programs to help farmers pay bills or buy feed until they can sell their
calves, adds Vodden.
These types of measures are being taken
by cred it unions across the Prairies. Management at Chinook C red.it Union in Brooks,
Alta., 150 km east of Calga1y, not only assuaged
members' fears that the financial institution
wasn't going to panic, it also rallied public
support, says CEO Tom Mossing.
Chinook was a participant in the boisterous
July 26 lleef Ban Border Rally on the Coutts,
Alberta/Montana border. More than 4 ,000
people, including federal and provincial politicians, protested the US ban on Canadian beef.
"We've been able to help raise awareness of the
issue and the importance of supporting o ur
agricultural community," says Mossing. But for
the meantime, all Chinook can do is be patient.
"We're not going to call people's loans," he says.
Fred Townley- McKay, CllO of Southwest
Credit Union in Swift C urrent, Sask., says,
The Wrath of Juan
The extremes of summer
extended into autumn, when
Halifax, Nova Scotia was hit
by hurricane Juan, a tempest
that brought torrential
downpours and flooding to
Atlantic Canada. The storm
also downed trees and power
lines, plunging much of Nova
Scotia into darkness for more
than a week.
The hurricane, which
blustered its way north from
Bermuda to the province
along the eastern coast,
struck the Maritime city
about 6 PM Sept. 28. Due to
power outages, most credit
union branches stayed closed
at least one business day.
Virtually a ll credit un ions
were open for business within four days, says Mary-Ann
Archiba ld, a spokesperson
for Credit Union Central of
Nova Scotia.
A new Credit Union
Atlantic branch in Hal ifax
"these kinds of crises remind me of how fragile
and at risk our whole society is to unpredictable
situations." Such crises, Townley-McKay continues prophetically, reinforce how credit unions
must refine emergency planning structures and
work with members to minimize risk. "We must
be well prepared for whatever dilemma may
unfold next - and there will be more."
The idea that the coun t1y could face the same
wrath of fire and drought and fea rs of disease
was still closed nine days
after the hurricane due to
flooding and sewage backup.
At dead line, more than
300,000 Haligonians were
sti ll without power while
utility crews and 1,000 military personnel tried to sort
o ut fa llen power lines and
remove fa llen trees and limbs
from roadways. There were
six storm - related deaths in
the province.
next year is almost unthinkable. But TownleyMcKay is right - if its happened once, it can
happen again, especially if dry weather over the
winter turns forests into tinderboxes and fields
into dustbowls. And, there is the strong possibility that the trade injunction against older cattle
may never be lifted. If so, credit unions will face
even greater challenges to help members. !l
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NOV. 200 3 • EN TER PRISE
33
OFFICE AFFAIR S
Stress Fractures
~
Mergers, overwork, and technological changes are common
to the running of most credit unions. There are a
few simple solutions that can he lp employees co pe with
these sometimes overwhelming stre sses. by Laureen Griffin
THE TEMPERATURE and Kathie Robinson's
stress level both sky rocketed this past summer.
Robinson, human resources m anager at Village
Credit Union in Coquitlam, British Columbia,
and her husband were still in the process of
blending their families from previous marriages
when she agreed to act as CEO for two months.
She d id n't know that she was p utting her frying
pan of a life into the fire. "Everything that
could go wrong, did," she recalls. There was a
lawsuit, a burglary, one branch manager quit
and another had a ruptured appendix. "If I got
five h ours of sleep a night, it was a miracle," says
Robinson. "When I d id sleep, I would wake up
with my heart racing, u nable to breathe."
The stress that the fiery, auburn-haired
Robinson felt is something that more and more
34
ENTERPRISE • NOV. 2003
Canadian workers feel. A 2001 Canadian Mental
H ealth Associatio n Survey found that half of
Canadians list work as the biggest contributor to
serio us stress in their Jives. Only 12 percent felt
that way in i997.
Stress, or more accurately distress, is that
sweaty, heart-thumping, can't-quite-get-yourbreath feeling that can signal love, excitement,
anger, fear and all the other intense emotions
that indicate we're living, breathing h umans.
Without a sprinkling of such feelings, we'd be
dead - or at least bored to death. But reguJar
showers of stress, a brain burst of hormones
and chemicals pounding through the body,
can cause temper tantrums, stom ach aches,
migraines or m uscle soreness from car rying the
heavy b urdens of our day. With an unremitting
downpour of stress, the body and m ind can
revolt. H igh blood pressure, heart attacks and
strokes can be provoked by stress, and end in
death. Stress can trigger depression and serious
anxiety disorders. Stress isn't deadly only for
individuals, it can also have a fatal effect on businesses, partly because it often isn't recognized
and partly because companies don't know how
to d eal with it.
Based on its 2002/2003 "Staying at Work"
survey, Watson Wyatt, a consulting firm
specializing in h uman resources and financial
management, conservatively estimates that
Canadian firm s are paying $16 billion dollars
a year in absentee costs related to illness or
disability. It isn't accidents that are costing the
money- worker's compensation costs have
declined. Short and lo ng-term disability costs
are the cuJprits, and the leading causes of both
are psychological conditions, including stress,
depression and anxiety. What's the biggest cause
of all this stress? Change. Constant chan ge.
In credit unions and other corporations, tl1e
same commute, the same coffee pick-up, the
greeting of friends, the standard m eetings, and
repetitious days of a secure, low-stress routine
have been replaced by constan t chan ge: new
branches, new products, and the redefinition of
jobs from order- taking to active sales or advice giving. Mergers combine all these changes in
a short period and cloud a fo reseeable future.
This can create fear, anxiety and stress.
"If you d efi ne stress as a dram atically
increased workload, and a multitude of new
problems that must be resolved in an extremely
short time with people you don't know very
tell, then yeah, I have stress," says Jeff Mulligan,
president and CEO of Border Credit Union in
Lloydminster, Alta. Mulligan is in the process
of merging not two credit un ions but fou r.
On Nov. i , Border, Common Wealth, Grande
Prairie and Fairview credit unions became one,
adopting the Common Wealth Credit Union
name. As the CEO of the new organization,
Mulligan will control assets of$940 million
rather than $639 million, boss 265 employees
rather than 160, and run 11 branches 900 km
apart instead of four within 100 km of each
other. But Mulligan, who wakes up every
morn ing with a burning passion to accomplish
things, worries more abo ut the stress on his
staff than himself.
"Stress in a situation like this comes in
waves," he says. "There's the shock of the
announcement, putting on a brave face for
members and telling them that the merger
is a good idea, sometimes when you aren't
convinced yourself. T hat causes stress."
Explaining the scope and magnitude of the
merger also created anxiety, says Mulligan.
Employees wanted to know where they fit in
the picture: Will they still have a job? W here
will they world Who will their bosses be? Wi ll
it affect their compensation? What will their
specific responsibilities be?
Answering these q uestions is necessary to
alleviate their stress. But an announcement of
a merger does no t mean that the answers to
these questions even exist. Mull igan believes in
communicating and involving as man y people
as possible in the decisions as the best way to
allay employees' fears. "I think you create stress
if you o nly tell people what you have decided,
not what all the possibilities arc." So, fo r this
merger, a steering committee of top executives is
making recommendations to Mulligan based on
the recommendations they receive fro m staff. "I
go into a room and wave a blank piece of paper,"
says Mu lligan. "I say there's no devious master
plan here. You tell me what is going to work best
for our members and o ur staff. "
But even without a merger o r a new job,
workers can feel a lot more stress than they
did 10 years ago. "Computers make our lives
more complex, says Gerry Smith, vice president
of organizational health at Warren Shepell
Consultants, a Toronto-based firm that provides
employee-assistance programs to corporate
Canada. "We're always supposed to be available
by phone or email and our bosses and custom ers expect instantaneous replies. And the sheer
volume of these m essages is oppressive." Nine
to five, with a one-ho ur break for lunch, is no
longer the Canadian norm. "Most Canadians
work 45 hours a week and spend 60 percent of
their waking hours either at work or th inking
about work," says Smith.
Longer work hours mean that employees feel
guilty about spending so much time away from
their families that they start bringing the work
home. This sets the stage fo r family problems.
W ith work worries weighing the employee down,
the family flies off the scale and the employee is
left completely off balance. With so many insistent demands on their time, people cut down
o n the ultimate panacea - sleep. "At the start
of the 20th century, the average person slept
n to 12 hours a night," says Smith. "Today, the
average person sleeps between five to six hours
a night. It's very unhealthy."
If work is the major culprit in rising stress,
what can employers do to promote their
employees' mental well-being? At Coast Capital
Savings Credit Union, headquartered in Surrey,
BC, half the staff is going through their second
merger in three years. The credit union tackled
the problem by hi ring counsellor Ted Kuntz to
give workshops on the "Joys of Stress." Kuntz
advises listeners to distinguish between stress an external pressure that is just a fact ofl ife and distress, which is the body's response to
stress. He gives some very concrete ways of
combating the fea r and anxiety that stress can
produce. "Use your imagination positively.
Instead of visualizing the worst that can happen,
visualize the best that can happen," he says.
Successful racecar drivers, according to Kuntz,
learn not to look at the wall racing toward them
as they are about to crash but to look for the
openings. "Be happy now, this minute, this
second," Kuntz teaches. "Too much time is
spent reliving mistakes or thinking, 'I'll be happy
when . . .' " And, if you must worry, think about
it later, like Scarlett O'Hara. "Every time you
start to worry, tell yourself,' I'll worry about
this at 4 PM in the red chair in the living room.'
You'll be surprised at how quiet and clear your
m ind becom es," says Kuntz.
Smith's firm, Warren Shepell, provides
Employee Assistance Programs to many credit
unions. He advises managers to set a good
WE'R E ALWAYS SUPPOSED TO BE AVA ILABLE
BY PHONE OR EMAIL AND OUR BOSSES AND
CUSTOMERS EXPECT INSTANTANEOUS REPLIES .
AND THE SHEER VOLUME OF THESE MESSAGES
IS OPPRESSIVE .
• Gerry Smith
example for their employees. "When it is 5 PM,
you should be telling your staff to go home," he
says. " If you need occasional help after hours,
show your appreciation with a chocolate bar
and a sincere thank you." And when employees
and bosses go home, Smith suggests that they do
something creative to stimulate the brain with
fresh ideas. "Hobbies, crafts, poetry, music and
other activities alleviate stress, and will help
you get the uninterrupted sleep you need. If you
sit in front of the television like a couch potato,
stress will grab you and eat you up," he says.
The remedies for stress are as individualistic as the symptoms. Robinson goes for long
drives with the top down on her blazing yellow
Mazda Miata while Mulligan works o ut in
his home gym and shoots rounds with his son,
who is a golf pro. When reality bites draw more
blood than can be spared, exercise, humour
and acceptance seem to make some of the best
tourniquets. E
A Sweet Way to Deal w ith Stress
A rich, dark chocolate brownie
But in a study presented recently
Program or consider consulting a
and glass of red w ine may be
at the University of California,
private psychologist. Teetotalers
the perfect way to melt all that
suggests that indulging in " high
who don't indulge in bacchanalian
stress away. (Ignore the fact t hat
fat, high carbohydrate comfort
t herapy could possibly benefit
it may solidify into fat on your
foods" reduces chronic stress.
from prescription drugs, so talk to
hips - that 's a negative thought.)
Of course it does! Who ever felt
your doctor.
Research shows that dark
happy after eating tofu ?
chocolate and red wine contain
If the brownie and the red wine
antioxi dants that reduce the
don't quiet the panic attacl<s,
risl< of heart attacks and cancer.
checl< out an Employee Assi stance
NOV. 2003 • ENTERPRISE
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N OV. 2003 • ENTE RPR ISE
37
I .T. Girl
...
... ... ...
·.l l
When North Peace Savings and Credit Union members have a
problem, complaint or suggestion, it goes directly to the appropriate manager, regardless of whether the member is doing
business in person, by phone or online. What's more, the member
usually gets a response or a solution within 24 hours. The result?
Satisfied members and a management team that understand
what members want and where problems lie.
For remote credit unions like Fort St. John-based North Peace,
which serves 7,600 members scattered over a vast area of British
Columbia wilderness, building personal relationships has become
more problematic with the growth of telephone and online
banking. Yet member relations at North Peace have never been
better since information systems manager Dan Currie installed
an experience-based management (EBM) tool last May.
EMB tools let organizations monitor and manage the real-time
input and experiences of their customers, pushing the information
to individual service managers and aggregating it so that central
staff can compare different branches' satisfaction and service lines,
for example, or identify common problems between branches.
For customers banking online, the system is simple - they can
evaluate services or offerings by clicking on a response box on
the website. Or, they can write a quick note outlining their grievances or suggestions. The software routes the information to the
appropriate service manager, generating an automatic email reply,
letting customers know they will get a response. For in-branch
customer complaints or comments, an employee logs the information into the EBM system, which again routes the information
to the appropriate manager. Another alternative is an in-branch
kiosk that customers can use .
Currie chose the EBM tool from Vancouver- based ResponseTek
because he couldn't afford a customer relationship management
(CRM) system. He's surprised and overwhelmed by members'
38
ENTER PRIS E • N O V. 2003
response - within the first three months, 2,600 on -line members clicked responses to service- related questions. Another
150 members made email inquiries. "We've had quite a few people
comment on how happy they are with our quick response," Currie
says. "And our board of directors can see what areas people are
commenting on and what they like and don't like, so they're feeling
a lot more in touch ."
Syed Hasan, president and CEO of ResponseTek, says, "our
focus is to engage the customer wherever they are." His product
captures both statistical and anecdotal information from and
about the customer, then sends it throughout the organization.
"It's empo.wering front-line employees with the actual issue," he
says, "and empowering senior executives to make the decisions."
Envision Credit Union, with 18 branches and 100,000 members in BC, has piloted the system passively on its website for
the past year, with 1,200 members registe ring positive and negative feedback to questions. "For us, 1,200 members - that's an
enormou s number of people responding," says Barry Delaney,
Envision's vice-president of quality and planning. "The system has
allowed us to uncover some root process issues that would have
been more difficult if we had each branch responding without
the tracking tool in place."
While Envision does have a CRM system that could offer
the same functions, it is currently installed in only three of the
credit union's 18 branches. Delaney needed a tool that everybody
across the organization could use. He plans to roll out the
full product, enabling credit union staff to follow up, track and
manage member input by email, phone or in person. He says
the EBM tool enables Envision to seek out and handle complaints
without hiring more staff. "It's helping us be more membersensitive and more cost-effective." §
1
Touch.t:W
~'~­
©ir-m.iliI1JQrnM~
ToucM~
TO EVERY
DATABASE.
Microsoft-based solution to fink
Information from multiple systems
In their ongoing effort to provide
superior customer service. Now
sales and service personnel In
their 2,600 financial centres
have a single, comprehensive
view of each customer. As a
result, Wachovia can spend
more time focusing on their
customers' Individual needs.
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