Credit unions trending towards greater unity as tech pressures mount

CREDIT UNIONS' TECH PRESSURE

Ian Bickis, The Canadian Press - May 28, 2023 / 10:25 am | Story: 428985

Photo: The Canadian Press

 

From the Tobacco Workers' Credit Union in Guelph to the New Community Credit Union in Saskatoon, the names tell part of Canada's history even as they’re now history themselves.

The two credit unions are part of a growing number that have been bought, merged or shut down over the years as a combination of pressures push increasing consolidation in the sector.

While credit union numbers have been on the decline since the 1960s, insiders say rising technology demands, which ramped up during the pandemic, have led to a spike in the trend.

"Over the pandemic, we've seen a massive shift in use of digital technology, mobile technology, not just for younger people, but through all demographics," said Jeff Guthrie, chief executive of the Canadian Credit Union Association.

The increasing technology demands of customers, whether it's improved smartphone apps or faster money transfers, combined with rising regulatory expectations, have helped drive increased consolidation, he said.

"It is a scale business, where you need scale to make investments in future technologies."

The pressures have helped drive six credit unions to merge with Winnipeg-based Access Credit Union in the past two years or so. 

Access chief executive Larry Davey said consolidation started to pick up with the advent of smartphones, but has increased pace as credit unions look ahead and make tough decisions on whether they have the resources to adapt and survive.

"For the sake of their members, they're being more aggressive in those decisions and saying, you know, we want to pick our dance partner now."

Demographic trends and rising competition also mean some of the credit unions being absorbed are quite small.  

Amaranth Credit Union, which will complete its technical merger with Access in June, had 1,200 members and $18 million in assets when the deal was struck. The credit union was incorporated in 1960, back at the peak of credit unions in Canada, when they numbered around 3,200.

At the time, many credit unions were closely linked to employers or ethnic groups, but as that closed system largely wound down, institutions like the Peek Frean Employees’ Credit Union and the Latvian Credit Union have been folded into larger unions over time.

There are still some so-called closed bond credit unions linked to an employer, notably for teachers and police, but others continue to fall away. Airline Financial Credit Union, open to anyone in the airline industry, announced on May 14 that it had approval for its merger into Luminus Financial.

Affinity-based credit unions are also dwindling. New Community Credit Union was the first for Ukrainians in Canada when it opened in 1939, but it merged into Synergy Credit Union last year. 

The trend has meant that in the 10 years leading up tolate 2022 the number of credit unions fell by 129, or 37 per cent, to 219, according to a report last year from the C. D. Howe Institute.

As credit unions go beyond local communities, there are risks of lower member participation rate and board capture by management, said report authors Marc-André Pigeon and Murray Fulton, noting the need for clarity of purpose and good communication.

However, consolidation doesn’t have to mean a disconnect with members, even as smaller credit unions get absorbed into larger ones, said Annette Bester, national credit union leader at professional services firm MNP. 

"It just becomes a little bit more of a diversity of cultures," she said.

While consolidations can sometimes come with bad connotations around losing community roots, she said there’s still a local link and the alternative can be much more severe.

"If a credit union isn't sustainable, it closes its doors. If it closes its doors, there's no one that's supporting that community financially anymore by making those donations to the rink."

Credit unions have long co-ordinated on many aspects of technology without needing to merge, such as through a linked network of ATMs and pooling resources to secure online banking platforms, but there are still aspects that require individual bank resources, Bester said.

"They have to integrate it with their banking system, so that's where it gets costly for credit unions to do it themselves. That's where scale starts to matter."

The challenges of meeting the technological demands can be seen in the size of some of the mergers going on. 

Servus Credit Union and connectFirst Credit Union, Alberta’s two largest, announced in March that they would merge to create a single credit union with more than $31 billion in assets under administration. 

"They're two of the largest coming together. They're still looking at it and saying, you know, we still need more scale to be able to do everything we know we're going have to do for our members," Bester said.

In announcing the deal, board members emphasized the need to respond to competitive pressures, and to have the resources to invest in digital innovation and prepare for open banking.

The deal will leave the merged union with a similar level of assets to Vancity, while Desjardins, the first successful credit union in Canada after opening its doors in 1900, is the clear giant in the space with around 7.5 million members and $407.1 billion in total assets. 

But while the trend is towards larger and fewer credit unions, there are those pushing against it, finding such models don't always fit their needs. 

Lighthouse Credit Union launched in 2022 as one of the few new credit unions created in Canada in recent decades. 

Chairman Harley Gold said in a release announcing the launch that Lighthouse was grateful the provincial regulator approved the credit union and that it recognized the need for a Jewish credit union. 

"A credit union fits well within Jewish principles of community and giving back, and we hope that Lighthouse Credit Union can serve as a financial beacon for the community."

PROUDHON'S PEOPLES BANK

Credit unions battle big banks to attract younger Canadians

Leah Golob, The Canadian Press

Kayla Rourke's first banking experience was with Conexus Credit Union but left to try the Bank of Nova Scotia in her teens, hoping to take advantage of the Scene points program to earn free movie tickets.

She later tried another bank or two but eventually, the 29-year-old Regina-based teacher returned to Conexus five years ago because of its no-fee chequing account, customer service and focus on helping local communities. In 2021, for example, the credit union reinvested more than $1.9 million back into Saskatchewan communities through their Community Investment Program.

“I feel really happy staying with a credit union because I want to make life better where I live,” Rourke said.

“It feels like at a bank I’m always trying to be sold something,” she added. “I feel like at a credit union, I’ve had such good discussions on how to build wealth or save for particular goals while keeping it realistic. I love how they’ve checked in with me to see how it’s going … I feel like at a bank I was a customer and at a credit union, I feel like a client.”

Disha Soni, a 32-year-old self-employed financial adviser, said in her case it made more sense to go with a bank rather than a credit union because they’re well known around the globe and have many physical branches.

“They are well established and I had more confidence giving them my money,” she said. Soni, who immigrated to Ottawa in November 2021, was also attracted by the offers that banks have for newcomers.

In recent years, the Canadian Credit Union Association has been promoting credit unions to millennials and Generation Z. According to a report entitled “Credit unions and millennials” published by MNP, attracting and retaining millennials and Generation Z is vital to sustaining the Canadian credit union system, especially as it faces an aging member base. 

Ipsos’s Customer Service Index Survey conducted over 2021 revealed that 59.2 per cent of credit union members are over the age of 55. Only 12 per cent of credit union members, on the other hand, were 18 to 34 years old. 

With banks, the survey showed that 17.5 per cent of customers are 18 to 34 and 45.6 per cent of customers are 55 and over. 

Annette Bester, national leader of credit union services at MNP, said there’s a lot of education that needs to be done around credit unions to spread awareness on what they are and what they do. This awareness can vary by geography, she said.

For example, while credit unions are more known in parts of the country such as Saskatchewan, there may be less awareness in Ontario, where most of the country's major banks are headquartered. 

There are some misconceptions about credit unions, such as if you join a credit union that operates in one province, you won’t be able to access funds elsewhere if you’re travelling, Bester said.

“Credit unions have access to ATM networks across the world and they’ve got mobile banking apps. They’ve got all the same things that the big banks do but maybe it’s not known,” she explained.

Credit union members can use any ATMs that belong to the Exchange Network free of charge but will have to pay a surcharge using ATMs that are not part of the network. 

Pamela George, a financial literacy counsellor at Sand Dollar Financial Literacy, said the biggest downfall for credit unions is that they don’t have a big budget for marketing like banks do.

Otherwise, both George and Bester believe that the financial co-operative, community-focused nature of credit unions would be appealing to young people if they understood more about how they worked. 

For example, customers of credit unions are called members, and profits go back to the credit union to help set up better interest rates and lower fees for members, George said. 

Where banks have the upper hand is with better technology on their apps and websites. They lead the way in this area, George said. 

When deciding the right fit for them, young people will have to weigh digital technology and the availability of physical locations Canada-wide against whether they’d want to bank with a financial co-operative with a community focus. 

Credit unions battle big banks to attract younger Canadians

Leah Golob, The Canadian Press

Kayla Rourke's first banking experience was with Conexus Credit Union but left to try the Bank of Nova Scotia in her teens, hoping to take advantage of the Scene points program to earn free movie tickets.

She later tried another bank or two but eventually, the 29-year-old Regina-based teacher returned to Conexus five years ago because of its no-fee chequing account, customer service and focus on helping local communities. In 2021, for example, the credit union reinvested more than $1.9 million back into Saskatchewan communities through their Community Investment Program.

“I feel really happy staying with a credit union because I want to make life better where I live,” Rourke said.

“It feels like at a bank I’m always trying to be sold something,” she added. “I feel like at a credit union, I’ve had such good discussions on how to build wealth or save for particular goals while keeping it realistic. I love how they’ve checked in with me to see how it’s going … I feel like at a bank I was a customer and at a credit union, I feel like a client.”

Disha Soni, a 32-year-old self-employed financial adviser, said in her case it made more sense to go with a bank rather than a credit union because they’re well known around the globe and have many physical branches.

“They are well established and I had more confidence giving them my money,” she said. Soni, who immigrated to Ottawa in November 2021, was also attracted by the offers that banks have for newcomers.

In recent years, the Canadian Credit Union Association has been promoting credit unions to millennials and Generation Z. According to a report entitled “Credit unions and millennials” published by MNP, attracting and retaining millennials and Generation Z is vital to sustaining the Canadian credit union system, especially as it faces an aging member base. 

Ipsos’s Customer Service Index Survey conducted over 2021 revealed that 59.2 per cent of credit union members are over the age of 55. Only 12 per cent of credit union members, on the other hand, were 18 to 34 years old. 

With banks, the survey showed that 17.5 per cent of customers are 18 to 34 and 45.6 per cent of customers are 55 and over. 

Annette Bester, national leader of credit union services at MNP, said there’s a lot of education that needs to be done around credit unions to spread awareness on what they are and what they do. This awareness can vary by geography, she said.

For example, while credit unions are more known in parts of the country such as Saskatchewan, there may be less awareness in Ontario, where most of the country's major banks are headquartered. 

There are some misconceptions about credit unions, such as if you join a credit union that operates in one province, you won’t be able to access funds elsewhere if you’re travelling, Bester said.

“Credit unions have access to ATM networks across the world and they’ve got mobile banking apps. They’ve got all the same things that the big banks do but maybe it’s not known,” she explained.

Credit union members can use any ATMs that belong to the Exchange Network free of charge but will have to pay a surcharge using ATMs that are not part of the network. 

Pamela George, a financial literacy counsellor at Sand Dollar Financial Literacy, said the biggest downfall for credit unions is that they don’t have a big budget for marketing like banks do.

Otherwise, both George and Bester believe that the financial co-operative, community-focused nature of credit unions would be appealing to young people if they understood more about how they worked. 

For example, customers of credit unions are called members, and profits go back to the credit union to help set up better interest rates and lower fees for members, George said. 

Where banks have the upper hand is with better technology on their apps and websites. They lead the way in this area, George said. 

When deciding the right fit for them, young people will have to weigh digital technology and the availability of physical locations Canada-wide against whether they’d want to bank with a financial co-operative with a community focus. 

• PROUDHON'S PEOPLES BANK

• Credit unions battle big banks to attract younger Canadians

Leah Golob, 

The Canadian Press  

Jul 26, 2022

Kayla Rourke's first banking experience was with Conexus Credit Union but left to try the Bank of Nova Scotia in her teens, hoping to take advantage of the Scene points program to earn free movie tickets.

She later tried another bank or two but eventually, the 29-year-old Regina-based teacher returned to Conexus five years ago because of its no-fee chequing account, customer service and focus on helping local communities. In 2021, for example, the credit union reinvested more than $1.9 million back into Saskatchewan communities through their Community Investment Program.

“I feel really happy staying with a credit union because I want to make life better where I live,” Rourke said.

“It feels like at a bank I’m always trying to be sold something,” she added. “I feel like at a credit union, I’ve had such good discussions on how to build wealth or save for particular goals while keeping it realistic. I love how they’ve checked in with me to see how it’s going … I feel like at a bank I was a customer and at a credit union, I feel like a client.”

Disha Soni, a 32-year-old self-employed financial adviser, said in her case it made more sense to go with a bank rather than a credit union because they’re well known around the globe and have many physical branches.

“They are well established and I had more confidence giving them my money,” she said. Soni, who immigrated to Ottawa in November 2021, was also attracted by the offers that banks have for newcomers.

In recent years, the Canadian Credit Union Association has been promoting credit unions to millennials and Generation Z. According to a report entitled “Credit unions and millennials” published by MNP, attracting and retaining millennials and Generation Z is vital to sustaining the Canadian credit union system, especially as it faces an aging member base. 

Ipsos’s Customer Service Index Survey conducted over 2021 revealed that 59.2 per cent of credit union members are over the age of 55. Only 12 per cent of credit union members, on the other hand, were 18 to 34 years old. 

With banks, the survey showed that 17.5 per cent of customers are 18 to 34 and 45.6 per cent of customers are 55 and over. 

Annette Bester, national leader of credit union services at MNP, said there’s a lot of education that needs to be done around credit unions to spread awareness on what they are and what they do. This awareness can vary by geography, she said.

For example, while credit unions are more known in parts of the country such as Saskatchewan, there may be less awareness in Ontario, where most of the country's major banks are headquartered. 

There are some misconceptions about credit unions, such as if you join a credit union that operates in one province, you won’t be able to access funds elsewhere if you’re travelling, Bester said.

“Credit unions have access to ATM networks across the world and they’ve got mobile banking apps. They’ve got all the same things that the big banks do but maybe it’s not known,” she explained.

Credit union members can use any ATMs that belong to the Exchange Network free of charge but will have to pay a surcharge using ATMs that are not part of the network. 

Pamela George, a financial literacy counsellor at Sand Dollar Financial Literacy, said the biggest downfall for credit unions is that they don’t have a big budget for marketing like banks do.

Otherwise, both George and Bester believe that the financial co-operative, community-focused nature of credit unions would be appealing to young people if they understood more about how they worked. 

For example, customers of credit unions are called members, and profits go back to the credit union to help set up better interest rates and lower fees for members, George said. 

Where banks have the upper hand is with better technology on their apps and websites. They lead the way in this area, George said. 

When deciding the right fit for them, young people will have to weigh digital technology and the availability of physical locations Canada-wide against whether they’d want to bank with a financial co-operative with a community focus. 

Proudhon and his "Bank of the People" - Anarchy Archives

http://dwardmac.pitzer.edu › proudhon › dana

M. Proudhon is about five feet eight inches high, of rather clumsy person. His hair is light, his complexion fresh, his eyes blue and keen, and ...

With the economy faltering, is it time to ditch your bank for a credit union? YES!

AKA PROUDHON'S PEOPLES BANK


Mitchell Glass
Sun, September 4, 2022 

With the economy faltering, is it time to ditch your bank for a credit union?

Deciding where to store your money is a big decision.

Oftentimes, we choose a bank or credit union as young adults based on family recommendations. But just because a certain financial institution worked well for your parents doesn't mean it's the best fit for you.

Credit unions and banks are very different creatures — each with a unique set of benefits and drawbacks.

Let’s explore the characteristics of each to help determine which is the better choice for your needs.

With two-thirds of Americans admitting to draining their savings to keep up with inflation, retirees have a secret key to boost their budgets in tough times.

What is a credit union?

A credit union is a not-for-profit financial institution owned by its members (like you). Since credit unions don't need to show a profit, their sole purpose is to offer their members the best rates possible.

Credit unions are smaller than banks and limit membership to certain groups of people. They might all be employees of the same company, followers of a specific religion, residents in a certain geographic location or members of a civic organization.

LIKE A UNION
As a member, you can vote on your credit union’s policies and influence how it is run.

Pros of credit unions

Favorable interest rates. Since credit unions aren’t designed to make a profit, they typically offer higher interest rates on deposits and lower rates on loans.

Lower or no fees. The nonprofit nature of credit unions allows them to keep fees as low as possible. For example, unlike banks, many credit union checking accounts have no minimum balance requirements or monthly maintenance fees.

Better customer service. Credit unions prioritize community and personal attention. Since policies are voted on by members, you’re more likely to receive services tailored to your needs. You can also develop a personal relationship with branch managers and loan decision-makers, which may help you secure a loan.

Security. Credit union accounts are insured up to $250,000 by the National Credit Union Administration. If you need higher coverage limits, you can often open multiple accounts.

Cons of credit unions

Outdated technology. Since the goal of credit unions is to charge you as little money as possible, they may have less of a budget to roll out new apps and technology. That said, if you find one that offers the basic online services you use the most, you may not need all the latest bells and whistles.

THIS DOES NOT APPLY IN CANADA WHERE CREDIT UNIONS WERE ONLINE BEFORE BANKS SUCH AS THE VANCOUVER CITY CREDIT UNION (VANCITY)

Limited locations. Credit unions are smaller and more focused on a tight-knit community. That means there are naturally fewer branches and ATM locations. To solve this problem, many credit unions have joined forces to create the CO-OP Shared Branch and ATM network that allows members to use branches and ATMs from all other credit unions in the co-op nationwide.

Limited membership. Each credit union has specific membership eligibility requirements called a “field of membership.” For example, the Navy Federal Credit Union accepts current and retired members of the armed forces, their families, household members and Department of Defense personnel. That said, nowadays larger national credit unions only require you to be part of certain easy-to-join organizations. For example, to join Alliant Credit Union, all you have to do is become a member of Foster Care for Success by donating $5, which can be reimbursed.

Limited financial products. Most credit unions offer checking accounts, savings accounts, CDs, basic credit cards and various loans. But they don’t typically offer the wide array of financial products you find at banks.

What is a bank?

Banks are for-profit organizations owned by investors. The main goal of a bank is to make money for the investors — and unlike with a credit union, you’re not a bank "member," which means you have no say in bank policies.

Banks don’t restrict eligibility to certain groups of people. Anyone who lives in a bank's serviceable area can open an account and become a customer.

Banks can be broken down into online-only operations and brick-and-mortar institutions. Online banks are completely virtual and have few or no physical locations. While they can’t offer face-to-face service like brick-and-mortar banks, their lower overhead typically allows them to offer better rates.

Pros of banks

More accessibility. Big banks offer more branches and ATMs than credit unions. For example, Chase has more than 4,700 branches and 16,000 ATMs — making it more convenient to access your money wherever you are. And while some small regional banks require you to live in the same state, most banks don’t have special eligibility requirements to join.

More financial products. Banks are more likely to offer money market accounts, investment accounts, wealth management services and a wider range of credit card options.

Better technology. Banks have more funds to invest in fancy websites, convenient apps and other tech to make your life easier. Just remember, the money to develop this technology comes out of your pocket via higher fees and less favorable rates.

Security. Bank accounts are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). For higher coverage, you can split your funds between multiple accounts.
Cons of banks

Higher fees. Since a bank’s main objective is to make money for its investors, they charge higher fees. For example, checking accounts often charge fees if you do not maintain a minimum balance in your account. Overdraft and bounced check fees are also often harsher in banks than credit unions — especially with non-premium accounts.

Worse rates. A bank’s for-profit objectives naturally lead to less favorable rates than credit unions. That said, you may find better rates at an online bank compared to a brick-and-mortar bank.

Less flexible. Banks have strict rules and protocols set nationally by a board of directors. This makes them less flexible than credit unions, where you have a say in the rules. This rigidity — paired with corporate, profit-focused policies — is a recipe for customer service issues.
Is a bank right for you?

Banks make the most sense if you value convenience over price. You may pay more in fees and interest rates, but you have access to more financial products, better technology and more branches and ATMs.

If you take advantage and actually use all these extra features, depositing your money in a bank may be worth the price.

Choosing a credit union

Credit unions are designed to prioritize their members. If you want favorable interest rates, low fees, great customer service and an organization that has your best interests at heart, a credit union is the way to go.

This is especially true if you don’t need all the bells and whistles that banks offer.

Whether you decide to stay with your current financial institution or not, just be sure you’re regularly exploring your options to ensure you've landed on the best fit for your needs and financial goals.

UK’s credit unions face uncertain future amid cost of living crisis

PROUDHON'S PEOPLES BANK BY ANY OTHER NAME

Kalyeena Makortoff Banking correspondent
Sun, 4 February 2024 

The number of credit unions have fallen from a peak of about 700 in 2001 to 240 today.Photograph: Christopher Thomond/The Observer

When 27-year-old Basil Lewis left the picturesque parish of Clarendon, Jamaica, famed for its spa, to start a new life in London in 1954, he did not plan to shake up the UK’s centuries-old banking sector.

But the financial discrimination faced by Caribbean migrants in the UK – who were refused loans, charged higher interest rates, or forced to pay larger mortgage deposits than the rest of the population – meant there was a lack of affordable credit for newly settled workers such as Lewis.

Working with a group of fellow Union Church members in Hornsey, north London, Lewis drew on a financial model popular in the West Indies and by 1964 had launched the UK’s first credit union.


Related: Credit unions are helping Britons survive – but can they really rival banks?

The idea spread, peaking at about 700 credit unions by 2001, while assets and membership hit a record high of £2.6bn and 1.5 million members respectively this year.

But just as the UK prepares to celebrate 60 years since Lewis’s credit union launched, the industry has found itself at a crossroads.

Financial pressures have seen a decline in the number of credit unions in recent years, leaving just 240 across Britain, with some forced to wind down but most being swallowed up by rivals in a huge wave of consolidation.

And those that remain have been put on notice by the Bank of England, which in October flagged serious concerns about poor governance, liquidity risks and their ability to withstand the current economic downturn.

Labour has pledged to double the size of the entire mutual and cooperative sector if it gains power. However, without careful management, the future of the country’s credit unions, which have provided a financial lifeline for vulnerable households, could be thrown into question.

Credit unions have a modest profile in Britain. They are not-for-profit cooperatives that are owned by, and serve, members with a common bond – meaning those that either live locally or work for a certain industry. Some still rely on volunteers to govern or run their everyday operations and tend to focus on personal loans as small as £50, particularly for the less well off, who are often considered too risky by mainstream banks.

Charges are capped at an annual percentage rate of about 42.6% across most of the UK – approximately 3% a month – which can be a good deal for those borrowing small amounts over short periods, who would otherwise be driven to loan sharks or extortionate payday lenders.

That proved to be the case for 47-year-old Kelly Evanson, who originally turned to the Just Credit Union in Shrewsbury, Shropshire, seven years ago after seeing flyers for an auto-payroll deduction programme meant to build up savings. Two years later, it was a lifeline, providing a £1,500 loan to tide her over in the middle of a difficult divorce. “They were the first people that I went to, because I wasn’t sure how the marriage breakup had kind of affected my credit rating.”

“That’s the kind of story we typically see,” says Matt Bland, chief executive of the Co-op Credit Union, which serves workers in the mutual sector. “People go through a cascade of less good lenders and then they might come across a credit union that’s trying to offer them a better deal.”



Surging interest rates and living costs have triggered a reversal of fortunes that raised eyebrows at the Bank of England

The role of credit unions in financial inclusion has not been lost on the Financial Conduct Authority. In 2019, the regulator used a 49-page report to call for the government to review the use of credit unions to develop a more viable alternative to payday lenders such as Wonga, which had collapsed a year earlier after complaints over interest charges of more than 5,000%.

The review was sidelined during the pandemic, but credit unions broadly weathered the storm. Fast-forward to 2023 and surging interest rates and living costs have triggered a reversal of fortunes concerning enough to raise eyebrows at the Bank.

“The external environment has changed considerably over the past 12-24 months,” the Bank warned credit union directors in October. Not only had the cost of living crisis caused more borrowers to fall behind on repayments, but the surge in interest rates had made new loans unaffordable for many members.

They started making unexpected withdrawals to either compensate for a surge in the cost of living, or chase higher returns for their savings elsewhere. Meanwhile, the boom in buy now, pay later products by the likes of Klarna and Clearpay chipped away at both loan demand and credit unions’ willingness to lend to overstretched borrowers.

At the same time, credit unions suffered a fall in liquidity – the amount of readily available cash needed to repay savers and conduct business.

Together, those factors had created “risk and stress that the credit union sector has not had to address in recent times”, the Bank said, , warning that credit unions which failed to recruit experienced leaders should consider winding down or being swallowed up by a rival.

Robert Kelly, who led the NHS Credit Union in Glasgow for 10 years before taking over as chief executive of the Association of British Credit Unions Ltd, acknowledges the Bank’s concerns. “It was a sort of a rallying call to the sector. And we heard that.”

However, he insists that the Bank’s most pressing concerns apply to between 5% and 10% of credit unions. “It’s absolutely not the case that there are widespread governance [issues].”

Many credit unions are now reviewing recruitment and risk management strategies, while others may consider introducing more paid staff, he says. Creating a more “professional” industry may also be necessary in light of landmark changes contained in the Financial Services and Markets Act that take effect this summer. Credit unions will be able, for the first time, to offer car financing, mortgages, credit cards and general insurance.

While this change is meant to create more affordable products for members, it will also help diversify income streams.

The shadow City minister, Tulip Siddiq, has raised concern over the dwindling number of credit unions, which she said were still operating in an “outdated regulatory regime”. Labour plans to further expand the list of financial products that credit unions can offer and force regulators to prove they considered the effect on mutuals when setting rules for the City. Full plans are still being drafted.

It could help serve more consumers such as 43-year-old Sheryl Falkingham. Despite working for a local energy supplier, a surge in living costs left her with little room to manoeuvre when her 10-year-old daughter needed a new school uniform last summer. “Up until two and a half years ago, I would have had that disposable income, but because the cost of living has increased more than my salary, I just don’t have that any more,” she said. The Bradford District Credit Union arranged a £33 a month repayment plan, with £10 reserved for building up a new savings pot. Whatever the plan, boosting the number of credit unions may not be the answer, with both Kelly and Bland saying that consolidation may actually make the network more financially sound.

In the same vein, they are urging parties to reform common bond rules, which limit credit unions to serving members who live or work in a certain region, or for a particular industry, and to a cap on membership.

In the meantime, Kelly says the industry will use the 60th anniversary to showcase the differences that credit unions have made to “ordinary people’s lives”. “The next 60 years will look different,” he says. “That doesn’t mean that we lose our cooperative, and ethical and mutual values, though. Not at all.”

ON THE ROAD TO SOCIALIZING CAPITALISM
The DUCA Impact Lab and the School for Social Entrepreneurs in Canada build an international PPE supply chain specifically for local community agencies


The DUCA Impact Lab

TORONTO, June 29, 2020 /CNW/ - As Ontario begins to loosen restrictions, a group of social-service agencies have a new source of personal protective equipment thanks to the efforts of an informal network of far-flung volunteers, businesses, and organizations.

This initiative addresses a key gap in PPE supply efforts throughout the COVID-19 crisis — providing PPE for people who work in essential community services such as women's and homeless shelters, meal programs, and drop-ins, among others.

Unlike other services, including hospitals and long-term care homes, many social-service organizations weren't prepared with PPE on hand and, amid a global surge in demand, had little hope of getting any. Governments have not stepped up fast enough. Agencies have been faced with the impossible choice to stop essential services, scale back, or operate with less PPE than they should.

That's why staff at the School for Social Entrepreneurs (SSE) in Canada reached out to the School's local community and their contacts across continents to create a new PPE supply chain leveraging the BMW Foundation Herbert Quandt's Responsible Leaders Network and the League of Intrapreneurs.

"All these private citizens said, 'Not on my watch,' Marjorie Brans, Director of Impact at SSE says. Ordinary people all over the world wanted to do something to help when COVID-19 hit. On their own, they felt helpless, but by working together in a network they were able to make a difference for people who have been overlooked during this crisis. This is the everyday leadership we need"

DUCA Financial Services Credit Union, through its charitable foundation, the DUCA Impact Lab, donated the cash to help kickstart the initiative and purchase the supplies, including gloves, masks, and gowns. "DUCA is delighted to donate to support this impactful and timely initiative which very much aligns with DUCA's purpose to help People do more, be more and achieve more especially during these times" says Doug Conick, President & CEO of DUCA Credit Union and Chair of the DUCA Impact Lab.

"This is a global network that came together in the face of so many challenges. It's an example of the creative ingenuity brought to light by the crisis, and a refreshing reminder that interdependence with the global community can solve local challenges," Keith Taylor, Executive Director of DUCA Impact Lab, says.

Mobile Medics International, a non-profit that provides medical aid during humanitarian crises and health care to underserved populations, helped procure the PPE. Founder Teresa Gray says when it comes to social-service workers, "In the face of COVID, unrecognized means under-protected."

West Neighbourhood House, a non-profit multi-service agency in west Toronto, was one of the recipients.

"Thanks to DUCA Credit Union, the DUCA Impact Lab and these incredible volunteers, we have PPE to keep our Personal Support Workers safe as they work in the homes of seniors; and our drop-in workers safe as they maintain support and connections with homeless people. It's not medical care, but it's essential care," Executive Director Maureen Fair says.

Fair praised the volunteers who worked together across multiple time zones for weeks to comb the globe for sources of PPE. A BMW Foundation Responsible Leader in India was even inspired to transform his family's clothing factory, the Signet Group, to make PPE.

The gift from DUCA Credit Union was managed through through the Maitri Platform International Project Fund at Charities Aid Foundation (CAF) Canada, which helps Canadians to support charitable projects around the world. To contribute to the fund or learn more, visit the page on CanadaHelps.

About DUCA Financial Services Credit Union:
DUCA Financial Services Credit Union Ltd. (DUCA) was formed in 1954 and has grown from a single branch Credit Union in Toronto to branches across the GTA and Central Ontario with over 70,000 Members. DUCA provides comprehensive banking services to both individuals and businesses through an innovative Co-Operative Banking model. With no-fee banking, attractive mortgage and lending rates, a Profit Sharing program that rewards Members, and a commitment to communities through the DUCA Impact Lab, DUCA is an excellent alternative to traditional banking institutions. For more information visit www.duca.com.

About West Neighbourhood House:
West Neighbourhood House is a non-profit multi-service community organization serving all age groups and the diverse populations of downtown west Toronto. West NH has continued to provide in-person care to local seniors in their homes with dedicated Personal Support Workers and Meals on Wheels. West NH's drop-in for homeless people has also stayed open to provide basic needs such as toilets, showers, laundry, telephone and internet as well as case management and advocacy for housing, income supports, treatment programs, legal help and medical care. Learn more at: http://www.westnh.org/

About Mobile Medics International:
Mobile Medics International (MMI) is a 501(C)3 non-profit, volunteer organization that provides medical care to victims of natural disaster and humanitarian crises. MMI was founded to provide basic healthcare to those who may not be able to access medical facilities in a disaster or those who are medically underserved. As its name implies, MMI is a mobile team that specializes in reaching patients in remote areas. From weather-related catastrophes to refugee crises worldwide, MMI volunteers are ready to respond and help those affected. Learn more at: https://www.mobilemedicsinternational.org/

About the School for Social Entrepreneurs Canada:
A project of MakeWay's Shared Platform, The School for Social Entrepreneurs is a global leader in activating people and organizations to make positive social and environmental change by contributing to the achievement of the United Nations Sustainable Development Goals by 2030. SSE works with executives, entrepreneurs, intrapreneurs, change makers, rebels, boat-rockers, and anyone who wants to disrupt the status quo for a more equitable and just world. Learn more at: www.the-sse.ca

SOURCE The DUCA Impact Lab

For further information: Marjorie Brans, mbrans@sseontario.org
Related Links

https://ducaimpactlab.com/


Organization Profile

The DUCA Impact Lab

Welsh Government confirms additional funding for credit unions

PROUDHON'S PEOPLES BANK

26 Nov 2024

More funding has been made available to support credit unions across Wales

The Welsh Government has announced additional funding is being made available to strengthen credit unions across Wales.

An additional £408,719 is being provided to credit unions, which offer a vital safety net for individuals and families who need access to fair and affordable lending.

People on lower incomes in particular can find it difficult to access credit, with most options too costly or not open to them. Credit unions can help borrowers when unexpected expenses arise and having access to a small, short-term loan from a credit union can mean the difference between handling a crisis and facing mounting debt.

Accessible

The government says that by increasing the funding for the nine credit unions operating in all parts of Wales, it is making these services more accessible, so individuals and families can manage their finances without fear.

The Cabinet Secretary for Social Justice, Jane Hutt, said: “Life can be unpredictable, and people shouldn’t have to worry about where they can turn if an emergency arises. Christmas can be an especially costly time, and I would encourage those struggling with their finances, who may be at risk from high-interest doorstep lenders or loan sharks, to instead consider their local credit union, which can provide access to fair and affordable credit.

“This additional funding will strengthen the support credit unions offer in communities across Wales, helping people not only manage today but also build financial resilience for the future.”

In the last two years, the Welsh Government has committed £1.2 million to credit unions to expand their lending by offering new ‘starter’ loans and ‘credit builder’ loans, helping more than 3,600 people access affordable loans for the first time

Smart Money Cymru

One of the credit unions who will benefit from the new investment is Smart Money Cymru, which provides financial services to people in the Caerphilly, Blaenau Gwent and Newport areas.

Its Chief Executive, Mark White said: “As community-based organisations, credit unions are there to help everybody, especially those struggling to access finance.

“The Welsh Government’s Loan Expansion Scheme is critical to helping credit unions like Smart Money Cymru Community Bank provide loans for people with poor credit profiles so they can rebuild their financial capability and start to grow a savings pot alongside their loan repayments.

“This is underpinned by our partnership with Blaenau Gwent County Council and the recent appointment of Councillor Jules Gardner as Credit Union Champion for the county with a brief to help tackle poverty and access to finance.”

The Welsh Government has also invested £637,000 in digital improvements for credit unions, ensuring they can offer online services comparable to those provided by banks.

This means that people across Wales have flexible, easy access to financial support.

To find out where your nearest credit union is and more details on how to access them visit the Credit Unions of Wales website.

Biden bill includes boost for union-made electric vehicles


FILE - A Tesla charges at a station in Topeka, Kan., April 5, 2021. President Joe Biden and Democrats in Congress are looking to give U.S. automakers with union employees the inside track when it comes to winning the burgeoning electric vehicle market. The $1.85 trillion spending package that Democrats are trying to get through Congress includes an array of programs designed to curb global warming, including incentives to hasten the transition to electric vehicles, now about 2% of new car sales in the U.S. A provision that would give buyers of vehicles made at unionized manufacturing plants in the U.S. a more generous tax credit is sparking an international and regional political squabble. 

AP Photo/Orlin Wagner, Fil

KEVIN FREKING
Thu, November 11, 2021

WASHINGTON (AP) — President Joe Biden and Democrats in Congress are looking to give U.S. automakers with union employees the inside track on the burgeoning electric vehicle market, triggering vocal opposition from foreign trade partners and Republicans who worry that manufacturers in their home states will be placed at a competitive disadvantage.

The $1.85 trillion spending package that Democrats are laboring to pass through Congress includes an array of programs designed to curb global warming and slash U.S. emissions. It includes incentives to hasten the transition to electric vehicles, which represent a small but rapidly growing share of the market.

If enacted, the bill would provide a $7,500 tax credit for consumers who buy electric vehicles through 2026. Beginning the following year, only purchases of electric vehicles made in the U.S. qualify for the credit. The base credit goes up by $4,500 if the vehicle is made at a U.S. plant that operates under a union-negotiated collective bargaining agreement. Only auto plants owned by General Motors Co., Ford Motor Co. and Stellantis NV qualify.

“I want those jobs here in Michigan, not halfway around the globe," Biden said when visiting a UAW job training center last month.

The union friendly add-on is raising hackles internationally and inside the U.S., testing the Democratic Party's commitment to a labor-friendly approach that Biden has made central to his political brand. The provision could boost the sale of electric vehicles while disadvantaging foreign automakers with U.S. plants that employ tens of thousands of manufacturing workers, particularly in Southern states where laws have made it hard to unionize.

Democrats are undaunted. They say supporting union jobs is good for the economy and the country.

“I’m a student of America’s economic history and labor unions have consistently helped build out the middle class,” said Rep. Dan Kildee, D-Mich. “We should have a policy that’s consistent with our values. Our values are that communities are stronger, the economy is stronger when workers have wages, benefits and protections that not only apply to them, but set the highest standard for all other employees.”

But one key Democrat, Sen. Joe Manchin of West Virginia, spoke against the provision when visiting a Toyota plant in his home state Thursday. Automotive News quoted Manchin as saying that in a capitalistic economy, “you let the product speak for itself, and hopefully, we’ll get that, that’ll be corrected.”

In the evenly divided Senate, Manchin's opposition could well prove fatal to the union-friendly tax credit.

Ambassadors from the European Union, Canada and South Korea are among those who recently wrote to congressional leaders saying the credit is inconsistent with U.S. trade commitments and “tarnishes the spirit of trade laws that seek to establish the free and fair movement of goods."

Eleven governors complained that the more generous tax credit for cars made in union plants would punish companies and workers in their states. Republican lawmakers portray it as payback for a major Democratic benefactor, the United Auto Workers, which spent about $1.25 million in support of federal candidates in the 2020 elections, more than 99% for Democratic candidates, according to OpenSecrets, which tracks campaign money.

Republican Sen. John Cornyn of Texas said he didn't expect a more generous tax credit for union-made cars to be decisive for car buyers, but said it will be a factor.

“There’s nothing about a union-made electric vehicle that makes it greener than a nonunion vehicle, so it just seems pretty obvious it’s funneling money to supporters. I think it’s shameful,” said Cornyn, whose state was selected by Tesla for a manufacturing plant as well as for its new corporate headquarters.

“It’s a terrible idea,” said Sen. Roger Wicker, R-Miss, whose state is home to Nissan and Toyota plants. “It just strikes me as a blatant gift to a political friend. I don’t see any other way to look at it. It’s an obvious payoff.”

All but the richest Americans would qualify for the tax credit, which would apply to vans, SUVs and pickups costing less than $80,000 and cars costing less than $55,000.

UAW President Ray Curry said in a statement supporting the bill that it would support “good paying union jobs and stands to benefit our country for decades to come.”

“In addition, this framework encourages nonunion manufacturers to let their workers freely organize,” Curry said.

Labor unions have seen their power recede in recent decades, largely due to declining membership. Kildee's congressional district includes the city of Flint, where a sit-down strike by General Motors workers in 1936-1937 brought about one of the biggest victories for labor unions in America's history. Within a year, UAW membership grew from 30,000 to 500,000 and wages for autoworkers increased by as much as 300%.

“It transformed the community, and we think everybody should have that opportunity," Kildee said.

Foreign carmakers have been steadily expanding their U.S. manufacturing footprint in states such as Alabama, South Carolina, Tennessee, Mississippi and Texas — states where workers cannot be compelled to become members of a union as a requirement of their job. Efforts to unionize plants in Mississippi and Tennessee have fallen short multiple times.

“Let's keep in mind that the American autoworkers that my members employ have chosen not to unionize," said Jennifer Safavian, president and CEO of the trade group, Autos Drive America, whose members include a dozen foreign automakers. “They have made that choice for themselves, and that should be respected."

The combined $12,000 credit for cars made in U.S. plants with union workers would cut the starting price of a Chevrolet Bolt small electric hatchback from about $32,000 to around $20,000. That’s well below the average price of a new vehicle, now over $42,000. The car also qualifies for additional $500 credit that is available for batteries made in the U.S.

“It plays into the mix, of course, because it makes it more affordable and more accessible to people,” IHS Markit auto analyst Stephanie Brinley said of the tax credits.

Just how much of a sales bump the credit will produce is difficult to predict. A global shortage of the computer chips needed to manufacture vehicles, for example, is expected to persist well into 2022, Brinley said.

“Semiconductors will keep inventory constrained for a while,” Brinley said. “It’s harder to have an immediate impact on that with incentives.”

What’s likely to have a bigger impact on sales is the sheer number of fully electric models rolling off production lines, many in the most popular segments of the U.S. market. Those include compact SUVs and full-size pickup trucks, two of the most popular vehicle types. There are about 35 fully electric models today, but that will jump to around 150 by 2025, Brinley said.

Electric vehicle sales are now 2% of U.S. new vehicles sales, but IHS Markit, a research and analytics company, expects the share to grow to 32% by 2030.

____ AP Auto Writer Tom Krisher in Detroit contributed to this report.

Bank Union

Banks and credit unions need unions. Especially those credit unions that were created by unions. But even then being unionized does not mean that the management and democratically elected board that runs the credit union will act differently than any other boss when it comes to the union. As the ongoing strike in Hamilton by credit union workers shows.

We are reminded of the exploitation of tellers and other bank workers by Karen a contributor to the Progressive Bloggers.TD Bank Needs A Union for underpaid Workers - by poor teller

And by the latest class action suit which while successful in the U.S. may not be as successful in Canada which does not have tort law.

Teller launches CIBC lawsuit

CIBC facing class-action suit over unpaid labour

Such class action suits would not be necessary if bank workers were unionized.

And once upon a time in Canada we had the beginnings of a bank union drive organized by SORWUC in the lower B.C. mainland amongst credit unions and later the CIBC.

The success of that drive in the 1970's emboldened the labour movement, but instead of supporting SORWUC which was an independent Canadian union organized by rank and file women, it saw SORWUC as a competitor. So instead the old style business unions tried their hand at bank organizing in Toronto amongst the big five banks, and failed. Never to try again.

In light of this new class action suit, SORWUC tried to organize CIBC branches as did the CLC affiliates. But they were defeated by legal battles and the deep pockets of CIBC. Which is why this class action suit faces a dubious future.

The resulting defeat of SORWUC led the banks to aggressively reduce their workforce of tellers replacing them with ATM's, the one armed bandits that rip us off with their monopolistic surcharges.

The irony is that thirty years later women workers in banks are still unorganized, while the labour movement has changed embracing the social unionism of SORWUC. Bank workers need a union, and the labour movement in Canada needs to organize these unorganized workers. It has been done, it can be done, it must be done.

1972 Association of University and College Employees (AUCE) and the Service, Office, and Retail Workers’ Union (SORWUC) are formed as feminist unions in response to the resistance of mainstream, male-dominated labour to organize traditional women’s jobs, or to bargain for issues of importance to women. They also applied feminist principles to collective decision making and action. Neither
exists today.

GENDERING UNION RENEWAL:
WOMEN’S CONTRIBUTIONS TO LABOUR
MOVEMENT REVITALIZATION
Paper prepared for the Union Module of the Gender and Work Database
Jan Kainer
April 18, 2006

Many new and independent women’s organizational structures emerged in the seventies because of a lack of support for feminism within labour movements. In Canada, feminist women who supported labour struggle and wished to unionize women, formed their own women-centred structures to overcome the obstacles they experienced from organized labour. In 1972 the Service, Office and Retail Workers of Canada (SORWUC), a self-described “grass roots, feminist union” (Lowe, 1980:32) was formed by women labour activists to unionize workers in service sectors where women predominate. Despite a weak commitment by the Canadian labour movement to SORWUC, the union certified 26 units in the banking industry. Eventually limited resources and an important legal decision restricting certification (i.e. unionized) units to bank branches in small, scattered locations, undermined the momentum of the campaign, and the union was unable to continue its organizing efforts. While SORWUC was relatively short-lived, its alliance with the women’s movement sustained, and informed, other organizing achievements, as this activist explains: (Jean Rands cited in Rebick, 2005:91) We got our confidence from the women’s movement. We were intimidated, but we supported each other and kept reminding ourselves that organizing was our right…we believed that workers should be the ones negotiating, rather than trade union leaders. Collective agreements should be readable by workers too – short and well indexed and written in plain language.

Bank Book Collective An account to settle; the story of the United Bank Workers (SORWUC).Illustrations and cover by Pat Davitt.

Press Gang Publishers Vancouver 1979 127p., wraps, illus. "In 1976, a group of women bank workers decided to organize their workplace. The banks were enraged. When they decided to do it themselves, the big unions were upstaged. Over the next two years, nearly a thousand bank employees in western Canada participated in a unionizing drive that challenged not only the banks but organized labour's approach to a workplace they had long considered beyond their range of union activity."

Thinking Through Labour’s Organizing Strategies: What the Data Reveal and What the Data Conceal

Efforts to organize women in the Canadian private sector are not new. One of the most important campaigns took place in the mid-1970s and involved an attempt to organize chartered bank workers. The Service, Office, and Retail Workers Union of Canada (SORWUC) made an important breakthrough in organizing predominantly female bank tellers in British Columbia and Saskatchewan. At the height of the organizing drive, more than one thousand workers were signed up.

SORWUC was a small, avowedly feminist union dedicated to implementing a nonbureaucratic democratic process. It perceived itself to be a movement of women workers, but the CLC and the Canada Labour Relations Board (CLRB) took a different view.

SORWUC’S connections to the women’s movement and the political Left were regarded with suspicion by both organizations. Marc Lapointe, head of the CLRB, expressed skepticism that a feminist group could be considered a legitimate trade union. Indeed the Banks, the Labour Board, and the CLC declared SORWUC to be irresponsible, not acting as a legitimate trade union, and unable to play by the rules of the game because its leaders were naive, incompetent, or linked to subversives.

Prior to SORWUC’s efforts to organize bank workers, the Canadian Labour Congress
(CLC) had established an organizing fund through a levy on its entire membership. In response to SORWUC’s campaign the CLC, using this fund, established the Bank Workers Organising Committee (BWOC) with the purpose of enlisting all of its affiliates to contribute organizers and union support to the Committee. Several of the affiliates, however, refused to participate, arguing that bank workers were part of their jurisdiction so they should be the ones to organize the banks, not the CLC.

To this day, this stance on the part of many affiliate unions blocks the possibility of a coordinate response to organizing the unorganized. It is a discourse of ownership. Unions in a particular jurisdiction perceive that they own the workers; if those workers join a union, it must be their union. The lack of solidarity among unions over who should organize bank workers and how it should be done contributed to the failure of the BWOC. There were other important reasons as well, including the very aggressive anti-union campaign conducted and coordinated from the headquarters of the chartered banks.

As well as placing nails in the coffin of a coordinated, solidaritistic approach to
organizing the unorganized, the failure to organize chartered bank workers also enforced the discourse that women were difficult to unionize.

Feminism as a Class Act:
Working-Class Feminism and the Women’s Movement in Canada
Meg Luxton

The 1970s in particular was a period of women’s organizing activities in unions. For example, at the 1970 United Auto Workers convention, union women called for "full equality now." 34 The fight for affirmative action started with struggles to get women hired into so-called non-traditional jobs or all-male preserves at workplaces such as Stelco and Inco or in the trades; such initiatives demanded union support for challenges to employers. 35 Union women formed organizations to help them fight inside the labour movement to improve women’s situations; for example, in March 1976 Organized Working Women (OWW) was formed in Ontario, with Evelyn Armstrong as its first president, with a membership restricted to women already in unions, while in September 1979 Saskatchewan Working Women (SWW) formed with its membership open to all women who agreed with its objectives. Frustrated by the lack of support for women in the existing unions and outraged by the failure of the union movement to organize in predominantly female workplaces, a group of socialist feminists in 1972 formed an independent union in BC, the Service, Office and Retail Workers’ Union of Canada (SORWUC). 36 Unable to sustain their efforts in the face of employers’ hostility and the reluctance of the union movement to support them, they collapsed after a few years but their initiative prodded the union movement to pay more attention to predominantly female sectors of the labour force.


Responding to increasing pressures from their members, unions began to take up union women’s issues. 38 They held conferences, educationals, and training programmes. Many unions from locals to national organizations developed women’s committees or caucuses intended to help women identify their concerns, develop the strategies and tactics to advance their issues, and strengthen their capacities to intervene in the male-dominated culture of the union. In 1965 the Ontario Federation of Labour set up its first women’s committee, which was chaired by Grace Hartman, then a Vice-President of CUPE. In 1966 that committee organized a conference on Women and Work. 39 In 1976 the CLC held its first conference for women union activists. Unions developed new structures and new positions. In 1977 the Ontario Public Service Employees Union hired its first full-time equal opportunity co-ordinator. Recognizing their failure to get women into leadership positions, some bodies developed affirmative action measures. In 1984 for example, the CLC designated a minimum of six women vice-presidents. They recognized that when competent women leaders are visible, more women are likely to participate and more men and women are able to accept women in leadership positions. Even more important were the positions unions adopted both in contract negotiations on, for example, maternity and parental leave or same-sex spousal benefits, and in union policies such as providing child care at conventions. Finally, unions were also part of, and supported the activities and organizations of the women’s movement. They co-sponsored specific activities such as International Women’s Day demonstrations and joined coalitions to work on campaigns such as those for employment and pay equity, access to abortions, and quality child care.

What makes an Approprite Bargaining Unit?

The appropriate bargaining unit sets the initial constituency within which a trade union must gain employee support for collective representation. The right to collective bargaining set out in labour statutes should not be illusory, so labour boards resist creating such large and diverse bargaining units that they are impossible to organize. The B.C. Board put the proposition this way in one of its leading cases:

It is an absolutely fundamental policy of the Code that the achievement of collective bargaining is to be facilitated for those groups of employees who choose to use this procedure as the means for settling their terms and conditions of employment. (...) If bargaining units are defined too widely, or a number of separate groups are put into one unit, it is unlikely in the department store industry that the employees will agree on union representation. In these circumstances we will not deny collective bargaining to those small pockets of employees who, by reason of their own special needs and interests, have.

That does not mean the Board will carve out totally artificial units, based solely on the extent of organization by the union (and sufficiently to give the latter a majority). We will require some reasonably coherent and defensible boundaries around the unit over and above the existing, momentary preference of the employees. (...) However, we will not reject applications for small bargaining units on the basis that a large unit is a more rational structure for hypothetical collective bargaining in the distant future, where the result will be the denial of actual bargaining rights now.

Woodward Stores (Vancouver) Ltd. [1975] 1 Can. L.R.B.R. 114

This approach is especially prevalent in industries that are historically hard to organize. See, e.g. SORWUC v. Canadian Imperial Bank of Commerce [1977] 2 Can.L.R.B.R. 99 (Can.L.R.B.); CUBE v. Canada Trustco Mortgage Company [1977] 2 Can. L.R.B.R. 93 (Ont. L.R.B.). In each of these cases the board found a single branch of a financial institution an appropriate bargaining unit.

Jonas Gifford – December 2004

· Kitimat CIBC (20 yrs earlier) – board rejected application of Kitimat branch, saying ABU was all CIBC branches in CDA – de facto denial of CB for bank workers

· SORWUC and CIBC (1977)

· Held: branch is the ABU

· Comments: BUT note that board recognized this as a variant of foothold – eventually wanted to rationalize

iii. Comment

· Pluralism cares about negotiation of CAs, not about organization

· Bank EEs in CIBC got ability to unionize, but lost a lot of bargaining power b/c restricted to branch

· This especially b/c CIBC really didn’t want to be unionized

· Used protracted litigation – applied for judicial review for EVERYTHING

· Effect – serious $$ impact on SORWVC

· Effect – delayed CB process w/ significant $$ implications – union just couldn’t afford the whole process, also EEs wouldn’t want to keep paying dues for nothing

General Barriers to Women's Trade Union Participation

Women's Unions: Many unions in which women form significant sections of the membership (like banking and retail) are still not recognized as legitimate by employers. Two examples are the Canadian banking system (SORWUC; CUBE), and Eaton's Dept. Store (RWDSU; UFCW)

Costs more burdensome for union than employer (e.g. organizing small workplaces; 1 reason for SORWUC self-decertification)


Saskatchewan Working Women (SWW)

The SWW was a grassroots, feminist organization of female wage earners which operated from 1978 to 1990. SWW was formed by an alliance of trade union women and community-based feminists. Members of SWW came from many different political backgrounds, including the Waffle, the New Democratic Party, various Communist, Trotskyist and Marxist-Leninist parties, the women’s movement on university campuses and women’s centres, and the trade union movement. Some SWW women were also involved in the organizing drives of the Service, Office and Retail Workers’ Union of Canada (SORWUC), a feminist trade union active in Saskatchewan and BC. SWW originated because an increasing number of women were joining the workplace and becoming both unionized and mobilized.

Vancouver History Timeline 1987

Local 1518 of the UFCW (United Food and Commercial Workers Union), with 23,000 members, began representing 57 home care workers when the Service Office and Retail Workers Union (SORWUC) merged with it.

Sisterhood & Solidarity: Feminism and Labor in Modern Times - Google Books Result

Janet Mary Nicol, " `Unions Aren't Native': The Muckamuck Restaurant Labour Dispute Vancouver, B.C. (1978-1983)," Labour/Le Travail, 40 (Fall 1997), 235-51.

"IN THIS SOCIETY," explained First Nations union organizer Ethel Gardner to a skeptical First Nations community, "being in a union is the only way we can guarantee that our rights as workers will be respected." (1) Ethel was an employee at the Muckamuck restaurant in Vancouver, British Columbia when its First Nations workers decided to organize into an independent feminist union in 1978 and subsequently struck for a first contract against white American owners. The dispute allied First Nations people with predominantly white trade unionists and made an even wider community aware of their circumstances. The union picketed the restaurant for three years, discouraging customers from entering, while the owners kept the restaurant functioning with the use of strikebreakers, many of them from the First Nations community. When the owners closed their operation in 1981, the union ceased picketing and both parties waited a further two years for a legal ruling from the Labour Relations Board. Finally in 1983, the owners were ordered to pay remedies to the union, but sold the restaurant and pulled all their assets out of Canada, refusing to comply with the decision.

Songs For Ourselves, Revisited:

Most Friday evenings for the last couple of months, a group of women has appeared near the corner of Davie and Denman in Vancouver, unpacked guitars and tambourines, and started singing. The scene is the SORWUC [Service, Office and Retail Workers' Union of Canada] picket line at the Muckamuck, a Vancouver restaurant, and the strike is into its ninth month. We pass out song sheets to the other people on the picket line and spend two or three hours picketing and singing together about our goals and our struggles. They are feminist songs; at the same time they are songs for all working people. The strikers and their supporters on the picket line are both female and male and we all bellow out Working Girl Blues, the Secretaries' Song or Solidarity Forever.

Helen Potrebenko, one of Vancouver’s most uncompromising feminist writers, was born on June 21, 1940 in Grand Prairie, Alberta. After arriving in Vancouver to attend university, she documented the struggles of a female cab driver to earn a living in her novel Taxi!. “It just never occurs to them we’re people and not zoo animals to be stared at,” the narrator writes, “and that we have feelings and don’t like being prodded and mauled by thirty different guys in one day.” Potrebenko’s second book, No Streets of Gold, is a social history of Ukrainians in Alberta. Her collection of fiction and other writings, A Flight of Average Persons voiced her pride in the dignity of working class lives, particularly women disadvantaged by a patriarchal society. Potrebenko marked the second anniversary of her participation in the strike to earn a first contract for SORWUC workers at the Muchamuck restaurant on Davie Street in Vancouver with the publication of Two Years on the Muckamuck Line. The owners of Vancouver’s first restaurant to exclusively serve West Coast native Indian cuisine ultimately left Vancouver in the strike’s third year. Six workers had been fired upon the union’s application for certification and the owners had refused to negotiate. “The Muckamuck hired scab labour and tired to keep the restaurant open,” says Potrebenko. “Sometimes they were assisted by outside goons. When the owners finally left town, the Labour Relations Board bestirred itself to order the Muckamuck to pay a token $10,000 because of its illegal activities. This could never be collected. We’ve never officially called the strike off.” The restaurant became the Qualicum Restaurant, operating with the support of the union, but the restaurant eventually closed.

LOU NELSON X10-34
Patricia Lucille Nelson was born in Montreal on December 12th, 1953. Although
both her parents are from the West, Nelson and her four siblings grew up in
Laval West and St-Eustache (Québec). She studied the humanities and
languages at Vanier College in Saint-Laurent, printing at Ahuntsic College in
Montreal and worked at Classic Books before moving to the West in 1974.
Nelson quickly settled in Vancouver and started working in a screen printing
shop, a coop house and, in 1975, she joined Press Gang. Here she worked on a
voluntary basis and she became a press operator. This is also the time when
she came out as a lesbian and decided to change her name to Lou, a shortened
version of her middle name, in honor of the occasion. It is also when she
became involved more actively in the feminist, socialist and unionist movement
that prevailed in Vancouver in those years. For example, she joined the NDP in
September 1974. The following year, she participated in the occupation of the
Vancouver Canada Manpower Centre Office to pressure the Canadian
Government to make real changes regarding women and work. She supported
Press Gang by involving herself in numerous fundraising activities and helped
organize the 1979 Conference on Women and Work. “In order to sustain
herself”, she ran Simon Fraser University Student Society’s printshop for four
years. While working at SFU, she also got involved with the feminist union
Service Office and Retail Workers Union (SORWUC).

See:

Feminizing the Proletariat

Whose Family Values?

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