innovation cu

There were major changes for two southwest Co-operatives in 2013.

Innovation Credit Union announced in the spring that branches in six small rural communities would close in October, citing financial viability and staffing issues as reasons for the closures.

One of the affected branches was in Hazlet, and that upset a number of Credit Union members in that community.

"When I said to them that this isn't the co-operative way of doing things, [CEO Dan Johnson] said that they have had to change their philosophy to compete with the banks," said Joselyn Hughes of Hazlet. "I chose my Credit Union because it was local and in my community, and if they want to be just another bank, nothing sets them apart anymore. I don't know why would do that."

The Credit Union said they didn't make the decision easily.

"A lot of work went into the analysis and the due diligence around making a decision," Johnson said. "Really, it boiled down to four key criteria. We looked at everything from a statistical point of view, from a community profile point of view and also a financial viability element. The fourth thing, I think is important, is in our smaller branches is the safety of our staff. Some of our locations have a limited staff, which are prime targets for things like robbery."

Johnson added that the ways that members use the Credit Union have changed, and fewer transactions are now being made through visits to their branches.

The Shaunavon Co-op also reduced its services by closing the grocery store in Eastend in November, a move that puzzled the town's mayor, Alan Howard.

"There was no meeting ever called, there was no discussion with members in the Eastend area about this, and the biggest concern that I am hearing from the citizens is the fact that they would have like to have been consulted," Howard said. "They would have liked to have an open meeting where they could ask the Board of Directors questions... In my personal opinion, if you're a co-operative, it means the members drive it. It doesn't mean the Board of Directors drives it, it means the membership directs the board to do things."

"The membership elects the Board of Directors to approve changes to the assets of the co-operative, and at this time, there's no plans to hold a meeting to discuss this decision," Co-op GM Geoff Anderson responded. "We tried to do our best in the notice to explain our decision to the members, and try to give as much information as possible explaining our decision."

Shaunavon Credit Union may also see changes in 2014, as members consider an amalgamation with Saskatoon-based Affinity Credit Union. A vote on the proposed merger will take place at SCU's AGM in the spring.