Hello to my fellow Vancity members,
Vancity's constitution says that we are "a democratic organization, run for and by members." And it says that the Board of Directors is accountable to the members. But this is no longer true.
The destruction of Vancity's democratic governance has been gradual over the past 25 years, and is largely complete. All that's left now is a perfunctory vote each year for new directors, but there is no practical way to challenge the Board's "recommended" candidates.
The Board got particularly arrogant in 2022 when they decided they wanted an increase in their remuneration. They turned off the microphones (metaphorically) on all but two people who wanted to say something prior to the vote.
But there's something more important: In 2022, the Board decided that they have full control over Vancity's profits. They decided to unilaterally take away our patronage payments and give the profits to third-
Vancity's profits belong to us, and only we can say what gets done with them. Here's how it works: Vancity earns a profit every year, and the Board of Directors gets to decide how much of those profits are reinvested in the business. That's fine. But the surplus profits become the property of us, the members/shareholders. We should get to decide what's done with them. Historically, they have been split between us and various community programs. In 2022, the Board decided to direct the entire amount to their chosen programs.
You might or might not support their chosen programs. But that's not the point. The Board should be giving us a vote on the matter. We should not allow Robin Hood-
The Board is depriving me personally of perhaps $162 per year, based on 2022 numbers. The total misappropriation was $18.187 million (2022). More importantly, they are repeatedly disregarding our democratic ownership. The benefit of Vancity over a bank is that we're the owners of the institution. We should get to vote on what happens with Vancity's profits.
Do you want more information?
1. Here is my statement for the 2024 annual general meeting, and Vancity’s response.
2. You can read more about how the Board got themselves a pay raise.
3. You can read more about how the Board took control of Vancity's profits.
4. You can read about how Vancity doesn’t comply with the regulator’s guidelines about democratic governance, and how the regulator doesn’t care.
5. The union representing some of Vancity’s employees is suing Vancity.
6. In 2017 I wrote a report about governance problems at Coast Capital Savings, prior to the vote to become a federal credit union. You can read my report.
***
I'd like to know if you care about democratic ownership and governance at Vancity. Please leave your comments here. If you’d like to talk by phone, please include your number. —Martin
From Anonymous:
Hello, sorry for the anonymous email but as staff I do not want to expose myself. I want to give you credit and encouragement and thanks for what you are doing and what you said tonight at the AGM.
[Private comments]
Keep up the good work.
From __:
Hi Martin, I applaud your efforts to shed light on these issues and advocate for greater accountability and transparency within Vancity.
As members, it's our right and responsibility to demand fair and democratic governance practices from our credit union. I will be joining the 2024 AGM and look forward to hearing your proposal! Thank you for speaking out and standing up for the principles that define our credit union.
Let me know if I can support your cause in any other way.
From __:
Thank-