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Staff,
continued
The company faces some staffing problems, including high turnover
among trainees, a shortage of skilled manpower, absenteeism,
and few management trainees. Policies have been undertaken
in order to address some of these issues, while other issues
are accepted as inevitable in a band-operated businesses.
The following discussion addresses these issues.
As mentioned earlier, the mandate of the company is to provide
training opportunities for band members. However, there are
drawbacks to the training program. "We've been doing training
programs but that is our downfall right now. The people we've
trained have moved somewhere else, so we're continually having
to pay for new training programs. We've applied for training
dollars and we've received a little bit here and there, but
not enough to meet our needs. The biggest obstacle that is
stalling the expansion of our operation is mainly lack of
skilled manpower." Problems arise with trainees as Paul notes,
"The abuse of the equipment is high and the cost of maintaining
that equipment is very expensive. Some of our trainees are
very careless with the equipment. A truck was burned up once,
and it adds up. There are a lot of little things that happen
and we can't keep track of it all. Lately we're training a
number of young guys who are coming along well so this problem
should be minimized."
In the summer of 1989 there were ten to fifteen trainees working
on construction projects. "We've got a few seasoned operators
who are very good. At our carpentry site, most of the guys
who were running equipment want to be carpenters now, so we're
lining up with almost all trainees except for a couple of
journeymen carpenters. The training programs are an investment
for us in the long run, but it's still kind of painful."
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Planning
for new projects is difficult, given seasonal work and the
employee turnover.
"It's a hard thing to get a handle on because you never know
if the skilled people are going to be available for work.
Then some people only work for a week or two and then they're
gone. They've decided to quit, go work somewhere else, or
they have problems with their girlfriends and they decide
to give it up for awhile. However, I do find that people are
willing to work more and we're finding that more and more
people in the community are willing to stay on longer all
the time.
"I think attitudes are changing because everybody is working.
There are people with drinking problems still but it's not
as bad because it's only on the weekend. In the summer, the
majority of the guys worked seven days a week so any drinking
problems were at a minimum. One technique that has worked
well in the past is if someone who didn't come in until Monday
or Tuesday because they got drunk on the weekend, we would
tell him to take the rest of the week off. He can come back
the week after and work.
"It's worked to a certain extent with some people, because
they've sobered up or run out of money and they want to get
back to work. However some guys only work for a month or two
months every year, then they fall off the wagon and they don't
come back until the next year. Sometimes we might give too
many chances to people but we're under a lot of pressure from
the community to do that." It can be difficult to take disciplinary
action due to these community pressures. Paul states, "It
seems to make a big difference if it's a non-band member that
is the boss and fired them. If it is Harold who fires somebody,
then a lot of people are after him, so he feels the pressures
quite a bit more that I do. Sometimes he hurts and last year
he quit for awhile because of the conflict. We got him back
finally."
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From Harold's perspective there are pros and cons to being
the general manager and a band member. He says, "On one
hand their loyalty is there. On the other hand, it's hard
to discipline some of the people you grew up with. You end
up left out in the cold in the community for awhile. It's
a chain reaction that spreads through families. However,
it's probably going to be common in just about any band-owned
corporation."
Some difficulties have been encountered with attracting
employees who can handle upper or middle management responsibilities
from within the band.
"When Harold left last year, we couldn't find anyone else
to take his place. It's hard attracting people when other
employers can offer a better salary. We've tried promoting
people in the past, but it didn't work out. One person decided
being boss meant sitting in the truck doing nothing. Last
winter, we put in management courses, but it was hard for
people to do it. We either get people whose heads get bigger
and they float two feet off the ground but don't get anything
done, or people who are just scared of doing it.
"We do have a couple of guys that have developed and are
happy. One fellow worked one summer, but he got drunk and
never came back that year. Then the next year we got him
back and tried him out as the foreman. He changed totally.
He comes to work early in the morning until late at night,
working at keeping all the guys busy. Where we're lacking
trainees is in the middle and top management area. We do
have some good people, unfortunately they work with other
organizations."
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Financial
Information
Champagne-Aishihik
Enterprises Ltd generates enough revenue to support its operations.
Paul says, "We do get government grants or loans for the purchase
of equipment and some training programs, but not to meet operating
expenses. We're proud of the balance sheet."
The accounting system is computerized and the bookkeeper is
a band member. Paul notes, "We had a tough time finding someone,
but our bookkeeper was living in Vancouver and decided that
she wanted to come back home. She had worked for me when I
was with the Council for Yukon Indians."
Over the five-year period from 1985 to 1989, revenues doubled
and then tripled. Net profit was negative in 1985, 1987, and
1988 but it was 20 % of net revenues in 1989. Owner's equity
was negative for the first three years of the period, and
then was close to $1 million in 1988 and 1989.
The low net profit figures can be attributed to the high costs
associated with training. Other construction companies operating
in the private sector have fully trained employees and can
concentrate on the bottom line. Their net profits would likely
be higher. However, it must be kept in mid that the company
is covering its operating expenses and meeting its major goal
of providing employment and training for band members. In
examining the asset utilization ratio, every $1.00 invested
in assets generated sales revenue ranging from a rate of .77
times to 3.61 times over the five-year period. The decrease
in the ratio in 1988-1989 from the 1985-1986 ratios reflects
a period of increased investment in company assets. In any
case, sales revenues more than matched the increase in asset
value in this two-year period. Total salaries doubled during
the period matching the doubling of permanent staff.
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Reasons
for success
As
discussed, Champagne-Aishihik Enterprises is successfully
operated as a training and employment centre for band members.
The growth in sales and profits can be attributed to various
factors, including Paul's continuing influence and his philosophy
in decision making. Promoting a team spirit and cultivating
a good reputation in the business community have also contributed
to the company's growth.
An important influence on any company's operations is the
vision held by the management team for guidance of company
operations. When that vision is working satisfactorily for
the company and its shareholders, then the continuing influence
of the management team can be critical to the company's success.
Bringing in new management or a board of directors, as commonly
happens with band elections, can be very disruptive to a company.
Champagne-Aishihik Enterprises has probably benefited from
Paul's re-election as band chief since 1980, as reflected
by the growth in permanent employees and company revenues.
Paul equates the pressures of running a band-operated business
with that of running a family business. "Everybody wants to
make sure that they are hired or that you hire this person
or that person. It's hard to work sometimes, because there
is a lot of conflict and you're caught in the middle. It's
a real juggling act, although we do fairly well. I know other
bands have a real struggle. It can be very difficult if a
new chief gets elected and he brings all his family and his
people with him."
Current employees are pushed out. "I don't operate that way.
We want to act consistently and we try to promote a team spirit.
A key element for that team attitude is that they have to
respect the people that they work for. I also promote working
together so that there is no conflict between Aishihik members
and Champagne members.
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The town bands have been working together for quite a few
years so it's not a big problem. It's just that once in a
while a conflict occurs between personalities so that issue
crops up every now and then."
Paul's management philosophy for all of the band's operations
is to move forward decisively. He says, "I've had meetings
where it is hard to deal with anything because people are
so scared to take a step. The way I look at it, if I make
a decision then I'll be right at least 50% of the time."
Paul is taking action, "There are going to be mistakes but
at least we're moving forward and not going backward. Some
bands take a wait-and-see attitude while others want to fight
the system. It slows everything down. Some guys just raise
hell at every meeting. Then everybody gets jittery and upset.
It's hard to work in that type of environment. I like to get
things done."
A growing source of revenue is from the private sector because
of the company's successful bids and growing reputation in
the industry. In the beginning, it was difficult to be a new
company with no track record. According to Paul, another obstacle
to overcome was the negative perception by some of the industry
regarding a Native-owned business. Paul states, "Most times,
being a Native business closes doors. We have to work twice
as hard for contracts. For that reason, people don't give
us work like a regular company or phone us regularly for jobs
to bid on. The government has been good for us because we
can bid in the open market and outbid anybody else. We outbid
the competition rather consistently. But I think we don't
get as many private contracts as we would if we were a white
business. We're building our reputation and credibility but
there's still that prejudice out there. It's going to take
a long time for people to get over that but it will come."
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Areas
for Improvement
Several areas which could be improved are further computerization
of the company's operations, a better apprenticeship program,
and lower bonding costs. Completing the computerization of
the company operations depends on funding for regular or customized
computer programs and computer training for employees.
Generally, band members who receive technical training at
a college plan to apprentice and then become journeymen. In
order to pass through the apprenticeship, the apprentice has
to be trained by an accredited journeyman. Harold states,
"Since the local college opened, I think it's making quite
a difference for us. Students get the post-secondary training
in the college rather than trying to get on-the-job training
with us.
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It is good, but the only trouble we have is that we don't
have very many journeymen who can supplement the apprenticeship
programs because journeymen are very expensive. We don't turn
people away but I give them the option. One of the mechanics
just graduated and he can't get his ticket from here but he
still prefers to work here. He's not going to be certified,
which is a shame." The bonding problem is a situation the
Champagne-Aishihik Enterprises has faced for most of its operating
history. Since they have had more losses than profits, bonding
companies and banks are very cautious in any financial dealing.
Paul hopes that several more profitable years will ease this
situation.
Paul explains the way they currently meet bonding requirements.
"We have a new company called Denendeh Ventures. We buy bonding
insurance from them. This year it cost us $4,000 to have a
sum of money that we can use whenever we want to bid on a
job. That's expensive. Once we get a job and we need the money,
we have to pay the regular interest rate on it."
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Environmental
Friendliness
Paul
is proud of the company's record for minimizing the impact
of their operations on the environment. He states, "It is
part of our tradition of Native people that Mother Earth should
be protected. For example, we try to eliminate any unnecessary
tree cutting and if we are building a road then we will try
to get gravel from gravel pits that have already been created.
This philosophy is hard to put into words because it is an
integral part of our way of life." Harold adds, "We are the
guardians of the land and if we ruin it, then that is our
heritage that is affected." Environmentally safe practices
are commonly part of the terms of all government contracts
and must be followed by all successful contract bidders. This
process is monitored regularly by government officials.
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