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."

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."

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."

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.

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.

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."

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.

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."

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.