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Future
Development
The
short-term plan for the construction company is to maintain
the current level of revenue, hire a president, continue funding
education, and promote development of a practical component
in the college training programs. There may be a move towards
subcontracting more work out to band members or privatizing
the company. Once a positive cash flow is established from
the construction company and other band investments, then
additional economic development is planned.
Given the number of investments and programs that the band
is currently involved in, Paul does not want to stretch his
resources by expanding the construction company at this time.
He says, "I don't want the company to get bigger right
now because the bigger you get the more headaches that come.
The next step is to hire someone to oversee all our operations."
This person would relieve Paul from some of his duties and
allow him to concentrate on planning the band's future development.
The training of band members remains a major objective. Paul
plans to encourage Yukon College to incorporate actual work
experience into the training programs. He states, "We need
to develop a good training program with on-the-job training.
It's okay for somebody to go to school and train to be a mechanic,
but it's very different when you put them on the job. They
learn the theory, but they need to learn the practical side
also." This program improvement would ease the supervisory
burden that is placed on the construction company when a graduate
begins work.
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Paul
states, "If we were as big as the Yukon Territorial Government
Maintenance Yard where they have their equipment and lots
of mechanics, then new guys could work along with other mechanics.
They would learn faster and learn the right way to do things.
But we're not that big and we don't have as many people with
the experience to supervise the new fellows."
In order to get around this problem, they plan to encourage
graduates to get experience elsewhere and then come back and
work for the band. It will be difficult because they need
all their manpower for current projects. There is also the
risk that these band members will choose to stay away rather
than return to the band.
The band plans to continue to encourage band members to take
training to alleviate the shortage of skilled labor. The band
does not offer scholarships, but according to Paul, "We tell
them to go to school. We can't provide everything, but we'll
help them. We only fund short programs even though some of
our people want to go for a longer term. We can't afford to
let them go because we need them. We can't bid on projects
if we don't have skilled people to hire."
One of Harold's major objectives for the construction company
is to increase the level of subcontracts let to band member
companies and to investigate the implications of privatizing
the company. "I try as much as possible to use as many band
members as subcontractors that are available. However, the
general feeling I get from people is that there should be
more privatization of the company. People was to increase
personal benefits. This could mean that band members contribute
equipment to the company which continues as the principle
contractor. Then all the band members have their own incentive
to bring projects in and they contribute and benefit from
operations."
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"The band won't be the principal source of economic
development in the community. The downside of privatization
is, if there is a certain amount of money to be made, they're
not going to waste time to train anybody." Further economic
development must be financed through the land claims settlement
or through increased revenues from current band investments
and operations. Harold sees his biggest challenge as making
the construction company more profitable. "We can't train
people at our current level, compete in the private sector,
and expect to show large profit margins. Private contractors
just hire the best people and get the job done. Eventually
we'll have enough trained people, that will decrease our
training expenses and contribute to our profits. We'll still
be training, but on a smaller scale."
Once more capital is available then current joint-venture
projects will be expanded and more economic development
investments will be made. The band is 50% owner of a company
that digitizes maps and puts them on computer. There are
six employees trained to handle the digitizing and the company
holds the franchise for the Yukon. An Edmonton survey company
handles the marketing for them. Paul says, "We plan to get
other bands involved. We would advise them on equipment
purchase and help train them. We would own a share of their
business."
The band is also partners in a company which is
experimenting with technology to grow vegetables. Paul states,
"Once the special growth chamber is perfected, we'll supply
fresh vegetables year-round for Whitehorse and up and down
the Alaska Highway."
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Profile
in the Community
Alleviating
the unemployment problem among band members remains a priority
for Paul. The employment opportunities provided by Champagne-Aishihik
Enterprises have been augmented by other projects. Putting
people to work on the land working for Parks Canada or conducting
tours has been successful. Paul explains, "It's surprising
that even people with drinking problems who are sent out in
the bush to do slashing work for Parks Canada are doing well.
They are in their environment and have some responsibility.
I think we're winning some of the battles that way. But it's
hard and painful and sometimes wears me down." For people
who follow a more traditional lifestyle, "We set up a tour
company so that we can get our band members who have horses
to take tours out. It's gradually working, since it's more
of a traditional style where they feel comfortable in the
bush anyway. They know horses and there's not much else to
do. We help them with their books or do their bookkeeping
for them and just pay them for their time. It cuts down on
their paperwork and they don't have to look at the marketing
side which we can look after."
Advice
to New Business
A
band-owned business can be the best choice to accomplish the
objectives of chief, council and the band membership. It can
serve as a vehicle for acquiring funding that individuals
might not have been able to get. It can provide a way to deliver
training programs that individual businesses cannot afford.
Spin-off benefits occur for local small business owners, who
subcontract for work with band businesses.
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Opportunities can be provided to band members that they might
otherwise not receive. For example, if an employee is consistently
late or unreliable due to a drinking problem, a band-owned
business is flexible enough to make a difference in that person's
life by encouraging better work habits. Many small businesses
would have to fire the employee because they could not afford
to give a second chance. The quality of work on band projects
could be better because the employees care that fellow band
members receive their best efforts.
Paul and Harold have a number of insights into the pitfalls
of running a band-owned company. Besides losing trained band
members to other companies, it is difficult to juggle training
with turning a profit. In addition, political pressures come
from the community because the board of directors and the
chief executive officer are elected band representatives as
well as company officials. Many times a business decision
has political ramifications that must be dealt with. These
are problems that individuals in private businesses do not
face as often, if at all. Paul laments, "One large construction
company has half our people working there. They're all good
carpenters and some have their journeymen papers. It's all
we've been doing for the last eight years is training all
these bloody carpenters and then they're gone. Many young
men want to work in the city because it's more exciting."
With the high costs associated with training employees, it
is very difficult to make competitive bids and earn a profit.
The training costs increase operating expenses: "We bid on
some of these jobs and we might break even or make a little
bit of a profit. Most of our competitors can go to Canada
Manpower and get all the skilled people they want. Then they
do the job and lay the guys off because they've got no further
responsibility. Whereas we have a responsibility not only
to get the projects but to house and feed our people and find
work for them."
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While it make sense to have a policy of hiring qualified band
members to run band-owned businesses, sometimes it is difficult
to find a band member who can also handle the political pressure.
One option is to consider hiring non-band members for management
positions. "It's better to get somebody totally outside the
picture to manage the company rather than have somebody from
the inside who is related to other band members." A band member
who is manager on the front line when hiring or firing a fellow
member is a hard position to be in. Harold acknowledges, "If
I look at the long term, then I figure I'm doing something
but sometimes it gets pretty rocky. The biggest thing to handle
is the family conflicts. Actually it shouldn't be, but in
any band operation there is always a high degree of politics.
It's probably the hardest part of being the general manager
in a band-owned company, because everybody's got their fingers
in the pie so to speak." It's hard to give advice to
other people on how to handle the political problem. "After
eight years, I haven't learned to handle the political problem.
I don't have a problem so much with my employees but when
certain factions in the membership make a political issues
of a specific decision then it becomes very hard to be in
my position. A few young people come and give me encouragement
when I feel a little bit down. It's nice to see that they
see what I'm trying to do and it is appreciated."
Harold has advice before starting a band-operated business.
"I think other bands should do an in-depth feasibility study.
Band-owned businesses are very hard to get off the ground
and keep running. The political issues are a large part of
the problem. It's really hard, and there are going to be a
lot of downfalls. I've seen a few band operated corporations
that never made it, despite all their fantastic ideas and
government funding."
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Summary
and Conclusions
Champagne-Aishihik
Enterprises Ltd. has successfully provided employment and
training opportunities for band members. It is becoming more
profitable under the guidance of Chief Paul Birckel and general
manager Harold Kane. Despite the political pressures that
appear to be integral to a band-owned operation, business
continues to thrive. The number of trainees that have worked
on projects over the years continues to grow as does the number
of permanent employees.
Paul has been the leading strategist for the band's economic
and social initiatives since he was first elected chief in
1980. In this time he has been able to implement a number
of programs and set the stage for additional programs to meet
the need for further education and more employment opportunities
and to address the addiction problems faced by some of his
constituents. He recognizes that there are no instant cures
or miracles but knows that problems can be overcome and gains
made over time. Paul takes an aggressive but well-reasoned
approach to decision making.
With Harold's help Paul promotes a team atmosphere among construction
company employees. Employment opportunities are given to students
and recent graduates. Some assistance is provided to apprentices,
but the company has limited resources for those employees
seeking their own journeymen papers. Attitudes seem to be
changing in the community in favour of employment. More people
want to work as they see what other employed band members
can
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afford to purchase or as they gain the self-assurance to stay
sober and employed. Harold's main challenge is to keep the
projects coming in so that these people are steadily employed.
As general manager, Harold is on the front line if any conflicts
arise in the community due to his decisions. Those pressures
are not easy to handle, but the appreciation that he receives
from young people encourages him to continue. He is a skilled
general manager who takes pride in the company's accomplishments.
He tries to solve problems such as employee turnover and absenteeism
by working closely with his employees. It is difficult to
match the wages and benefits that are offered by larger companies,
but the company's accomplishments foster a sense of pride
and loyalty in band member employees.
Revenues have grown dramatically over the last ten years.
The next challenge facing the company is to continue to make
a profit so that further investments can be made in economic
development projects. As more band members are trained and
join Champagne-Aishihik Enterprises, training costs will decrease
and this should be reflected in greater profit margins.
In some cases profitability will mean that the company can
qualify for bonding insurance and bid on larger projects.
This will promote the company's growing reputation and credibility
in the industry, which should lead to more projects, and a
continuing cycle of growth and profitability will be set into
motion. Operations will continue to reflect a respect for
Mother Earth that matches the beliefs of their band members.
The Champagne-Aishihik band has a reputation for being progressive
and achieving many of its goals, in part because of the success
of a
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number
of the band's undertakings, including its construction company.
It is the birthplace of a number of leaders in territorial
and national native political organizations.
Postscript
- 1990
The
truss plant was very busy in 1990, with equipment rental by
the government another major source of income. The major new
project for Dakwakada Development Corporation, the band's
corporate arm, was the approval for development of a $42-million
first-class hotel, convention centre, and office centre complex
in Whitehorse. A Yellowknife construction company will act
as the construction manager while Dakwakada will be the management
team overseeing the project. The scheduled completion date
is early 1992.
Qualified band members will have an opportunity to work on
the project but they will have to be reliable or they will
be taken off the project. Paul notes, "We would like to have
an apprenticeship program instituted so that more of our people
can be trained." The band will manage the whole property as
the developer and will hire a hotel chain to manage the hotel
and train employees.
The complex will meet a pressing need for a large project
that would generate employment opportunities and profits for
the band over the long term. It is hoped that this project
will have a direct impact for the band-owned tour company
and for new businesses operated by band members. The project
should have major economic benefits for other Whitehorse businesses
through increased international marketing and tourism throughout
the year.
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