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.

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.

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."

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."

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

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

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.