A Proud History of Members Helping Members

Operating Engineers Credit Union

ForewordCommissioned by the Directors of Operating Engineers Credit Union (OECU), this keepsake booklet has been created to recognize the vision of the organization’s pioneers and to honour the many members and employees who have contributed to its success for over 55 years.

Within these pages, we preserve the history and heritage of the organization, by charting its success and progress in overcoming adversity while dealing with the ever-changing times.

Credit unions have been serving Canadians since 1900 - the year Alfonse Desjardins founded the first caisse populaire in Levi, Quebec. Today, there are over 9,200 co-operatives and credit unions across Canada. Four out of every ten Canadians are members of at least one co-operative and they employ more than 160,000 people, demonstrating the value of people working together for the common good.

We are delighted to be joining forces with Community Savings Credit Union (CSCU) beginning April 1, 2009. While retaining our local identity, we are now part of a larger financial family that shares our strong worker roots. This partnership will create a great future for all of us as we share a proud history of members helping members.

Operating Engineers Credit Union

April 23, 1953Credit Union Charter Application

Signed By:

H. BergerH. Cain

C. CampbellA. CurranC. JonesF. Kirby

L. LambertJ. Lundie

P. MacKayA. ScottH. SmithD. Stein

May 28, 1953First Board of Directors Elected

L. Lambert PresidentH. Cain Vice President

H. BergerC. CampbellA. CurranJ. LundieC. O’Neil

F. Kirby Treasurer

H. CainC. CampbellA. CurranC. JonesF. Kirby

Signed By:

H. BergerH. Cain

C. CampbellA. Curran

F. KirbyL. Lambert

First Board of Directors Elected

L. Lambert PresidentH. Cain Vice President

H. Berger

F. KirbyL. LambertL. LambertJ. Lundie

P. MacKayA. ScottH. SmithD. Stein

May 28, 1953First Board of Directors Elected

L. Lambert President

P. MacKayP. MacKayP. MacKayP. MacKayP. MacKayP. MacKayP. MacKayP. MacKayA. ScottA. ScottA. Scott

May 28, 1953May 28, 1953May 28, 1953May 28, 1953First Board of Directors ElectedFirst Board of Directors Elected

Vice President

F. Kirby

H. BergerC. Campbell

P. MacKayP. MacKayP. MacKayP. MacKayP. MacKayP. MacKayP. MacKayP. MacKay

May 28, 1953First Board of Directors ElectedFirst Board of Directors Elected

May 28, 1953

A. ScottA. ScottA. ScottA. ScottA. ScottA. Scott

May 28, 1953May 28, 1953May 28, 1953

H. Cain H. Cain H. Cain

First Board of Directors Elected

L. LambertF. Kirby

L. LambertF. Kirby

L. LambertL. Lambert

First Board of Directors ElectedFirst Board of Directors ElectedFirst Board of Directors Elected

Vice PresidentVice PresidentVice President

J. LundieP. MacKay

First Board of Directors Elected

L. Lambert PresidentH. Cain Vice President

J. LundieJ. Lundie

First Board of Directors ElectedFirst Board of Directors Elected

L. Lambert PresidentL. Lambert

H. BergerH. BergerH. Berger

J. LundieJ. LundieJ. LundieJ. Lundie

First Board of Directors ElectedFirst Board of Directors Elected

L. Lambert L. Lambert L. Lambert H. Cain

PresidentVice President

PresidentVice President

President

First Board of Directors ElectedFirst Board of Directors Elected

P. MacKayA. Scott

May 28, 1953First Board of Directors Elected

D. Stein

L. Lambert PresidentVice President

L. Lambert Vice President

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Getting StartedThe Fabulous 50sIt was a cool, misty, late-April evening when Jerry Lundie and 11 other enthusiastic supporters from the International Union of Operating Engineers Locals 882 and 115 gathered in Vancouver to complete the application for a credit union charter. Despite the vestiges of war, the economy enjoyed a relatively peaceful existence in the fi fties with the price of a loaf of bread or quart of milk changing little from year to year. In fact, in 1954, Canadians enjoyed the second highest standard of living in the world.

The 12 founders recognized that credit unions had been springing up around British Columbia since the mid-forties as Johnny came marching home to fi nd that credit was extremely diffi cult to obtain from the banks.

The fi fties, while socially conservative and highly materialistic, also experienced fairly high rates of unionization. Jerry and his

Martha Mackie

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cohorts felt it was time to establish a credit union with a desire to make life better for regular, hard-working people who wanted to create a comfortable environment for their families.

On May 13, 1953, Operating Engineers Credit Union was granted its charter - number 268. Jerry Lundie was assigned account number one. Lloyd Lambert became the fi rst President; Fred Kirby, the fi rst Treasurer. The fi rst offi ce was opened at 111 Dunsmuir Street in Vancouver and the fi rst loan was approved. In 1955 Martha Mackie, the holder of account number one at Vancity, replaced Mr. Kirby as Treasurer.

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Reaching OutThe Swinging 60sAfter the relative tranquility of the previous decade, the sixties imposed a new set of circumstances: a large increase in crime and urban unrest; rebellion against conservative norms and materialism; the space race, culminating with a man on the moon in 1969; the rise of feminism; the so called Quiet Revolution in Quebec; the British music invasion; anti-war demonstrations and the Kent State shootings. Canada got a new fl ag and celebrated its 100th anniversary with a world’s fair.

On the home front, the savings rate for Canadians climbed to 10% in tandem with an infl ation rate of 6%. Assets of Operating Engineers Credit Union grew from $118,000 to $141,000 during the course of the decade. In 1965, the offi ce re-located to 2406 Main Street in Vancouver, and in 1969, the credit union expanded its service offerings by including term deposits.

Despite the turmoil of the times, and the resulting challenges, the “People’s Bank” was chugging along and preparing for the arrival of the seventies.

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Staff Member Profi le - Barb SchillerFor Barb Schiller, the longest serving OECU employee at over 19 years, the credit union is a family affair. Her late father, Bill Neil, was a long time union business agent and ardent Director of OECU. “We are really like a large extended family,” says Barb. “We watch out for each other, help one another through diffi cult times and practice forgiveness and acceptance. Many members have become personal friends over the years and in an era where a handshake is often replaced by ‘log in’ or ‘contact us’ it is refreshing that staff and members know each other by their fi rst and last names.”

Barb Schiller

Clockwise from top left: Staff of OECU in ‘94 Franco Hodaly (left), Phyllis Chouinard, Marilyn Grimm, Barb Schiller; Barb’s dad, Bill Neil; Barb’s mom, Helen Neil

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Growing PainsFlower Power: The 70sInfl ation, which had been essentially tamed since the turn of the century, raised its troublesome head in the seventies, averaging 6% and topping out at 13.3% in 1979. The term “stagfl ation” was coined for the combination of high rates of infl ation and unemployment which plagued the era.

Despite the slow economic growth, the decade was busy for Operating Engineers Credit Union. It started with another address change – to 4333 Ledger Avenue in Burnaby – and hand posted ledgers gave way to a bookkeeping machine. To meet growing member needs, new products including: chequing accounts, Registered Retirement Savings Plans, Registered Home Ownership Savings Plans, travelers cheques and mortgage insurance were added; while the credit union continued to acknowledge each member by name.

Membership expansion continued as the Bricklayers and Masonry Union, Tilesetters Union and the Tilesetters Helpers Union were welcomed to the fold in 1973. In 1978, the assets

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of Vancouver Auto Workers Credit Union were transferred to OECU. In 1972, the credit union was placed under supervision and subsequently released in 1975 when it repaid the Grant-in-Aid to the Credit Union Reserve Board. In 1976, the Credit Union rules were revised for the fi rst time as a result of changes to the Credit Union Act.

The decade also saw a “changing of the guard” as Martha Mackie retired after 18 years of service in 1973 and Franco Hodaly took over as Manager of the credit union in 1975. Founding fatherJerry Lundie passed away in 1975, and the balance of account number one was donated to the Credit Union Foundation of British Columbia in keeping with his, and the organization’s, commitment to the betterment of people and community.

Franco Hodaly

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Helping Hands in Many LandsThe Gilded 80sIf the seventies were turbulent, then the start of the eighties was downright nasty for working people. The worst recession since the Great Depression staggered the nation as interest rates climbed over 20%. Infl ation and unemployment rates reached double-digits. Borrowers were “stressed to the max” when mortgage rates hit 22%. Depositors, meanwhile, enjoyed unprecedented returns.

By 1983, a rebounding economy, coupled with a new Constitution, ushered in the “gilded eighties”, and technology became the order of the day. Teenagers gravitated to video arcades and the VCR became an essential appliance. Canadians began to refl ect on the environment and, spurred by holes in the ozone layer and acid rain, they put out their recycling boxes.

By 1983, a rebounding economy, coupled with a new

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Thanks in large measure to a decision by the Operating Engineers Pension Plan to deposit funds in the credit union, OECU grew its asset

base from $5.2 million in 1980 to $24.2 million in 1990, while continuing to make mortgages available to members at rates below market. Credit decisions have always been based on the character of the applicant as opposed to some rigid formula. The credit union takes a benevolent approach to members in fi nancial diffi culty. This support has resulted in unparalleled member loyalty and minimal write offs over the years.

In 1982, the credit union dividend peaked at 16%. Seven years later, the organization introduced equity shares by giving them to members as part of its dividend program and the rules for the credit union were revised for the second time.

C. Farish R. Brewster

F. Slyman H. Watkins

Long-serving Board members

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Giving BackGoodbye to the 90sIn keeping with their mission to provide a consistently high level of service on a friendly and personal basis, while generating an acceptable level of earnings and reserves, the credit union enjoyed tremendous growth during the nineties. Assets and retained earnings nearly doubled during the decade; plus, the credit union introduced Member Card, Member Link and lines of credit, while completing renovations to the offi ce.

In addition to the typically high returns on shares and low mortgage interest rates, the credit union has consistently contributed to the community. Among many donations, OECU was responsible for purchasing three beds for Burnaby General Hospital.

Following the conversion to an on-line computer system in 1988, the credit union again converted its records, this time to Vision West, in 1997. In 1998, Franco Hodaly retired after 23 years as

Above: Members taking part in an AGM in the early 90sOpposite top: Celebrating Christmas - (left to right) Don Stark, Marina Hodaly, Franco HodalyOpposite bottom: Franco Hodaly receives plaque from Burnaby General Hospital representative

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Manager and was replaced by Don Stark. However, Franco’s love of the organization brought him back in later years to serve on the Board of Directors.

The nineties were known as the decade of anti-fashion, with tattoos and body piercings becoming popular. Widespread adoption of personal computers and the internet lead organizations to purchase laptops, cellular phones and go online. Use of email increased rapidly as did ecommerce while everyone braced for the onslaught of Y2K. Though a fi nancial crisis loomed in the Orient, most of the Western World enjoyed economic prosperity, and people responded by eating more healthy food, quitting smoking and enjoying roller blading.

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Y2K And BeyondThe New MillenniumY2K, which came on like a lion, whimpered into oblivion with the arrival of the year 2000. The world changed forever with the attack on the World Trade Towers on September 11, 2001. Greenhouse gas emissions rose 30% between 1981 and 2000 and lead to the development of new green technologies. Globalization became more pervasive in the early 2000s, and the Dow Jones average surpassed 12,000 for the fi rst time in history. The housing meltdown in the U.S. started in 2006/07 and the Asset Backed Commercial Paper fi asco lead to major write downs and bailouts.

The structure of the Board of Directors for Operating Engineers Credit Union went through some major changes in the fi rst half of the decade with the retirement of Harold Watkins, Warren Zant, Frank Slyman and the passing of Bill Neil in 2006, as well as the passing of Fred Randall in 2002.

environmental demonstration?

hybrid car?

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At a Special General Meeting held February 23, 2009, members of Operating Engineers Credit Union voted 86% in favour of merging with Community Savings Credit Union. Members recognized that merging provided greater accessibility and more product choices while retaining the personal approach. Following the merger on April 1, 2009, the combined credit union will have 6 branches, $360 million in assets, 11,000 members and the Burnaby location will be known as the “Operating Engineers branch of Community Savings Credit Union”.

Gary and Marlene Kroeker

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The Unions’ Credit UnionCommunity Savings was granted its Certifi cate of Incorporation as IWA (New Westminster) Credit Union on May 18, 1944. For nearly sixty fi ve years, it has provided exemplary service to its members and is widely known as “the unions’ credit union.” Its Directors have long recognized that the role of the board is to direct and protect, and to embrace change.

Gary Kroeker, the longest serving Director of Operating Engineers Credit Union commented on the merger as follows: “Community Savings was identifi ed as the preferred partner in merger talks due to its similar philosophy and commitment to its members. Both credit unions have a long and proud history of serving the trade union movement and responding to the

Members Peter and Esther Roth

Member Aileen Randall14

financial needs of its membership.” Gary further declared, “The local union has provided excellent, stable leadership for the credit union, always looking out for the best interests of members. Our founders would be very, very proud of the credit union’s performance.”

Following the merger discussions, Community Savings Chief Executive Officer Bruce Cook issued the following statement: “We welcome all members of OECU in the spirit of warm friendship found in each and every office of Community Savings. This partnering holds tremendous potential and benefit for our respective staff and membership. This merger will enable us to expand geographically, improve our economies of scale, and harness the financial strength of a larger asset base.”

Top right: Don Stark and staff greet members at Special General Meeting - February 23, 2009Top left and above: Members voted 86% in favour of mergerMember Aileen Randall

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Board of DirectorsMarch 31, 2009

* These Directors will join the Board of Community Savings Credit Union.

Lionel Anker

Larry Marshall

Lionel Anker

Don StarkManager

Brad Randall

Gary Kroeker*Gary Kroeker*

Franco Hodaly

Lionel Railton*

Franco Hodaly

Terry DobsonSecretary

Brad Randall

Terry DobsonSecretary

Tom GalbraithChairperson

Gary Kroeker*

Brian Cochrane*Vice Chairperson

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A proud history of members helping

members

Operating Engineers Credit Union

Welcome

205-4333 Ledger AvenueBurnaby, B.C. V5G 3T3Phone: 604 291 8831

Fax: 604 291 8987E-mail: creditunion@iuoe115.com

www.oecreditunion.com