Credit unions call vote on merger

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This article was published 19/04/2024 (895 days ago), so information in it may no longer be current.

The boards of Westoba Credit Union, Caisse Financial Group and Assiniboine Credit Union are seeking the approval of their members and employees on a merger to strengthen services for rural and urban members and agricultural enterprises across the province.

The boards of directors said in a statement that they expect their combined 970 employees and 216,000 members to participate in a vote scheduled for June, with the merger slated for implementation on Jan. 1, 2025, pending approval.

Westoba Credit Union president Jim Rediger said the merged organization would be identified as Assiniboine Credit Union in English-speaking regions and Caisse Assiniboine in francophone markets.

“We want to assure our members our discussions around name were not taken lightly, especially with the long and rich histories attached to the organizations,” Rediger told the Sun on Thursday. “By adopting the name Assiniboine, we aim to extend the values that have guided Assiniboine Credit Union through the years in support of all members, employees and communities.”

One of the reasons the trio chose the name, he said, is due to the evolution of the Assiniboine River, which has changed course numerous times over past centuries. Assiniboine Credit Union/Caisse Assiniboine will evolve, innovate, grow and progress in ways that ensure member, employee and community needs and wants can be met now and in the future, he added.

Regarding potential job losses, Rediger said that attracting and keeping talented, knowledgeable, caring and hardworking employees is the priority, adding the merger partners all agree that employees are their greatest strength.

“We’re going to make every effort to find a place for everyone,” he said. “We are excited for the possibilities that a merged organization will offer employees to work in new roles, departments, or locations or to use and learn new skills.”

The value of services offered, he said, would remain the same, noting decisions on loans would be made locally with experts who understand their business.

He explained that some of Westoba’s members require multimillion-dollar loans that the credit union has been challenged to meet in the past, but with the merged entity holding $10 billion in assets, the new brand would be more capable of meeting the members’ business needs now and into the future, furthering the growth of their communities.

Rediger said the partnership will allow more capacity and increased ability to invest in digital experiences. With this financial strength, he said, “we look forward to creating more opportunities to support local events, community projects and partners. We will also see an expanded opportunity to invest in developing knowledgeable employees to help members achieve their financial goals.”

Within the first 12 months following the merger, he added, the harmonization and rationalization of products and services across the organization will start, noting work will be finalized when the banking systems are integrated.

In a statement issued on Wednesday, the boards unanimously endorsed current Assiniboine president and CEO Kevin Sitka as president and CEO of the new entity, with incumbent CEOs Joël Rondeau and Rediger continuing in support roles.

Caisse Financial Group chair Réal Déquier said the amalgamation promises not only enhanced operational efficiency but also an expanded footprint aimed at better serving the diverse needs of Manitobans.

“Decisions on loans will still be made locally with experts that understand your business and your community,” Déquier said.

The statement said the merger’s commitment to preserving the essence of community representation is evident in the proposed board composition, featuring six members from Assiniboine, three from Caisse and three from Westoba, ensuring proportional rural and Francophone representation.

Assiniboine Credit Union chair Crystal Laborero hailed the merger’s democratic ethos.

“Credit unions are financial co-operatives with democratic elections for the board of directors, where members decide who best represents their interests,” she said.

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