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Conference 7.286::dcu

Title:DCU
Notice:1996 BoD Election results in 1004
Moderator:CPEEDY::BRADLEY
Created:Sat Feb 07 1987
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1041
Total number of notes:18759

794.0. "Complaint to DCU Supervisory Committee" by SMAUG::GARROD (DCU Board of Directors Candidate) Fri Mar 25 1994 10:50

    
    [This note may be extracted and shared with other people as long as it
     is not edited and the header is kept intact]
    
From:	SMAUG::GARROD "DCU Board of Directors Candidate  25-Mar-1994 0745 -0500" 25-MAR-1994 07:46:48.11
To:	@DCU_SUPERVISORY
CC:	@DCU_BOARD,GARROD
Subj:	Complaint regarding DCU employee electioneering and DCU misuse of funds

From:		David J. Garrod, Candidate for the DCU Board of Directors
To:		DCU Supervisory Committee
Cc:		DCU Board
Subject:	Formal Complaint regarding:
	    		1, DCU employee electioneering in violation of bylaws
			2, Misuse of DCU funds


I am a candidate in the current elections for the DCU Board of Directors.
I am lodging this formal complaint with you (the Supervisory Committee) due
to your responsibility under DCU bylaw:

    Article X. Supervisory Committee

    ...

    Section 6. By the affirmative vote of a majority of its
    members, the supervisory committee may call a special
    meeting of the members to consider any violation of the
    provisions of the Act, the regulations, or of the charter or
    the bylaws of this credit union, or to consider any practice
    of this credit union which the committee deems to be unsafe
    or unauthorized. The supervisory committee chairperson shall
    give notice to the board of directors prior to the calling
    of the special meeting of the members. Upon receipt of such
    notice the board shall arrange to meet with the supervisory
    committee prior to or at the next regular board meeting to
    discuss the matters of concern. If agreement for settlement
    on any of the matters of concern cannot be reached, the
    supervisory committee may proceed with the calling of the
    special meeting of the members.

specifically your responsibility to enforce the bylaws of the credit union.
I am not lodging this complaint with the DCU board because two board
members (Lisa DeMauro Ross and Paul Milbury) are materially benefited by the
violations noted below.

My complaints are as follows:

    1, Violation of bylaw Article VI section 9:

	    Article VI. Elections

	    ...

	    Section 9.  Subject to state and federal law and regulation, 
	    present credit union employees (including the president/CEO)
	    shall not be eligible to serve on the nominating committee, 
	    nor shall they take part, during normal credit union business
	    hours, in any credit union election or campaign activity at
	    any credit union location to which they have access solely by
	    reason of their credit union employment.

      In multiple DCU branches DCU employees have been handing out partisan
      election literature that supports candidates Lisa DeMauro Ross, Lois
      Haskins and Paul Milbury. This is clearly a violation of the above
      bylaw that disallows DCU employees from engaging in campaign activity
      on DCU premises. Even if they are on lunch break it doesn't matter the
      DCU branch at that time is open for business. In addition in at least
      the MLO DCU branch this partisan election literature is on a table
      WITHIN the confines of the DCU branch.

      I have documented instances of DCU employees violating the above bylaw
      at the sites: LKG (Littleton), ALF (Alpharetta GA), MRO (Marlboro) and
      MLO (Maynard). At LKG I personally witnessed DCU employee Maureen Hirsch
      in violation of the above bylaw.

      I asked this DCU employee to be non partisan and said that if election
      literatire was going to be handed out I presume she would have no
      problem handing out my election literature too. She refused to do so.
      She also told me that she was on a Special Committee, the purpose of which
      appears to be electioneering. I ask you to investigate this too. Are DCU
      resources being used to support this committee?


    2, Misuse of DCU funds

       The partisan literature being handed out includes the "DCU Special 
       Report". This is clearly election literature. If it wasn't it wouldn't
       be handed out as part of a partisan election statement. This literature
       was sent to all DCU members including a special mailing outside the
       normal statement cycle. Its production and distribution involved the
       use of DCU funds ($20,000 I believe). I was not offered equal access
       to the membership. The only access I was offered was for a statement
       to be included in the January statement mailing (too early) or the
       April statement mailing (too late) and at a significant cost to me
       personally. I ask you to investigate this misuse of DCU funds.

To deal with violation 1) above I ask that you immediately instruct the DCU
President or his representative to instruct all of the DCU employees to cease
and desist from taking a partisan part in the election. This INCLUDES giving
out partisan literature when asked questions such as. "Do you have any
literatire or information on the election?". Many people have reported to me
that on asking that sort of question they get partisan literature. If the
DCU employees are to continue to hand literature supporting candidates then
I demand that they also hand out literature favourable to me. I would be happy
to supply it.

I will be writing up a more detailed fuller copy of this complaint and will
file it with the NCUA. I am also giving notice that should at this election's
conclusion I determine that the DCU employee campaigning on DCU premises
and the use of DCU funds to favour one set of candidates, materially affected
the election outcome, then I shall persue all avenues open to me. I believe
those to be at least:

    1, Petitioning the membership to call a Special Meeting
    2, Civil legal action

If you would like me to appear before the Supervisory Committe to present
my complaints in person I would be only too happy to do so. But I must
emphasize that I believe action needs to be taken TODAY by you in order
for you to withhold your responsibilities to the credit union.

And finally on a slightly different topic. This is directed at Steve Behrens
who happens to be Digital's DCU liason. I would like to lodge a formal complaint
that DCU employees have been seen to be in violation of Digital Policy.
Policy 6.19 says:

| Persons who are not  employees of the company are prohibited from
| distributing literature of any kind or soliciting employees for any
| purpose at any time on company property.

DCU employees have been seen both in work areas and non work areas actively
soliciting Digital employees as well as distributing the partisan literature
referred to above. Assuming you are going to instruct the DCU President to
instruct his employees to obey the DCU bylaws I presume he could also at the
same time time remind them of this Digital policy.

I look forward to prompt action on my complaints.

Regards,

David J. Garrod
T.RTitleUserPersonal
Name
DateLines
794.1Digital is being responsiveCVG::THOMPSONMud season has arrivedFri Mar 25 1994 11:127
    I have been informed that Digital has sent a letter to Chuck Cockburn,
    DCU President, informing him that DCU employees handing out literature
    on Digital property is a violation of Digital policy. Further that he
    is to make sure that DCU ceases and desists from this violation of
    policy.

    			Alfred
794.2WLDBIL::KILGORETime to put the SHARE back in DCU!Fri Mar 25 1994 11:185
    
    Re .1:
    
    Well, *that's* certainly a welcome difference from two years ago.
    
794.3a call for speaking up for fairnessPACKED::COLLIS::JACKSONDCU fees: VoteFri Mar 25 1994 13:0818
The electioneering has been so blatantly in violation of both
DCU and Digital rules that I'm amazed that it has been going
on as well as that action from the top (of both organizations)
has been so slow to deal with it.  Why isn't it standard
procedure to notify all employees of election rules shortly
before an election takes place? - particularly after what
happened 2 years ago???

I'm disappointed that there has not been a peep in this notesfile
from the three candidates who can profit from this illegal
campaigning with a strong denouncement of it.  If this isn't
worth responding to us about, what is?  But it's not too late.
If any of you read this, please let us know what your position
on this campaigning is; and not just us, but DCU management
and particularly the DCU branch managers who willing violated
and allowed to be violated DCU bylaws.

Collis
794.4TOOK::DELBALSOI (spade) my (dog face)Fri Mar 25 1994 13:555
re: .3, Collis

(I expect the silence will be deafening.)

(-Jack)
794.5I send my calls to speak up direct via EmailCVG::THOMPSONMud season has arrivedFri Mar 25 1994 14:105
    RE: .3 I sent mail to the "other 3" candidates the other day. I
    have heard back from one of them. I'll summarize that conversation
    and any other correspondence/calls I receive this week end.

    			Alfred
794.6PACKED::COLLIS::JACKSONDCU fees: VoteFri Mar 25 1994 14:1413
Thanks, Alfred.

I expect that some or all of the 3 candidates have
taken some action.  It would be nice for this action to
be publically visible (as well as behind the scenes) so
that everyone knows exactly what they think about this
turn of events.

If all candidates clearly and publicly denounce this form
of electioneering, then I expect this will greatly reduce
the possibility of it happening again.

Collis
794.7source of information, pleaseWRKSYS::SEILERLarry SeilerFri Apr 01 1994 18:1514
    re .1:  Alfred, who exactly informed you that Digital sent a letter
    to Chuck Cockburn objecting to DCU employees engaging in solicitation
    on Digital property?  If it was proper to reveal that such a letter
    was sent, then surely it is proper to know who at Digital is asserting
    that the letter was sent.
    
    In general, I believe that it is inappropriate to post anonymous 
    claims, unless there is some compelling reason why the claimant needs 
    to be anonymous -- and even then only if there is some independent
    reason to believe the statement.  E.g., documents or pictures, 
    that at least have been revealed to the person posting the claim.
    
    		Thanks,
    		Larry
794.8Chuck Cockburn said he'd not received a letter from DigitalSMAUG::GARRODDCU Board of Directors CandidateFri Apr 01 1994 18:338
    Re .-1
    
    Last Monday Chuck Cockburn told me in person that he had NOT received a
    letter from Digital concerning DCU employees campaigning on Digital
    premises. I have no reason to disbelieve him and I believe he was
    telling me the truth.
    
    Dave
794.9CVG::THOMPSONAn AlphaGeneration NoterFri Apr 01 1994 19:0210
    
>    re .1:  Alfred, who exactly informed you that Digital sent a letter
>    to Chuck Cockburn objecting to DCU employees engaging in solicitation
>    on Digital property?  If it was proper to reveal that such a letter
>    was sent, then surely it is proper to know who at Digital is asserting
>    that the letter was sent.
    
    John Murphy at MSO. 
    
    		Alfred
794.10Cost cutting measureASE003::GRANSEWICZDCU Election: 3 G's -> NO FEESSat Apr 02 1994 01:504
    
    Well one thing is for certain, something doesn't add up here.  Maybe
    Digital sent it 3rd class mail... 
    
794.11Status update (essentially nothing to report)SMAUG::GARRODDCU Board of Directors CandidateThu Apr 14 1994 01:5135
    I thought it was time to update everybody on progress so far.
    
    Friday 25th March	- I filed my original complaint (see .0).
    
    Monday 28th March	- Expanded version of the complaint filed in hard
    			  copy with the Supervisory Committee
    
    Monday 28th March	- Prompt acknowledgement received from Supervisory
    			  Committee chairman Steve Behrens notifying me that
    			  my complaint had been assigned to supervisory
    			  committee members Fred Holland and Bob Ketz for
    			  investigation.
    
    Wednesday 6th April	- Surprised that I had heard absolutely nothing I
    			  send a request to Fred Holland and Bob Ketz for
    			  a status update on what is happening regarding
    			  my complaint
    
    Thursday 7th April	- Receive acknowledgement from Bob Ketz indicating
    			  that he had just got back from vacation that day
    			  and had not had any contact with Steve Behrens
    			  up until that time. He planned to talk to him
    			  that day.
    
    And that's it to date. I must admit I find it slightly surprising that
    what I consider to be flagrant violation of DCU bylaws during an
    election by DCU employees is assigned to someone who was on vacation.
    
    I will keep this note updated the best I can. Obviously I expect that
    if anything actually starts to happen it may have to remain
    confidential for a while. I will let everybody know though as soon
    as I actually see any action. To date I've not been asked for any
    additional information.
    
    Dave
794.12QBUS::M_PARISESouthern, but no comfortThu Apr 14 1994 03:065
     
    Serious allegations evoke serious stonewalling.  ;-)
    
    Mike
    
794.13Stonewall was a southern general!ISLNDS::KETZThu Apr 14 1994 13:1811
    Hi.  I am Bob Ketz, and I want you to know that I, along with the
    balance of the Sup Comm are working hard on this issue.  I take offense
    to 794.12 regarding stonewalling. We have had late night meetings on
    this topic, I spent this past Sunday reading more formal complaints
    that came via Fed Exp. I undersanding the urgency of the issue.  I am
    doing my best, this is one of many issues we are investigating.  I
    believe we are close to recommending a course of action to the Board. 
    Please do not for a moment think I, or others on the committee are
    Stonewalling.
    
    Boston Bob
794.14Thank you for .13STAR::PARKETrue Engineers Combat ObfuscationThu Apr 14 1994 13:5914
    Re: .13
    
    	Thank you Bob for replying directly.
    
    This place does get a little bit of hip shooting and foot in mouth
    disease, which all of us at one time or another have participated in.
    
    I think we would look forward to any further updates that you can give,
    though I assume there is much you cannot say, until much later.
    
    Again, thanks.
    
    Bill
    
794.15STAR::BUDAI am the NRAThu Apr 14 1994 14:1423
RE: Note 794.13 by ISLNDS::KETZ

>    Hi.  I am Bob Ketz, and I want you to know that I, along with the
>    balance of the Sup Comm are working hard on this issue.  I take offense
>    to 794.12 regarding stonewalling. We have had late night meetings on
>    this topic, I spent this past Sunday reading more formal complaints
>    that came via Fed Exp. I undersanding the urgency of the issue.  I am
>    doing my best, this is one of many issues we are investigating.  I
>    believe we are close to recommending a course of action to the Board. 
>    Please do not for a moment think I, or others on the committee are
>    Stonewalling.

Thanks for responding.

I can understand you position and also Dave's position.  Dave would like
to know that his complaint has not been thrown in a basket and ignored.

As a suggestion, a simple update every week or 10 days would be useful
for people who have submitted a formal complaint and have not heard
anything.  This will let people know that work is being done.

	Thanks,
	- mark
794.16EOS::ARMSTRONGThu Apr 14 1994 14:2712
     
>    Serious allegations evoke serious stonewalling.  ;-)
>    
>    Mike

    I took Mike's (half joking) comment to say that assigning
    the investigation to someone on vacation implied it was
    not being given top priority.

    I did not get any impression that it was not getting
    priority now that you're back.
    bob
794.17ROWLET::AINSLEYLess than 150 kts. is TOO slow!Thu Apr 14 1994 14:278
re: .13

I think you missed the :-) on .12

I do wonder why an issue of such time-sensitive nature was assigned to someone
on vacation.

Bob
794.18Thank you for the updateSMAUG::GARRODDCU Board of Directors CandidateThu Apr 14 1994 15:3414
    Re .13
    
    Thanks. I am happy to know that my complaint is being processed.
    I look forward to finding out, in due course, what end action is taken
    on it. As suggested by one of the later repliers I do feel an update
    to the complainant every week or two would be in order. Even if the
    update is something like "we're working on it, can't say anymore at
    present, expect to be able to tell you more on date xxx".
    
    Again thanks. I am pleased to know that my complaint is being taken
    with the high level of seriousness in which I intended it.
    
    Dave
     
794.19QBUS::M_PARISESouthern, but no comfortThu Apr 14 1994 17:2710
After two weeks Dave finds out that his complaint has effectively
been stalled, and only after a "tickler" update request has the
investigation into the complaint been jump-started.  After another
week (nearly) of no update Dave is understandably concerned.  
My sympathy is with Dave, not the DCU Supervisory Committee.
If anyone can be justifiably offended it is Dave.

Mike

794.20Truth be known!ISLNDS::KETZThu Apr 14 1994 18:3011
    re.19
    I can see how things get taken out of context when only half the
    situation is known.  Things did not take weeks to get jumpstarted. 
    When I got back from vacation I found that Fred Holland already had the
    auditor investigating some matters, the committee had meetings the week
    prior to my return, our lawyers had been contacted for advice.  The
    note did not jump start anything.  I am just as concerned arround this
    matter as any noter in this file is.  I do not want to "one up" anyone
    by my response, but if you believe I am not doing my job on this
    committee then talk to me directly, not via this file.
    Boston Bob
794.21It's being processedSMAUG::GARRODDCU Board of Directors CandidateThu Apr 14 1994 18:4719
    Re .several
    
    Please folks. Let's not make too many assumptions here. I posted my
    update on the situation. My only issue was the lack of being updated
    on progress. I feel more than comfortable that my complaint is
    being processed (thanks to Bob's replies).
    
    Yes I'm a bit miffed that not much was done to prevent the bylaw
    violation during the election process. But as far as I'm concerned that
    is a failure of DCU management not of the Supervisory Committee. The
    reason I went to the Supervisory Committee was because management
    failed to get the issue addressed after it was brought to their
    attention.
    
    Now it is just a case of letting the Supervisory Committee do its job
    and take action on my complaint. As long as I'm kept updated I'll be
    happy. I also hope I'm happy with the outcome of the investigation.
    
    Dave
794.22QBUS::M_PARISESouthern, but no comfortThu Apr 14 1994 19:2610
    
    Had the DCU management been interested in ensuring a smoother
    election process, these same kind of complaints would be unnecessary.
    Are we going to have to look forward to this acrimony and
    divisiveness at the next election?
    When does it get fixed?
    
    Mike
    
     
794.23PACKED::COLLIS::JACKSONLive freed or live a slave to sinThu Apr 14 1994 20:016
  >When does it get fixed?

Not until top management is committed to fair and open
elections and enforces this through the ranks.

Collis
794.24Any recourse?SLOAN::HOMThu Apr 14 1994 21:2114
Let's assume the investigation shows that Dave's allegations
are indeed valid and that Dave looses by a few votes.

What recourse does Dave have? Will this election be invalidated?
Will justice be served in this case if the response is
"Don't do it again."?

I think these possibilities need to be considered prior to
the announcement of the results.



Gim

794.25under things to wonder about tonight ...CVG::THOMPSONAn AlphaGeneration NoterFri Apr 15 1994 01:123
    Why didn't any of this happen last year?
    
    			Alfred
794.26ASE003::GRANSEWICZDCU Election: 3 G's -> NO FEESFri Apr 15 1994 02:5219
>         <<< Note 794.25 by CVG::THOMPSON "An AlphaGeneration Noter" >>>
>                 -< under things to wonder about tonight ... >-
>
>    Why didn't any of this happen last year?
    
    Some possibilities...
    
    1. Because fees hadn't been instituted.
    
    2. Because a current Director that stated she would "hold the line on
       fees" somehow translated that into a vote for fees.
    
    3. Because the majority on the Board, and thus the future direction of
       DCU, wasn't riding in the balance.
    
    4. Because a new majority on the Board would mean a change in DCU's
       current direction.
    
    5. Because some people don't want that change to occur.
794.27See 818 for full detailsCVG::THOMPSONAn AlphaGeneration NoterFri Apr 22 1994 23:4713
    The Supervisory Committee has acted in a decisive manner. They
    unanimously recommended that the election and annual meeting be
    restarted. The members of the Board of Directors have agreed with
    that recommendation. The nominating and petition process as well
    as the draw for ballot ordering and the statements sent to the
    members with ballots are judged not to be tainted. The process will
    re-start after those steps. The dates for the new balloting and
    annual meeting have not, as I write this, been set. 

    New rules are being formulated for the election process. More
    information as I get it.

    		Alfred
794.28RUSURE::MELVINTen Zero, Eleven Zero Zero by Zero 2Mon Apr 25 1994 00:287
>    New rules are being formulated for the election process. More
>    information as I get it.

I wonder if past mistakes will be corrected (like mailing ballots FIRST
class this time).

-Joe