of our movement in Canada.

FINANCES

In reviewing the audit for the fiscal year ending June 30th 1961, we
are not able to compare the income and expenditures for that period against
any previous period. The Regional Council took over the responsibilities
of organization, research and education on September 1st 1959 and became
a Regional Council at that time.

The comparative figures found under Exhibit “B” of the audit of the
General Fund include a period from July 1st to August 30th, when we were

still operating as a District Council, and in this period we had a strike from
July 6th to September 15th.

In May of 1960 the Regional Council moved into the new building,

which involved changes to the organization. -

There are a number of factors to be considered in attempting to assess
and analyze the financial position of the Regional Council at this time.

Cost of negotiations, membership strength, impact of automation and
mechanization is difficult to determine, and it is almost impossible to arrive
at an accurate projection of this cost. In 1962 we will be faced with two

sets of negotiations. The Coast Agreement expires on June 14th and the
Interior Agreements expire August 30th.

While the cost of negotiations in any area may vary from year to year,

depending on the time involved and other factors (such as strike situations,
or problems where meetings, propaganda, bulletins and votes are required)
it is possible to estimate within reasonable limits according to past experi-
ence. The cost of Coast negotiations in the past 10 years has averaged
approximately $15,000 per year.

The average membership within the jurisdiction of the Regional Coun-
cil has a very distinct bearing on the financial position of the Regional
Council. In the last fiscal year there was a drop in average membership
of approximately 2,000.

Average membership for the year ending June 30th 1960: 33,909.

Average membership for the year ending June 30th 1961: 31,964.

This reflects a drop in the average membership for the last fiscal year
ending June 30th of 1,945. This reduction in membership cut the income of
the Region in the amount of $1,458.75 per month, or $17,505.00 for the year.

The Regional officers are pleased to note that Local Unions are requir-
ing more service from the Regional Council in the various areas within the
jurisdiction of the Region. Local Unions are endeavouring to work more
in unity with their neighbouring Locals. This, to a degree, has been
prompted by the fact that employers’ organizations are tying in their
efforts very closely with neighbouring employers’ associations. As an
example: the employers of the Northern Interior Lumbermens’ Association,
Southern Interior Lumbermens’ Association and those represented by
Forest Industrial Relations Limited show a clear unison in effort. Obviously
this requires the Local Unions, even from one area to another, to concern
Prowse ves with co-operative action through the medium of the Regional
Council.

The cost of maintaining the present building and paying off the mort-
gage and interest is a considerable burden to the Regional Council. At the
present time we are paying $1,000 per month off the principal and approxi-
mately $550 per month interest on this loan.

The cost of operating the building has not been clearly determined as
yet. The Directors of the Holding Society have met on several occasions
and we are endeavouring to work out a proper system of service and main-
‘tenance. However, present. indications are that it will cost the Regional
Council at least $700 per month for janitor service and maintenance costs.
The total cost of the Region’s share of the building per month (loan, in-
terest and service) will approximate $2,250 per month.

When the Regional Council took over the additional responsibilities
inherent in the Regional set-up it took some time to coordinate the efforts
of the various departments. In September 1959, when research and educa-
tion, organization, public relations, safety and administration were brought

ay

LADIES’ AUXILIARY CONFERENCE DELEGATES

under the direction of the Regional office, it took some time to establish
efficiency and economy of operations within the new structure. However,
the integration of the operation has resulted in some savings. In reviewing
expenditures of the Regional Council we can see a reduction in some ex-
penditures and, as the Audit will show, printing costs have been substan-
tially reduced.

The bank balance as of June 30, 1961 was $37,840.34 but, considering
that the Regional Council received a loan from the International.Union of
$15,000 and further, that we were successful in getting a, release of the
fixed deposit (J. W. Bow) from the bank in the amount of $15,000, we must
obviously conclude that if it were not for this $30,000 we would have had
a bank balance of $7,840.34.

The loan from the International Union is subject to review at the next
International Board meeting to determine whether or not we will be re-
quired to return this money. 3

It should be noted that we have set up a car replacement fund in which
we deposit $80.00 per month for each car. This fund has now reached an
amount of $6,410.00. This reserve is necessary so that the Regional Council
will have the money to replace cars when the time comes to trade in the
present cars. No decision has been made as to how long the present staff
cars will be operated before they are traded in. However, it is expected
that the present amount in the car replacement fund will be adequate.

In analyzing the overall financial position of the Regional Council in
all its aspects and recognizing the desire of the Local Unions for more
service and assistance, it becomes obvious that it will be necessary to bolster
the financial position of the Regional Council.

PRO RATE

The principle of pro rating the cost of Regional conventions, con-
ferences and Board meetings has long been established in our organization.
This policy was originally adopted to enable the smaller Local Unions of the
Council to participate in all meetings of an administrative or policy-making
nature and the reasons for the inception of this policy have not changed
over the years, although the application of the policy was changed as a
result of a decision of the District Convention of 1958. Previous to this
time, costs had been shared on the basis of participation but in 1958 the
District Convention authorized an amendment to the District Constitution
to provide that pro rate would be computed on the basis of dividing the
total allowable expenses by the number of alloted delegates, which changed
the application from cost sharing by participation to cost sharing on the
basis of alloted representation, whether or not the Local Unions participated
in the conventions or conferences.

In the past few years there have been some rather drastic changes in
the organization. The structure of the International union has been changed
to provide for the Regional Council administration set-ups, the borders of
the Regional Council have been extended to take in the provinces of Sas-
katchewan and Manitoba and, also, we have brought into the organization
the Sash & Door Local Union in Vancouver and the Lumber Inspectors’
Union.

This, coupled with the unemployment situation, has created a rather
complex problem, The smaller Local Unions who generally are located a
considerable distance from the site of the meetings covered by the pro rate
principle are unable to send delegates to the conference because of the
cost involved. Yet under the present pro rate directive, they are respon-
sible for paying a portion of the pro rated expenses, and this is impossible
for them to do because of their financial position.

Under the Constitution the Regional Council has no obligation to sub-
sidize these Local Unions on this matter, and in fact the Regional Council
is not in a position financially to do so. For these reasons, the Regional
Council has not as yet sent out the pro rate breakdown for the years 1958
to the present time because, under the circumstances it would be impossible
to complete the distribution of costs under the present pro rate set-up
without receiving payment in full from all of the Local Unions concerned,
and a check of the financial position of some of our Local Unions indicates
that full payment would be impossible to achieve.

Because of these circumstances the officers are of the opinion that a
change in the method of financing the pro rate will have to be made. There
can be no argument that the principle of pro rating the costs of the
administrative and policy-making machinery amongst the Local Unions is
a correct one in order that the membership will have full representation at
those meetings. In order to achieve this worthwhile objective, the Regional

officers are of the opinion that pro rate will have to be covered by a per
capita assessment.