Proposed Credit Union merger concerns Catholic Deanery of Sydney
Deanery worries merger will weaken ties to the community
There's a big vote coming up for Sydney Credit Union members. They're being asked to approve a merger with credit unions in Dartmouth and Antigonish.
The Catholic Deanery of Sydney thinks it's a bad idea.
"They're centralizing because they say it could be more efficient and more closely managed by becoming bigger," said Greg MacLeod, a priest, activist and Professor Emeritus at Cape Breton University.
"Credit unions in Nova Scotia, in my view, seem to have forgotten their philosophy and their social rationale, where they came from. They seem to be becoming more like conventional banks."
Sydney Credit Union members will meet at the Membertou Trade & Convention Centre Wednesday night to vote on the issue.
Biggest Credit Union in Nova Scotia
The merger would combine the Sydney Credit Union with the Bergengren Credit Union in Antigonish and the East Coast Credit Union in Dartmouth. There would be 23 branches, 33 ATM locations, 56,000 members, 280 employees and approximately $800 million in assets. The new merged entity would be the biggest credit union in Nova Scotia.
MacLeod says clergy members have expressed concern that a bigger, merged credit union will mean a weakened tie to the local community. He says credit unions are forgetting their mission.
"For me, the credit union movement in Nova Scotia began in Reserved Mines in Cape Breton and it was a movement initiated by church groups to help solve unemployment and poverty. It was really a movement for social justice and social reform," he said.
Keeping up with technology
"We need the funds and the resources to be able to seek out new products, electronic products," said Coffin, during the September interview.
"Doing it as an individual credit union limits our ability to put certain resources to it, but with three larger credit unions that almost triples our resources we have to put into product development."
Coffin said if the merger moves forward, the three credit unions would keep their local signs. He also said there are no planned layoffs or job losses.
"Our combined strength will offer us the opportunity to have greater impact on our members, our employees and our communities,"Coffin wrote in a statement to CBC News Monday.
"This has been 18 months in the making, with great consideration for our members and with a great deal of support from our members, board of directors, staff and stakeholders," he said.
MacLeod wants the Sydney Credit Union to study and discuss how credit unions can help solve local problems before merging with the mainland.
"I do know a bit about technology and size is not always the necessary ingredient for good technology," said MacLeod.
"I'd like to see them use of their resources for job creation, for affordable housing, to contribute to the general benefit for the community, not just creative more dividends for their members," said MacLeod.