Don't ever underestimate the influence of labor unions,especially if you are a CEO. Many years ago, as part of the falloutof CUNA's one and only strike by members of OPEIU Local 39, theCUNA managing director (president/CEO) was given his walkingpapers. On August 2nd of this year, CUNA Mutual Group president/CEOMike Kitchen was told to pack his bags because of an admitted errorin judgment connected directly to the current tense situationinvolving, you guessed it, OPEIU Local 39. As every CEO with aunion shop knows (or should know), management may not interferewith the collective bargaining process. Kitchen was charged withdoing just that after voluntarily disclosing that he offered $1,000of his own money to a dissident group of CMG union employeeslooking for advice on ways to go their own way. They declined it.Kitchen thought that a thousand personal bucks with no stringsattached would help them get some independent legal advice. To makematters worse for him, he sent out an e-mail to employees thatcould easily be viewed as anti-union. It is hard to believe thatsomeone as smart as Kitchen proved to be leading CUNA Mutual since1995 didn't know better than to get personally involved in anyactivity that could be interpreted as trying to weaken or eveneliminate the union as some have charged. It is much easier tobelieve that he was set up. And that he trusted someone on hisstaff he should not have. Maybe someone who saw an opportunity touse the ongoing labor dispute to get rid of him? Which leads tothis observation: what you won't read anywhere is that if the truthwere told, nothing would make many top people at CUNA Mutual andCUNA happier than if the union quietly disappeared. Never will theyadmit it, but these two groups were secretly envious when employeesat CUNA Credit Union decertified the union about two years ago. Thefull story may never come out. But it does seem strange that arespected CEO, who has been the object of continual professionaland personal praise, especially over the last couple of years,would fall so far from grace so fast. Of course like any CEO, hehad run ins with several of his top executives, some large creditunions, and even an occasional (former) board member because of theway he handled (mishandled?) a controversial decision. Of courseunion officials never really liked him. Acknowledging that what hedid was not only wrong, but stupid, doesn't the punishment,unceremoniously booting him out the back door like a commoncriminal, nevertheless seem more than a little harsh? Were thereany other options? Yes, at least three but they have been kept veryhush, hush. As is usually the case in this type of situation,everyone involved has been sworn to secrecy. As the Mike Kitchenscenario continues to play out over the next weeks and months, youcan be sure that both Kitchen as well as his many accomplishmentsat CUNA Mutual and on behalf of credit unions around the world willvery quickly be forgotten. That's just the way high profile firingswork. But Kitchen did establish a track record that deserves to beremembered and that shouldn't be ignored. He transformed CUNAMutual from a pretty basic credit union insurance company sleepinggiant into a very successful diversified financial services firm.He filled the CU pipeline with dozens of new products, services,and delivery systems, some created in-house, others brought to themarketplace through skillful alliances with best of breedpartnerships. Although during his nine years at the helm somecredit union folks had trouble relating to his distinctpersonality, his ever widening leadership role, and his managementstyle, there was never any doubt that the betterment of creditunions was always upper most in his mind. Will Mike Kitchen rideoff into the sunset with his many awards and accolades in hand,perhaps returning with his dual citizenship to his native Canada?Don't count on it. Kitchen had no employment agreement and thus hasno non-compete clause hanging over his head. He could turn uptomorrow in an influential position with a competitor. Unless ofcourse, as is often the case, the board worked out a secret dealinvolving future payouts that would serve to keep him on a shortleash. Meanwhile, as CUNA Mutual executives and the board pick upthe pieces, they still have OPEIU Local 39 to deal with. As far asgetting a new contract in place, the union is now firmly in thedriver's seat and knows it. And what of Kitchen's replacement? Whowill fill his big shoes? My best guess is a scenario that would seeCUNA CEO Dan Mica leaving the hassles of running the major creditunion trade association for greener pastures. Far fetched? Mica hasalready made noises that he doesn't expect to be at CUNA when hereaches the gold watch and bronze plaque age of 65. But he is alsonot the type to ever simply quit and go fishing. Remember, Micaonce worked for an insurance trade group and is still wellconnected. Remember, too, that CUNA Mutual has become far moreinvolved in the legislative and advocacy process under Kitchenwhich would be right up Mica's alley. CMG's lead role in theongoing struggle with IRS concerning UBIT (Unrelated BusinessIncome Tax) is but one example. And for sure don't overlook thefact that although Mica already draws a substantial paycheck, it isa far cry from what the CUNA Mutual CEO position currently pays.But who then could possibly replace a guy like Mica? Dennis Dollaris ready, willing, and able. It could happen. Comments? Call1-800-345-9936, Ext. 15, or Fax 561-683-8514, or [email protected].

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