The delinquency rate at Eastern Credit Union is not being
reported correctly a high-ranking member of the institution
In a Business Guardian interview last week, Eastern Credit
Union president Lennox Marcelle said the struggle to retrieve
money from debtors was real.
Marcelle added that currently the delinquency rate was 14
per cent and the acceptable rate should be around five per
A source, who asked not to be named, cast doubt on Easterns
reporting of their delinquency rates.
always quote percentage when it come to delinquency, but the
figure is really over $80 million, the source said.
Giving an example, the source said a private school was given
a loan by Eastern for $7.5 million and after two months, became
He said currently Eastern and the schools owners were
in court over the matter.
Marcelle also linked the rift between the credit unions
board and its supervisory committee to current salary negotiations
between Eastern and the Banking, Insurance and General Workers
But first vice-president of BIGWU, Mario Als, denied the union
He said Marcelles attempt to involve the union in the
impasse was distasteful.
Marcelle described Easterns collective agreement as
skewed in favour of employees.
Current negotiations will be for the period 2004 to 2007.
Als noted that board members and other elected officers at
Eastern had received between a 100 per cent to 300 per cent
increase to their stipends since 2004.
The Guardian obtained a copy of the increases in stipends
for elected officers.
Up to 2004, Easterns president would have received a
stipend of $1,000, but that figure was increased to $3,000.
A board members stipend would have jumped from $600
Als said Marcelles comment made him wonder whether Easterns
management was prepared to negotiate in good faith.
board members grant themselves an increase of 100 to 300 per
cent and the union is proposing an eight per cent increase
over three years, what conclusion can you draw from that?
Easterns annual general meeting is set for tomorrow.
One of the main talking points is expected to be accusations
of financial impropriety among board members.