>Date: Wed, 9 Apr 2008 09:07:20 -0700 (PDT) >From: Joseph Wetmore <[EMAIL PROTECTED]> >Subject: Re: Fwd: Oasis emergency >To: Marilyn Ray <[EMAIL PROTECTED]>, [EMAIL PROTECTED] > > >FYI, here is my resignation letter: > >I'd like to address some issues which I believe are >critical to GreenStar's health, perhaps even to its >survival. > >We now know that GreenStar is having substantial >financial difficulties. The two stores combined, lost >$132,920 in 2005 and another $21,287 in 2007. However, >while some of us are aware of some of the changes that >have led to our current lack of profitability, there >has been no thorough analysis of the changes that have >taken us, over the past few years, from operating at a >profit to operating at a loss. > >Even so, at the November 13th, 2007 Council meeting, >the finance committee submitted three proposals to >"fix" our financial problems. I believe that action >was premature and inadequate. > >The changes proposed by the finance committee were >substantial, even radical, including replacing our 2% >member discount with a patronage rebate. When >considering changes of such magnitude, responsible >businesses, without exception, produce detailed >business plans, using the most current and accurate >information available. If such information is >unavailable, prudent managers obtain it or produce it; >there is simply no reasonable alternative. > >It is premature to attempt to design solutions to >GreenStar's financial problems without a complete >understanding of the totality of those problems and >their origins. In fact, it would be impossible to do >so. Therefore, in November 2007, I asked for a >line-item comparison between our present situation and >a year when GreenStar was profitable. > >The process of preparing a business plan forces >managers and directors to look at the many possible >results of implementing the plan, not just the ones >they desire to see. For this, and other reasons, I >have asked for projections of the effects of the >proposed changes on GreenStar's finances. > >Jason Blake-Beach, Oasis Store Manager/ >Council-Management Liaison, prepared a comparison >between the budget projections of 2003 and 2007. While >this exercise was revealing, it does not replace >looking at what was actually spent. As we all know, >the budgets are really just projections or goals and, >in fact, can differ substantially from actual figures. > >What I found most revealing about Jason's exercise was >that our fixed costs have been going up at the rate of >14.4% PER YEAR, far faster than inflation. Both >"Occupancy" and "Governance" have nearly doubled in >that 5 year period. The change in "Occupancy" alone >accounts for $191,000 of the increase. Indeed, if not >for this single increase in expenditure, we would now >be doing better than we were in 2003. This is a >serious drain on our finances and needs to be >investigated. > >I've repeated my requests for information to the >treasurer and the president of GreenStar's Board. I >asked again for this information at the February 2008 >Council meeting. > >At this meeting, I was told that if I wanted my >questions answered, I was to submit them to the >executive planning committee, who would determine if >they were meritorious enough to be sent to Council for >consideration. Council would then vote on whether my >questions should be submitted to staff for answers. An >arduous and nonsensical process that is not governed >by Policy but which was cobbled together by Dan >Hoffman, among others, at the February meeting. > >EPC discussed my questions. No decision was made, >although our Treasurer, Art Godin, promised that some >small part of my questions would be answered. However, >I was told that there is now "no time" left to answer >them fully, as the scheduled vote on the finance >committee proposals intended to "solve" our crisis >takes place in March, a full six months after my >initial questions were posed. > >Art did answer some, but not all, of my questions in >his report to council. Council had one week to read >and understand 3 pages of complicated financial charts >before the council meeting. > >Confirming the trend that Jason Blake-Beach's >comparison indicated, Art's comparison showed that >fixed expenses have gone up at an alarming rate. In 4 >years rent has gone from $135,106 to $255,683. In >that same time period "repairs and maintenance" have >gone from $34,229 to $101,376 per year (with a spike >in 2005 of $140,000). > >Additionally, some variable expenses showed >troublesome increases. Bank charges have gone from >.97% of sales to 1.21% of sales, or a net increase of >$64,647. Depreciation has gone from $86,200 per year >to $130,193. (This may not sound like much until you >realized that a change you see is just a fraction of >what really went out the door. So the difference is >not about $45,000 but more likely 3-5 times that >much!) Just to name a few points. > >Despite the serious questions that Art's report >raised, there was no time to discuss any of them. >Instead we discussed a plan to remove the superworker >discount from CAP sale items; a proposal that would >save the coop an estimated $4,000. A classic example >of watching the pennies and ignoring the dollars. > >One of the proposals brought to Council was completely >rewritten at the meeting, and no discussion at all was >allowed. Not one question or comment. Council simply >voted to end discussion, before any had started, and >then voted to approve the proposal. Done. Next. > >At another point in the meeting, several council >members explained that questions as to whether to not >our incorporations papers forbid GreenStar from >enacting the proposal on the table were unimportant: >"If it turns out that we cannot do what is proposed, >we can, at a later date, vote to undo this vote." They >further explained that it was more important to move >the process forward than determine if the proposal was >legal. Over and over again discussion was cut off in >the meeting, not because and understanding was >reached, but because there was no more time. Then >council voted to implement proposals they did not >fully understand. > >Unfortunately, this is not an isolated incident. This >is business as usual. > >As members of a board of directors, our primary >responsibility is the financial oversight of the >organization which we serve. Oversight requires not >only the ability to ask detailed questions, but also >the ability get answers to those questions. When >Council members are limited to asking only trivial >questions, in limited time periods, we are reduced >from stewards of the organization to spectators. > >Marty Luster recently led us in a training session on >board responsibility. The central theme of that >session was that financial oversight was our main >purpose as council members. He told us that it was not >only our right to ask questions about our finances but >our duty to understand them. When basic questions >cannot be asked or answered, no understanding is >possible. As GreenStar's financial situations worsens, >council members are at ever-greater risk of being held >responsible by a membership that wants to know what >went wrong. > >People stop me on a regular basis and tell me that >they are glad I'm on the GreenStar board. They tell me >that, with me on council, they know that their >interests are being looked after. Given the reality of >the situation described above, I can no longer look >them in the eyes and suggest I am able to be an >effective steward. > >I do not intend to be held responsible for the >financial well-being of an organization whose finances >I am not permitted to understand. Therefore, I am >resigning my position on council. >--- Marilyn Ray <[EMAIL PROTECTED]> wrote: > > > > > >Date: Mon, 07 Apr 2008 08:06:34 -0400 > > >From: Leslie Schultz <[EMAIL PROTECTED]> > > >Subject: Oasis emergency > > > > > > > > >please pass on to fellow Greenstar members... > > > > > > > > >Dear Greenstar members and friends, > > > > > >On March 19, 2008, the Greenstar Management Team > > (Jason, Brandon, Michael > > >) met with employees of Oasis > > >and presented them with a "restructuring" plan. > > This plan terminates all > > >current jobs and replaces them > > >with entry level jobs plus one new assistant > > manager. The plan also > > >reduces labor hours. About half the > > >regular employees have been working at Oasis since > > it was bought by > > >Greenstar four years ago; they are at > > >substantially higher levels of pay than offered for > > entry level workers. > > > > > >There are some obvious problems with this plan; > > one main one is that > > >employees who want to stay at Oasis > > >must apply for entry level jobs at a loss of pay > > and responsibility. > > >Moreover, a major change was presented > > >without any discussion with employees beforehand. > > The Personnel Manual > > >states (IV. A. 4, p. 13): "Employees > > >have the right to be informed in advance of, and > > contribute input to, > > >major management decisions > > >affecting their job descriptions and working > > conditions." We hope that > > >management will take a step > > >back and include employees in a serious discussion > > of problems and solutions. > > > > > >If you think management should include Oasis > > employees in planning and > > >restructuring the workplace, > > > > > >If you think management's current plan sounds like > > harsh treatment of the > > >workers, please call or email Greenstar Council > > members (below) > > >and/or come and speak at the Council meeting on > > Tuesday, April 8, 2008, > > >6:30 pm at Cornell Cooperative Extension 615 Willow > > Avenue. > > > > > >Here are the council members emails and telephone > > numbers > > > >(<http://www.greenstar.coop/council/meet-your-council-members/2007-2008-c > ouncilmembers.html>http://www.greenstar.coop/council/meet-your-council-membe rs/2007-2008-councilmembers.html) > > > > > >Eric 12th moon > > ><mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>, > > >"Art Godin"(277-0946) > > ><mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>, > > >"Betsy Doling"(275-1230) > > <mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>, > > >"Claudia Stoscheck"(273-2270) > > > ><mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>, > > >"Dan Hoffman"(273-6933) > > > ><mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>, > > >"David Gallahan"(277-3359) > > > ><mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>, > > >"Elisabeth S. Harrod" > > <mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>, > > >"Gary Fine"(564-3690) > > <mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>, > > >"Gina Varrichio" > > >(272-2512)<mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>, > > >"Jan Norman" > > >(275-9970)<mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>, > > >"Kash Iraggi-Wiggins"( > > > >339-1575)<mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>, > > >"Kris Haines-Burnham" > > <mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>, > > >"Shanna Fellman" (280-2605) > > <mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>, > > >"TONY" > > ><mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>, > > > ><http://www.greenstar.coop/contact/tych-dan.html>Tycho > > Dan > > > ><mailto:[EMAIL PROTECTED]>"[EMAIL PROTECTED]" > > (589-6798) > > > > > > > > >Joe Wetmore has resigned but if you want to include > > him, "Joe Wetmore" > > > ><mailto:[EMAIL PROTECTED]><[EMAIL PROTECTED]>. > > > > > > >__________________________________________________ >Do You Yahoo!? >Tired of spam? Yahoo! Mail has the best spam protection around >http://mail.yahoo.com
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