UNA's 35th Convention elects new leadership for 2002-2006

by Roman Woronowycz

CHICAGO - Meeting in the Windy City over the Memorial Day weekend at its first quadrennial convention of the new century, delegates of the Ukrainian National Association's membership elected Stefan Kaczaraj the new president of the 108-year-old fraternal organization. The 122 official representatives of UNA branches from across the U.S. and Canada, along with 22 members and four honorary members of the General Assembly, made several by-law changes and addressed key issues and concerns, which they believe will set the 108-year-old fraternal organization on strong footing.

Speaking after his election, which was by acclamation, Mr. Kaczaraj expressed optimism about the UNA's future. However, he said it would be necessary to revitalize and re-energize the UNA membership to assure a return to growth.

"I would like to see our membership more united, inspired by the idea of progress and full of the vitality needed for continued growth," said the new UNA president.

Mr. Kaczaraj, who has been UNA treasurer since 1997 and has been associated with the fraternal organization since 1993, was responsible - along with outgoing President Ulana Diachuk - for reducing the hemorrhaging of the UNA's surplus from an annual deficit of $578,000 in 1998 to $144,000 last year. He was also instrumental in reorganizing and downsizing the Home Office and making the new building in Parsippany, N.J., profitable.

The delegates also voted on the five other positions that make up the UNA executive committee, as well as three auditors and 11 advisors. They elected Martha Lysko, previously UNA national secretary, to first vice-president; former Advisor Eugene Iwanciw, who headed the UNA's Washington Office before it was closed in 1995, as second vice-president; Roma Lisovych as treasurer; and Christine Kozak, an employee of the Home Office, as national secretary. All were chosen by acclamation as well.

During five days of sometimes strained deliberations, the delegates approved several key changes to the UNA's By-Laws, including reducing the number of General Assembly advisors from 14 to 11 and the Auditing Committee from five to three. In addition, they approved a proposal to move forward a plan to search for investors to develop and share the running of the Soyuzivka estate owned by the UNA and decided to create a standing committee to further evaluate and decide the fate of the UNA's current presence in Canada.

The convention opened on May 24 in the main ballroom of the Marriott O'Hare Hotel with greetings by outgoing President Ulana Diachuk in which she emphasized that the convention faced several critical issues and tough decisions.

"New times and new circumstances demand our action," explained Mrs. Diachuk. "Some of the decisions we will be asked to make will come to us only with a heavy heart, but, as in the past, they will be necessary for the future existence and growth of our society."

Mrs. Diachuk will retire with the end of her term after 12 years as president, which was preceded by an 18-year term as treasurer. She has been with the UNA's Home Office for a total of 52 years.

The chairman of the Chicago Convention Committee, a long-time UNA activist and former vice-president, Dr. Myron Kuropas, told the convention that the UNA must begin thinking in terms of "revival and not survival."

After the singing of three national anthems (American, Canadian and Ukrainian), invocations by Archbishop Vsevolod of the Ukrainian Orthodox Church of the U.S.A. and the Rev. Myron Panchuk, standing in for Ukrainian Catholic Bishop Michael Wiwchar, Ukraine's Consul General in Chicago Borys Bazylevsky read a greeting from President Leonid Kuchma. At 9:45 a.m. Mrs. Diachuk convened the proceedings.

Even before the credentials committee had a chance to certify the number of officially registered delegates on hand, a flurry of motions came quickly from the floor on the election of the convention presidium. That resolved, the process began, which resulted in the election of Nestor Olesnycky, a former UNA vice-president, as chairman of the convention, and Mr. Iwanciw and Zenon Holubec as vice-chairmen. Next came the election of individuals to fill the seats on convention committees, specifically the elections, petitions, resolutions, press and secretaries committees.

Among the several guests that addressed the convention was the president and chief executive officer of the National Fraternal Congress of America, Frederick Grubbe. Mr. Grubbe said that while fraternal associations in the U.S. are currently experiencing hard times, they are confronted with much opportunity as well.

"Fraternal organizations are at a crossroads, I call it our renaissance," said Mr. Grubbe, who explained that difficult times are the moments when new ideas and strategies could be introduced and utilized.

Another guest, Robert E. Bruce of the actuarial firm Bruce and Bruce, told the delegates that the UNA's financial picture looks good and represents "a solid position." He noted that the UNA today has a $7 million surplus on assets valued at $63 million. Mr. Bruce explained that the UNA has a 112 percent solvency ratio, which indicates a $12 surplus on each $100 of liability, a figure much better than the 105 percent solvency ratio of commercial firms. He explained that he is bullish on the UNA's future, commenting, "You will continue to make a profit."

By-laws proposals

It was when the convention turned to consideration of proposed by-laws changes, that the first of the difficult issues of which Mrs. Diachuk had spoken arose. The first by-laws change was a proposal to curtail the number of General Assembly positions. While a consensus existed that the number of auditors should be reduced from five to three, much debate developed on other aspects of the proposed change, chiefly on the need for a director for Canada and a second vice-president, and whether the number of advisors should be reduced from 14 to 7.

The issue of the Canadian director was connected to the larger question of whether the UNA presence in Canada should be be liquidated, and it was decided that the two issues would be reviewed jointly later in the convention. The rest of the discussion centered on whether reducing the executive committee from six to four members would leave too much power concentrated in the hands of those officers who work in the Home Office and on whether cutting seven advisor posts out of the current 14 would not be too drastic a reduction of the UNA presence in the broader Ukrainian community. After some debate, a compromise proposal was suggested that reduced the number of advisors from 14 to 11, and made mandatory that only one of them be a Canadian, where previously two were required. In the end, that change and the reduction of auditors from five to three were the only parts of the proposal approved.

The delegates also approved a change that limited UNA employees to election to full-time paid executive positions (that is, they cannot simultaneously be employees and unpaid members of the General Assembly). In addition they agreed on a proposal that made it mandatory for the convention's By-Laws Committee to meet at least a day prior to the beginning of the convention and not a week, as had been required previously. The convention body agreed, as well, on a proposal that would obligate each advisor to organize members, stay in contact with branches and districts, and belong to at least one standing committee of the General Assembly. Finally, it overwhelmingly supported an amendment to the by-laws that removed section 37, which had allowed the executive committee to have the final say on which proposals are presented for consideration to conventions.

Soyuzivka's future

A portion of the second day was dedicated to discussing the precarious financial position of Soyuzivka, which this year marks its 50th anniversary. Currently the resort, located in the Catskill region of upstate New York, is losing more than $500,000 annually and is in need of extensive renovation to bring it to current industry standards.

Mr. Kaczaraj said the deficit was sufficiently serious to be a danger to the UNA's well-being and said that within a year an authoritative decision must be made on whether it would be viable to save Soyuzivka and how that would be done, or whether to seriously consider selling the property. A special standing committee established two years ago had worked with consultants to develop a proposal for saving the resort that was presented to delegates.

The project, prepared by The Management Consortium, DiGuiseppe Architects and Mark Daymon, C.P.A., envisions a multi-faceted reorganization of the estate, which would allow for investors to take an interest in the property with management and development rights and allow Soyuzivka to receive at least $8 million for a facelift and modernization program.

"Soyuzivka must be redesigned, renovated, rejuvenated, reinvented, recharged and rediscovered," explained John A. Flis, Soyuzivka's manager. "It needs an infusion of capital, it must operate like a business, not like a mom-and-pop shop."

The project, which as presented would allow non-Ukrainians and non-UNA'ers to enjoy the resort, would give the resort extensive spa facilities. It would include the modernization of rooms and buildings and the expansion of the Main House, as well as development of conference rooms, additional facilities for the children's camp area, an updated kitchen, a larger dining room and a weatherproof dome over the tennis and volleyball courts.

Both the consultants and Mr. Flis emphasized that the Ukrainian culture and traditions could be retained because the resort's Ukrainian aspect would be a centerpiece of the marketing plan. As David Schwartz of The Management Consortium explained, the goal is "to minimize the subsidy by the UNA and to maximize the Ukrainian aspect."

After some debate, during which a consensus seemed to develop that the best alternative would be to find a Ukrainian partner to invest to keep the treasured asset entirely within the hands of the Ukrainian community, a decision was made that a new Soyuzivka Redevelopment Committee should continue to work for another year on other alternatives, after which it was to make a final recommendation to the Executive Committee.

UNA-UFA merger

An unexpected controversy arose on the convention's fourth day regarding the merger of the Ukrainian Fraternal Association with the UNA, an effort that has been under consideration for years and was close to a final agreement before being placed on the back burner over a disagreement on a name change demanded by the UFA. Things seemed to have changed in early April, when Mrs. Diachuk received a letter from UFA President Ivan Oleksyn in which he proposed that talks be resumed.

However, an unannounced visit by UFA Supreme Council Member Mykola Domashevsky confused matters, when what was presumed to be a simple greeting by him became an apparent policy statement. After extending greetings to the UNA Convention on behalf of the UFA, Mr. Domashevsky told the delegates that he sees no reason for a merger. He explained that he believes there are sufficient numbers of Fourth Wave immigrants and even earlier-generation Ukrainians in the U.S. who can be enrolled, allowing both fraternal organizations to thrive.

Presence in Canada

Another thorny issue addressed by the delegates was whether "Batko Soyuz" should retain a presence in Canada. And while the issue wasn't formally raised until the final day of the convention, it ran as an undercurrent throughout it, beginning on the first day when the continued need for the executive position of director for Canada was considered.

The UNA has been losing membership in Canada since 1978 when membership reached 10,000. Since then it has fallen to 1,207 paid-up and 1,615 premium-paying members, a fact noted by National Secretary Martha Lysko during debate on the issue. She added that the Canadian business climate for U.S. fraternal societies and insurance companies had worsened, with Canadian insurance regulators putting pressure on them to either increase their percentage of Canadian business or consider leaving the market.

During the formal discussion later in the convention, Mrs. Diachuk explained that the pressure which has been felt for several years had abated after the UNA had reached preliminary agreement with the UFA on a merger and had informed Canadian regulators of the situation. With that move cancelled by the UFA, however, Canada is now asking the UNA for a five-year plan and growth projections in Canada.

"If we give them realistic five-year projections, it will not be very convincing," explained Mrs. Diachuk.

Mrs. Diachuk said Canada could eventually force the UNA out anyway and that viable alternatives must be developed for taking care of the membership still existing there, including: having the Canadian UNA membership incorporated into U.S. branches or the Home Office and have all memberships, new and old, turned into U.S. dollar value; selling UNA Canadian policies and completely leaving the country; or, submitting a five-year plan with the hope that it will be accepted by the regulators.

The new director for Canada, Al Kachkowski, told the delegates that, in his view, making Canadians become U.S. members would lead to the end of the UNA in Canada.

"I believe that turning to U.S. dollars would result in a drastic cashing in of policies," he explained. He said he favored going ahead with a five-year plan and organizing a vigorous effort to develop growth in Canada.

The delegates eventually decided on a two-year moratorium on a decision, during which time Mr. Kachkowski would attempt a membership drive and a standing committee of advisors would be formed to track the matter and develop a strategy.

General Assembly reports

While giving the president's report on the last four years of UNA activity, Mrs. Diachuk stated that the fraternal organization must diligently and carefully decide its future in Canada.

In her assessment of the general state of the UNA, the outgoing president said she believed the financial drain that the UNA has suffered since 1988 has been stemmed, but added that membership growth must take place.

She pointed out the need for the UNA to strengthen its branches and develop more effective branch secretaries. She also stated that a method must be found to reach out and attract the Fourth Wave of immigration that has entered the U.S. since the late 1980s, a call made by many convention participants throughout the five days.

"We must somehow find the path to the newest immigration," she explained. "They have grown into the American fabric to a certain extent and are bette roff financially today." Ms. Diachuk also called for a serious effort to retain the memberships of children and grandchildren of UNA members and to get them involved in the fraternal organization's work.

Stefko Kuropas, outgoing UNA first vice-president, told the delegates that over the last four years UNA Christmas card sales had resulted in $75,000 for Soyuzivka, the UNA and its publications. He called on the UNA to reach out to the Ukrainian Congress Committee of America (UCCA) in talks on re-entering the umbrella organization. He also had criticism for the way in which the Home Office executives had developed certain policy decisions over the last four years.

Another outgoing officer, Director for Canada Rev. Myron Stasiw, criticized the UNA for considering a move out of the country. He attributed much of the organizing problems in the large Toronto community to the hiring of a non-Ukrainian Canadian as the head of the UNA's Toronto Office several years ago. He said the appointment was a public relations disaster.

National Secretary Lysko, who will become first vice-president on the new Executive Committee, noted that huge changes had taken place in the UNA over the last four years and that more were coming, including a new mortality table that will go up to age 120. She suggested that thought had to be given to enlivening the districts and branches and doing some reshuffling of membership among the branches to get people who are geographically close into appropriate branches.

Mr. Kaczaraj, the outgoing treasurer and president-elect, said that for two years in a row the UNA has had an operating profit, with a $308,000 net gain in 2001 and a $134,000 net gain the year before that, which came after a 10-year downturn that had cost the UNA $20.3 million - an average of $1.8 million annually.

He said the improved financial picture was the result of the restructuring of operations, manpower reductions, the change of the Svoboda newspaper from a daily to a weekly, as well as significant reductions in operating expenditures, a new direct billing system and increase in occupancy of the new UNA building.

Resolutions and recommendations

After four days of intense and at times heated debate and deliberations, the delegates used a portion of the final day to approve a set of resolutions and recommendations.

First, they called on the General Assembly to do all in its power to keep Soyuzivka either wholly owned by the UNA or in partnership with a Ukrainian investor. They also resolved that the UNA Executive Committee may conduct a mail ballot on the merger of the UFA with the UNA, as long as there is no change of the UNA name.

They suggested that the convention be shortened to three or four days and resolved that all candidates for UNA leadership positions should announce their candidacies two months prior to the convention as well as have their platforms and qualifications printed in the UNA's publications.

Furthermore, they called on the UNA leadership to consider rejoining with the UCCA; to have the General Assembly develop a strategic action plan to increase membership and to prepare public relations and marketing plans; and to have all reports, speeches and discussions of the next convention translated into both English and Ukrainian. Finally, they resolved that a bust of the late Patriarch Mystyslav of the Ukrainian Autocephalous Orthodox Church be erected at Soyuzivka and recommended that future UNA conventions be held at the UNA resort.

For all their attention to the work of the convention, the delegates and guests also had time to visit the Ukrainian Village area of Chicago, take a tour of the beautiful city, as well as attend a concert and a banquet.

The gala banquet featured addresses by Ukrainian community and U.S. political leaders, including U.S. Rep. Marcy Kaptur of Ohio, Ukrainian World Congress President Askold Lozynskyj and Dr. Kuropas, UNA historian and former UNA vice-president.

In the Ukrainian Village, the delegates attended divine liturgy at St. Nicholas Ukrainian Catholic Cathedral, presided over by Bishop Innocent Lotocky, which was followed by an ecumenical moleben service with both Bishop Lotocky and Archbishop Vsevolod concelebrating.

The relaxing Sunday continued with a visit to the new premises of the Selfreliance Ukrainian American Federal Credit Union, where UNA'ers were feted at a reception, followed by a tour of downtown Chicago.

The new General Assembly: a succinct profile of its members

THE UNA GENERAL ASSEMBLY FOR 2002-2006

Copyright © The Ukrainian Weekly, June 2, 2002, No. 22, Vol. LXX

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