2002: THE YEAR IN REVIEW: At the UNA: convention means new beginnings (01/12/03)

2002: THE YEAR IN REVIEW

At the UNA: convention means new beginnings

New beginnings - that's how one could best describe the year 2002 at the Ukrainian National Association. It was, of course, a convention year, during which a new General Assembly was elected for a four-year term. At the top of the list was the UNA's new president, Stefan Kaczaraj, who was elected in place of the departing chief executive, Ulana Diachuk, who retired this year after 52 years of service to the fraternal organization - 30 of them as an executive officer.

The pre-convention preparations began in earnest with the publication in mid-January of the official announcement of the 35th Regular Convention of the UNA and lists of small UNA branches that would need to unite with others in order to elect a common delegate. Our editorial "Convention countdown 2002" explained to readers the significance of the upcoming conclave. In succeeding weeks the hubbub continued with announcement of the convention program and related special events in Chicago, the host city; lists of delegates and alternates; the naming of convention committees; proposals for amendments to the UNA By-Laws and comments, pro and con, on those proposals. Among the most vocal was the chairman of the Chicago Convention Committee, a long-time UNA activist and former vice-president, Dr. Myron B. Kuropas, who underscored that the UNA must begin thinking in terms of "revival and not survival."

Perhaps the hottest issue was the proposal to reduce the size of the General Assembly from 25 to 14 members: four executive officers instead of six; three auditors instead of five; and seven advisors instead of 14. Two other major issues that were discussed in Chicago were the future of the UNA in Canada, where membership had been declining steadily, and the fate of Soyuzivka, the UNA's beautiful, but deficit-plagued resort.

Ultimately, the convention elected a new 20-member General Assembly - significantly, one whose composition was greatly changed as 14 of the 25 members of the General Assembly for 1998-2002 are no longer on the assembly (13 of them opted not to seek election). The Executive Committee for 2002-2006 includes four newcomers among its six members. Two experienced hands returned, but in new capacities: Treasurer Kaczaraj, a CPA widely praised for his no-nonsense handling of UNA finances and for a new degree of openness, moved from CFO to CEO in his new role as UNA president. National Secretary Martha Lysko, while leaving the UNA's employ as the full-time executive officer in charge of its insurance business, returned as the non-salaried first vice-president. Newcomers to the executive committee are Eugene Iwanciw, a UNA advisor in 1974-1998 and formerly the director of the UNA Washington Office that functioned in 1988-1995, who joined the executive as second vice-president; and Al Kachkowski, a one-term advisor who has much experience in the realm of charitable giving, who now serves as director for Canada.

In addition to the president, there are two other full-time UNA executive positions; both filled by capable young women. The new national secretary is Christine Kozak, formerly the UNA's director of insurance operations, who has worked at the UNA Home Office since 1995. Roma Lisovich, the new treasurer is new to the UNA and to the General Assembly; however, she is far from new to her field since she has more than 20 years' experience in banking and corporate finance.

The newly elected Auditing Committee, downsized from five members to three in accordance with an amendment to the UNA By-Laws adopted at the convention, includes two experienced UNA auditors: Alexander Serafyn, an MBA and Ph.D., and Yaroslav Zaviysky, a credit union manager. Joining them as the top vote-getter among the auditors is newcomer Zenon Holubec, a CPA who is president of his own accounting firm. (The new team conducted its first audit of UNA operations on November 19-21.)

The new advisors, too, have qualifications that should be most beneficial to the UNA as it works to improve its bottom line by focusing on increasing its membership. Four of them - Eugene Oscislawski, Joseph Hawryluk, Stefan Hawrysz and Myron Pylypiak - are top UNA organizers, and Mr. Hawrysz is a former UNA supreme organizer and longtime field organizer (not to mention a former auditor). Nine of the 11 advisors (formerly there were 14) are branch secretaries - a most significant factor now that the by-laws have been changed to include among the advisors' duties the enrollment of new UNA members.

Speaking after his election by acclamation by the 122 delegates, 22 General Assembly members and four honorary members of the assembly who had voting power at the convention, 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.

During five days of sometimes strained deliberations, the delegates approved several other key changes to the UNA's By-Laws, including a measure that prohibits UNA employees from simultaneously holding a job with the UNA and serving on the General Assembly, and an amendment that more clearly specifies the duties of advisors, including the enrollment of members, keeping in touch with local branches and being active in regional district committees, and belonging to one of the standing committees of the General Assembly.

In addition, UNA delegates 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. The resort, which marked its 50th anniversary in 2002 (more on those celebrations below), is losing more than $500,000 annually and is in need of extensive renovation and upgrading. 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 in 2000 had worked with consultants to develop a proposal for saving the resort that was presented to delegates. "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."

After some debate, 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, and a new Soyuzivka Redevelopment Committee - composed of Stefko Kuropas, Taras Szmagala, Anya Dydyk-Petrenko, Alex Chudolij and Al Kachkowski - was directed to work for another year on other alternatives, after which it was to make a final recommendation to the Executive Committee. The resolution stated: "This committee shall be responsible for evaluating options available to the association regarding Soyuzivka. The goal of the committee shall be to end the need for subsidization of the resort by the UNA, while at the same time preserving the Ukrainian cultural focus of the resort. Solutions may include the transfer or sale of the resort, if necessary. The Executive Committee is directed to provide adequate funding for the activities of the Soyuzivka Committee for one year."

A separate resolution made it clear how dear Soyuzivka is to UNA members: "We, the delegates call on the new UNA leadership in the strongest possible terms to do their utmost - and then some - to assure that Soyuzivka remains a UNA asset and one of the best fraternal benefits the society has to offer its members. We call on our new president and new officers, auditors and advisors to keep our beloved Catskill Mountains resort either wholly owned by the UNA or at the very least to limit any partnership that may be needed to save and invigorate Soyuzivka, to ones that will involve organizations or investors from the worldwide Ukrainian community. We also remind our leaders that the UNA remains a Ukrainian community organization and that one essential aspect of its functions and responsibilities is the rearing of our children in the Ukrainian culture and traditions and that Soyuzivka has been where that socialization process begins, specifically in the children's camps held there."

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 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.

UNA President Diachuk said Canada could eventually force the UNA out 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.

However, 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.

Much discussion at the convention was devoted to the "Fourth-Wave" of immigrants from Ukraine, and, indeed, their influence was felt at the convention. There were a number of delegates from this newest group of immigrants, and that fact was reflected in the increased use of the Ukrainian language alongside English during convention deliberations. It was noteworthy also that two Fourth Wavers were elected as advisors, making them the first General Assembly members from that group. Myron Pylypiak has been a very successful UNA organizer in the Seattle area, while Paul Prinko of the Philadelphia area is somewhat new to the UNA but joins the General Assembly with new ideas about the public relations campaign that is absolutely essential for the expansion of the UNA. In addition, many speakers spoke in favor of reinstituting a bilingual (English-Ukrainian) application form for UNA membership that would help organizers attract members whose English may not yet be up to par.

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 a 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. They also visited the new premises of the Selfreliance Ukrainian American Federal Credit Union, where UNA'ers were welcomed by CEO Bohdan Watral and feted at a reception, followed by a tour of downtown Chicago.

Back in New Jersey, President Diachuk and National Secretary Lysko were given a warm send-off on June 28 by employees of the UNA Home Office. That day marked the last working day of the four-year term of General Assembly members elected in 1998, as, in accordance with the UNA By-Laws, the newly elected General Assembly takes office on July 1.

Mrs. Diachuk, the first female president of the UNA, left after working at the Home Office for 52 years - serving for the last 12 of those years as president and the 18 years before that as treasurer. Mrs. Lysko departed from the UNA headquarters after 16 years of service, half of them as national secretary; however, she remains on the UNA Executive Committee as the organization's first vice-president. Their colleague, Treasurer and President-Elect Kaczaraj, delivered farewell remarks at the reception to "two persons who made large contributions to the UNA in the course of many years."

The following Monday, July 1, the UNA Home Office welcomed its new full-time executive officers: President Kaczaraj, National Secretary Kozak and Treasurer Lisovich.

Also in the news, UNA-wise, during 2002 was talk of merger between the UNA and the Ukrainian Fraternal Association. Executive officers of the Ukrainian National Association and the Ukrainian Fraternal Association met in Scranton, Pa., at the Radisson Lackawanna on January 11 to discuss their possible merger at the two organizations' upcoming conventions later this year.

The meeting's goal was to lay the groundwork for discussions on the possibilities and conditions for a merger of the two fraternal benefit societies. Both sides agreed to convene again at a second meeting to continue discussions as the UNA's convention would be held in May while the UFA's would follow in June. By mid-February, however, the UNA released a notice to its members that stated: "It is our duty to inform our members that in the past month we have had no response from the leadership of the UFA in regard to matters discussed at the January 11 meeting, nor was any attempt made to set up another meeting. The UNA Convention is scheduled to begin on May 24. In accordance with the requirements of the statutes of New Jersey and Pennsylvania, the agreement of merger has to be printed in the official publications not later than 60 days before the convention, or by March 24, but such a merger agreement does not yet exist. We also must seek tentative approval for the merger from the Insurance Department of New Jersey, which might take a long time to achieve, and to this day not much has been accomplished in that respect. The UFA has been notified of all these requirements. Due to the fact that, to this date, the merger of both organizations has not been properly prepared, we have only a very slim hope that the merger will be on the agenda of the UNA Convention. Should the deliberations start anew, we will notify our membership in our official publications." The notice appeared in The Weekly on February 17.

In the very next issue of the UNA's official publications, the UNA President Diachuk offered an update on negotiations in which she reported that "As it stands today, such a merger proposal will definitely not be on the convention agenda. On Friday, February 15, UFA President John Oleksyn notified me that after polling all members of the UFA General Assembly, it is evident that for the merger of the UNA and the UFA to take place the new organization must have a new name."

At the January 11 meeting UFA President Oleksyn had insisted on almost the same terms as were presented for approval of the delegates of the UNA Convention in May 1998, namely: the name of the new organization is to be changed to Ukrainian National Fraternal Association; for the next four-year term one member of the Auditing Committee and two advisors will be designated by the UFA; and all honorary members of the UFA Supreme Council will become honorary members of the new organization's General Assembly, without any time limitation.

The stumbling block of the merger discussion became the UFA's demand to change the name of the new organization to "Ukrainian National Fraternal Association." At the 1998 UNA Convention, though delegates approved the UNA-UFA merger, the name change did not receive the necessary two-thirds majority of votes and as a result was defeated. At that year's UFA Convention, which followed the UNA convention by one month, UFA delegates rejected a proposal to merge with UNA because the name change did not pass at the UNA convention. Four years later, the name change proposal previously defeated at the convention now had even less support in the UNA General Assembly and among UNA members than it had four years ago.

At the January meeting the UNA's representatives stressed the many benefits of a merger to both UFA members and to the UFA as an organization: UFA members would have access to all the new and very competitive UNA insurance policies and to several types of UNA annuities; and merger would allow administrative expenses to be reduced by approximately $400,000. Despite these positive possibilities, Mrs. Diachuk noted, members of the UFA Supreme Council rejected a merger of the two fraternal societies without the name change.

Then, at the UNA convention in May, an unannounced visit by UFA Supreme Council Member Mykola Domashevsky exacerbated 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.

Nonetheless, UNA delegates adopted a resolution directing the newly elected General Assembly to begin the task of mailing ballots regarding a UNA-UFA merger to the delegates of the UNA 35th Convention by the end of 2002 if, and only if, the upcoming UFA convention in June approved the merger, barring any name changes of the Ukrainian National Association.

Meeting at the Ukrainian Fraternal Association's 25th Convention on June 17-20, however, delegates passed a resolution that contained a non-specific reference to a merger: "We believe it would be useful to continue negotiations with the aim of possible merger with other Ukrainian fraternal organizations." The resolution also called on newly elected officers (led by the UFA's new president, Jaroslaw Gawur, a former manager of the Verkhovyna resort once owned by the UFA and a former UFA auditor) to work for the further growth and development of the UFA.

There was sad news at the UNA during 2002 as several UNA stalwarts passed away.

John Teluk, UNA supreme vice-president from 1970 to 1974, UNA supreme auditor from 1978 to 1982 and Secretary of Branch 414 from 1969 to 1998, died on July 13 at the age of 78. A professor of economics and finance for 28 years at the University of New Haven, he was very active as chairman of the New Haven UNA District Committee.

Anne Remick, former advisor of the UNA, and a lifelong activist in the Boston area Ukrainian community, died on August 2 at age 79. Mrs. Remick was elected to two terms as a UNA supreme adviser, and was also active in the New England Fraternal Congress, representing the UNA on its board. She also served as financial secretary-treasurer of UNA Branch 238 for over 30 years.

Mary Dushnyck, 91, four-term supreme vice-presidentess of the Ukrainian National Association and an honorary member of the UNA Supreme Assembly (today called the General Assembly), died on September 13. She was known in the UNA as a leader on women's, youth, sports and cultural issues, serving and chairing UNA committees that focused on those fields of endeavor. She was the longtime chair of the Supreme Assembly's Women's Committee and was the initiator and moving force behind efforts to erect a monument to poet Lesia Ukrainka at Soyuzivka. Mrs. Dushnyck was active in UNA sports since 1956 when the first tennis tournament was held at Soyuzivka under the auspices of the Carpathian Ski Club and the Ukrainian Sports Federation of the U.S.A. and Canada. She herself competed in those tournaments and won a women's title in 1956. For decades Mrs. Dushnyck was the sponsor of a sportsmanship trophy awarded at the annual national tennis championships at Soyuzivka. She was active as well in the New York District Committee, serving for many years as the English-language press liaison, as well as in Branch 293 of Brooklyn.

On the legal front, on November 8 the New Jersey Division of Criminal Justice, Office of Insurance Fraud Prosecutor, announced that it obtained an indictment against Joseph Binczak, a former insurance agent for the Ukrainian National Association, charging him with theft, forging signatures and falsifying the records of seven clients in a scheme to fraudulently obtain a portion of their funds from their annuity accounts. The indictment came after an almost two-year investigation by the State of New Jersey. The Ukrainian National Association initiated the investigation in early 2001, when the UNA uncovered suspicious activities on two transactions that involved Mr. Binczak. The discovery led to a cooperative effort between the State of New Jersey and the Ukrainian National Association that resulted in the indictment.

The investigation began after a UNA policyholder questioned a transaction on her annuity statement. The Ukrainian National Association immediately notified the proper state insurance authorities. This irregularity prompted the UNA to conduct a painstaking internal audit, which led to the discovery that between November 1996 and November 2000 more than $600,000 was illegally transferred from the accounts of seven annuity policyholders by Mr. Binczak, who used shell companies and forged documents to accomplish the theft.

Mr. Kaczaraj emphasized: "It is important to note that no Ukrainian National Association policyholder has suffered any financial loss as the Ukrainian National Association made full and immediate restitution to the impacted members. The Ukrainian National Association took this extraordinary step out of commitment to our policyholders, which is in keeping with the Ukrainian National Association's nature as a non-profit fraternal benefit society. We want to prevent losses from being incurred by innocent and loyal UNA members." Mr. Kaczaraj underscored that, "This loss, while serious and regrettable, does not change the fact that the UNA is a sound and stable financial institution, with a high ratio of assets to liabilities and a healthy reserve account."

In addition to the State of New Jersey's criminal case against Mr. Binczak, the Ukrainian National Association also commenced legal action to recover the misappropriated funds. The Ukrainian National Association successfully obtained a civil judgment against Mr. Binczak, and two companies he owns that played a role in the theft, in an amount equal to the misappropriated funds.

The UNA Executive Committee, old and new, met three times this year: once before the convention and twice after, with the first post-convention meeting, that is, the first meeting of the six newly elected officers, occurring on September 9. The focus was on teamwork, as Mr. Kaczaraj welcomed the new Executive Committee members and wished them all the best in the next four years.

At the September 9 meeting, Mr. Kaczaraj began the president's report by announcing that $18,050 in scholarships had been awarded to UNA members for academic year 2002-2003. The scholarships are divided into four categories, and the UNA awarded the following: 33 scholarships for $125; 19 scholarships for $150; 21 scholarships $175 and 17 scholarships for $200. In the special scholarships category, awarded were the Galandiuk Scholarship, (one for $2,000); the Jarosewycz Scholarship (one for $1,000) and the Blackstone Scholarship (two for $500 each).

Likewise, the UNA's Auditing Committee, as usual, conducted two reviews of UNA operations: one in the spring, before the convention, and one in the fall, before the special meeting of the UNA General Assembly.

Also during 2002, the UNA Seniors held their 28th annual conference at Soyuzivka on June 9-14. The seniors spent a great deal of time discussing the fate of Soyuzivka, and they were pleased that UNA President-Elect Kaczaraj met with them at a session and shared his goals for the future of the Ukrainian National Association and Soyuzivka. The seniors voted to donate $1,500 to a fund to "Save Our Soyuzivka." Anna Chopek, who celebrated her 90th birthday on September 16 (she was feted by family and friends at a surprise birthday party held a week early), was re-elected as president of the UNA Seniors. Ms. Chopek is well-known to the Ukrainian community, having served as vice-president of the Ukrainian Youth League of North America, as supreme advisor of the Ukrainian National Association for 24 years and afterwards as an honorary member of the UNA General Assembly.

During 2002 Soyuzivka had not one, but two Miss Soyuzivkas. Over the weekend of August 9-11 a new Miss Soyuzivka was crowned during the Ukrainian National Association estate's 50th anniversary year. For the first time since the contest began in 1956, there was a tie for first place in the judges' voting. The winners were Lydia Rajsz, 21, of Edison, N.J., and Michelle Odomirok, 19, of Thiells, N.Y. The first runner-up was 18-year-old Christina Rajsz (yes, she's Lydia's sister), while the second-runner up slot produced yet another tie, with Acya Fedun and Olga Olach.

A little more than a week later, Soyuzivka hosted the UNA Secretaries and Organizers Courses, with secretaries or organizers representing 21 branches in attendance. Topics covered included insurance matters, the UNA Charter and By-Laws, membership benefits and fraternal activities, as well as customer service by both UNA Home Office personnel and branch secretaries.

Other developments at the UNA included an April 5 visit to the UNA Corporate Headquarters by top representatives of Ukraine's diplomatic corps in the United States - Ambassador Extraordinary and Plenipotentiary and Ukraine's Permanent Representative to the United Nations Valeriy P. Kuchinsky and Consul General of Ukraine in New York Serhiy Pohoreltzev. During the unprecedented visit, Ukraine's diplomats pledged to initiate a "working dialogue," i.e., to establish contacts with one of the leading Ukrainian organizations in the United States and two major newspapers, and through them with the Ukrainian community at large.

And that was the news at the UNA, as it prepares for its 109th birthday on February 22, 2003.

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