HCU President/CEO Assists Adidas in Developing Worker Cooperative in Thailand and Indonesia

Our very own President/CEO, Bob Lestina, of Heritage Credit Union participated in a two week cooperative development for the World Council of Credit Unions. The project was sponsored by adidas to determine the need for worker cooperatives. Lestina traveled to Thailand and Indonesia to study Adidas' apparel and shoe factories.

Adidas contracts with local factories to manufacture their merchandise and currently operates in several Asian countries, including Vietnam, Cambodia, Thailand, Indonesia and others. Through adidas' social and environmental affairs division, the company attempts to raise workers' living standards by convincing factory owners that helping their workers is not only good for business but it also meets adidas' commitment to its partners.

Lestina was based in Bangkok and Jakarta and traveled to several factories, meeting with company owners, managers and workers. Working with local support organizations, he also met with regulatory authorities and studied the cooperative law in each country.

Although several types of cooperatives were looked into, including retail stores, health clinics and daycare facilities, Lestina's recommendation to adidas was to develop savings & credit cooperatives - a model similar to credit unions operated around the world today. "This type of cooperative is the most effective way of helping workers take more control of their lives and raise their standards of living," said Lestina. "It is also the most sustainable of the cooperatives considered." In addition to his recommendation, Lestina developed a guidebook for factory owners who may be considering starting a cooperative. "In many developing countries, the only way people are able to raise their standards of living is for them to help themselves. Co-ops do just that," said Lestina. "Starting credit unions in one way of allowing workers to save, borrow and receive financial education."

As a result of Lestina's suggestion, adidas will now consider starting cooperatives in a couple of Asian countries where factories employ thousands of workers. If successful, the model will be replicated to form co-ops in nearly all of the factories they are affiliated with. Although it will be up to adidas to decide who they partner with to implement the ideas, the World Council stands ready to help and spread the gift of credit unions.

The World Council of Credit Unions (WOCCU) is the world's leading advocate, platform for knowledge exchange and development agency for credit unions. Members of the World Council include regional and national credit union associations and business service organizations. Lestina began his relationship with WOCCU in 1995 as a project development manager. In 1998, he was made country director for Kenya and lived in Nairobi for more than two years before joining Heritage Credit Union in 2000.

"One of the international operating principles of the World Council is 'cooperation among cooperators," said Lestina. "Most people dedicated to credit unions believe in the cooperative idea and will help spread its philosophy and work to revitalize existing ones, in addition to starting new cooperatives."

According to Lestina, becoming involved with WOCCU is a rewarding experience both personally and professionally. "Assignments like these require a great deal of critical and creative thinking that goes beyond what we are accustomed to in our regular jobs," said Lestina. "This 'thinking outside the box' mentality transfers to my work at Heritage Credit Union."

Because the focus on education and involvement is so critical at Heritage Credit Union, Lestina may consider pursuing similar opportunities in the future. "The board members at Heritage are excited about spreading the gift of credit unions to developing countries," said Lestina. "It's a great opportunity to have a hand in helping others develop strategies for a higher standard of living."