Manitoba Public Insurance’s board of directors voted unanimously to oust former chief executive officer Eric Herbelin from the Crown corporation after reviewing the findings of an internal investigation into his conduct.
On Tuesday, MPI board chair Ward Keith said he makes no apologies for calling an emergency meeting of the auto insurer’s governance committee over the long weekend.
The board voted to dismiss Herbelin with cause Sunday and his departure was announced that afternoon. MPI chief operating officer Marnie Kacher was appointed interim CEO.
“As chair of the board, I was not prepared to delay taking action until after the long weekend,” Keith said in an interview. “The board took what I believe to be the necessary and appropriate action and in as timely a manner as possible, considering the necessary due process.”
RUTH BONNEVILLE / WINNIPEG FREE PRESS FILES
MPI board chair Ward Keith says he makes no apologies for calling an emergency meeting of the auto insurer’s governance committee over the long weekend.
The investigation concerned Herbelin’s “work-related conduct,” Keith said. He declined to discuss the scope of the review or its findings, citing privacy concerns.
“After considering several factors, the board determined the relationship should be terminated and Mr. Herbelin was dismissed with cause,” he said.
The investigation was ordered by former MPI board chair Michael Sullivan prior to his resignation earlier this month, Keith explained.
A lawyer external to MPI was hired to conduct the review and the results were submitted last week and Keith said he was notified a few days later. Once informed of the results, Keith called the emergency board meeting, which requires 72 hours notice.
Herbelin took the top job at MPI in early 2021 with a resumé boasting 30 years of experience in the insurance business. The Swiss national held a series of management and executive roles prior to working at MPI, including as president of Elips Life Insurance, a Chicago-based subsidiary of a Swiss company.
He joined the publicly owned auto insurer during the COVID-19 pandemic and as MPI was already pursuing the largest technology modernization effort in its history, known as Project Nova.
ETHAN CAIRNS / WINNIPEG FREE PRESS FILES
The MPI board voted to dismiss Eric Herbelin as CEO with cause Sunday and his departure was announced that afternoon.
Under Herbelin’s tenure, the project’s price tag ballooned from $100 million to $290 million, with Herbelin and the corporation blaming delays and cost overruns on incomplete advice from consultants hired to prepare the initial business case.
The hired help left out a number of expenses and overestimated MPI’s ability to deliver the changes necessary to move basic customer services online under the initial timeline, Herbelin told a legislative committee in December 2022.
One month later, the corporation was rapped by the Public Utilities Board, which ordered a closer look at MPI’s spending on Project Nova, citing concerns it had lost control of the $290 million budget.
In its decision to approve a 1.54 per cent rate increase for the average driver in 2023-24, the PUB said significant uncertainty remains with Project Nova and it remains concerned expenses will continue to rise.
Meanwhile, it came to light MPI awarded more than $12 million in untendered contracts to consulting firm McKinsey and Co. to help with the rollout of Project Nova. The revelation sparked a ministerial directive issued in February requiring the corporation to competitively source goods and services.
“The board took what I believe to be the necessary and appropriate action and in as timely a manner as possible, considering the necessary due process.”–MPI board chair Ward Keith
A second ministerial directive was issued in April ordering an external organization review of MPI to confirm whether MPI’s financial projections are sound, its hiring plans are good value for ratepayers and that the executive structure is appropriate, among other items. A report is expected by the end of the year.
And earlier this month, the Free Press reported Herbelin received a three per cent pay bump last year and spent 38 business days travelling despite Project Nova cost overruns and the PUB’s concerns.
Sullivan resigned as board chair shortly after.
On Tuesday, Keith declined to discuss board decisions made prior to his appointment and would not comment on raises or travel expenses provided to the former chief executive officer.
“Moving forward, having appointed Ms. Kacher as the interim president and CEO, I am really confident in her experience and her knowledge, and I also know that she’s well-respected not just within the company, but by stakeholders and business partners,” he said.
The leadership team is focused on successfully implementing Project Nova on schedule, preparing its next general rate application and providing good customer service while a search for a new, permanent CEO is underway, he said.
The Free Press was unable to reach Herbelin for comment Tuesday.
Justice Minister Kelvin Goertzen, who is responsible for MPI, said he supports the board’s decision to dismiss Herbelin, though he has not reviewed the findings of the internal investigation.
WINNIPEG FREE PRESS FILES
Justice Minister Kelvin Goertzen, who is responsible for MPI, said he supports the board’s decision to dismiss Herbelin, though he has not reviewed the findings of the internal investigation.
“It deals with (human resource) matters and it’s not something I should be privy to see,” Goertzen said.
The Steinbach MLA said he is confident in the current MPI board and its chair.
NDP critic Matt Wiebe alleged Herbelin’s dismissal was a “political move” and the government should have acted sooner to address concerns at MPI.
“The issues that were identified with Project Nova should have been a major red flag for this government and it should have prompted them to act immediately to get control of the situation,” Wiebe said. “Instead of doing that, the government sat on its hands, refused to acknowledge the issues and, now, in a desperate attempt in an election year to distract or move past this issue… the minister wanted to make this change.”
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
