Melanie Dressel, CEO, Columbia Bank

| FROM THE PRINT EDITION |
 
 

EARLY YEARS: I grew up in Colville, Washington, where my parents ran a gift store. My dad taught me what true service is. People would call us on a Sunday because they had forgotten their wife’s birthday and he would go into town to open up the store. He didn’t think twice about it.

AMBITION: I told my parish priest at age 6 that I wanted to be president of the United States. At age 7, I loved watching the Democratic national convention on television. I grew up in the age of great politicians like Maggie [Warren Magnuson] and [Henry] Jackson. I planned to go to law school, then into politics after college, but I thought I should work for nine months first. I wanted weekends free so I could spend time with my husband. That’s how I got into banking.

COLUMBIA BANK: When we started Columbia Bank 18 years ago, we did something unusual. We decided to offer almost all the products and services that big banks have, like private banking and cash management. Later, we added a trust department. It was something very few community banks did. We didn’t want our bankers to have half a toolbox. I think [the diverse offerings] helped to accelerate our growth. The first day we opened, we had people lined up to open accounts with us. It was one of the most exciting days in my professional life. Puget Sound National Bank, which had 50 percent of the local market, had just been acquired by KeyBank. I think the community perceived the hometown bank was gone. We wanted to fill those shoes. We went on to make seven small acquisitions until March 2008, when everything came to a screeching halt.

FINANCIAL CRISIS: We always knew we would make it through because we had a traditional balance sheet. [During the boom years] analysts were always asking, “Why aren’t you earning as much as Frontier Bank [which invested heavily in real estate]?” I told them, “This is not our business model.” Even at the top of the market, only 12 percent of our loans were residential construction. We make loans to business owners and their employees funded by retail deposits. If we loan a lot of money to a business, we take real estate as security. So we have a lot of commercial real estate in our loan portfolio, but it’s all tied to a relationship.

EXPANSION: When we saw the markets loosen up, we raised capital. We’ve since made five more acquisitions [of troubled banks]. We expect to see opportunities to acquire more banks.

RISK: I’m worried that some banks are jeopardizing structure and safety to put loans on the books. It’s way too early to be taking big risks, particularly in commercial real estate. We want to make loans and we will be competitive, but banks are going to get in trouble again if they make loans with no guarantees and no equity.

GOAL: We want to be the Pacific Northwest’s regional community bank. Being a community bank means that you are involved in a lot of different things and through our involvement we strengthen the community. It’s a different style of banking. I don’t think that anyone has become the old Rainier Bank or the old Seafirst. They had such marvelous community ties. We believe that the value of our franchise is embedded in customers and our employees. If we take good care of our customers and our employees, then our shareholders will benefit.

CULTURE: We believe you can’t be a great place to bank if you aren’t a great place to work. We have teams of bankers from other banks that approach us and say they would really like to be a part of Columbia because of our culture. We are very picky about who we hire. But we have been fortunate to attract very strong bankers. We had a salary freeze in place for over a year. Our employees understood that if we gave people raises we would probably have had to lay people off. Everyone was willing to make short-term sacrifices for their fellow employees; those are the kinds of people we attract.

GROWTH: As we grow, our key concern is how to preserve our culture. Not a week goes by that the management team doesn’t discuss that. Of course, it’s important to have financial strength. And we’ve been a dynamic, evolving company. But we don’t want to just grow to put more zeros after our assets. We really want to continue to be who we are, but also to provide great opportunities for our people and to really take excellent care of our customers. We have a two-day Columbia banking school where new employees get to know who we are and how important our culture is. We take very seriously being among [Seattle Business magazine’s] 100 Best Companies to Work For. We slice and dice the data from the survey and share it with our staff.

WOMEN CEOS: I think management is more a product of the individual than gender. Each one of us in our executive team is as different as night and day. That brings different conversations to the table. But listening is an important quality in a CEO, and women are typically good listeners.

TACOMA: We don’t do as a good a job as we could to talk about the good things of Tacoma. I bring people here as often as I can so they can see the nature, the water and the affordable real estate. There is a lot here to attract companies.

Executive Q&A: Toward a More Perfect Union

Executive Q&A: Toward a More Perfect Union

As president of Seattle-based SEIU 775, David Rolf represents more than 40,000 long-term-care workers in Washington and Montana.
FROM THE PRINT EDITION |
 
 

David Rolf expanded the number of home-care and nursing-home workers in his Service Employees International Union (SEIU) chapter twentyfold — to 44,000 — in the past decade. He was a leader in Seattle’s push for a $15-an-hour minimum wage and has received national attention by calling for labor unions to innovate.

FAMILY: I grew up in a middle-class family in Cincinnati. My great-grandfather on my dad’s side was the president of a distillers’ union. My grandfather on my mom’s side was born into poverty in Appalachia and worked on farms and at timber mills. It was joining General Motors and becoming part of the UAW that moved him into the middle class. 
 
INJUSTICE: I was brought up believing that people were fundamentally good and that if you worked hard, you would be treated fairly — which is either the most naïve or most dishonest thing you can teach a child. 
 
EDUCATION: At college [Bard College in New York], I spent as much time on picket lines as I did in class. As a student government leader, I supported all the progressive causes, but the place I felt I could make an 
authentic contribution was in the labor movement. I supported the janitors when they organized into the SEIU in 1989. Later, I did an internship at an SEIU local, and they ended up offering me a job.
 
ORGANIZING: I worked for a scrappy, heavily African-American local union in Atlanta, organizing public-sector employees like hospital orderlies and bus drivers. I always thought of unions not as talent agencies or negotiators but as social movement organizations that help ordinary people share in prosperity. I spent 20 years organizing some of the biggest union campaigns since the 1930s.
 
EPIPHANY: For decades, I thought that by being smarter and more strategic we could reverse the decades-long course of labor decline. But by early 2012, we had seen a generation of right-wing governors take office and repeal union rights. I began this quest to figure out how we could replace the model that we have with something that is stronger and more effective.
 
CHANGE: Unions grew because of the Great Depression, the large proportion of workers in factories, the unpleasant work conditions, and mobsters who were looking for new profit centers and promoted unions to loot their treasuries and extort employers. Factory owners decided that dealing with a union was better than waking up and not knowing if their factory was going to produce anything that day. But today, capital can be moved around the globe with a few keystrokes. You can source labor almost anywhere. The power of the industrial strike has been crushed. There is no Communist Party cranking out anti-capitalist organizers, and there is 
no Mafia. Good riddance, but still. People today take more jobs before they are 25 than those in my grandfather’s generation had in their entire lives.
 
WAGE STAGNATION: Now we’ve suffered 40 years of wage stagnation. Who would have imagined in the 1970s that if women doubled their workforce participation, the take-home pay of the bottom 90 percent of households would not increase at all? Who would have imagined that we would create more wealth in 30 years than humans had created in their entire history and none of that wealth would go to the bottom 90 percent? 
 
COMPETITION: If the unionization system is opt-in site by site, you create an incentive for employers to bust unions. Even a highly moral employer will say, “If I’m the only one with a union, I’m at a disadvantage.” If you employ janitors in Seattle, you’re fine because it’s 95 percent union here. [Landlords] aren’t competing based on the price of labor. But in the hotel sector in Seattle, only a tiny percentage is unionized. That tends to force wages down. 
 
ALTERNATIVES: Germany has the world’s largest middle class by percentage of population. Its automobile workers make twice what ours do and they still produce twice as many autos as we do. Their unions set minimum standards by sector and by region. We could do the same for the fast-food sector or the maritime sector. 
 
ORGANIZING BY TECHNOLOGY: In the old days, there were hiring halls where you would go to find construction workers. Now, you just get a message on your smartphone that tells you where to show up. One can imagine an app that helps workers engage in collaborative price setting and cut out the middleman, such as all these VC-backed platforms like Uber. Alternatively, Uber workers could meet and form an organization and collectively decide to turn off their apps until prices reached a certain point.
 
WIN-WIN: People characterize unions as “members first, pale, male, stale and possibly in jail.” But whether it’s protecting the bad teacher or the drunken guy on the assembly line, those were designed features of our collective-bargaining system. If you were going to design something for the 21st century, you would want a system that scales to touch millions of people so it doesn’t put individual firms at a disadvantage. Things like work councils and co-ownership also tend to promote efficiency and a win-win strategy.
 
DONALD TRUMP: American workers have been taking it on the chin for 40 years, so it’s not surprising that people are angry. Every time that happens, someone will offer a scapegoat to blame. The simplistic, populist appeal of someone like Trump doesn’t gain traction when people feel as if they’ve bought into the system in which they are working and voting. 
 
$15 MINIMUM WAGE: The cities with the most restaurants per capita — Seattle and San Francisco — are the cities with the highest minimum wages. Phased-in increases, even relatively steep ones, give businesses time to change and adapt. I met with labor leaders in Europe and among them were McDonald’s workers making $20 an hour under their union contracts.
 
GLOBALIZATION: It explains why we only sew 5 percent of our clothes in this country — down from 95 percent in the 1960s. It doesn’t explain why the guy who puts fuel in jet aircraft makes a minimum wage today versus $60,000 and benefits in the 1970s. 
 
EXECUTIVE Q+A RESPONSES HAVE BEEN EDITED AND CONDENSED.