15 steps in the unionization of banks, credit unions

September 6, 2023 10:00 AM

Labor unions remain a rarity in the financial services space, despite the concept existing in the U.S. for more than 150 years. But the recent rise in employee-led initiatives for collective bargaining may change that.

Leaders of financial institutions emerging from the COVID-19 pandemic found themselves struggling to attract and retain talent. Burned out and underpaid employees embraced a newfound sense of empowerment to push for change throughout workplaces of all sizes — fueling the trend of organization within banks and credit unions alike.

Below is a compilation of American Banker stories that delve into the trend.

California's State Capitol in Sacramento

Bloomberg News

A small California bank is unionizing. Here's what it means.

By Kevin Wack on March 03, 2020

In a historic vote that may be hard to replicate elsewhere, workers at a small California bank have elected to form a union.

The result, which was certified in early 2020, means that 113 employees of Beneficial State Bank will become members of the Communication Workers of America. The new bargaining unit will include tellers, custodians, loan underwriters and relationship bankers, according to Erin Mahoney, an organizing coordinator for the union.

Bank workers in other countries are frequently unionized, but collective bargaining remains a rarity in the United States. Some U.S. credit unions have unionized workforces, as does Amalgamated Bank in New York, which was founded by a labor union.

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Genesee Co-op Federal Credit Union walk-out

Employees of Genesee Co-Op Federal Credit Union staged a walkout during the four-month process that resulted in the creation of their union in January.

A look at the unionization efforts at two small financial institutions

By Frank Gargano on Feb. 14, 2022

It's rare for the staff of any financial institution in the U.S. to unionize. But the employees of Genesee Co-Op Federal Credit Union in Rochester, New York, have done just that — and they're not alone.

Employee burnout and stagnant wages were contributing factors, but it was ultimately the way the credit union handled the Paycheck Protection Program that cemented Genesee Co-Op staff's decision to unionize, according to Nolan Noble, a loan officer for the $35 million-asset institution.

"There had never been a PPP before, so there was no training seminar, there was no real education to learn how to do this, and so we all had to just learn it on the fly. … So we burned the candles at both ends, and we were able to give half a million dollars in loans, and that's for people that really were just trying to stay afloat," Noble said. "Seeing how successful we were was really great, but management just kind of looked at us when we were done and went, 'Hey guys, you did that,' and that was it."

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Members of the Lake Michigan Credit Union Workers Alliance showing solidarity at a meeting Sunday night. “While we've been following the chain of command as best as we can … it's gotten to the point where even our district manager has said that a lot of the decisions are made above them by the upper level levels of management,” said Diaz (far right).

Lake Michigan Credit Union Workers Alliance

'We aren't being recognized': Workers' union bid at one financial institution

By Frank Gargano and Polo Rocha on Dec. 13, 2022

Employees of a Lake Michigan Credit Union branch are preparing for a union organizing fight with upper management, part of what they hope will boost the momentum for organizing across the banking industry.

Members of the LMCU Workers Alliance notified executives of the $11.8 billion-asset (now $12.7 billion) institution in Caledonia, Michigan, of their intent to unionize with the Communications Workers of America in a letter on Dec. 12. The CWA is a national organization that represents those working not only in the communications industry but also in health care, public service, education and more.

As part of the campaign, employees of LMCU's South Division Avenue branch in Wyoming, Michigan, filed a petition with the National Labor Relations Board to organize an election and officially register with a national organization.

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Lake Michigan Credit Union workers successfully unionize

By Frank Gargano on Jan. 10, 2023

Front-line staffers of a Lake Michigan Credit Union branch have successfully unionized after a brief and contentious organizing push.

Members of the LMCU Workers Alliance confirmed their decision to organize and join the Communications Workers of America in a 7-5 vote earlier this year, after first notifying upper management at the $11.8 billion-asset (now $12.7 billion) institution in Caledonia, Michigan, of the group's intent via a letter on Dec. 12. The CWA is a national labor organization that advocates on behalf of those working in the communications industry as well as health care, public service, education and more.

Alongside the launch of the campaign, the group submitted a petition to the National Labor Relations Board to organize and officiate an election that would confirm its assembly with the CWA. It established a Dec. 16 deadline for credit union executives to voluntarily recognize the group and avoid the referendum — prompting the credit union leaders to vocalize that "outside unions have their own agenda, are divisive and are unnecessary for us to maintain our high employment standards and customer service."

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Lake Michigan Credit Union fires employee who formed labor union

By Frank Gargano on Feb. 08, 2023

It was a normal Wednesday morning for Ivan Diaz, a member service representative at Lake Michigan Credit Union in Caledonia, Michigan, when the manager of the South Division Avenue branch and the credit union's senior vice president of retail walked into his office and told him he was fired.

Diaz, who helped lead the location's campaign for unionizing frontline staff as the LMCU Workers Alliance in December and the subsequent election in association with the Communications Workers of America in January, was terminated from his role with the $11.9 billion-asset (now $12.7 billion) institution on Feb. 1 for "repeated acts of serious misconduct in violation of [LMCU] policy and procedure, including a direct violation of LMCU's dual control policy, new account and customer identification program procedures … as well as failing to follow instructions and engaging in acts of insubordination toward his manager," according to the termination letter he received from the credit union.

In response to the list of grievances against him, Diaz quickly met with CWA representatives and began the process of filing Unfair Labor Practice charges against the credit union through the National Labor Relations Board, alleging that he was fired for his role organizing the Workers Alliance. If the credit union is found in violation of the National Labor Relations Act, Diaz could potentially receive back pay and reinstatement to his job.

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Kam Pierre, head teller at Lake Michigan Credit Union's Bonita Beach Road branch. "There's a theme that's happening here, that's not happening [to the same degree] in Michigan, and that's why we think there's a really huge need for the branches down here to start unionizing," Pierre said.

Second branch of Lake Michigan Credit Union launches union bid

By Frank Gargano on Feb. 24, 2023

Frontline staff at a second Lake Michigan Credit Union branch are launching a union organizing campaign and are hoping to build on the momentum started by their colleagues who also recently unionized.

Employees of the Bonita Beach Road location in Bonita Springs, Florida, sent a letter on Thursday to executives of the $12 billion-asset LMCU in Caledonia, Michigan, that outlined their plans to unionize with the Communications Workers of America, which is a national labor organization that advocates on behalf of those working in the communications industry, as well as health care, higher education and more. The workers are hoping to become official members of the LMCU Workers Alliance, the advocacy group started by employees from a LMCU branch in Grand Rapids.

The Bonita Beach branch has three staff members, two of whom are nonmanagerial. The two filed a petition with the National Labor Relations Board to hold an election that would oversee their decision to unionize and formalize their registration with a national organization such as the CWA. Both employees allege LMCU was unresponsive to requests for additional compensation and staff at the branch.

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Joe Evica (left), was fired from his position with the Madison, Wisconsin-based insurance firm CUNA Mutual Group after the company alleged he violated "workplace rules regarding data privacy and information handling as stated in the labor agreement," according to a written statement.

CUNA Mutual Group fires union leader amid tense negotiations

By Frank Gargano on April 25, 2023

With more credit union staffers seeking to unionize, the recent suspension and termination of one CUNA Mutual Employee over a violation of its data privacy policy is underscoring the struggles that many face when seeking change.

On top of his more than four-year tenure with the Madison, Wisconsin-based insurance provider as a qualified retirement plan specialist, Joe Evica led union negotiations between CMG and staff as the chief steward for the Office and Professional Employees International Union's Local 39 chapter, which partnered with CMG more than 80 years ago.

According to the company, Evica was fired on April 4 for violating data privacy rules. Kathryn Bartlett-Mulvihill, president of OPEIU Local 39, said that the termination of Evica is antagonistic to the core values of the credit union industry and is reflective of the company's ongoing shift away from its original focus on credit unions and helping others.

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A resolution calling for Wells Fargo to adopt and disclose a formal policy supporting collective bargaining rights failed to receive a majority of shareholder votes at the company's annual meeting.

Ron Antonelli/Bloomberg

Wells Fargo shareholders reject unionization proposal

By Frank Gargano on April 25, 2023

Wells Fargo employees working to unionize faced their latest setback on April 25 when a collective bargaining proposal failed to garner enough shareholder support.

The proposal — which called on the $1.9 trillion-asset bank to adopt a formal policy outlining its framework for respecting workers' rights to organize, including a commitment to noninterference in the exercise of those rights — failed to obtain majority approval at the company's annual meeting. Wells Fargo said that it plans to release official vote tallies in a regulatory filing, but it did not specify a date.

In a proxy statement published in advance of the meeting, the San Francisco-based bank encouraged shareholders to vote down the collective bargaining proposal. It called the initiative "unnecessary and not in the best interests of our employees or shareholders," while saying that the bank remains respectful of employees' rights to organize and collectively bargain "under applicable local laws."

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Members of Office and Professional Employees International Union's Local 39 chapter showing solidarity as the deadline for its strike approaches.

OPEIU Local 39

Unionized employees of CUNA Mutual Group near strike deadline

By Frank Gargano on May 17, 2023

Organized employees of CUNA Mutual Group are preparing for a strike as negotiations with upper management for a new collective bargaining agreement remain deadlocked.

Union leaders are seeking to gain ground on issues relating to job security, compensation, remote work, retirement security and affordable health care. Though a tentative deal has been presented to CMFG, the parties have not yet agreed to the terms of a contract.

Both organizations agreed to pursue mediation sessions through the Federal Mediation and Conciliation Services — which helps settle labor disputes as a third party — and are scheduled to meet Wednesday for the final discussion before the strike goes into effect.

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Staff at Wells Fargo's call center in Beaverton, Oregon, allege that managers tore down union-affiliated flyers and refused to allow apparel bearing imagery associated with the pro-union Committee for Better Banks.

Craig Warga/Bloomberg

Wells Fargo employees in Oregon allege anti-union behavior by managers

By Frank Gargano on May 24, 2023

In the latest allegation that Wells Fargo has engaged in union busting activity, employees who are pushing to unionize say the bank's management engaged in unfair labor practices at an Oregon call center.

Staffers at the call center allege that flyers posted by members of Wells Fargo Workers United, which was established in late 2021 by employees seeking to unionize, were repeatedly torn down by managers. The flyers were distributed as part of a nationwide campaign to spread awareness about the group's progress.

Wells Fargo workers were also allegedly prohibited from wearing shirts bearing messaging and other imagery associated with the Committee for Better Banks, which helped establish the Workers United group.

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"We were able to make some important progress, but several large priorities and unfair labor practices remain unresolved," said Joe Evica, chief steward of OPEIU Local 39 and former qualified retirement plan specialist at TruStage.

Unionized employees of TruStage put strike on hold

By Frank Gargano on June 05, 2023

Unionized employees of TruStage, formerly known as CUNA Mutual Group, suspended their strike after more than two weeks, having won concessions from their employer on two key points.

Members of the Office and Professional Employees International Union's Local 39 chapter, which represents roughly 450 workers of the Madison, Wisconsin-based insurance provider, voted to temporarily resume work in a June 2 meeting following tentative agreements with TruStage representatives on issues such as job security and remote work flexibility.

"We were able to make some important progress, but several large priorities and unfair labor practices remain unresolved," said Joe Evica, chief steward of OPEIU Local 39 and former qualified retirement plan specialist, in a press release. TruStage fired Evica on April 4 for allegedly violating data privacy rules.

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Unionized employees of Genesee Co-op Federal Credit Union in Rochester, New York, signed the finalized contract on June 2 after more than 14 months of bargaining.

New York credit union signs first contract with organized employees

By Frank Gargano on June 09, 2023

Organized employees of Genesee Co-op Federal Credit Union in Rochester, New York, signed their first union contract after more than 14 months of negotiations.

The agreement reached between members of the $37 million-asset Genesee Co-op's bargaining committee and unionized employees addresses concerns such as increased wages, a retirement plan with an employer match and agreed-upon procedures for resolving conflicts through arbitration.

The trend of unionization, while still a rarity in the financial services industry, is gaining momentum as low unemployment rates and general sentiments of underappreciation among younger generations of talent inspire campaigns for change at institutions like Wells Fargo and many others.

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The National Labor Relations Board has found that TruStage violated federal labor law, settling one of a series of charges from the OPEIU Local 39. The union and TruStage are currently negotiating a new collective bargaining agreement.

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NLRB rules TruStage violated federal labor law

By Sabrina Lee on July 21, 2023

The National Labor Relations Board has found that TruStage violated federal labor laws by withholding employment information from its employees.

TruStage, the Madison, Wisconsin-based insurance provider formerly known as CUNA Mutual Group, did not disclose information that it was required to provide as part of a collective bargaining agreement with the Office and Professional Employees International Union's Local 39 chapter, the NLRB ruled in July. That union represents roughly 450 employees of the company.

The two sides are currently negotiating a new contract after its prior collective bargaining agreement expired in March 2022. Most terms from that agreement, including the disclosure of employee information, remain in effect until a new contract is signed. The withheld information included data on bonuses being denied to certain employees, according to Mike Farwell, vice president of OPEIU Local 39.

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demostrator with megaphone and notebook protesting

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Management shouldn't view unionization efforts as a threat

BankThink authored by Ileen A. DeVault on Aug. 18, 2023

When any group of workers attempts to unionize their workplace, it is generally because something (or things!) has gone wrong in that workplace.

Unionizing is a long and arduous process. In order to succeed in that process, the workers involved need to really want to change things. In today's world, as we are still recovering from (and, to a surprising extent, still living through) the COVID-19 pandemic and experiencing a tight labor market, these signs of worker dissatisfaction need to be taken seriously by managers, in financial service firms just as elsewhere in the economy.

All too often, companies view unions purely as a threat to their bottom lines. In this view, unionization will lead to higher wages, thereby threatening firm existence. This is the wrong approach to take. If the firm listens to the issues voiced by unionizing employees, they will find that their workers are most likely raising all sorts of non-financial issues.

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Reach out to employees before unionizing becomes an issue

BankThink authored by Sean Higgins on Aug. 18, 2023

With labor making a bid to unionize the financial services sector, management should proceed with the utmost delicacy. The National Labor Relations Act is almost exclusively a list of "don'ts" applied to management with very few restrictions applied to union organizers. Management will be playing defense throughout the workplace organizing process. That's just the way it is.

Nothing has improved on the original defense against union organizing efforts pioneered by automobile magnate Henry Ford in the 1920s. Ford's tactics were: Pay your employees well (at least the industry standard, if not higher); provide them with good benefits and a safe work environment and keep an ear open for any concerns they might have. Do those things and it is unlikely workers will see any need for a union.

It is important to do these things proactively. Be generous to workers when times are good and all appears well. You should consider it a long-term investment in the stability of the company. It will also help attract and retain skilled workers. Don't wait until reports of discontent start rearing their head. Make a point of regularly interacting with employees. An "open door" policy doesn't help if workers are uncertain whether they can truly walk in and raise a concern with their boss at any time. A manager that is visible and engages them in casual conversation is much more likely to hear concerns before they metastasize.

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