LANSING, Mich. -
Auto Body CU, which has 22,000 members with roughly 1,500 autoworkers or suppliers directly connected to the GM automobile assembly system, closely monitored the 20 days of negotiations between the car giant and the United Auto Workers. And during that time, the CU developed its new HAND (Helping Autoworkers Negotiate Debt) program that would allow members with existing loans or lines of credit to delay or extend payments for up to three months, according to Marketing VP Jeff Croff.
Croff said Auto Body CU had come to the assistance of its auto working membership during previous strikes, but this was the first time a formal program had been rolled out. "We're trying to provide some part time relief," Croff said. "Any amount of time is going to put a stress on a family's finances."
To illustrate how much a looming strike can affect everyone involved, Croff said one member walked into ABCU and asked about special strike-related programs before the HAND program was even released. In addition to the value of skipping a payment or delaying one, Croff said affected members could also choose to pay interest only for the same three-month time period.
"They've got a lot on their minds already. At best they know we're in their corner," Croff said.
The only associated costs of starting this type of program is the additional paperwork necessary to extend a loan and the staff time allotted to ensure that member service representatives are prepared to address the HAND program with the membership, noted.
CU officials said a short strike wouldn't affect its operations, but added that the first days of any type of work stoppage are filled with rumors, uncertainty and keeping watch on the news along with the public, employers and vendors who supply the big auto plants. In published reports last week, some car dealers said a strike would actually help with surplus truck supplies. The real crunch, the CU said, would have started if the strike had lasted longer than a few weeks and affected suppliers and surrounding communities.
Across the northern border into Canada, $300-million Auto Workers Community Credit Union in Oshawa, Ontario has 8,000 of its 19,000 members actively working in the auto plants or retired from them. Auto Workers CCU CEO Brent Reid said in a longer strike, when the parts stopped arriving at the plant it would affect the entire town.
"If it's longer than a week, Oshawa is pretty contingent on GM," he said.
Reid said a short-term strike could be ridden out by Canadian auto workers who can take two-thirds of their pay from Canadian unemployment and also have supplemental pay from their union agreements. As it turned out, Reid got his wish, along with the rest of the auto business and their associated credit unions.
"I'll be as interested in seeing the outcome as everyone else. I hope she's a short one," Reid said.
Michigan CU League President David Adams said credit unions are old hands at serving members during a strike. "Credit unions have certainly seen these situations before and are well prepared to help their members until a strike is resolved," Adams said. "We don't view it as anything dramatic or new, though it came at a difficult time as Michigan's economy faces a number of other challenges. Credit unions are experienced in dealing with these matters through the personal service they're known for."
