LAS VEGAS – Just because the audience consisted of human resources and training specialists, rather than CFOs, does not mean the buzz at the CUNA Human Resources/Training and Development Council conference here focused less on the ongoing economic downturn compared to other credit union gatherings.
Kent Streuling, Chair of the HR/TD Council, told Credit Union Journal there are positives and negatives to being a human resources practitioner in a recessionary cycle. On one hand turnover is down, therefore training costs are reduced. “But, your problem child sticks around and creates problems,” he warned. “Strong managers are needed to avoid employee relations problems.”
As with accounting standards, the HR world has seen a surge in legislation during the last three months, Streuling reported. The Family Medical Leave Act saw new regulations, Fair Pay legislation recently passed, and changes to COBRA are in the works, which he said means HR professionals have more to learn. In an effort to help (in addition to hosting conferences), Streuling said the Council has led “virtual roundtables” online to give people a forum to discuss key issues.
Bob Arnould, senior vice president of government affairs for the California and Nevada CU Leagues, gave a legislative update at the conference Tuesday. He said the events on Wall Street that triggered the economic meltdown demonstrate the lack of control for brokers and traders after years of deregulation. “There will be substantial re-regulation,” he promised.
In the wake of the conservatorship of U.S. Central and WesCorp, Arnould said 478 federally insured CUs in California and Nevada will experience negative ROA for 2009. The two states will see a 360% increase in the number of credit unions that fall under PCA requirements. Looking forward, Arnould said the Leagues and other trade groups will be watching carefully as banking committees in both federal houses will be examining regulation. “Our job is to make sure the law of unintended consequences does not hurt credit unions,” he said. “We want to make sure housing bills are fair to credit unions, as some of them began doing loan modifications without being asked by the government.”
