By Ray Birch
DETROIT—Labor unions may be making a comeback across the country as some reports have stated, and one of the targets of their efforts is credit unions, according to one labor relations attorney, who explained that whether workers are considering union representation or not, all organizations need to focus on listening better to their employees.
“Unions are coming back and they, well, need (targets),” said Rana Roumayah, a partner at Honigman, LLP. “They need to find untapped markets. I think credit unions are ripe for the taking.”
Labor unions, of course, too, have formed countless credit unions of their own across the country.
First in a Series
This is the first in a two-part series on the changing nature of labor relations at credit unions. Many employees who are unionized credit the organizations for improved job security and work conditions. Other workers, however, have rejected calls to unionize, saying they are happy with their treatment.
As CUToday.info reported, employees of the South Division St. branch of Lake Michigan Credit Union in Wyoming Mich., in January 2023 voted in favor of unionizing and joined the Communications Workers of America. At the time the employees of the branch said that other employees at neighboring branches had contacted them about also organizing. But a year later there was a tie in the vote to recertify the union and, as a result, the union no longer represents staff at the branch. (See CUToday.info coverage here, here and here.)
Easy Targets
“Credit unions are usually small, and it's easy to target one credit union and then have other credit unions nearby follow, as they pick up on the activity,” Roumayah said. “And then, before you know it, the union is organizing 10 branches in a certain area.”
Roumayah, who previously worked at the National Labor Relations Board for 23 years, said labor unions typically approach financial institutions in two ways.
“They can either try to unionize branch by branch, or they can try to do all of them at once,” she said. “But the branches need to share a community of interest. And the National Labor Relations Board—the agency that would come in and conduct the actual election for the employees—would have to know there's some community of interest to have all of the branches in one bargaining unit.
Rana Roumayah
“So, either employees would have to interchange back and forth between branches, like if there's a lot of floating and hopping back and forth,” continued Roumayah. “If they have the same wages, the terms and conditions of employment, the same managers and supervisors, if they're under the same labor relations policies, then the NLRB would allow the union to unionize all the branches. However, it’s in a geographical area. They're not going to do one election for a branch in Minnesota and a branch in Nevada.”
An Untapped Market
Roumayah repeated that labor unions see credit unions as an available and untapped market. And just as there is much to learn by employees who seek to unionize, credit union leaders also must get up to speed on how to respond. In part II of this series, CUToday.info will explore the kinds of cultural issues CUs should be aware of that may lead employees to believe they need a labor union.
“Most credit unions are blindsided by this and end up losing the election because they are ill-prepared,” Roumayah said. “Labor laws have changed dramatically during the Biden administration—to be more pro-union—and many CUs are unfamiliar with the ever-changing laws.”
Roumayah further asserted that credit unions are generally meritocracies where employees are rewarded for their performance, and management have strong feelings over a system that rewards for other factors.
Bigger Issues in Play
There are also bigger picture issues at work over which credit unions have no control.
Roumayah, noted, for instance, that staff who have been facing somewhat uncertain economic times as the result of cost-cutting and tight margins at credit unions,, as well as changes in operations or policies or practices, may seek out a union for what they perceive will be more job security and workplace dignity.
“CU employees who have complaints about wages and benefits, perceived favoritism, perceived lack of opportunities, or perceived lack of ability to affect change may seek out a union,” she said. “They believe a union and a grievance procedure will help them effectuate changes.”
As CUToday.info reported, employees at the LMCU branch on South Division Avenue, for example, had said when they first unionized it was because they felt underappreciated and undercompensated.
Roumayah said credit union leaders should be aware of signals that can be both subtle and not so subtle that employees feel they aren’t being listened to and, in turn, may have either reached out to a labor union or been contacted by one.
Lots of Policy Questions
“If employees start asking you unusual questions about your company's policies, your wages, your hours, your benefits…all of a sudden there is this kind of interest,” she said. “They might ask about what does your PTO policy say about this and that. Then, it's possible they're getting fed those questions by the union.”
New Terms Being Used
Another sign: If employees start using common labor terms, like “seniority” or “grievances.” Roumayah said that could also be due to workers just searching online about employment issues or union representation.
Change in Communication
Finally, Roumayah, credit union leaders should always pay attention any time there is a sudden and unexplained lack of communication between a usually friendly employee and their manager, and the great relationship turns not so friendly. That could be an indicator a worker or workers are not happy with their employment.