MADISON, Wis.– There is potential for the disruption of financial services to credit unions from CUNA Mutual Group (CMG) due to a labor dispute over contract negotiations between the company and the 450-plus employees represented by Office and Professional Employees International Union Local 39, according to a letter that has been sent to credit union leaders across the country.
Although there are fewer than 5,000 credit unions in the U.S., OPEIU Local 39 said it sent the letter to more than 7,000 CU leaders, although it didn’t say to whom the letters were sent.
“Our union has been engaged in bargaining for a labor contract with CUNA Mutual Group (CMG) on behalf of their main office staff of 450 employees for the past 10 months,” OPEIU said. “We have been working without a contract in a good faith attempt to reach an agreement, and while we have made significant movement on our proposals, CMG has been unwilling to make the same commitment to its employees.”
In a statement distributed by the union, Sarah Larsen, an administrative specialist and member of the union’s bargaining committee, said the decision to go to the customers came as negotiations with CUNA Mutual Group have stalled.
“We've been bargaining for 10 months and they aren’t taking our proposals seriously,” Larsen said. “They are using delaying tactics instead of bargaining in good faith. CMG is asking for concessions on our pay, healthcare, and pension despite being in the best financial position in the company's history."
The Central Issue
According to OPEIU, a central issue at stake for the union has been the outsourcing of company positions represented by the union.
“In 20 years CMG has outsourced 1,200 jobs while it makes record profits,” said Joe Evica, a retirement services specialist and chief steward of the union, in a statement. “It affects the integrity of the systems we use to protect sensitive data. We need to protect both strong, good paying jobs and the quality of the services we provide.”
OPEIU said there are four central issues that “must be addressed,” including:
- Preventing further outsourcing of US-based jobs and return work from outside contractors
- Preserving the employees’ existing cash-balance pension plan
- Wages that keep up with inflation
- Healthcare plans that meet the needs of the membership
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