MARSHALL, Calif.–A new analysis suggests the nation’s credit unions and banks could be the next target for labor unions looking to organize workers.
The analysis, published on JDSupra.com, a repository of free legal information, argues that with just 6.1% of the private sector workforce belonging to a labor organization, financial institutions are a ripe opportunity for growth.
While just over 1% of all financial services employees are unionized, there has been an “uptick” in unionization hitting the financial industry since 2020, “with signs of more aggressive action on the part of labor organizations not slowing down,” the report suggested.
The analysis noted there have been recent successful efforts by big labor to organize and unionize bank and credit union workers in New York, Washington, Oregon and California, and that being simply employed by a bank, credit union or other financial institution does not prevent the worker from forming or joining a union under the National Labor Relations Act.
One CU Recently Unionized
As CUToday.info reported, in January of this year employees of Genesee Co-op in Rochester, N.Y., formed a union with Communications Workers of America (CWA), which has traditionally focused on workers in the telecommunications and information technology, media, and airline industries. Ten Genesee Co-op workers unanimously elected to be represented by the CWA.
“Perhaps more alarming to financial industry employers is what developed on the West Coast in 2020. Beneficial State Bank (f/k/a OneCalifornia Bank) employees across Washington, Oregon and California, joined the CWA and ratified its first union contract on Sept. 29, 2021,” JDSupra.com stated. “The workers represented by the CWA include consumer loan servicing representatives, loan processors, underwriters, file clerks and custodial staff.
Union Will ‘Continue to Push’
“The fact that both Genesee Co-op and Beneficial State are located in historically union-friendly states makes the outcome a bit less surprising, but make no mistake: the CWA can and will continue to push for unionization in the banking services industry, with particular attention to community (as opposed to nationwide) banks and credit unions,” the report continued.
The report further stated that among the more interesting developments has been that part of the CWA’s push for unionization relies on the 2008 financial crisis, along with claims that unionization will somehow improve financial services and access to the public.
‘Not Entirely Clear’
“It’s not entirely clear how unionization would impact consumer protections – if anything, unionization will drive up the cost of banking by increasing labor costs and removing bank autonomy – but the CWA’s press releases and campaign lay out a clear strategy for swaying public opinion in favor of unionizing banks and credit unions,” the report stated. “Regardless, the CWA’s efforts, combined with the ongoing unionization campaign at Amazon and Starbucks, demonstrate a continued nationwide push for unionization that all employers must be aware of – including those in traditionally non-union industries such as financial services.”
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