By Ray Birch
DETROIT—Credit unions that find their employees discussing the organization of a labor union need to recognize their right to do so and proceed carefully, according to one attorney.
And regardless of the outcome of any organizing vote, management should also take lessons away from the fact employees feel the need to have representation, said Rana Roumayah, a partner at Honigman, LLP.
As CUToday.info has reported, labor unions have made something of a comeback in service industries as workers, including at some credit unions, have sought higher wages or better working conditions.
Roumayah said credit union leaders should practice the tried-and-true management axiom of listening first for problems or perceived problems, rather than immediately talking.
Why Some Reach Out
“For example, if there's favoritism (such as a) manager who will only treat certain employees favorably and other employees not so much,” said Roumayah, who spent 23 years with the National Labor Relations Board. “That is something that the employees who feel like they're being unfairly treated will reach out to a union and ask how do we fix this? If there is a bad manager at a branch, that one manager could cause an employee to seek out a union.”
Roumayah said that can eventually lead to a scenario where workers represented by the labor union are promoted according to seniority, eliminating the manager’s role in promotions.
For any employee who feels like their manager favors certain employees over others, that model of promotion could have appeal. For any CU, it can be an indicator of potential cultural issues.
Rana Roumayah
And for employees who feel those cultural issues aren’t being addressed, having a third party that offers them some leverage has appeal, she noted.
The Lack of a Voice
“If employees feel like they don't have a voice, if they feel like they don't have any input into what's going on at work or in any of the changes that are being made, that might make them want to reach out to a union,” Roumayah said. “The union will tell them if you have a union at your workplace the credit union cannot make any changes unless they run it through the union first. The union, then, will come back to the employees and say what do you think of this change? Should we agree to it? Should we counter offer?”
Roumayah said credit unions should expect unions to make promises to staff, but there is little oversight of that practice even when it involves promises around increases in compensation in the event employees vote in favor of unionizing.
Other issues that can lead to employee dissatisfaction, according to Roumayah, are perceived or real discrimination.
Getting Feedback
“Conduct surveys that ask employees about ways the company can improve,” she advised. “Ask them for thoughts on programs you are rolling out. When employees feel they have a say in things and that their voice is being heard, they're less likely to reach out to a third party, like a union, to get those messages across to management.”
Roumayah said if a credit union already holds quarterly or monthly meetings with employees, it's always a good practice to ask them for their input.
Following the Law
Roumayah said any credit union facing a union organizing effort by employees must proceed cautiously and be aware of the law.
“If there are any unlawful actions, the union can then file a charge with the National Labor Relations Board and then the credit union will have to deal with responding to that charge,” Roumayah said.
And that could complicate matters even in cases where employees vote against unionizing.
“It may cause the NLRB to say, ‘This was not a clean election because we have charges filed against the credit union that they were threatening their employees,” she explained. “They had to ‘vote no or else they would be fired.’ So, you can see that would taint the whole election process.”
The Importance of Training
Roumayah emphasized training programs must ensure managers and supervisors make no threats.
“They cannot interrogate employees,” Roumayah said. “They cannot make any promises to their employees. They can't say, ‘If you vote no at the union election,’ or ‘If you don't bring the union in, we're going to give out bonuses, or we're going to raise your wages.’ You can't make those kinds of promises of benefits, or anything like that. Also, you can't engage in any surveillance. If you know that one of your employees is the main contact for the union, you can't follow him home to see if he's going to meet up with the union rep. You can't try to eavesdrop on his conversations with other employees about the union. If there's any sort of unlawful activity that can really set a credit union back a lot.”