The Debate Taking Place Inside Many CUs

By Ray Birch

KALAMAZOO, Mich.—Even as several credit unions have already announced they plan to do so—with one CU telling CUToday.info it was no “overnight decision”—many credit unions will likely not move quickly to mandate COVID-19 vaccination as a condition of employment, says one expert. Instead, what’s likely ahead is enforcement of “vaccination light” policies.

Those policies, while not mandating a vaccine, will require employees to be fully vaccinated for certain aspects of employment, such as engaging in business travel or to refrain from wearing a mask at the worksite, and can persuade staff to get vaccinated, according to Sean Crotty, partner and chair of the labor and employment department at Honigman, LLP.

Crotty said many of the incentives that have been offered by employers, including giving staff money to get vaccinated, have not been as effective as employers had hoped.

However, he expects the Food and Drug Administration’s recent approval of the Pfizer vaccine—removing it from experimental status—should drive higher vaccination levels.

Higher Incentives?

Crotty said that just like the FDA approval of the Pfizer vaccine could change the vaccination landscape, so, too, might higher incentives for staff.

“One employer is offering a $1,000 incentive for employees to get vaccinated,” he said. “We might see others follow with juicier incentives to persuade hesitant employees to become vaccinated.  The FDA’s full approval of the Pfizer vaccine is likewise expected to increase employers’ comfort level with mandating the vaccine, and it should address some employees’ hesitancy in receiving it,” Crotty said, adding he further expects the continuing spread of the Delta variant should  lead more employers to require vaccination for staff.

As CUToday.info reported, at least three credit unions are requiring their employees to be vaccinated against the coronavirus as a condition of their employment: Credit Union of Texas in Allen, Allegacy FCU, Winston-Salem, N.C., and Hawaii State Federal Credit Union in Maui.

What has prevented many smaller employers from mandating employees get vaccinated, offered Crotty, is the war for talent going on now. Staff shortages have led to concerns about losing more people if a COVID-19 vaccine is required.

“Many large employers, like Google, Facebook and Disney, are requiring vaccination,” said Crotty. “We’ve seen this requirement take hold among this group. Why it's not happening among small employers, which includes many credit unions, is that imposing a vaccine requirement could lead to a loss of employees.”

Challenge for Smaller Employers

The reason, according to Crotty, is that many smaller employers simply can’t gamble on potentially losing employees in a very tight labor market.

crotty

Sean Crotty

“In addition, the bigger employers have more sophisticated HR operations and are much more able to run mandatory vaccine operations and deal with the accommodation issues than smaller employers, whose HR operations might be just one person,” Crotty observed.

Another factor that could contribute to increasing the vaccination rate in the U.S. is employers running more “vaccination light” programs.

“For example, an employer won’t require that you get vaccinated as a condition of employment, but they may say you're not able to come into the office and attend certain functions without being vaccinated,” explained Crotty. “And some may just make it more uncomfortable for the unvaccinated to work, such as requiring they wear masks in the office, maintain social distancing and get checked for COVID once a week. I think we are going to see a lot of smaller companies embrace the vaccine light policies.”

As Crotty noted in a previous CUToday.info report, employers face legal and human resource issues with requiring vaccination as a condition of employment. As a result, he said employers must devise policies around staff immunization and never take an employee objection to getting the vaccine lightly.

‘Less & Less Sticky’

Crotty had also previously described the situation as a “balancing act” for management, as most employees won’t feel safe working in and members won’t feel safe doing business in facilities until the vaccines ideally help quash the pandemic.

But Crotty said that as the months have passed since the first vaccines became available, these concerns have not worsened, as some expected they might.

“I would say these issues are getting less and less sticky for employers, because companies are getting more comfortable with these issues and are now more experienced with going through the accommodations—addressing disabilities and religious beliefs,” he explained. “The passage of time has shown us that these issues are more manageable and companies are more comfortable with them.”

One CU’s Decision-Making Process

Credit Union of Texas told CUToday.info the Delta variant influenced its decision.

“We care about our employees, members, and communities, so, yes, news about the Delta variant has been concerning. We believe the policy is necessary to combat the Delta variant and support our Credit Union of Texas employees,” the credit union stated in an emailed message to CUToday.info.

CUTX said the decision was not a simple one.

“It was a difficult decision that was not taken lightly. This was not an overnight decision. We have kept a close eye on the science, news, and recent developments, including information about the pandemic, the Delta variant’s impact in our communities and actions taken by other companies,” the statement continued. “We feel it is the responsibility of corporations to take a stand to fight for the communities we serve. We are now taking action to protect our employees and our members, our most important assets at Credit Union of Texas.”

CUTX said 70% of its employees had been vaccinated prior to the mandate.

The mandatory vaccination policy will not remove current COVID-19 precautions, CUTX added.

“We will continue to practice social distancing, use protective glass, and other protocols, and we will continue to follow guidelines to ensure that we are doing our part at Credit Union of Texas to help stop the spread of COVID-19,” the CU stated.

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