Q&A: Husch Blackwell HR Question of the Month – Labor organizing at credit unions
This is part of a 2024 series of monthly HR questions and answers, prepared by Melissa Caulum Williams, Senior Counsel at the Husch Blackwell law firm.
If you have questions about this topic, or any matters related to employment law, The League’s free HR Legal Line can help. The League arranges to have Husch Blackwell attorneys provide up to an hour to address a credit union’s employment questions. You can find more information about the service via this Compliance Courier.
Has there been a rise of unions in banking and finance?
Check out this article co-authored by Ms. Williams, regarding this issue.
Should I be concerned about unionizing behavior?
According to the U.S. Department of Labor, in early 2024 only 1.1% of workers in the banking and finance industry were unionized. However, union organizing is becoming more common in today’s society, and notably, Wells Fargo recently became the first major national bank in which employees voted to form a union. At this time, employers should focus their efforts on becoming familiar with the signs of employee organizing, having a plan to respond to any such signs, and implementing policies and practices that have been shown to avoid employee unionization.
How can our credit union avoid unionizing behavior?
To avoid unionizing behavior, employers should provide a direct line to management to communicate concerns, actively listen to employee’s concerns, and be transparent as to how the employer is meaningfully addressing those concerns.
Although unionizing behavior is rare in the banking and finance world, those that have unions have cited issues with fears of mass layoffs, high turnover, working conditions (including chronic understaffing), lagging pay and benefits, and lack of transparency as their reasons for unionizing.
By listening to and addressing employee’s concerns, employers can dissuade unionizing behavior before it begins.
What are signs of unionizing behavior?
Although unionizing behavior can look different in each industry, some common signs of unionizing behavior include: increased chatter about employee rights, wages, or benefits; the distribution of union literature; a sudden surge in employee meetings without management present; or heightened employee interest in company policies. Unionizing behaviors could also manifest as informal gatherings discussing grievances, or increased solidarity amongst workers when faced with management decisions.
If I see unionizing behavior, what should I do?
Immediately contact your Husch Blackwell attorney, who will connect you with a labor law attorney with the skills and expertise to navigate legal risks as you address a labor campaign.
I keep hearing about “unfair labor practices.” What is this?
Unfair labor practices are any action taken by an employer or employer’s agent (including supervisors) that violates the National Labor Relations Act.
Some common examples of unfair labor practices include:
- Supervisors making threatening statements regarding unions;
- Supervisors questioning employees who mention union rights;
- Supervisors making false statements to workers about unionization;
- Any interference with the formation of a labor organization, including paying another organization to interfere in such a way;
- Discrimination against applicants or employees because of union affiliation;
- Refusal to recognize a majority union;
- Refusal to bargain with a union; and
- Refusal to provide union representatives with necessary information.
A labor attorney can provide training to ensure supervisors are aware of how to prevent unfair labor practices from occurring.