18 MAY / JUNE 2017 HUMAN RESOURCES Retail Banks Being targeted by labor organizations Debra A. Mastrian Partner SmithAmundsen LLC dmastrian@salawus.com SmithAmundsen LLC is a Diamond Associate Member of the Indiana Bankers Association. Article author The retail banking industry is facing increased efforts by the Communications Workers of America (CWA) and the Committee for Better Banks to unionize bank employees. Earlier this year the CWA announced plans to target retail banks. The CWA claims it has gained over 20,000 bank employees within the past couple of years. This past February the Committee for Better Banks – a coalition of bank employees, community/consumer advocacy groups and labor organizations – targeted Santander Bank, after purportedly having won concessions from other large banks. Unions have been struggling in recent decades and are eager to find new members. The CWA and the Committee for Better Banks claim that unionizing bank tellers and other frontline workers, collections personnel and personal bankers will help protect them from undue pressure to meet performance objectives or to push unwanted financial products on customers, by allowing them to have a say in forming bank policies. The effect of the new administration on labor organizations remains unclear, but unions appear concerned about the possibility of a national right-to-work law. (Note that Indiana is a right-to-work state. Indiana’s right-to-work law provides that no union, employer or person may require an individual to become or remain a union member – or pay dues, fees or assessments – as a condition of new or continued employment.) In the meantime, what can banks do? Human resources directors and management should be alert for union activity. Early signs of union organizing include increased employee complaints about a supervisor or management, employees getting together in an unusual manner, former employees “hanging around” current employees, an increase in “business” talk during breaks, anti-company propaganda, and increased questioning of policies and benefits. For employers, it is advantageous to remain unionfree, in order to avoid: (1) adversarial relationships between management and employees; (2) slanted employment communication by union representatives; and (3) the inability to speak directly to employees about wages, benefits and other conditions of employment. Unions increase administrative costs, and management must spend time dealing with union issues, such as contract negotiation and administration, grievances and discipline. Employers should be proactive before an organizing campaign begins. Key principles of union avoidance include: • Adopt an employee relations policy that states the company’s preference to remain union-free, and explain its rationale; • Provide effective leadership: Ensure that managers are visible and accessible, encourage positive relationships and direct personal contact between employees and managers, and consider adopting an open-door policy; • Provide structure and security: Wages and benefits should be equitable within the company and on par with other companies in the same industry and area; and policies should be clear, comprehensive, and administered consistently and fairly; • Provide a sense of affiliation with the company: Stress working as a team, with shared goals, incentives for achieving team goals and activities; provide company clothing; • Provide opportunities for achievement (rewards, incentives) and personal growth (attainable goals, promotions, education, training), and allow employees to provide input; • Clearly communicate expectations and provide feedback; and • Recognize and address any areas of vulnerability, such as large pay gaps without legitimate business
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