Unions continue to broaden their umbrellas in unexpected ways to survive. Granted, not all examples are as wild as the UAW aggressively pumping up their deflated membership by somehow becoming the higher-ed union of choice.
On a slightly less surprising note, the Communication Workers of America (CWA) has traditionally counted telecommunications, publishing, and media workers among its ranks, often referred to as white-collar workers. Yet the union has seen success in launching offshoots. This includes the CODE-CWA (Coalition To Organize Digital Employees) initiative to organize all manner of white-collar tech workers.
The CWA has also been attempting to beef up another of its inventions, the Committee for Better Banks-CWA, a long-game effort to organize workers at banking branches, call centers, and corporate headquarters.
In 2022, two CWA locals won a union contract against Beneficial State Bank, a first against a banking institution in four decades. Since 2016, the union has also made moves on Wells Fargo before formally announcing (in fall 2022) its intent to organize employees in the first coordinated union drive against a major U.S. bank.
The effort now spans 29 locations and at least 900 workers and is gaining momentum on the heels of multiple Wells Fargo scandals. This includes a federal probe – the CWA claims responsibility for whistleblowers – into fake customer accounts. Workers then accused the bank of pressuring them through unrealistic quotas. The fallout led to increased Federal Reserve oversight and two ousted CEOs.
Union on the offensive: The CWA lodged a handful of ULP charges against the bank, accusing management of disciplining multiple workers for organizing activity. The union also alleged that a manager threatened to revoke work-at-home rights over pamphlet circulation.
Wells Fargo’s response: The bank will not take a neutral stance to the union and will fill a newly created position of labor relations director to coordinate the response to the amped up drive. An alleged internal document reveals management’s concerns over organizing activity.
A twist worth noting: A Wells Fargo shareholder group asked the bank to adopt these policies: (1) Publicly detailing workers’ rights to unionize; (2) Committing to a neutral stance of non-interference with the union.
That move comes on the heels of Starbucks shareholders narrowly voting (52%) for the coffeehouse giant to launch an independent review of its labor practices amid a continuing nationwide union drive. Apple investor groups also recently asked the tech giant to review worker rights at its retail stores. Shareholders expressed concern about Apple’s union stance looking like an “apparent misalignment” with its progressive reputation.
Therein may lie the kicker. Investors fret over the company’s reputation and possible financial fallout should unions fully take root. It’s a valid concern. UPS already saw its tentative Teamsters dealsink its stock due to concern over the cost of union demands. Similarly, GM and Ford stockbegan to falter while the world awaits news on the combative UAW contract renewal talks. Markets are naturally mercurial, of course, but union effects on the bottom line couldn’t be more inevitable.