Historically, the banking and finance industry has operated without much union interference. However, under the current guidance of Jennifer Abruzzo, General Counsel of the National Labor Relations Board (“Board”), the tides are turning toward unionization in sectors previously not considered ripe for union organizing, including banking and finance.

According to the U.S. Department of Labor, only 1.1% of workers in the banking and finance industry are unionized. A 2013 study, commissioned by the Committee for Better Banks, a New York based group advocating for the rights of banking and finance employees, found mass layoffs, high turnover, lagging pay and benefits, and a lack of transparency as the driving factors spurring banking and finance employees’ interest in unionization, and those concerns have only increased in recent years. Committee for Better Banks is affiliated with the Communications Workers of America (“CWA”) union.

While some credit unions have unionized workforces, unionization at banks and credit unions has been rare until recently. In 2020, Beneficial State Bank locations in California, Oregon, and Washington, were the first to unionize in approximately 40 years. Beneficial State Bank voluntarily recognized the Communication Workers of America after over 100 of its employees across 13 locations, spanning the three states, demonstrated majority support for the CWA. Continuing the trend, in January 2022, employees at Genesee Co-Op Federal Credit Union in Rochester, NY unionized. Employees identified burnout and stagnant wages as contributing factors to unionization. In January 2023, Lake Michigan Credit Union workers successfully unionized the Wyoming, Michigan location. 

In recent years, the Board has made it easier for all sectors of employees to unionize, particularly by its union-friendly decisions and final rules, which have opened the door to unions organizing workers not normally considered part of the traditional unionized workforce, including banking and finance workers. Additionally, general changes in workforce demographics, traditional views towards work, and social media have made unions more attractive, particularly to those newer to the workforce.

Wells Fargo’s Unionization

On December 20, 2023, following their 5-3 vote to unionize under the Communications Workers of America’s Wells Fargo Workers United, the personal bankers, premier bankers, and tellers at an Albuquerque, New Mexico Wells Fargo bank branch, made it clear—even national banks are vulnerable to the recent surge of unionization. This win made Wells Fargo the first major national bank who has had employees unionize in decades.

Since November 2023, employees at seven other Wells Fargo bank branches have petitioned for elections seeking union representation, with two of the seven already voting to unionize under the Communications Workers of America, and the most recent petition filed in February 2024.

The push for unionization at one of the nation’s largest banks demonstrates no organization is exempt from unionization. Accordingly, organizations must be vigilant in addressing the root cause of unionization and identifying the signs of unionization. Employers must have a plan in place to respond to union activity should it arise.

What Should Employers Do?

Consider what your organization is doing to make your workplace great. Employers must be sensitive to their employees’ concerns and be prepared to act and respond to employees’ needs. The best way to avoid unionization is to neutralize the need for a union. For example, consider and resolve employee complaints in a timely fashion, and respond in a meaningful way to employees’ wants and needs. Employees in today’s workforce know they have options to improve their workplaces, but they likely won’t feel a need to unionize if they know their employer hears and addresses their concerns.

This blog offers just a snapshot of the evolving world of unions in the banking and finance industry. If you have questions or concerns or you notice signs of potential unionization, contact Trecia Moore, Melissa Williams, Quinn Stigers, or your Husch Blackwell Labor & Employment attorney.