In May this year the Michigan Department of Civil Service announced rules governing possible layoffs of state workers. That move was halted when unions representing state workers objected because the announcement did not provide enough notice as required in the union contract.

However, civil servants are still on edge. Questions surround a pay increase scheduled for next fiscal year, which begins Oct. 1, and the state budget shortfall is expected to be even worse in 2008.

"Whatever happens, we want to be ready to serve these members," Dexter says.

With all this in mind, NuUnion has announced low-interest, fixed-rate loans to assist state employees if they are laid off. Terms allow up to $7,500 at 4.9% for as long as 48 months. The first payment may be deferred for 60 days. Two one-month extensions on existing loans are also available.

At one point, Dexter notes, there was the possibility of 20 days off, meaning the loss of a month's pay. That was reduced to two days, but next year remains uncertain.

In addition to the program affecting state employees, NuUnion has also joined an effort to help displaced workers facing loss of their jobs, especially in the manufacturing sector that for decades was Michigan's economic mainstay.

NuUnion's community charter now covers 28 counties. Dexter notes some areas, such as Grand Rapids in western Michigan, have not been hit as hard as others. But many counties are seeing high unemployment levels.

So NuUnion is offering education loans for displaced workers. Dexter explains DFCU Financial, with its roots serving Ford Motor Company, came up with the concept. The Michigan Credit Union League sought other credit unions to participate, and NuUnion committed $1 million. Michigan Works, formerly the Michigan Employment Security Commission, joined in with money for textbooks and other supplies.

"It's almost a complete educational program," Dexter says. "I talked to one of our members this morning who came to us from two directions. He got laid off by the State of Michigan, and he needs to finish about a year and a half for his bachelor's degree. So it's just a wonderful opportunity for him."

Dexter notes, Gov. Jennifer Granholm has been emphasizing the need to educate Michigan residents and then keep them in the state.

However, "We are seeing a dramatic exodus from our state of our young talent," he adds.

Members have been alerted to both programs by direct mail. Branch managers have attended work fairs, in effect taking advantage of the community charter to spread the word and enroll new members.

"We are in a very methodical mode of moving out to those [additional] counties. We're developing plans to serve those people," Dexter says.

"The important thing is to keep track of your social responsibility. Look at what you can do. There may be some risk attached. But we've lived through so many economic cycles. Two years from now, or five years from now, interest rates are going to be low again and everyone's going to have a job. The idea is to have faith that we're dealing with a temporary situation and do the right thing to help your people."

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