From a Pandemic to an Oil Spill, Be Prepared to Lead

Still reeling from the pandemic, the last thing our credit union needed was another public health concern. Yet, as summer 2021 wound down, we faced a new challenge – one unrelated to COVID – when our branch in Flat Rock, Mich., was felled by another crisis that consumed the small town and made national news. A gasoline leak from Ford Motor Company’s Flat Rock assembly plant resulted in benzene, a known carcinogen present in gasoline, getting into the sewers and creating a noxious and dangerous vapor, threatening both residents and businesses.

Flat Rock is a small working-class town and Ford is the largest employer, and many of their employees are also our member/owners, so this issue was especially close to us – and we acted accordingly.

Decision-Making Leadership

The pandemic has taught us many things as credit union executives and business leaders – mainly, to be prepared. To not kid ourselves that something bad isn’t happening when it clearly is. And to make big decisions, even when they may be controversial. Unlike the pandemic, where governors, federal agencies and public health organizations set rules or offered guidance, the first few days of the reported, yet still mysterious, odor had us fending for ourselves. Was it safe to drink the water? Do we need to evacuate? Was it OK to even keep the drive-thru open?

On Aug. 31, the Michigan Department of Health and Human Services received an environmental report regarding the potential release of an unknown chemical into the sewer. On Sept. 4, a “voluntary recommended evacuation” was issued by the state and county for residents in impacted areas. Our Flat Rock branch was in what was considered the evacuation area, and even though we had tested the air and water quality (the results were in a safe range), we simply couldn’t know if they would remain so. After discussions with our board, I made the decision to completely close the branch on Sept. 6; the risk to the health and safety of our employees and members, and the potential legal liability, were simply not worth it.

Communication Is Key

With a growing, easy-to-use menu of digital services, our credit union members knew from the pandemic that online access to their account would mitigate the limitations of closing the branch. While we experienced poor communication from Wayne County, where Flat Rock is located, throughout the crisis, we were determined to do the opposite by offering clear, ongoing communication to our members via our website, social media and recorded phone messages. For the most part, members understood, although as with the pandemic, frustrations still surfaced. I spent many hours on the phone explaining to a very small minority of irate members that safety will always be our priority.

Moving Forward

While the impact of this incident did not last as long as the ongoing pandemic has, we did not reopen the branch until Oct. 11 – more than a month after it initially closed. While homeowners in the community were reimbursed a set amount for the costs to evacuate and temporarily relocate, businesses were not. While it’s hard to quantify our financial losses, we do know the closure was frustrating to our members – and we likely lost some income from those who were seeking to obtain a loan in person and had to go elsewhere.

When a crisis of any kind strikes, I offer the following to be prepared and quickly respond:

• Have updated emails and contact information for all members.
• Communicate clearly and regularly from the moment you have vetted information to share; do not speculate and send out information that must later be retracted.
• Consult with your executive team and board of directors to get trusted advice and feedback before making a decision – and then proceed with confidence.
• Be available to members and staff who want to speak by phone, and answer all emails as promptly as possible.
• Keep in close touch with staff during the closure; while some staff may already be working remotely, those who have to resume working at home may experience added frustrations and complications on the home front.
• When the crisis is over, consider thanking impacted members with edible treats or inexpensive giveaways in the branch lobby.

Carma Peters is President/CEO of the $262 million Michigan Legacy Credit Union based in Wyandotte, Mich.