Why 2 FCUs Increased Hourly Wages

Two credit unions, thousands of miles apart, appeared to come to the same, if not similar conclusion: Increase pay for hourly employees.

Executives with the Tustin, Calif.-based SchoolsFirst Federal Credit Union ($26.9 billion in assets, 1.2 million members) and the Notre Dame, Ind.-based Notre Dame Federal Credit Union ($904.5 million in assets, 60,110 members) announced they were bumping up starting wages for hourly workers well above the Federal minimum wage of $7.25.

According to SchoolsFirst, entry-level starting wages for all hourly position will start at $18 an hour and increase up to $27 an hour, depending on experience and the position. In a statement, SchoolsFirst said starting hourly wages for branch employees will start at $20 an hour, with the ability to go as high as $31 an hour.

“It’s important to us to recognize and compensate our team members for the important role they play in serving our members, and for their dedication to providing the world-class personal service our members expect and deserve,” SchoolsFirst President/CEO Bill Cheney said. “As an employer of choice, we want to ensure we are compensating our team for the incredible work they do, every day, to help countless members live better financial lives and plan for tomorrow.”

For current employees at SchoolsFirst, whose base wages are below the new minimum, the credit union will increase those salary wages by 5.5%.

Cheney added, “It is an exciting time for SchoolsFirst. Our credit union has grown and continues to grow. Thanks to our loyal members, we experienced over 9% membership growth last year. It is part of our mission to help our members thrive financially, and this investment in our team will help us ensure our team members thrive as well.”

Similarly, over in Indiana, Notre Dame FCU announced its new minimum wage will be $17 an hour. Once implemented in March of this year, the credit union stated the wage increase will impact roughly 18% of its workforce.

In a statement, President/CEO Tom Gryp said, “Our ability to pay above-market wages to our incredible partners (employees) is a direct reflection of the loyalty and support of our members. My deepest thanks go out to our growing membership base, who without their ever-increasing utilization of our services, none of this would be possible.”

Gryp went further with his comments and appeared to challenge other credit unions and financial institutions to do the right thing and pay their employees more.

He said, “Now is the time for other financial institutions, who are currently experiencing very strong earnings, to step up and do what’s right for their employees as well. If not now, when?”

According to information provided by Notre Dame FCU, the credit union has proactively increased its minimum wages each year since 2017. That year, the credit union raised the wage to $13.50 an hour.