Labor Dispute at CUNA Mutual Group May Disrupt Service for CUs
Union says negotiations with CMG have stalled, but the insurance and investment firm says it remains committed to reaching an agreement.
The labor union that represents more than 450 employees at CUNA Mutual Group warned there could be a “potential disruption of financial services” for the insurance and investment firm’s customers because of a labor contract dispute that has been simmering for months.
But the Office and Professional Employees International Union (OPEIU) Local 39 did not say whether that means a work strike is likely if contract negotiations fail to yield a new labor agreement with the Madison, Wis.-based CUNA Mutual Group. Both sides began bargaining talks last February before the union’s contract expired on March 31.
“Our members are considering all options available to them in effort to secure a contract that addresses their concerns,” Kathryn Bartlett-Mulvihill, president of OPEIU Local 39, said.
The labor union said last week that it sent a letter to more than 7,000 credit union leaders across the United States warning that “there could be a potential disruption of financial services with vendor CUNA Mutual Group due to a labor dispute regarding contract negotiations between CMG and 450+ employees.”
The union, which also represents more than 20 other employee groups, is scheduled to hold a quarterly membership meeting on Feb. 15, OPEIU Local 39’s website showed.
CUNA Mutual Group said it continues to be committed to reaching a fair and competitive agreement with the union.
“We aim to provide a compensation package that addresses the key issues the union has outlined,” CUNA Mutual Group said. “As we continue to meet with the union and work toward a resolution, we are also focused on keeping our operations running for those we serve and we have plans in place to ensure we can do so. We respect the collective bargaining process. As a result, we don’t anticipate making any further public comments.”
Sarah Larsen, a CUNA Mutual Group administrative specialist and member of the union’s bargaining committee, said the decision to go to the customers came as negotiations with CUNA Mutual Group have stalled.
“We have been working without a contract in a good faith attempt to reach an agreement, and while we have made significant movement on our proposals, CMG has been unwilling to make the same commitment to its employees,” she said. “We’ve been bargaining for 10 months and they aren’t taking our proposals seriously. They are using delaying tactics instead of bargaining in good faith. CMG is asking for concessions on our pay, health care and pension despite being in the best financial position in the company’s history.”
However, one of the central issues at stake for the OPEIU has been the outsourcing of company positions represented by the union.
Joe Evica, a CUNA Mutual Group retirement services specialist and chief steward for the union, said that over the last 20 years, the insurance company has outsourced 1,200 jobs while it makes record profits.
“It affects the integrity of the systems we use to protect sensitive data,” he said. “We need to protect both strong, good paying jobs and the quality of the services we provide.”
In addition to preventing the outsourcing of U.S.-based jobs, the union lists additional central issues that include returning work from outside contractors, preserving employees’ existing cash-balance pension plan, wages that keep up with inflation and health care plans that meet the needs of the union membership.