First-Ever Strike Divides CUNA Mutual Group & Labor Union Relationship

Even though CUNA Mutual Group and its union employees have had an 80-year relationship, it is now divided over labor issues, which led the Office and Professional Employees International Union (OPEIU) Local 39 to call its first strike ever against the Madison, Wis.-based insurance and investment firm.

Hundreds of union employees picketed outside CUNA Mutual’s offices Friday holding signs and chanting as supporters honked their horns as they drove by.

During a news conference in front ofthe  CUNA Mutual/TruStage headquarters on the first day of the strike, longtime CUNA Mutual employee and member of the OPEIU Bargaining Committee Sarah Larsen said, “We are here and we will have to forgo five days of pay – that’s what that means for us. What it means for the company is squandering 80 years’ worth of goodwill and public trust. They squandered such an awesome opportunity to position themselves as an awesome place to work.”

Larsen continued, “Instead, they violate our contract. They violate the symbol of our union like thugs!”

Both sides remain at odds over wages, retirement, health care, remote work and job security. CUNA Mutual said its proposal over wages includes a double-digit immediate pay increase, an increase to bonus structure and a cash bonus upon ratification. For health insurance, CUNA Mutual said it would maintain the current health benefits the union said are important to employees and add a health savings account option. The company said its remote work proposal maintains policies that allow full-time employees to work remotely, along with a monthly stipend for virtual employees, and for retirement, CUNA Mutual said it agreed to maintain retirement benefits for current employees and will continue to offer a 401(k)-employer match of up to 5%.

However, OPEIU countered that its members have been operating under an expired contract for 14 months and have not received a pay increase in more than two years. The union represents more than 450 employees.

“CMFG/TruStage’s proposal offers no retroactive pay for the 13 months they have illegally delayed bargaining a new contract. Adjusting for inflation, their proposal is more than a 4% pay cut,” OPEIU 39 Chief Steward Joe Evica said. “With regard to retirement, CMG/TruStage is still proposing to eliminate the pension plan for all new hires. They wish to create a two-tier system meant to divide and weaken our Union. Their proposal would cut employer contributions in half for new hires, at a time when they are making record profits.”

During the news conference, Larson said, “We are here today because we simply have not seen the movement that would be necessary to avert a strike. We have not seen a commitment from them to bargain in good faith. We have not seen any evidence whatsoever … we’re sick of it!”

When it comes to health care, remote workers hired by CUNA Mutual/TruStage are only provided an unaffordable consumer-directed high deductible plan, Evica said.

“With the rise of remote work at CMG, we’re asking that they raise the HRA/HSA contributions on these plans so that remote workers are not provided second class health benefits compared to local employees,” he said.

Evica also said CUNA Mutual/TruStage has refused to offer any significant protections regarding job security, arguing that it has outsourced and contracted out more than 1,200 good-paying union jobs in the last 20 years.

“They have been slowly attempting to bust our union for decades,” he said.

CUNA Mutual, however, said it doesn’t agree with OPEIU Local 39’s characterization of its staffing practices.

“As our environment and work change, the natural evolution of how we do our work impacts staffing levels in different parts of our company, both union-represented and non-union-represented, so that we can best serve our customers,” CUNA Mutual said in an email to CU Times. “As those changes have occurred, we’ve followed the terms of our collective bargaining agreement. In 2022 and through Q1 of this year, we’ve seen an increase, not a decrease of represented employees of the company as we have continued to hire.”

Additionally, CUNA Mutual has repeatedly said that the union has been part of its history for eight decades and will be part of its future.

“We are determined to reach a fair and market-competitive agreement that meets the needs of our employees, our customers and company,” CUNA Mutual said.

The company also has said it is committed to continue to bargain in good faith to reach a new labor agreement.

But the union bargaining team said it has filed several additional unfair labor practice charges with the National Labor Relations Board over the last two weeks, alleging CUNA Mutual has not been bargaining in good faith. The union said just hours before a federal mediation session was set to begin on Monday, CUNA Mutual canceled it.

While both sides met for federal mediation sessions on Tuesday and Wednesday, CUNA Mutual requested that the sessions end after offering a counterproposal, even though the union said it wanted to keep bargaining. The union also said it requested CUNA Mutual provide additional dates to meet but it declined.

Both sides earlier agreed to use a federal mediator to help broker a new labor deal.

Nevertheless, in a prepared statement, CUNA Mutual said its bargaining team had thoughtful conversations, listened carefully to the issues outlined by the union and talked through complex issues facing the company, customers and employees.

“We have provided proposals that address the issues and have continued to make changes to move toward an agreement with the union,” CUNA Mutual said.

Editor’s Note: CUNA Mutual Group is currently undergoing a rebrand to the name TruStage,which is slated to begin the week of May 22. TruStage has been CUNA Mutual Group’s consumer-facing insurance brand since 2012.