Week One of TruStage Union Employees' Strike Yields No New Labor Contract

After both TruStage, formerly CUNA Mutual Group, and its union employees met Wednesday to continue negotiations, it appears they are no closer to reaching a new labor contract.

Although TruStage did not specifically comment in its prepared statement about the meeting, the Madison, Wis.-based insurance and investment firm said, in part, “we are encouraged by the progress we’ve made in the last two weeks.”

The characterization of that meeting, however, was far less optimistic from the Office and Professional Employees International Union (OPEIU) Local 39, which represents more than 450 TruStage employees who have been on strike since May 19.

“The Union provided new proposals for bargaining; TruStage returned a counterproposal that, so far as the Union’s committee can tell, is only grammar corrections and no items of substance,” OPEIU said in its prepared statement released Thursday. “The Union asked if the Employer’s committee had additional proposals; they replied that they did not. The Union requested to bargain May 25 and May 26, TruStage declined.”

Both sides did agree to hold mediation sessions Tuesday and Wednesday, May 30 and 31.

TruStage repeated its previously made statement that it is determined to reach an agreement, which it defines as fair and market competitive that meets the needs of employees, customers and company. TruStage also has said it has bargained in good faith from the start of negotiations, and that it is working very hard through the many complex issues on the table.

However, the union said TruStage has not bargained in good faith, which led OPEIU to call the first-ever strike in its 80-year relationship with the company.

The union cited at least nine unfair labor practices complaints that have been filed against the company with the National Labor Relations Board. Most recently, for example, the union has alleged that TruStage used coercion and direct dealing in order to solicit workers to cross the strike line and return to work, barred access to 401(k) plans for striking workers and surveilled – via photographing and videotaping – picketing strikers. The union said these allegations violate federal law that protects workers’ rights.

TruStage said these allegations are false and has always respected the right of union employees to strike.

Union members have been operating under an expired contract for 14 months and have not received a pay increase in more than two years.

OPEIU 39 Chief Steward Joe Evica pointed out that in one of TruStage’s proposals over wages, the company offered no retroactive pay for the 13 months it has “illegally delayed” bargaining a new contract.

“Adjusting for inflation, their proposal is more than a 4% pay cut,” he said.

Union members became enraged when TruStage terminated Evica’s employment; he is a former retirement specialist for the company.

The union alleged TruStage retaliated against him. Evica has filed charges of illegal retaliation with NLRB.

TruStage claimed Evica violated workplace rules regarding data privacy and information handling as stated in the labor agreement.

Evica was accused of inappropriately using CMG’s internal information to obtain email addresses of credit union leaders. In January, the union sent a letter to more than 7,000 credit union leaders warning there could be a potential disruption of financial services with TruStage due to a labor dispute.

However, the union said it informed TruStage that it purchased the email address list through a third-party marketing company and has the invoice to prove it.

In addition to wages, both sides are at odds over retirement, health care, remote work and job security.

TruStage said because of its strong business resiliency plans, it has continued to provide uninterrupted service to customers during the strike.