Lake Michigan CU Employees Vote to Decertify Labor Union

Just 15 months after employees at a branch of the $13.3 billion Lake Michigan Credit Union voted to form a labor union, they voted earlier this month to decertify it.

“This action by employees is a powerful reversal of a prior vote to unionize, which occurred at this branch a little over one year ago,” LMCU said in a prepared statement. “LMCU respects the rights of employees to organize but does not support outside unions’ involvement within LMCU, as these organizations are oftentimes divisive, have their own agenda, and don’t necessarily have the best interests of its employee members at heart.”

However, the March 1 vote to decertify the union was no landslide because four employees voted to keep the union, the Lake Michigan Credit Union Workers Alliance and four employees voted to decertify it. According to the National Labor Relations Board, a tie vote results in decertification because the union failed to get the majority of the votes cast.

What’s more, on Feb. 14 LMCU President/CEO Sandy Jelinski wrote in a memo to all employees that the credit union settled an NLRB administrative court complaint with Ivan Diaz, a former LMCU employee, who successfully organized the union last year and alleged he was fired for it. The credit union denied this allegation and said Diaz was terminated for violating internal policies. Nevertheless, Diaz received “fair monetary compensation,” Jelinski wrote in the memo in which she repeatedly stated that employees have the “right to engage in union and other collective activities and (LMCU) will follow all relevant laws and regulations.”

A national union, the Communications Workers of America, which was involved with unionizing the credit union branch, said Jelinski’s memo was part of the out-of-court resolution with Diaz.

“I’m not sure how you square their statement in this Feb. 14 notice to employees respecting the right of employees to form and participate in a union with their quotes in the article (prepared statement) describing how they are dead set against their workers unionizing, but hypocrisy is nothing new when it comes to how many employers respond to workers exercising their right to have a voice at work,” a CWA spokesperson said in a prepared statement. “Too often they become unhinged in order to maintain complete authority and power over employees’ work lives.”

In addition, three of the four LMCU employees who voted to retain the labor union immediately quit their jobs following the results of the tie vote, according to the CWA.

On Jan. 6, 2023, Diaz successfully led the effort to unionize LMCU’s south division branch in Wyoming, Mich., for higher wages, benefits and better working conditions. Of the 13 employees, seven voted in favor of forming a union with the CWA, five employees voted against it and one employee did not vote. It was the first successful NLRB election in the financial services industry in decades, the CWA noted.

Nonetheless, employee support for the LMCU Workers’ Alliance apparently weakened because the union members were unable to reach a collective bargaining agreement with the credit union.

According to the NLRB, employees may file a petition for decertification (RD petition) if they believe support for a union has diminished after collecting signatures from at least 30% of the employees. On Feb. 2, LMCU employees filed an RD petition, which led to the March 1 vote.

LMCU said in its prepared statement that the decertification allows LMCU to work directly with employees at the south division branch rather than having to work through a third party to ensure they have the same full support and benefits, in a timely fashion, as their non-union employee counterparts.

“We are pleased that our South Division branch team has voted to end its unionization. There are two things that drive the success of LMCU, our employees and our members. We are proud to have so many long-standing employees who demonstrate and live the LMCU culture every day. We are also proud and excited to welcome new employees and all they have to offer to the LMCU team,” Don Bratt, LMCU’s chief marketing officer, said in a prepared statement. “Ending unionization at our South Division branch is a demonstration of that team’s comfort and confidence that LMCU is the right place for their professional development and career growth. Together, all of us at LMCU make our organization stronger and more successful in serving our members and our communities. We will always do what is right to help and protect our members and ensure that our employees have a working environment where they can contribute and thrive.”

READ MORE: LMCU’s Feb. 14 Memo to Employees.