Pro / Con: Is bank unionization next?

There is little debate the banking industry is in turmoil. The next question to ask is how can we avoid repeating the same problems? As told to Tom Sabulis

Pro

Stephen Lerner, Special Assistant to the President, Service Employees International Union (SEIU)

Workers at big banks like Bank of America can play a central role in reforming an industry that puts profits over people and drove our economy into the ground. But they need a voice on the job to sound the alarm and repair our economy. These are exactly the kind of workers who benefit from a union, and it is an excellent example of how having a voice on the job can significantly improve the services workers provide, much like nurses who have united to form unions to win safe staffing levels and mandatory overtime bans to ensure quality patient care.

All workers should be free to form unions. Especially in an industry where bank tellers earn poverty wages while executives get multimillion-dollar bonuses. By allowing bank workers to form unions, they can unite to create an industry that puts consumers, workers, and our economy ahead of profits.

—-

Con

Peter R. Spanos

Labor & Employment Partner, Burr & Forman

The realities of the marketplace may sidetrack organized labor’s questionable plan to gain leverage over America’s banks by winning representation of their employees. The centerpiece of labor’s agenda, the Employee Free Choice Act, is stalled for lack of Senate votes and faces widespread criticism. The Service Employee’s International Union’s campaign to unionize bank workers, particularly tellers, is long on propaganda but unmatched by results. Fewer than 2 percent of all bank employees nationwide are represented by unions, with most in only about a dozen banks. The SEIU has plans to picket some banks, but their employees are not reaching out for help. Banks hire high school graduates, can offer part-time work and provide extensive training.

Traditionally, employees seek work at banks for job security. Unionization will hurt, not help. Compensation and benefits run 7-8.5 percent higher at unionized banks, a serious drawback now. Union work rules and grievances could add more operational costs.