‘Fearful, divisive, scary’: Employer accused of union busting by employees for layoffs

By JT Cestkowski

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    MADISON, Wisconsin (WKOW) — Unionized workers at a Madison organization are accusing their employer of union busting via pending layoffs poised to impact one-in-four employees.

Tension has been increasing between Office and Professional Employees International Union (OPEIU) Local 39 and America’s Credit Unions (ACU), a credit union advocacy group, since the latter announced layoffs in January. OPEIU is the labor union representing some of the workers at the employer.

OPEIU Local 39 sent out a statement Thursday objecting to ACU’s impending layoffs. The employer filed a legally-required notice with the state Department of Workforce Development in January warning it would soon let go 25 percent of its workforce. The reduction would amount to approximately 38 people at the Madison office.

“Trying to understand how layoffs will impact us has been exhausting,” Jillian Crubel, a union member and ACU employee, said. “Union-represented employees have been asking management for information about layoffs for months. The organization has been purposely withholding while at the same time putting a target on the union’s back.”

When layoffs approach at an organization with workers represented by a union, the two sides will commonly negotiate to try to find another way to reduce costs before resorting to firing people.

The workers claim the employer made no such effort despite requests to do so by OPEIU.

“We have consistently and openly engaged OPEIU, with whom we have had a decades-long relationship, in discussions regarding the represented positions affected by the merger,” a spokesperson for ACU said in a statement. “Those discussions, including the consideration of alternatives to position eliminations, continue, as our organizational structure is not complete at this time.”

ACU merged with another credit union advocacy group last year, leading to duplicate roles at the organization. The employer is also anticipating a shortfall of $12 million, according to OPEIU Local 39.

The labor union acknowledges that cuts need to be made, but its members feel cuts could come elsewhere before slashing people.

OPEIU Local 39 members see this fight as existential. Over the years, the union’s represented staff at ACU have dropped considerably. At its height, the labor union represented hundreds of employees at the employer. Today, that number is approximately 40.

OPEIU’s chief steward at ACU, Sarah Shepler, said the company has employed a series of tactics she believes are intended to reduce the union’s representation within the company.

According to Shepler, the employer has promoted union workers into positions labeled as management, but in fact are nearly identical in terms of responsibility as the previous job title.

ACU has also adopted a practice of replacing unionized positions with independent contractors. Neither management nor contractors are eligible to be in a union.

“So, this diminishing relationship with the union has been devastating for us,” Shepler said. “This particular process has been … fearful, divisive, scary.”

OPEIU Local 39 said the employer has retained the services of Littler Mendelson, a law firm known for helping companies like Starbucks avoid unions.

The losses of OPEIU representation at ACU has alarmed the workers as declines in union membership are correlated with wage stagnation and rising income inequality.

Nationally, union density has declined from 20 percent of all wage and salary workers in 1983, to 10 percent as of 2023, according to the Bureau of Labor Statistics.

The full statement from the ACU spokesperson is below:

As a member-based trade association, our members voted for a merger that went into effect January 1, 2024. It’s common knowledge that mergers are complicated, and it takes time to sort through duplicative roles in the new organization. We are just five months into our year-long transformation, and we have continued regular communication with our 290 valued staff, including those who are represented by OPEIU, recognizing the uncertainty that goes alongside a merger and consolidation. While the foundation of our business offering is in Washington DC, Wisconsin law requires notice when a reduction in a state-based business’ workforce may take place. We have consistently and openly engaged OPEIU, with whom we have had a decades-long relationship, in discussions regarding the represented positions affected by the merger. Those discussions, including the consideration of alternatives to position eliminations, continue, as our organizational structure is not complete at this time. We must responsibly and efficiently align the size and function of our workforce to effectively serve our members and remain good stewards of their dues. America’s Credit Unions is committed to treating all employees fairly and with respect, throughout this transformation process.

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