With Up to 30% of Workforce to be Laid Off, Union Says ACU Refusing to Engage; Says Portion of CEO’s Salary Could be Used to Maintain Jobs

N, Wis. – America’s Credit Unions, the trade group formerly known as CUNA prior to its merger with NAFCU, plans to lay off up to 30% of its workforce in Madison, Wis., according to the Office and Professional Employees International Union (OPEIU) Local 39.

As CUToday.info reported earlier, the trade group filed a notice with Wisconsin’s Department of Workforce Development on January 12 of this year. OPEIU noted America’s Credit Union’s had cc’d Madison Mayor Satya Rhodes-Conway on the notice, adding, “This is a difficult decision, and we appreciate any assistance you may provide to our employees in this difficult period with their job search and transition.”

According to OPEIU 39, America’s Credit Unions has refused to meet or provide any details to OPEIU 39 until April.

“At a second meeting in May, the company announced that it had completed a reorganization, and that position eliminations and layoffs were ‘imminent’,” OPEIU 39 said, adding it has been committed to maintaining quality jobs in the Madison community.

Madison, Wis., was the long-time headquarters of the former CUNA, and numerous subsidiaries, before relocating most of its operations to Washington.

‘Exhausting’ Experience

In a statement distributed by OPEICU, it quoted Jillian Crubel, a conference specialist with America’s Credit Unions and union member as saying, “Trying to understand how layoffs will impact us has been exhausting. 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.”

The union quoted America’s Credit Unions’ Executive Vice President Jill Tomalin as having earlier said the reduction is necessary in anticipation of a shortfall of up to $12 million.

ACU CEO’s Salary Cited

“They’re making cuts to workers while their tax returns show that they’re paying CEO Jim Nussle over $2.5 million,” Andy Sernatinger, business representative for OPEIU 39, said in a statement. “They could keep everyone employed and Nussle would still be a millionaire.”

In its statement, the union said America’s Credit Unions has retained attorneys from Littler Mendelson, a law firm it said specializes in “union avoidance.”

“Littler is renowned for representing companies like Starbucks and Amazon, who face scores of unfair labor practice complaints in front of the National Labor Relations Board,” OPEIU 39 said. “Littler charges clients up to $1000/hour for its services.”

‘A Stark Departure’

Added Sarah Shepler, chief steward for the Union, “For months, we have sought to engage America's Credit Unions in meaningful dialogue regarding the announced 25-30% reduction in the workforce. Despite our repeated attempts, America's Credit Unions has persistently refused to provide critical documents requested through information requests and has continually avoided scheduling necessary meetings. It signifies a stark departure from the cultural equality that CUNA had diligently established over the years.”

America's Credit Unions Responds

In a statement to CUToday.info, a spokesperson for America's Credit Unions said, "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 mergerThose discussions, including the consideration of alternatives to position eliminations, continue, as our organizational structure is not complete at this time," the spokesperson continued. "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."

America's Credit Unions declined to provide a response to a CUToday.info question related to staff reductions in the Washington office.