*Additional commentary has been added regarding contract negotiations for Wells Fargo's Albuquerque, New Mexico-based branch*
Labor unions have become a growing presence across the U.S., as employee victories in healthcare, retail and other industries give rise to campaigns elsewhere. Despite still being a rarity in the banking industry, staffers at Wells Fargo are hoping to buck that trend one branch — or nonbranch — at a time.
Data released earlier this year by the
Finance had the lowest rate of the private sector at 1.2%, and between 2022 and 2023 there was a drop in the number of employees that both belong to a union or whose positions were covered by a union or employee association contract.
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But within that 1.2%, employees have been able to organize their workplaces and in doing so, work towards addressing issues like
Employees of the $1.9 billion-asset
"Whether that's through a union or another mechanism, giving employees a structured way to express their needs and concerns can lead to more informed and effective management decisions," said
Since then, others such as the $42 million
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Sean Higgins, a research fellow for the nonprofit think-tank Competitive Enterprise Institute, said in a prior opinion article for American Banker that the "original defense against union organizing efforts pioneered by automobile magnate Henry Ford in the 1920s" has yet to be improved on.
"Ford's tactics were: Pay your employees well (at least the industry standard, if not higher); provide them with good benefits and a safe work environment and keep an ear open for any concerns they might have," Higgins said. "Do those things and it is unlikely workers will see any need for a union."
Read on to see how Wells Fargo employees have progressed since unionizing the first branch in late 2023, and what organized employees predict for the future.
Wells Fargo employees in New Mexico, Alaska take first unionization steps
In the wake of labor union victories for employees of Starbucks and in other industries, Wells Fargo staffers working in Albuquerque, New Mexico, and Bethel, Alaska, announced their decision to file for a union election with the National Labor Relations Board in November 2023.
Organizing experts with the Communications Workers of America worked with the employees to help them understand what their rights were regarding labor unions and organize efforts to address issues with wages and working conditions.
"This is just the beginning," Nick Weiner, organizing director at the CWA's Committee for Better Banks, said in an interview with American Banker's
A spokesperson from the bank said contract negotiations at the New Mexico branch began in November last year, and leaders remain "committed to bargaining in good faith."
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What comes after a Wells Fargo branch votes to organize?
Just one month after the employees of a Wells Fargo branch in Albuquerque, New Mexico, voted to organize an official vote to unionize, staffers successfully voted 5 - 3 to form a union — cementing a significant moment in the bank's history.
"Today marks a historic moment for Wells Fargo workers, bankers and the labor movement as a whole," Alexander Rihani, associate personal banker at the New Mexico branch, said in a
Bank employees at a bench in Daytona Beach, Florida, also filed for an official election with the NLRB.
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Wells Fargo's Scharf weighs in on unionization at shareholder meeting
Wells Fargo CEO Charlie Scharf weighed in on the unionization drive happening at the bank to say that while it is "committed to bargaining in good faith" with employees, it won't shirk the perspective that working instead with management directly is a better choice.
"It's important to make clear that we continue to believe that our employees are best served by working directly with
Experts with the CWA have been working with employees of Wells for some time now, and were able to notch their first win through a New Mexico branch in December.
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Wells Fargo employees at nonbranch unit expect first union win
Despite formal challenges by Wells Fargo executives, organizers with the CWA are confident that employees in the bank's conduct management intake group were successful in voting to unionize.
The bank contested the ballots of eight former employees, who were dismissed nine days before the vote to organize was held. The CWA rescinded its objection to the challenge, as leaders felt that the group supporting the effort was still greater than those objecting by a considerable margin.
Those who voted work in Wells' conduct management intake team and are tasked with reviewing customer and employee complaints. Despite laying off nine of the team's more than 40 employees, the bank maintained that the decisions were not related to labor activities.
"We regularly review and adjust staffing levels to align with market conditions and the needs of our businesses. The decision was made earlier this year [2024] and has nothing to do with the union," a bank spokesperson said.
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Wells Fargo gets its first nonbranch employee union
A favorable 21-16 vote on Dec. 10 has handed Wells Fargo its first nonbranch employee union, and organizers are hopeful to continue the momentum.
The vote was certified by the NLRB earlier this month, recognizing the efforts of the bank's conduct management intake team, which oversees the handling of certain customer and employee complaints.
"Today is a historic moment for making a real difference at
Wells Fargo did not respond to requests for comment, but said prior to the NLRB's ruling that the bank "respect[s] our employees' rights to vote for or against union representation, and we will honor the outcome of any certified election."
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