An agreement, an understanding, a contract between people.
The SECU Board and Executive Leadership Team (ELT) seem to believe that they may "change the rules of the game" willy-nilly. That attitude does not appear to be in keeping with "the foundation documents" - the organizational charter, the by-laws, nor the statutory requirements - of SECU as a member-owned cooperative. And, a one-sided breach of a covenant is always a breach of trust.
Willy-nilly isn't working! Financially at SECU over the last "new/new" years, growth has stalled, assets have declined, operating costs are leaping, lending savvy appears marginal. The "new/new" track record is strewn with questionable leadership hires, an embarrassing RBL about-face, non-market rates on most member savings, and a disturbing demoralization of staff - through missteps in organizational restructuring, operational snafus, and short-sighted changes in recruitment, benefit, and career advancement practices. A decline in the quality of service has not gone unnoticed by long-term members.
Now the proposed capping of retiree health care benefits has raised yet another red flag concerning employee covenants vs. Board attitude [see post - "We" Board Foolin' Around?] and [post - "Capping Retiree Health Care..."] Take particular note of the comments. It also needs to be made very clear that any capping of retiree health care benefits will affect current longer term employees, also.
Folks who have been around North Carolina state government for a few years have witnessed how a breach in employee benefit covenants plays out in the real world and in our State courts. The State of North Carolina attempted to change retirement [The "Bailey" Case] and health care [The "Justice Lake" Case] benefits for North Carolina state employees in the 1990/2000's.
Extended, expensive lawsuits followed. The results were two rulings by the N.C. Supreme Court which ruled in favor of state employees. The State of North Carolina, as an employer, was told it could not unilaterally breach a covenant on employee retirement and health benefits. Those Supreme Court decisions cost the State over a billion dollars in restitution and legal fees.
If in fact, "employees are our greatest asset", then the SECU Board and ELT should take their words to heart.
A one-sided breach of an employee covenant is always a breach of trust.
Especially when most of the current SECU Board members are personally benefiting from those hard fought Bailey/Lake employee benefit lawsuits!
Employees are treated like sh** now. Basically told to shut up and put on a smile for the membership.
ReplyDeletewell they made it to "Industry Standard" ... hope they're proud of themselves, cause nobody else is ...
DeleteBoard has too many current and former lobbyists milking the state and citizens and now us
ReplyDeleteOctober needs to be packed! This all needs to be questioned at the annual meeting! Put them on the spot!!!
DeleteDon't you know that this Board has eliminated all discussion and q&a at the annual meeting? That's how evil this group is.
DeleteWith Katrina Ray's total support. Hope she'll go too, not doing her job for us.Everything credit union is becoming a bad joke in our state.
DeleteBtards!
ReplyDeleteguess that "legal dept" didn't do their due diligence on this... why doesn't that surprise me?
ReplyDeletewhat are the facts of those cases and how is this situation similar?
Deleteso basically the Board isn't allowed to change anything, ever? otherwise its a breach of a covenant or trust? we can't afford to absorb 100% of the market cost increases that you pointed out. which companies can? there's also a reason why most companies went away from retiree medical and defined benefit pension plans. god forbid you ever feel grateful for what you do have.
Deletemy, my ,my must be from loan administration.
DeleteBecause loan admin makes decisions on health insurance? Jesus you folks are a piece of work
DeleteRemember when the ceo stated secu had the two most profitable years ever at over a billion dollars? Can’t afford some insurance with over 500 million in profit? Where did that money go? It wasn’t provided to the members in a fair rate on their deposits.
Deleteoh please 5:40.... spare me the crocodile tears ...
Deleteguess it cuts into your "PROFITS"!!!!
You obviously don't adhere to "Do the Right Thing"! This BS thinking is why this credit union is in the shape it's in ... Did you happen to forget the people earned this benefit? How about we can't afford to pay you? That day is slowly approaching ... ever heard of AI?
"Because loan admin makes decisions on health insurance? Jesus you folks are a piece of work"
Deletedon't you have some work to do?
Oh, the West Wing of LA weighs in.
Delete“Be thankful” it’s hard to be thankful when our labor is being exploited and our money isn’t being vested back into the membership or employees. Tell me again, how did Jim Hayes earn that 6 million dollar bonus?
DeleteBTW 5:40, I should add from my previous comment that I'm hoping AI doesn't replace you, FWIW.
DeleteBranch employees trash talk Loan Admin on here and cry about long hold times. Majority of us are also hard-working, tenured, short-staffed employees as well, a number of us also in member-facing roles, and we’re doing the best we can with what we’ve been given as well. We’re all on the same team, but it’s tough to be a team when the branches continually tear us down on here (above), treat us like the dirt under their fingernails, be rude and sass us on the phone, hang up on us mid sentence when we tell them something they don’t like (policy is policy—don’t take it out on me!), and berate/yell at us and constantly ask to speak to our VP and SVP.
DeleteThe divisiveness needs to stop.
United we stand divided we fall... we should be united to replace 4 more board members this fall since 'they' are the ones who voted for Gym and all the new/new policies the last 4 years that have driven a wedge between employees (all by design) and treated member/owners as their personal "Profit" machine ...
DeleteAs a member/owner, I'm not a Customer or Client!
As a member/owner I'm voting to fire 4 more Board members this year along with the 3 I Fired last year...
Well then you start with the new hires. Not take away what the retired workers were told was a retired benefit(medical insurance paid and supplemental insurance once you have Medicare). That was one of the perks working at SECU , your retirement benefit was only the medical. Now they want to go back on something that has been in the employee handbook under benefits after retirement. From what I have been told, that's a breach and they can't take that from ones that's already retired and was in their so called package. New hires they can change, but for ones already retired, that's a breach
ReplyDeleteAn employer can make changes to the benefits structure of existing employees. If it will negatively impact the employees, the employee has to be given at least 12 months notice. So if you change vacation rules, then a year's notice has to be provided to the employee.
DeleteYears ago when SECU's employees were contributing to the state retirement plan, they stopped offering new employees that opportunity. They also offered those that were contributing an option to stop with a bump in salary as a sweetener. So where is the sweetener here? The only thing this will alleviate is the cost structure with the added reduction in staff because it shows this board's hand. There are too many employees concerned and with reducing their benefits, they are going to start looking.
8:30 am, this reflects most of my thoughts about this situation. I was depending on SECU medical to supplement Medicare for drug coverage. Listed in my upcoming retiree benefits for over 40+ years. After going through 2 retirement classes and filling out forms months before retirement, I was feeling secure. In less than 2 years, I am feeling betrayed. /CC
DeleteHow about not take away the benefit at all? This isn’t about old vs new employees. We should want this benefit for everyone including workers in other companies. No one should be struggling to make ends meet and not have a quality of life especially if you have a full time job. If the company can’t take care of its employees…then it probably shouldn’t be in business.
DeleteExactly 6:07 when mgmt said they stopped offering RO85 to new hires because they would rather have a bit more money now than the RO85 later, that is being shortsighted IMO. Management needs to look out for the younger workers because they should possess some wisdom that allows them to understand that down the line you need more care as you age. The Shepard has to look out for his flock else the 'profit' wolves will ... unfortunately we see that all the time in society.
DeleteSays someone who won't make it to the rule of 85 and doesn't care.
ReplyDeleteI think most long term employees would agree that certain concessions have been made over the years in exchange for certain benefits. I could have made more money at a bank. Much more. I gave that up for job security, a better mission, and good health benefits in retirement. The commenter who said these retired employees earned it are right. You want to change it, change it for new employees. Not the ones who already made the sacrifices to earn this long promised benefit.
ReplyDeleteLouder for the ones in the back 🙌
DeleteIf a company can’t invest in its staff then it has no business operating a financial institution. There is no being thankful about it when it comes to good benefits. This should be a given to any company. Life shouldn’t be misery. We do the work anyways. Executive team and board does NOT. They sit around and make decisions about YOU! That’s their job. We are seen as an expense. Not an investment.
ReplyDeleteBingo
Delete“You gotta earn it” it’s very rare a ceo earns anything in life. Most of the people that get executive jobs are just a buddy network full of rich people or yes men that will keep the status quo. Every American deserves good health insurance and retirement plans from their employers. Corners shouldn’t be cut.
ReplyDeleteAmen. Best post I’ve seen.
DeleteI think this comment should be your next post. Every human has a right to healthcare. Humans are not an expense.
DeleteSo my question is, if they change this, what's the retirement benefit for staying at SECU and working your tail off for 30+ years. A plaque and a vase or clock? Oh yeah, that's awesome I would love to retire here said no one ever
ReplyDeleteHow many retired employees would be willing to file a lawsuit on this?
ReplyDeleteIt was a pool of insureds. Old and young. you need both. no one can "opt" out. employees must participate. and nothing special for the Leighduhship.
ReplyDeleteBoard is incompetent. Time to sue them individually for breach of duty and trust. Their personal wealth can be used to make employees whole from our losses from their negligence.
ReplyDelete