The U.S. government narrowly avoided a shutdown over the weekend — which would have been the fourth in 10 years and just one link in a chain of ongoing work stoppages that have impacted workers in a range of industries across the country. Other links include the monthslong Hollywood writers’ strike — which ended last week — and the United Auto Workers strike, which has actually expanded to additional plants and now encompasses 25,000 workers. A potential strike by cooks and bartenders in Nevada could also bring Las Vegas to a standstill in the coming weeks, if not sooner.
Amid all that, credit unions are doing what they’ve always done: supporting hardworking people in difficult circumstances. CreditUnions.com reached out to nearly two dozen credit unions serving those in industries or areas impacted by the work stoppages to get a sense of how cooperatives are stepping up and what lessons they’ve learned from similar situations in the past. The following is a selection of their answers.
Community Choice Credit Union ($1.8B, Farmington Hills, MI)
What is Community Choice doing to help members impacted by these work stoppages?
Jenny Ludwigsen, vice president of marketing: The UAW strike is just one financial disruption our members could be facing. Others might be challenged to reincorporate student loan payments into their budget or face emergency expenses they are unable to cover with savings. We’ve created a financial relief hub to provide members with resources, connect them with team members, and highlight special programs and ongoing options like Express Cash that help members weather the storm.
Is this relief specific to this situation or ongoing?
JL: We offer lending programs like our financial relief loan for those impacted by the UAW strike during special circumstances. We update and offer these programs as needed, and we have offered similar relief programs during the pandemic and previous UAW strikes.
Other options, like Express Cash, are always available to members.
What advice do you have for credit unions that want to better serve their own members in similar situations?
JL: Get creative. Providing options gives members much needed choices to meet their own specific needs — not having to take a one-size-fits-all approach to their finances. Next, plan ahead as much as possible. Keep an ear to the ground and develop relief plans you can quickly implement. Members in need will look elsewhere if there’s a delay in communicating and delivering options.
Mainstreet Credit Union ($642.0M, Lenexa, KS)
What is Mainstreet Credit Union doing to help members impacted by these work stoppages?
Lisa Swinney, vice president of marketing: We have introduced a checking account promotion exclusively for our UAW members, enabling them to receive a $150 deposit and have some additional funds at hand. We are offering a $1,000 loan at 0% APR to our UAW members with no required payments for the first 60 days. Additionally, we offer the possibility of loan extensions, carefully evaluated on a case-by-case basis.
Is this relief specific to this situation or ongoing?
LS: To better assist our UAW members during these challenging times, we extended the checking account special, which was initially available from July to September this year. We made certain adjustments to the qualifying factors, ensuring our UAW members could swiftly receive the $150 deposit.
The $1000 0% loan is an ongoing offer for our preferred partners. However, we recognized the additional financial strain caused by the strike, resulting in a lack of regular paychecks. To alleviate this burden, we introduced the benefit of no required payments for the first 60 days, specifically tailored to help our UAW members effectively manage their finances. Loan extensions are a standard offering of our credit union for members in need.
What advice do you have for credit unions that want to better serve their own members in similar situations?
LS: It is essential to empathize with our members and understand their needs. By putting ourselves in their shoes, we can identify areas where they might require assistance. This could include financial struggles, job loss, health issues, or other personal challenges.
It is crucial to educate our staff about the various resources available within the community. By equipping them with this knowledge, they can guide members to seek additional support when their situations exceed our capabilities. These resources might include government assistance programs, non-profit organizations, counseling services, or community initiatives.
Furthermore, we must strive to be a source of understanding and compassion. Our members might be facing unprecedented difficulties, and it is vital to approach their situations with empathy and sensitivity. By offering a listening ear and providing emotional support, we can create an environment where members feel comfortable sharing their concerns and seeking assistance.
Astera Credit Union ($204.9M, Lansing, MI)
What is Astera Credit Union doing to help members impacted by these work stoppages?
Martin Carter, president and CEO: We have a formal strike assistance plan that includes several products and services that address financial hardships coming from a strike [including skip-a-pay options on loan payments, multiple loan options, and more]. In the case of a potential government shutdown, we were planning to restructure those offerings to specifically address the shutdown.
Is this relief specific to this situation or ongoing?
MC: We continually offer all of our members financial hardship assistance. The only difference in cases of a strike or government shutdown is the Lending a Hand loan, which we specifically designed and implemented years ago in response to a UAW-GM strike. We offer this loan only during strikes or temporary shutdowns.
What advice do you have for credit unions that want to better serve their own members in similar situations?
MC: Most credit unions have a good handle on the unionized or government employee makeup of their membership and stay in tune with the progress of negotiations taking place with those segments. Be proactive and not reactive when addressing the potential for a strike or a government shutdown. Like Astera, most credit unions already have products and services in place to assist members experiencing temporary financial hardships. Therefore, the issue needing the most attention is what, how, when, and who to communicate this information to. That’s where organized, proactive communication planning and preparation comes into play.
Astera CU has a good relationship with the leadership of the General Motors union (Local #602) representing a large segment of our membership. When we were contacted by Local #602 leaders in anticipation of a potential strike, we already had our strike assistance message compiled and ready to go. We also offered to send a group of employees to the union hall to meet and talk with its members about our ability to help them during a financial hardship caused by a strike. It took us up on the offer, and Astera set up an information booth and spent two days in the union hall during the strike authorization voting process talking with concerned union members and handing out strike assistance literature. This proactive approach was greatly appreciated by both union leadership and the union members with whom we were able to speak.
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Justice Federal Credit Union ($954.4M, Chantilly, VA)
What was Justice FCU planning to do to help members impacted by a government shutdown?
Pat Duke, AVP, strategic partnerships & initiatives: New and existing members could apply for a Special Assistance Loan up to a member’s net pay for one month. The loan features an annual percentage rate as low as 5.99% over a six-month term. Members may opt to defer their first Special Assistance Loan payment for up to 60 days, with interest continuing to accrue.
Existing members in good standing with a Justice Federal consumer loan or credit card could request to defer their loan payments up to 30 days and request assistance with a Justice Federal First Mortgage loan. Based on the length of the federal government shutdown, members could request additional 30-day deferments.
Was this relief specific to this situation or ongoing?
PD: We began offering special assistance to our members furloughed when the federal government shutdown occurred in 1995 under the Clinton administration, continued to do so in 2013 when the shutdown lasted nearly 16 days, and again in 2018/2019 when the shutdown lasted more than 30 days.
We stand ready to assist our members in the event they are furloughed. Our special assistance unsecured loan rate has varied over the years; however, the rate has always been advantageous when compared to industry rates.
What advice do you have for credit unions that want to better serve their own members in similar situations?
PD: Credit unions that want to better serve their own members in similar situations should strive to put themselves in the shoes of the members they serve to determine how they can solve the challenges that confront their members.
As our CEO said in a recent press release, “We were founded in the halls of Justice in 1935 during the Great Depression by employees of the Department of Justice seeking to help their fellow employees in need financially. We are proud to continue to uphold our founders’ legacy by helping our members and their families in time of need.”
United Federal Credit Union ($3.9B, St. Joseph, MI)
What is United FCU doing to help members impacted by these work stoppages?
Kaylee Ganus, chief marketing officer: As we’ve done for many years, United is ready to step up with a financial relief program that gives members as many options as possible, including access to skip a loan payment, access to a signature loan with no payment for 90 days, and access to funds they might have in a share certificate free of penalty. We’re happy to offer these programs because we’d want the same level of care if we were facing uncertainty.
Is this relief specific to this situation or ongoing?
KG: Even a slight disruption in someone’s finances can be stressful, especially when it concerns their job. United makes relief programs like these available so our members can breathe a little easier when times are uncertain. From the government shutdown of 2019, the pandemic, or even natural disasters, United has built a financial assistance response plan it can activate quickly. The three-part plan includes member education of existing products that could benefit their unique circumstance, exceptions to products or services such as waiving fees or payment extensions, and targeted outreach and communication so members in need — like government employees — know United is in their corner.
What advice do you have for credit unions that want to better serve their own members in similar situations?
KG: We can’t always predict when challenging financial times will occur, but we can put our best minds to the task of preparing for them. That’s been a successful approach at United — plan ahead and be flexible. Take a look at your products, services, and employee experts to gain a full understanding of your resources. Get agreement from leaders and front-line and back-office stakeholders, and, most importantly, keep your action plan up to date so you can serve members and your community without delay.
Securityplus Federal Credit Union ($557.2M, Baltimore, MD)
What is Securityplus doing to help members impacted by these work stoppages?
Tricia Szurgot, CEO: We recognize each member’s situation is different and have taken several steps to ensure members receive the assistance they need during these challenging times. Our team members are empowered to offer members relief options tailored to their specific needs. Some of the programs we have put into place include:
- Emergency Loan: A special personal loan for housing, food, and other necessities with the first payment postponed for 90 days.
- Skip-A-Pay: Skip a monthly payment on a qualifying credit union loan without incurring penalties or fees.
- Penalty-Free Share Certificate Withdrawal: Redeem a share certificate prior to maturity with no early withdrawal penalty.
- Share Secure Loan: Borrow money using the funds in a share savings account as collateral.
- Free Financial Counseling: Certified counselors provide strategies and tools tailored to a member’s specific financial situation.
We also understand the urgency of our members’ financial need, and we’ve streamlined the application process to ensure members get the assistance they need promptly. Our lending team is committed to accommodating members by ensuring quick turnaround times for approvals and to fund loans. Additionally, we implemented a cue in our phone system to prioritize calls from members affected by a possible shutdown.
Is this relief specific to this situation or ongoing?
TS: We always offer skip-a-pay, the share secure loan, and the personal loan. The emergency loan program provides more flexible repayment options for members facing financial difficulties due to furlough, government shutdowns, natural disasters, and other unforeseen circumstances. With our flexible terms, the first payment is not due for 90 days, which reduces some of the stress that comes with taking on an additional loan.
We’ve successfully implemented special relief programs in response to past government shutdowns and the COVID-19 pandemic that have greatly benefited our members. In addition to these options, we have also offered loan extension relief.
What advice do you have for credit unions that want to better serve their own members in similar situations?
TS: With a large portion of our member base being employees of the Social Security Administration and Centers for Medicare & Medicaid Services, it is essential we tailor programs to give our members personalized options and financial peace of mind during times of great uncertainty. We strive to offer programs, make decisions, and take actions that prioritize our members’ financial health and wellbeing above all else.
Interviews have been edited and condensed. Rebecca Wessler contributed to this article.