Wells Fargo's handling of union initiatives should be examined by the Federal Reserve and the Office of the Comptroller of the Currency, according to Brown.
In a letter sent to the Federal Reserve and the Office of the Comptroller of the Currency, Senator Sherrod Brown has asked for an investigation into allegations of labor abuse by Wells Fargo. The allegations, which include potential violations of federal labor laws, have been raised by employees who have accused the bank of retaliation for organizing union efforts.
Over the past year, employees at Wells Fargo have filed charges with the National Labor Relations Board (NLRB) over these allegations. The NLRB has investigated three cases involving similar allegations at Wells Fargo's Beaverton, Oregon, call center. In April and May, a manager at a Salt Lake City call center allegedly threatened an employee who was distributing pro-union literature to co-workers, leading to an informal settlement between Wells Fargo and the NLRB.
Senator Brown's request comes in opposition to efforts by the bank's employees to unionize. Trevor Brown, a 10-year Wells Fargo employee based in Arizona, stated that once conversations about unionization begin, there's often a lot of vitriol, and voiced complaints and concerns are often met with disdain or being told that they'll work on it next year. At least one Wells Fargo Workers United member has called the bank's claim to respect workers' rights to collective bargaining "laughable."
The allegations of labor abuse are not the only concerns facing Wells Fargo. Senator Brown has also called out the bank over reports of racial disparities in mortgage lending, fake job interviews for nonwhite and female candidates, and anti-money laundering concerns. In a letter to Wells Fargo CEO Charlie Scharf in May 2022, Brown expressed his opposition to these practices and urged the bank to address them.
Senator Brown believes that regulators must factor allegations of unfair labor practices into their assessments of Wells Fargo's safety and soundness. He asserts that potential labor law violations raise additional concerns about Wells Fargo's continued inability to fix its long-standing problems and do right by its customers, investors, and workers. Existing monetary penalties and growth restrictions have not been sufficient to prevent Wells Fargo from repeated consumer abuses, compliance failures, and gross mismanagement, according to Brown.
Wells Fargo maintains that it respects employees' rights under the National Labor Relations Act and does not prohibit employees from discussing wages, benefits, or terms of employment. However, Brown notes that Wells Fargo CEO Charlie Scharf testified last year that he would not remain neutral if Wells Fargo employees try to unionize, and his most recent letter may telegraph a line of questioning Brown intends to engage with Scharf at a Dec. 6 hearing.
This is not the first time Senator Sherrod Brown has taken action against Wells Fargo for alleged labor violations. In 2020, he filed a similar request to the Federal Reserve and the Office of the Comptroller of the Currency. As the investigation into these allegations continues, it remains to be seen whether Wells Fargo will take steps to address the concerns raised by Senator Brown and its employees.
