How are credit unions, as cooperatives, different from other financial choices?
The difficulty from a Jim Blaine post: (link)
The members have become “outsiders”….
and therein lies our greatest challenge for the future!
One member / one vote; a democratically elected Board; a common goal, a common purpose – the common good !
Kind of an “outside the box” sorta view….
“We’re all in this together” no longer applies.
One member / one vote; a democratically elected Board; a common goal, a common purpose – the common good ! The cooperative structure has become an “empty suit.”
Jim’s visual distinction is critical. Increasingly credit union CEO’s and boards view the credit union institution as separate from its member-owners. In cooperative design there are not two separate “stakeholders.”
Creating Differentiation Through a Cooperative Lens
What if your credit union’s budget for 2026 projected net earnings every month. But then management and the board agreed to distribute each month’s bottom line directly to benefit the member-owners of their community most in need? In effect a breakeven outcome so that members can assist other members through their common link, the credit union
United Trades FCU was founded in 1955 by members of Steamfitters Local 235 which is today the Local 290 of the United Association of Plumbers & Steamfitters (UA Local 290).
UA Local 290 members are the skilled tradespeople behind the region’s largest construction projects. These oinclude industrial facilities, hospitals, universities, and commercial buildings that define the Portland skyline. At a consumer level, they provide the heating, plumbing, and pipefitting systems that keep homes and communities running.
The credit union office is in the UA Local 290 union hall in Tualatin, Oregon. The credit union today has $56.7 million in assets serving over 4,200 members, many local but also members who travel to other jobs and other locals which do not have credit union access. An additional 2,200 union members maintain vacation fund accounts through the credit union, a benefit administered on behalf of UA Local 290.
The credit union staff of 10 is led by Sarah McNeil, who first joined as a filing clerk in high school. She returned after college as a Loan Officer and worked her way through nearly every staff function.
When the Great Recession hit UA Local 290 hard, with mass layoffs and members unable to pay their bills, the credit union created CU By Design. This CUSO connected small cedis unions with with needs to those with unused capacity United Trades was able to generate income through the CUSO to offset losses and still serving members throughout the downturn. Sarah served as CUSO Director for a decade before returnng to the credit union in 2018 to lead the Member Services team. On January 1, 2026, she was appointed CEO.
.The union legacy and role is a central factor in how the credit union and members work in tandem. As stated on the website, United Trades FCU is your cooperative, built by members, for members. Every dollar you save, borrow, or invest stays in skilled trades community.
A Cooperative Innovation-Solidarity Link
When I read about a new approach for a credit union called Solidarity Link, I reached out to learn more. For it seemed to put members and the credit union together in Blaine’s single block.
The theme of solidarity is at the heart of union membership and the credit union’s member first riority. The professional life of a steamfitter is uncertain. Work on large construction projects ends. Many assignments, while full time, are temporary. When no job requests are available locally the union members will travel to work on construction with other locals around the country.
In addition, there are the uncertainties of labor negotiations. On April 16, Local 290 members voted to authorize a strike in connection with their Master Labor Agreement negotiations. A strike authorization d is a bargaining tool that gives union leadership leverage at the table.
The contract was settled this week. So the signs were not needed.
Solidarity is embraced by the credit union staff. Some of the Local 290 office team, are members of OPEIU, Local 11. No strike, but t-shirts were ready. This was the promise of credit union support had a strike occured. (link)
The Solidarity Initiavie
The program is outline on the web site )link). The Relief Valve is a series of member options to ease financial pressure when the work cycle tightens or life changes unexpectedly.
The Resevoir are options and tools to help members build strength during good times and prepare for what’s next in the work cycle.
All receive a free $100 travel card when going to an out of area job. Fifteen for a total of $1,500 have been issued thrugh April.
Menal health counseling is a srvice now available for all members.
there have been 12 loans totally $57,000 to members in financial stress. overall 119 members have been helped in one of seven financial methods.
In April. the baord approved a one time hardship payout to all apprentice members who have been out of work for at lest 30 days (estimated at 80), This one tme payment of $185 will total an estimated $15,000-from current earnings.
Why this examp;le matters will be presneted tomorrow in Part II.
Further details of the credit union’s perforamance are in its 2025 Annual Report.