LAS VEGAS — The impending furloughing of thousands more airline employees slated this fall "creates a huge opportunity for us" to step up and serve financially stressed members, Thomas Glatt, the president/CEO of Continental Federal Credit Union, told CU directors last week.
"We can't engage in gloom and doom since in our case we've taken a tactical stand by cutting rates, extending payments and coming up with new products to help our members," Glatt said in workshop remarks made at the National Directors' Convention.
The Tempe, Ariz., CEO acknowledged that "creative numbering" is required, but Continental Federal, with its high net worth of 14%, can still spend the funds to increase growth while also providing assistance to members in times of turmoil.
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The airline CU that serves both Continental and U.S. Airways employees previously was at 17%, "which was why we looked so attractive to Wings," a reference to the aborted and highly public unsolicited merger deal in 2007 by Wings Financial CU of Minneapolis.
As part of its "Member Assistance Package" rolled out to its 25,000 members, Continental is providing monthly drawings for furloughed employees to help pay living expenses up to $1,500. There will be six drawings a month on gas and grocery cards as well, he said, explaining that information on the drawings is being circulated by the airline human relations departments to their employees.
It was reported earlier this year that Continental is furloughing 3,000 of its employees, while U.S. Airways is taking similar measures for 1,700 of its staff.
In addressing the need for CUs to address safety and soundness concerns of members, Glatt stressed the teller line needs to be the focus of renewed training to answer the queries of alarmed depositors.
"There's way too much focus on 'Is my money insured?'" said Glatt, when the emphasis needs to be on the teller discussing the high net worth ratio of the CU "and that the management team is strong."
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