FORT SMITH, Ark. — The Fort Smith Dixie Cup Federal Credit Union has been a resource located inside the Dixie plant for 75 years. It's a not-for-profit organization where employees can do their banking with lower fees, lower interest rates, and higher savings rates.
However, Dixie's parent company Georgia-Pacific is arguing having the resource could be a safety concern.
In July, Georgia-Pacific shared with the credit union that they need to vacate the current location "due to planned security infrastructure upgrades taking place in the coming months." They went on to say that once these new security measures are put in place "external customers will no longer be able to freely access the credit union offices."
Georgia-Pacific offered the following statement to 5NEWS:
"Georgia-Pacific values the work of the credit union and understands that credit unions exist in many of our communities and serve an important financial role. The credit union is an important resource for many Dixie employees at Fort Smith, as well, and we desire that relationship to continue."
"However, given the timing of the planned security upgrades, Georgia-Pacific believes it is the right time to start working toward a planned exit. Our intent is to work cooperatively with the credit union to ensure a smooth transition for its team and customers."
Donnie Fimpel, the union president of the local United Steelworkers Association, Fort Smith Dixie Cup, Local 656, argued this will have a significant impact on employees. He said currently there's 1,200 employees and family who use the resource.
"It's community, it's a benefit, as far as lower interest rates, higher CD rates. You can't get that anywhere else," Fimpel said. "People are able to go on their lunch break to do their financial services and before or after work. It's right there. It's so convenient."
He said the credit union is able to provide employees special rates because right now they don't pay rent for the facility.
"It was established in 1949 by salary members to benefit the hourly employee, and so that they chartered the credit union back then with no rent, so they don't pay any rent for using the facility," Fimpel said. "If they have to move, or if they can relocate, that means interest rates go up. That means you're not going to get those special rates on CDs and special loans and things like that."
Fimpel added the credit union positively impacts employee morale, and its removal could convey a message that employee needs aren't prioritized.
"The credit union folks, they come to our orientations for new hires. They're at the plant, so they're able to drop mail in our mailboxes and just be very personable with the with the employees," Fimpel said. "There's anger, there's anxiety around it, because there's a lot of money involved. There's folks been here for 45 to 50, years, and they've got money tied up into the credit union."
They're now working to negotiate which could be a lengthy process.
"Under the National Labor Relations Act, we have the right to bargain any changes that affect our working condition, and we feel like this is a big change to our members working condition," said Chad Vincent, Sub Director for the USW Union. "They're trying to take such a simple benefit away from their employees that do it, do a heck of a job and work super hard for this company and make them a lot of money."
Vincent emphasized the convivence factor for losing the credit union.
"If you have become accustomed to doing your banking and then going home and spending time with your family, now, instead of doing that, you've got to run across town to another bank and that," Vincent explained. "The sad part about it is, we're not trying to make a giant fight out of this, but we're not the one that started it."
A representative from Georgia-Pacific came to the plant Wednesday to negotiate. Fimpel said negotiations have now been passed onto corporate. Fimpel said he is continuing to work closely with the credit union to help communicate with the company the importance of the resource and the impact that employees would feel if they were to vacate.