Prudential agents across U.S. vote to unionize

Thursday, April 22, 2004 | 11:04 a.m.

SUN STAFF AND WIRE REPORTS

TRENTON, N.J. -- Nearly 1,000 Prudential Financial Inc. agents across the country are now members of a white-collar union following a vote tallied Tuesday.

The New York-based Office and Professional Employees International Union, Local 153, won the right to represent agents in 34 states who work directly for Prudential, but not agents who are independent contractors.

"This is a large unit of insurance agents, a group primarily commission-based and not traditionally thought of as the type of workers that are unionized," OPEIU International President Michael Goodwin said in a news release.

Mail-in ballot results counted at the National Labor Relations Board's Newark, N.J., regional office had 64 percent of agents voting in favor of union representation.

Of the nearly 1,000 agents eligible to cast ballots, 617 voted to unionize while 151 voted against.

There are 4,400 Prudential agents in the United States, many of them independent contractors.

"We are breaking new ground here and are now looking forward to negotiating a contract with Prudential that best represents our members' interests," Goodwin said.

In a statement released Tuesday, Newark-based Prudential said it respected the decision of its agents to unionize.

"We will negotiate with the union in good faith," the company said.

Kevin Kistler, director of organization and field services at the union, said 12 Las Vegas Valley Prudential Financial agents have joined the union. The company has six offices in the Las Vegas Valley.

He said the agents wanted to join the union in order to protect their job security and to preserve good commission rates.

"What was happening is that the commission rates were becoming less favorable to the agents and if they don't produce a certain amount every year they lose their jobs. A grievance procedure gives them security to know that they will keep their jobs," Kistler said.

The successful vote for OPEIU comes two years after the union lost a similar bid to represent nearly 2,000 Prudential agents.

Several unions cover employees at nearly 40 insurance companies around the country, according to an AFL-CIO Web site.

Prudential's insurance and investment businesses earned $18.22 billion in revenue in fiscal 2003.

Kistler said the OPEIU is working to organize another 100 supervisors and professionals in the medical industry in the Las Vegas area. He declined to name the companies.