U.S. labor board prosecutors prepared to bring Wells Fargo & Co (NYSE: WFC) into the books for violating federal labor law at an Oregon call center pending a settlement.
A National Labor Relations Board (NLRB) regional director found that the company violated labor laws by enforcing a rule that barred employees from distributing pro-union literature without prior management approval.
Additionally, the regional official found that the company unlawfully removed pro-union literature from non-work areas on its property, Bloomberg cites agency spokesperson Kayla Blado's email.
Former NLRB member Wilma Liebman stated that mandating approval would restrict communication in line with federal labor law.
The Communications Workers of America union, which brought the labor board case, has been striving to establish a presence among workers like tellers and personal bankers for a decade.
Wells Fargo has noted increased organizing activities within its workforce, including more flyer distribution. The company conducted labor relations training for branch managers and higher-ups to address employee concerns.
In a separate NLRB case in Salt Lake City, Wells Fargo settled with an employee who claimed threats of retaliation for distributing pro-union literature. The settlement led to an agreement that the company would not restrict non-working areas on company property for union flyer distribution.
Amazon.Com, Inc (NASDAQ: AMZN) has often hit the headlines for opposing its warehouse unionization activities to protest its pay and working conditions. Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) also faced similar charges.
Price Action: WFC shares traded lower by 0.45% at $43.48 on the last check Friday.