A TPM reader saw the conversation here about SEIU’s challenge to Bank of America. He sent along news that UNITE HERE launched a campaign last week against Countrywide Financial Corp., calling on their members and on other consumers to boycott the mortgage lender’s banking subsidiary. The union wants Countrywide to halt foreclosure actions against borrowers who have fallen behind on escalating loans.
The union push back against financial services companies is a sharp reminder that the channels of organized consumer interest are very limited. Some have argued that unions should stick to collective bargaining issues, but I’m not sure I follow the criticism. If the union is willing to provide a platform and an organizational structure for a consumer boycott, they can bring a little balance to a playing field that is badly tilted in favor of big banks. No other group with the organizational reach of unions seems willing to do this.
The marketplace drowns out individual consumer complaints. Collective action magnifies consumer voices, but no single consumer or group of consumers has the resources to organize a broader action. Anyone who doesn’t like the message is, of course, free to stay away, but the unions give those who want to register their protest a place to have some impact.
This isn’t business-as-usual for the unions. Instead, this is a case of unions stepping up to give consumers (union and nonunion) a chance to be heard. I think that’s good for unions and good for consumers.
