American 1 Credit Union CEO Martha Fuerstenau announced more than $950,000 in combined annual raises for almost all of its 187 employees last month. The only staff member excluded? Fuerstenau herself.
The credit union's 186 other employees received big raises last month, averaging more than $5,000 per employee. And 76 percent of the increase went to hourly employees, and the rest to management.
When deciding on awarding raises, Fuerstenau made it clear from the beginning she didn't want her position to be part of the increases, Vice President Laura Pryor said.
The pay increases went into effect on April 25, and while managers and other executives did get raises, nearly three-quarters of the money went to hourly employees.
The new compensation strategy includes an increase in the credit union’s minimum wage to $13.00 per hour. The minimum wage is the hourly rate of pay for new employees who have no previous experience in financial services, and is an 18% jump in pay for new hires. The rise in wages for hourly staff represents 74% of the total increase.
The significant wage increase is part of an existing list of benefits which includes health, dental, and vision insurance at no cost to full time employees. Additionally, American 1 offers student loan repayment, college tuition reimbursement, and retirement benefits, as well as more traditional perks such as paid vacation and paid personal time.
The federal minimum wage remains woefully insufficient and inadequate at $7.25, and Michigan adds two bucks to take the state minimum to $9.25. American 1 was already exceeding that, but $13 per hour can go quite far in a state that ranks fourth on U.S. News and World Report’s 2018 “10 Most Affordable States” list.
As corporations continue to use the proceeds from the GOP tax scam to line their own pockets, it’s refreshing to see at least one company let the fruits of their success trickle up.