Non-Sufficient Funds

Poverty Wages and Racial Inequality at

the Twin Cities largest banks

A Report by:
15 Now
Communication Workers of America (CWA
Neighborhoods Organizing for Change (NOC)
Minnesotans for a Fair Economy
Service Employees International Union (SEIU), Local 26
Able, But Not Willing
September 2015

Contents
Summary and Introduction ............................................................................. 4
The Banking Industry and Poverty Wages ..................................................... 6
Racial Inequity in the Workforce ..................................................................... 7
US Bank and Wells Fargo .............................................................................. 9
Direct Employees .................................................................................................................................... 9
Wages ....................................................................................................................................................................... 9
Paid Sick Leave ........................................................................................................................................................ 10
Subcontracted Employees .................................................................................................................... 10

The Need for $15 ......................................................................................... 12

About Us....................................................................................................... 13
Endnotes ...................................................................................................... 14

Summary and Introduction

"We think it's the right thing for our bank to do, and frankly we think
it's the right thing for all banks to do . . . If any industry in this
country can afford to set a new minimum for its workers, it's the
banking industry."
- CEO

and President of Amalgamated Bank Keith Mestrich announcing

that all of the bank's employees will be making at least $15 an hour. 1
-------------------------------------------------------------------------------------------------------------------------

There is a big difference between

perception and reality in the
banking industry.
It may seem that because bank
workers wear business attire, that they
are paid as handsomely as they dress.
However, the median wage for a bank
teller in the Twin Cities is less than
$12/hour.
Tellers at US Bank are paid an
average of $11.60, which means
that even if they work forty hours
a week, they will still be below
the poverty line.2
These low wages primarily
impact women, who account for
more than five in six bank tellers
in the Twin Cities.3
The result of this low pay is that
almost a third (31%) of bank
tellers nationally must rely on
public assistance for themselves
or their families in order to get by,
at a cost to taxpayers of almost
$900 million a year.4
Non-Sufficient Funds

While Twin Cities bank executives

push for lower taxes on corporations
and the wealthiest Minnesotans and
reward themselves with compensation
packages worth tens of millions of
dollars, the public is forced to
subsidize the poverty wages banks
pay to many of their employees.
US Bank CEO Richard Davis
received total compensation of $19.4
million last year and Wells Fargo
CEO John Stumpf received $21.4
million, which means that they were
each paid more in three hours than a
full-time teller is paid in a whole
year.5

Tellers at US Bank are

paid an average of
$11.60/ hour. Wells
Fargo pays its tellers
only slightly better, an
average of $11.81.

Page 4

It may also appear that banks have

diverse workforces based on the
diversity of employees in bank
branches..

However, there is a two-tiered labor

force in the banking industry. White
employees
dominate
upper
management and higher-paying
jobs, despite large increases in the
number of people of color with
advanced education and experience
and despite highly-touted programs
to increase diversity. Meanwhile,
people of color remain trapped in the
lowest paying jobs.
In the Twin Cities, people of color
make up 21% of the area's bank
tellers but 7% or less of the bank
jobs that pay over $30/hour.6
The number of teller jobs -- the
jobs held by people of color -- is
shrinking, while the number of
well-paying positions -- the ones
held primarily by white employees
-- is increasing.

We need to make bank worker's reality

match the public's perception.
Banks need to commit to greater
diversity as a priority at all levels of
the organization.
The industry
needs to both recruit qualified
people of color from outside the
financial institution and assist
current employees of color to attain
the
education
and
training
necessary to advance in the
company.
US Bank and Wells Fargo should
follow the lead of Amalgamated
Bank and commit to pay their
employees at least $15 an hour. As
two of the largest employers in
Minnesota they should guarantee
that their workers have adequate
paid time off to care for themselves
or their families and have fair
workweek scheduling with access to
full-time hours and without last
minute scheduling changes.

The Minneapolis City Council is currently considering a set of policies to address these
issues and to raise standards for working families by ensuring sick and safe time and a fair
work week, putting an end to wage theft, and raising the minimum wage.
Wells Fargo and US Bank should support these policies and use their leadership role in local
business trade groups to ensure that those groups do not obstruct or derail these policies
that will dramatically improve conditions for workers in Minneapolis.

Non-Sufficient Funds

Page 5

The Banking Industry and Poverty Wages

A recent report by the National
Employment Law Project (NELP)
examined wage levels in the banking
industry.7 The report found that:

Almost one in three people working

in the U.S. retail banking industry
(30.4 percent) are in occupations
with median hourly wages below
$15.

The largest occupation in banking

is a teller, representing almost half
a million workers in the U.S. and
more than a quarter of all retail
banking employees.

Almost three-quarters (74.1 percent)

of bank tellers in the U.S. earn less
than $15 per hour. Almost half of
bank customer service
representatives (44.2 percent) earn
less than $15 per hour.

According to the report, the median

hourly wage for bank tellers nationally
is $12.44. The median wage for bank
tellers in the Twin Cities is almost fifty
cents lower at $11.98.8

Bank tellers have seen the real

value of their paychecks decrease
as their wages have not kept up
with the rising cost of living. The
total
compensation
for
an
experienced bank teller is 3.8%
less than it was in 2002, after
adjusting for inflation.9

Nationally, nearly one-third (31

percent) of the families of bank
tellers are enrolled in one or more
public
assistance
programs,
compared to 25 percent of the
workforce as a whole, meaning that
bank tellers and their families are
more likely than working families in
general to be enrolled in public
assistance programs. The cost of
public benefits to bank tellers and
their families is nearly $900 million
a year.10

These low wages primarily impact

women, who overwhelmingly make
up the bank teller workforce. In
Minnesota as well as nationally,
more than five in six bank tellers
are women.11

Nearly one-third of the families of bank tellers are

enrolled in one or more public assistance programs.

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Page 6

Racial Inequity in the Workforce

The Twin Cities metro area has had one
of the worst racial employment gaps in
the country. African-Americans and
Native Americans are three times more
likely than whites to be unemployed.12

the banking jobs are expected to be

higher paying than those in other
sectors. Many of the projected bank job
openings in the Twin Cities area will be
for occupations with median annual
salaries between $40,000 - $80,000.

There are also large racial disparities in

the Twin Cities area's poverty rates, with
people of color having much higher
rates in Minnesota than they do
nationally. One in 12 white metro area
residents lives below the poverty line,
compared to one in three AfricanAmerican residents and one in four
Latino residents.13

However, as the report noted, there is

currently a two-tiered labor force in the
banking industry with white employees
dominating management and higherpaying jobs, while people of color are
stuck at lower-paying positions. This
has remained true despite dramatic
increases in the number of highly
educated people of color entering the
workforce over the past 20 years and
banks highly touted programs to
increase diversity.

Minnesota banks are in a unique

position to address these issues.
Last year the NACCP released its
"Opportunity and Diversity Report Card"
on the Consumer Banking Industry.14
According to the report, there are
expected to be 1 million jobs added to
the financial services sector from 2010
to 2020. While there may be a larger
number of jobs added in other sectors,

Occupation

As shown below, people of color, who

hold 16% of all positions in the Twin
Cities area, are underrepresented in
these higher paying bank jobs, but
overrepresented in lower paying bank
jobs. People of color hold 21% of the
teller jobs in the metro area.15

Twin Cities Metro Area

Median Pay
Annually at
Hourly
Full-time

Percentage of positions in
Twin Cities metro held by
people of color

Total Work Force in all Occupations

$19.78

$41,142

15.7%

Bank Tellers

$11.98

$24,918

20.9%

Credit Authorizers, Checkers, and Clerks

Real Estate Appraisers
Compliance Officer
Personal Financial Advisors
Financial Examiners

$22.30
$27.68
$33.14
$35.75
$39.89

$46,400
$57,600
$68,900
$74,400
$83,000

7.6%
7.3%
7.1%
6.7%
5.9%

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Page 7

The projected growth in good paying

jobs puts banks in a position to be
able to help bridge the racial jobs gap
and close the racial economic divide.
As two of the largest employers, Wells
Fargo and US Bank in particular can
play an important role in addressing
these issues.
Wells Fargo has over 20,000
employees
in
Minnesota,
making it the third largest private
sector employer, just behind
Target and Wal-Mart.16
US Bank is the fifth largest
private sector employer in
Minnesota,
with
12,000
workers.17
The jobs that have had the greatest
diversity, such as tellers, are sliding
into obsolescence as customers are
handling more transactions online or
via ATM. These entry level positions
had been a path to move up to
somewhat better paying jobs within
the bank branch. The elimination of
these jobs will greatly impact the
overall diversity of a bank's workforce.
Banks
should
assist
current
employees to gain the education and
training necessary to advance in the
company.
The NAACP report also examined the
banks' supplier diversity. Both US Bank
and Wells Fargo received failing grades
since less than 1% of their supplier budgets
was spent on African-American suppliers,
and less than 4% was spent on firms
owned by people of color.
The
report
contained
specific
recommendations for increasing diversity in
Non-Sufficient Funds

At US Bank
People of color make up 33% of the tellers,
clerical, sales and service jobs at US Bank
nationally but just 7.5% of the executive and
senior manager positions.18
African-Americans and Latinos each make
up twelve percent of tellers, clerical, sales,
and service jobs, but less than two percent
of the executive and senior managers.19
US Bank Workforce Demographics
AfricanPosition
Latino
American
Executive/
1.1%
1.9%
Senior Managers
First/ Mid Managers
4.7%
6.9%
Professionals
5.6%
3.3%
Tellers, sales,
11.6%
11.6%
clerical, service

US Bank received an overall grade of D+ in

the NAACP report, the lowest of the five
banks that were reviewed.
The report
specifically cited that US Bank lagged far
behind the other banks in the number of
African-Americans and people of color in top
and middle management positions.

banks' top management and among its

suppliers. These include:

Seeking out and interviewing at

least two qualified people of color
for positions at vice president level
or above and for all supplier
contracts. For qualified individuals
and suppliers who might otherwise
be skipped over, this gives them a
chance to prove their value.
Page 8

Recruiting qualified people of color

from outside the bank. Many banks
have a culture of only promoting
from within the existing organization
and requiring extended years of
service at the bank to be eligible.
Adding
flexibility
to
their
procurement system in order to
break orders into smaller increments
and facilitate participation from

smaller businesses, which will

especially help businesses owned
by people of color.
Developing a timeline for achieving
diversity with specific goals and
holding all levels of the bank
accountable for meeting those
goals.

US Bank and Wells Fargo

Minnesota banking is dominated by US Bank and Wells Fargo, who hold a combined 70% of
all deposits in the state (The third largest bank in Minnesota, TCF, has just 2% of deposits in
the state).20

Direct Employees
Wages
US Bank and Wells Fargo have a
combined total of at least 1,700 tellers
working in Minnesota.21 The median hourly
wage for tellers in the Twin Cities is $11.98,
but wages for tellers at US Bank and Wells
Fargo are even lower.
Wells Fargo pays tellers an average of
$11.81/hour.22 At US Bank the average
teller is paid $11.60.23
US Bank CEO Richard Davis received
$19.4 million in total compensation in 2014,
and Wells Fargo CEO John Stumpf
received $21.4 million, which means that
they each made more in 3 hours than a fulltime teller makes in a whole year.24 Davis'
compensation was almost double what he
received the previous year.25
Non-Sufficient Funds

Wells Fargo CEO John Stumpf (l) and

US Bank CEO Richard Davis (r) each
received over $19 million in
compensation last year, which means
that they each made more in 3 hours
than a full-time teller makes in a year.

Page 9

Direct Employees
Paid Sick Leave
According to US Bank, employees can
receive up to six paid sick days a year.
However, employees report they are
discouraged from actually using these days
when they are sick, and that it is counted
against them in their reviews if they do call in
sick, and it also counts against them if they
need to be out more than six days a year.
Employees state that US Bank prefers that
paid sick days be used for doctor's
appointments, which can be scheduled in
advance.

Subcontracted Employees
The janitorial and security services are
subcontracted at US Bank and Wells Fargo
offices, operations centers, and branches.
The janitors and security officers earn
between $12.15 - $14.62/hour and have
minimal paid sick leave.

"I clean the offices of CEO Richard

Davis and other US Bank executives.
I have damage to my tendons and
ligaments from standing and
walking all the time for my job.
Sometimes the pain is so bad that I
need to take a day to let my feet
and legs recover, but I can't afford to
miss work. This makes the pain even
worse, and by the weekend I can
barely stand" - Rosalina Gomez

There is a maximum of three paid sick days

and that is only after they have been on the
job for at least five years.

Number of
Paid Sick
Days/Year
One
Two
Three

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Years of employment required for full-time subcontracted

worker at US Bank and Wells Fargo to receive paid sick days
Janitors
After first year
After three years
After five years

Security Officers
N/A
After three years
After five years

Page 10

The situation is even worse at the US Bank

Center in St. Paul, where the cleaning
contractor, ROC, uses sub-contractors.
ROC's operating model is to use
subcontractors who hire janitors as
"independent contractors."
This type of arrangement has come under
increased scrutiny by the U.S. Department
of Labor, which stated that the misclassification of employees as "independent
contractors" is a serious problem since
workers are often denied critical benefits
and protections they are entitled to, such as
family and medical leave, overtime pay,
minimum wage, workers compensation, and
unemployment insurance.26
ROC has come under fire for using this
subcontracting model in other industries as
well. For example, at car dealerships there
are a number of employees who report not
being paid all the wages they were owed.
Eustolio Hernandez worked for a
subcontractor of ROC cleaning a car
dealership. He worked 7 days a
week, overnight shifts of between 9-

Non-Sufficient Funds

11 hours. When the subcontractor

told him he was going to be paid as
an independent contractor instead of
an employee, he decided it was time
to leave the job. The subcontractor
refused to give him his last
paycheck of $1,625, and ROC says
it is not their responsibility.
A Wall Street Journal article about problems
faced by immigrant workers featured a
Minnesota couple who worked for ROC.27
In November, Alba and Eugenio
landed jobs at ROC Inc. for a net
sum of $155 each per week to
wash a Chevrolet dealership six
nights a week in the St. Paul
suburb of Roseville. Pay stubs
don't show an hourly rate. The
couple say they didn't receive
benefits or paid time off. . . .
People familiar with the company
say that ROC, which has
contracts with dealers selling
major car brands, paid wages that
dipped below the federal minimum
wage."

Page 11

The Need for $15

There is growing awareness of the need for
a $15/hour minimum wage. Throughout the
country, fast food workers, retail department
store workers, home care and child care
workers and others have delivered a loud
and clear message that they cannot survive
on poverty wages, and that they demand a
raise to $15 per hour.

must earn to afford adequate shelter, food,

and other basic necessities.

In August 2015, Amalgamated Bank

announced that it was raising its minimum
wage to $15 an hour and called on the
banking industry to join it. "We're fortunate
enough to be part of the wealthiest industry
in America, so I'd
The
cities
of
Minneapolis
and
St.
Paul
The list of victories
hope others in the
have set $15.16 as their current "living
continues to grow.
financial
industry
Several cities have
will follow. It's the
wage" levels, which is what employees
adopted a $15/hour
right thing to do,"
must be paid by businesses that receive
minimum
wage,
said
CEO
of
subsidies from the city.
including Seattle, San
Amalgamated Bank
Francisco, and Los
Keith Mestrich.32
Angeles. A number of public institutions
US Bank and Wells Fargo should follow the
have raised wages to $15 for their own
lead of Amalgamated Bank and ensure that
employees and some private employers
their employees and workers hired by
have also established minimum wage rates
subcontractors are paid at least $15 an hour.
of at least $15, such as Aetna and most
recently Amalgamated Bank.
As two of the largest employers in
Minnesota, they should guarantee that their
The Twin Cities area has not been exempt
employees and subcontracted workers have
from this movement. Earlier this year in
adequate paid time off to care for
contract negotiations, Allina Health agreed to
themselves or their families and have fair
guarantee a minimum wage of $15 per hour
workweek scheduling with access to full-time
for all its hospital workers.28 Workers at the
hours and without last minute changes.
Minneapolis-St. Paul Airport have been
demanding minimum pay of $15/hour.29 The
The Minneapolis City Council is currently
Minneapolis City Council has formed a
considering a set of policies to address
working group and will commission a study
these issues and to raise standards for
to look at the impact of raising the minimum
working families. Wells Fargo and US Bank
wage to $15.30
should support these policies and use their
leadership role in local business trade
The cities of Minneapolis and St. Paul have
groups to ensure that those groups do not
set $15.16 as their current "living wage"
obstruct or derail the adoption of these
levels, which is what employees must be
policies that will dramatically improve
paid by businesses that receive city
conditions for workers in Minneapolis.
subsidies.31 This is the amount a worker
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Page 12

About Us
15 Now is a national organization that began in Seattle and which won a historic
victory in June 2014 making that the first city with a $15 minimum wage. With the
support of a growing number of unions and community groups, 15Now has spread to
over 20 cities in the U.S. Our goal is to empower working people and activate them
into fighting for the movement.
2722 University Avenue SE,
Minneapolis, MN 55414,
https://15nowmn.org/

Minnesotans for a Fair Economy is a coalition of labor, community, and faith

organizations that are fighting for an economy that works for us all.
2233 University Avenue W #432,
St. Paul, MN 55114
www.mnfaireconomy.org

Neighborhoods Organizing for Change (NOC) is a grassroots, member-led

organization building power in under-resourced communities and communities of
color across the Twin Cities. Together, NOC members fight for racial and economic
justice.. We're building powerful, active campaigns for better public transit, workers'
rights, expanded voting rights, and police accountability.
1101 W. Broadway Ave., #100
Minneapolis, MN 55411
http://www.mnnoc.org

Service Employees International Union Local 26 is Minnesotas Property

Services Union, uniting more than 7,000 janitors, security officers, and window
cleaners in the Twin Cities metropolitan area.
706 N 1st St # 110
Minneapolis, MN 55401
http://www.seiu26.org
--------------------------------------------------------------------------------------------------This is the first in a series of reports titled "Inside the Vault: Exposing how US
Bank and Wells Fargo Harm Minnesota Communities," that will examine the
different areas in which US Bank and Wells Fargo negatively impact Minnesota,
including education, the economy, electoral politics, consumer lending, and the
environment.

Endnotes
406.11.14
1

Vasquez, Mario. "Behind the Business Attire, Many Bank Workers Earn Poverty Wages," In These Times, August 27, 2015
US Bank Salaries: Teller Hourly (n.d.) Retrieved September 10, 2015 from http://www.glassdoor.com/Salary/U-S-BankSalaries-E8937.htm
3
Affirmative Action Statistics Data Packet: Minneapolis-St. Paul MSA (n.d.) Retrieved September 10, 2015 from
http://mn.gov/deed/images/Minneapolis_St_Paul_MSA.pdf
4
The Public Cost of Low-Wage Jobs in the Banking Industry, UC Berkeley Labor Center, October 27, 2014, Allegretto,
Sylvia; Jacobs, Ken; Graham-Squire, Dave; and Scott, Megan Emiko.
5
Hammerand, Jim. "Two Minnesota bank CEOs were among top-paid in U.S.," Minneapolis-St. Paul Business Journal, July 16, 2015
6
Affirmative Action Statistics Data Packet: Minneapolis-St. Paul MSA
7
A $15 Minimum Wage for Bank Workers, National Employment Law Project, August 2015
8
May 2014 Metropolitan and Nonmetropolitan Area Occupational Employment and wage Estimates: Minneapolis-St. PaulBloomington, MN (n.d.) Retrieved September 10, 2015 from http://www.bls.gov/oes/current/oes_33460.htm
9
Jerving, Sara. "Bank Tellers Battle Obsolescence," Wall Street Journal, November 17, 2014.
10
The Public Cost of Low-Wage Jobs in the Banking Industry
11
Affirmative Action Statistics Data Packet: Minneapolis-St. Paul MSA
12
North Minneapolis: Introduction (n.d.) retrieved September 10, 2015 from http://northsidefunders.org/wpcontent/uploads/2014/03/5.3-NorthMpls-Workforce-Report-June-2014.pdf
13
Ibid
14
NAACP Opportunity and Diversity Report Card: The Consumer Banking Industry. 2014.
15
Affirmative Action Statistics Data Packet: Minneapolis-St. Paul MSA
16
Top Employers Statewide (n.d.) retrieved September 10, 2015 from http://mn.gov/deed/business/locatingminnesota/companies-employers/top-employers.jsp
17
Ibid
18
U.S. Bancorp Workforce Demographics (U.S.), 9/30/14, retrieved on September 10, 2015 from
https://www.usbank.com/careers/diversity/workforce-demographics.html
19
Ibid
20
Hammerand, Jim. "Minnesota bank battle: U.S. Bank closing gap on Wells Fargo," Minneapolis-St. Paul Business
Journal, October 5, 2013
21
Based on an average of 5.4 tellers per branch and a total of 314 US Bank and Wells Fargo branches in Minnesota
22
Wells Fargo Salaries: Teller Hourly (n.d.) Retrieved September 10, 2015 from http://www.glassdoor.com/Salary/WellsFargo-Salaries-E8876.htm
23
US Bank Salaries: Teller Hourly
24
Hammerand. "Two Minnesota bank CEOs were among top-paid in U.S"
25
Ibid
26
Misclassification of Employees as Independent Contractors (n.d.) retrieved September 10, 2015 from
http://www.dol.gov/whd/workers/misclassification/
27
Jordan, Miriam. "Immigration Audits Drive Illegal Workers Underground, Wall Street Journal, August 15, 2011
28
DeLage, Jaime. "Allina hospitals to raise service workers to $15 minimum wage, Pioneer Press, April 18, 2015
29
"MSP workers continue efforts to $15 wage," Workday Minnesota, August 16, 2015
30
"Can Minneapolis Work for Working People?" Truth to Tell radio show, aired August 10, 2015
31
"Background Information on Living Wage," Memo to Metropolitan Airports Commission from Greg Failor, Labor Relations
Manager, April 13, 2015
32
http://money.cnn.com/2015/08/06/news/amalgamated-bank-15-minimum-wage/
2