Can The Union Stage A Run On The Bank?
For a bank that last year reported a $1.5 billion profit, Bank of America's recent decision to shift thousands of tellers and other workers into part-time positions seemed to some to be catering too much to investors. On Feb. 9, the California Labor Federation urged its 2 million members to withdraw money from the bank to protestBofA's move, which should yield huge savings in medical and other benefit costs. BofA won't comment on the effect the CLF's call is having on deposits. But some believe that such tactics, in the wake of huge profits and a still-troubled California economy, could bring further attacks. Says a former BofA executive: "This is too sensitive an environment to take such a drastic action."
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