Inside Amalgamated Bank: A Model for Fair Wages and Union-Led Equity

Pay transparency, wage equity, and clear communication aren’t just best practices; they’re foundational to building a fair workplace. That’s the premise behind Fair Work Standard 2 (FW2), which asks businesses to rethink how compensation is structured, communicated, and sustained. From eliminating salary history bias to closing the gender pay gap and ensuring all workers earn a living wage, FW2 sets a high bar for wage equity in practice (not just in principle).

But what does that look like inside a company? To see what’s possible when fair compensation is built into a business model from the very beginning, we looked to a longtime labor leader: Amalgamated Bank.

A Union-Owned Bank That Embeds Wage Equity in Every Layer

Founded in 1923 by Manhattan garment workers, Amalgamated Bank was created to serve the financial needs of the labor movement. Today, it remains the largest union-owned bank in the United States, and one of the only financial institutions in which employees themselves are unionized. The bank is majority-owned by Workers United, an SEIU affiliate, and its board is chaired by Lynne Fox, who also serves as the international president of Workers United: a reflection of the deep, ongoing connection between the bank and the labor movement that founded it.

This structure makes fair pay and workplace equity a structural reality, not just a policy goal. Approximately 22% of Amalgamated Bank’s employees are covered by collective bargaining agreements that define transparent, role-based wage scales, codify benefit levels, and allow for pay variation only based on seniority. For non-union roles, these agreements provide the foundation for wage structures and compensation frameworks that promote equity across job levels. Employees receive regular payslips in accessible, plain language, breaking down base salary, bonuses, and deductions: a practice that aligns closely with Fair Work Standard 2’s emphasis on compensation clarity (FW2.2).

Amalgamated was also one of the earliest U.S. banks to commit publicly to a living wage. In 2015, it raised its minimum wage to $15/hour, and by 2019, it had increased that floor to $20/hour, making it the first U.S. bank to do so. In addition, the bank benchmarks compensation using regional living wage standards and regularly audits its pay practices to ensure no employee falls below the threshold for economic dignity. This proactive commitment fulfills FW2.8 and serves as a model for other employers seeking to turn living wage ideals into operational policy.

Beyond compensation, Amalgamated Bank invests deeply in its workforce. It offers a comprehensive total rewards package that includes medical, dental, vision, and mental health care; a defined-benefit pension alongside a 401(k); paid family and medical leave; commuter benefits; professional development resources; and even a paid volunteer day. The bank also conducts third-party pay equity audits at least every three years, measuring gaps across gender and race and publishing results that inform continuous improvement: actions that closely mirror FW2.4–2.6’s expectations around wage gap transparency and correction.

And Amalgamated doesn’t stop at its own workforce. It uses its position as a shareholder to advocate for labor rights across the companies in which it invests. In 2023, the bank introduced or supported shareholder resolutions promoting union neutrality and workplace equity at companies including Delta, Rivian, Chipotle, Estee Lauder, and Electronic Arts. As Maura Keaney, Director of Client Engagement, puts it: “We’re really looking to use our seat at the table and our power to help advance things like employee neutrality, so workers can freely and fairly decide whether they want a union on the job.”

Fair Wages as Financial Strategy

Amalgamated Bank shows that FW2 isn’t just a compliance checklist; it’s a strategic framework for building a stronger, more values-aligned organization. By embedding wage equity into its operations, governance, and investment practices, the bank has created lasting structures for transparency, retention, and employee well-being.

Just as important, it’s used its influence to raise the bar beyond its own workforce. For companies seeking to lead on fair pay, Amalgamated Bank offers a powerful blueprint: tie compensation to values, center transparency, and treat equity not as a one-time fix, but as an ongoing commitment and competitive advantage.

Copyright B Lab U.S. & Canada
Photo by Viktor Forgacs