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Why A Strike Authorization Matters:

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Why A Strike Authorization Matters: . Despite sitting on $800 million in unrestricted net assets, PASSHE is continuing its attempt to take away faculty rights and benefits. If you do not support a strike authorization vote, you risk getting a contract with: - PowerPoint PPT Presentation

Instructional Investment Versus Capital Purchases and Debt

Why A Strike Authorization Matters: Despite sitting on $800 million in unrestricted net assets, PASSHE is continuing its attempt to take away faculty rights and benefits.If you do not support a strike authorization vote, you risk getting a contract with:A 35% reduction in temporary faculty salariesIncreased out-of-pocket healthcare costsElimination of annuitant healthcare and continued lack of domestic partner annuitant healthcareMandatory development and teaching of distance education courses without compensation

PASSHE Is Sitting On $800 Million in Unrestricted Net Assets And Can Afford to Give Faculty a Fair Contract

StrongerWeakerSource: PASSHE ChartUnrestricted net assets compared to total annual operating budget, including auxiliaries.

PASSHE has unrestricted funds equal to almost two years of the state appropriation or 50 percent of its annual operating budget. $800 millionThe Median Ratio for Aa2 Rated Institutions is 27%Faculty Cannot Afford to Go Another Year Without Action

No Step Year 1Year2Year 3Year 4Year 5Year 6Year 7Year 8 Year 9Year 10$60,030.04 $63,031.47$64,607.21$66,183.17$67,837.86$69,492.27$71,229.51$72,966.97$74,791.08$76,660.85With Step Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10 $63,031.47$64,607.21$66,183.17$67,837.86$69,492.27$71,229.51$72,966.97$74,791.08$76,660.85$78,577.37Missing One Step Will Cost Tens of Thousands in EarningsTen Year Loss In Earnings If Asst. Prof. At Step 4 Misses One StepSource: Comparison of Pay Steps Based on 2010 Pay ScaleIf We Give In: Temporary Faculty Salaries Cut by 35%These unfair cuts would hurt female faculty the most: 59% of all temporary faculty are women.Think you or your colleagues can afford it? Temp TypeCurrent Annual SalaryAnnual Salary Under PASSHE ProposalPotential Salary LossInstructor I Full-Time$44,792$29,114-$15,687Avg. Full- Time$48,409$31,465-$16,944Temp TypeSalary Per CourseSalary Per Course Under ProposalPotential Salary Loss Per CourseInstructor I Part Time$5,599$3639-$1,960Avg. Part Time$6,051$3,933-$2,118

Source: 2010 Pay Scale; Spring 2012 SysPay DataDo We Want Faculty Being Pushed Into Poverty?Public Assistance ProgramEligibilitySupplemental Nutrition Assistance Program (Food Stamps)Maximum monthly income of $2472 for households of 3 or moreMedical Assistance: Healthy Beginnings ProgramMaximum monthly income of $2944 for pregnant women with a household of 3; $2555 for household of 4 with children aged 1to 5 years. Low-Income Heating Assistance Program (LIHEAP)Maximum Yearly Income of $34,575 for household of 4.Childcare Works Subsidized Childcare ProgramMaximum yearly income of $30,260 for family of 2. Under PASSHEs proposal, a Temp Instructor I with an annual salary of $29,114 could be eligible for: SNAP: http://www.dpw.state.pa.us/foradults/supplementalnutritionassistanceprogram/snapincomelimits/index.htmMedical Assistance: http://www.dpw.state.pa.us/foradults/healthcaremedicalassistance/incomeandresourcerequirementsforhealthybeginnings/index.htmLIHEAP: http://www.dpw.state.pa.us/foradults/heatingassistanceliheap/homeheatingassistanceliheapeligibility/index.htmChildcare Work: http://www.dpw.state.pa.us/forchildren/childcareearlylearning/childcareworkssubsidizedchildcareprogram/index.htm

If We Give In: Increased Out-of-Pocket Costs For Less Healthcare CoveragePASSHE is proposing to eliminate Indemnity Plans while increasing PPO out-of network deductibles and raising out of pocket prescription drug costs.

Havent Your Healthcare Costs Increased Enough Already? Increase in Faculty PPO Premium Contribution Per Paycheck (Based on 26 Pays) FamilyTwoSingle

Source: Open Enrollment Summaries Dont Expect the Health & Welfare Fund to Pick up the Increased Out-of-Pocket CostsPASSHEs reduced contribution to the H&W fund has remained flat since 2004 while medical inflation has risen 30.3%. As a result, average out of pocket costs for dental/vision have risen $264 per FTE faculty member since 2005.

Source: Health and Welfare Fund Annual Reports (2005-2011); BLS Medical Inflation Data (2005-2012).

Percent of Amount Paid Out of H&W Fund Vs. Billed Charges(Source: H&W Annual Report: Graph 11)DentalVision Suppl.

If We Give In: Continued Refusal To Provide Domestic Partners Retiree HealthcarePASSHE latest proposal continues to refuse annuitant healthcare benefits for a domestic partnera right that is the norm in higher education.

According to our healthcare consultant, adding a domestic partner would be effectively cost-neutral.

As of Spring 2012, there were only 37 active faculty members with domestic partner healthcare benefits. PASSHE can afford to provide this basic right.

(Source: Spring 2012 Syspay)

PASSHE Negotiating Patterns When Faculty Compromise, They Take AdvantageThe following slides show how PASSHE carves out specific items at negotiations and uses the slippery slope to its advantage in subsequent negotiations to strip faculty of rights and benefits. This pattern must STOP before we are forced into a toothless CBA!

Examples of PASSHEs Negotiating Pattern: Distance Education1999-20022003-20072007-2011ProposedParticipationVoluntaryVoluntaryVoluntaryMandatoryCompensationArticles 23 & 27Articles 23 & 27Articles 23 & 27Article 23Remote Site Compensation$500 first 10 students; $40 each additional$500 first 10 students; $40 each additional$25 per studentNo compensationPreparation Compensation$2000 for first year; Payment every 3 years after$2000 for first year; Payment every 3 years after

$800 per credit for first year; $100 per credit up to 3 times in 5 yearsNo compensation

Examples of PASSHEs Negotiating Pattern: Healthcare1999-20022003-20072007-2011ProposedChoicesIndemnityHMOPOSMedicare Part B Made mandatoryfor retirees after 1/2/99IndemnityHMOPOS (elim. 6/30/04)PPO (eff. 7/1/04)Indemnity Plan closed to new enrollees 7/1/08 changed to Comprehensive Plan7/1/09. Prohibited for retirees.Eliminate Indemnity 7/1/13Re-design PPO to be more employer effective DeductibleIndemnity (1/2/99 $250)POS (OON $100/$300)Indemnity (7/1/04 $500)/$1500 /20% to $350 max)PPO (OON $250/$500)Comprehensive (7/1/08 $500/$150020% to $425 max)(7/1/10 $750/$2250 20% to $750 max)PPO $0 in network; Out of Net. $400 Out of Net. co-insurance 70%Employee ContributionAnd Participation in Wellness PlanNo premium share10% premium share (7/1/2005) Increase to 15% (2010); addition of penalties for non-participation in Employee Wellness Program15% of premium; 25% for Wellness Program non-participantsRx Drug Copay Retail100% reimburseH&W Fund supplemental eliminated 7/1/04Ded. $100/$300$5 Generic$10 formulary$20 non-brand formulary7/1/08 deduct. $0$0 generic$15 formulary$30 non-brand formulary $10 generic$18 formulary$36 non-brand formularyRx Drug Copay - Mailnana$0/$30/$60$20/$36/$72PASSHE is even proposing to turn annuitant healthcare into a voucher system.PASSHE Proposal: Salary Increments & Steps1999-20022003-20072007-2011ProposedSalary Increments1999 3% Raise2000 2% Raise; 1% in January2001 2% raise; 1.5% in January 2003 2.5% raise2004 no raise2005 3% raise2006 3% raise; 2.5% raise in January

2007 no raise2008 3% raise2009 3% raise2010 4% raise

2011 no raiseYear 1 no raiseYear 2- 1% raiseYear 3 1% raiseYear 4 2% raiseSteps1999 step2000 step2001 Final; automatic stepNew 12 step scale w/ 5% for first 5 steps and 2.5% for top 7 steps2003 no step2004 step2005 no step2006 step plus addition of 13th step2007 step; cash bonus of $1750 for those at top of scale2008 step2009 step2010 step/2.5% cash bonus for those at top of scale2011/12 no step2012/13 step Spring 132013/14 step Spring 142014/15 stepSpring 15Temporary faculty are also being asked to take the equivalent of a 35% pay cut!


Series 1PASSHE Adequacy of Financial Resources:Percent of Unrestricted Net Assets Compared to Total Operating Budget

Sheet1Series 1Series 2Series 3199632%2.42199734%4.42199840%1.83199937%2.85200035%200137%200236%200342%200437%200542%200640%200741%200842%200939%201041%201148%201250%


Cumulative Earnings LossSeries 1

Sheet1Series 1Series 2Series 32.42-$3,001.434.42-$4,577.171.83-$6,153.132.85-$7,807.82-$9,462.23-$11,199.47-$12,936.93-$14,761.04-$16,630.81-$18,547.33



Sheet1SingleTwoFamily2008-09$18.64$41.33$50.652009-10$21.07$46.73$93.002010-11$34.34$76.14$93.312011-12$36.63$81.22$99.542012-13$37.71$83.61$102.47To resize chart data range, drag lower right corner of range.




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