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 salaries– Increased out-of-pocket healthcare costs– Elimination of annuitant healthcare and continued lack of domestic

partner annuitant healthcare– Mandatory 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

Stronger

Weaker

Source: PASSHE Chart Unrestricted 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 million

The Median Ratio for Aa2 Rated Institutions is 27%

Faculty Cannot Afford to Go Another Year Without Action

No Step Year 1 Year2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 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 $76,660.85

With Step Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 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 $78,577.37

Missing One Step Will Cost Tens of Thousands in Earnings

Ten Year Loss In Earnings If Asst. Prof. At Step 4 Misses One Step

Source: Comparison of Pay Steps Based on 2010 Pay Scale

If 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 Type Current Annual

SalaryAnnual Salary Under PASSHE Proposal

Potential Salary Loss

Instructor I Full-Time $44,792 $29,114 -$15,687

Avg. Full- Time $48,409 $31,465 -$16,944

Temp Type Salary Per Course Salary Per Course Under Proposal

Potential Salary Loss Per Course

Instructor I Part Time $5,599 $3639 -$1,960

Avg. Part Time $6,051 $3,933 -$2,118

Source: 2010 Pay Scale; Spring 2012 SysPay Data

Do We Want Faculty Being Pushed Into Poverty?

Public Assistance Program Eligibility

Supplemental Nutrition Assistance Program (Food Stamps)

Maximum monthly income of $2472 for households of 3 or more

Medical Assistance: Healthy Beginnings Program

Maximum 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 Program

Maximum yearly income of $30,260 for family of 2.

Under PASSHE’s 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 Coverage

PASSHE is proposing to eliminate Indemnity Plans while increasing PPO out-of network deductibles and raising out of pocket prescription drug costs.

Haven’t Your Healthcare Costs Increased Enough Already? Increase in Faculty PPO Premium Contribution Per Paycheck

(Based on 26 Pays)

Family

Two

Single

Source: Open Enrollment Summaries

Don’t Expect the Health & Welfare Fund to Pick up the Increased Out-of-Pocket Costs

– PASSHE’s 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 Healthcare

• PASSHE latest proposal continues to refuse annuitant healthcare benefits for a domestic partner—a 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 Advantage

The 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 PASSHE’s Negotiating Pattern: Distance Education

1999-2002 2003-2007 2007-2011 Proposed

Participation Voluntary Voluntary Voluntary Mandatory

Compensation Articles 23 & 27

Articles 23 & 27

Articles 23 & 27

Article 23

Remote Site Compensation

$500 first 10 students; $40 each additional

$500 first 10 students; $40 each additional

$25 per student

No compensation

Preparation 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 years

No compensation

Examples of PASSHE’s Negotiating Pattern: Healthcare1999-2002 2003-2007 2007-2011 Proposed

Choices IndemnityHMOPOSMedicare Part B Made mandatoryfor retirees after 1/2/99

IndemnityHMOPOS (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”

Deductible Indemnity (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 Plan

No premium share 10% premium share (7/1/2005)

Increase to 15% (2010); addition of penalties for non-participation in Employee Wellness Program

15% of premium; 25% for Wellness Program non-participants

Rx Drug Copay Retail 100% reimburseH&W Fund – supplemental eliminated 7/1/04

Ded. $100/$300$5 Generic$10 formulary$20 non-brand formulary

7/1/08 deduct. $0$0 generic$15 formulary$30 non-brand formulary

$10 generic$18 formulary$36 non-brand formulary

Rx Drug Copay - Mail na na $0/$30/$60 $20/$36/$72

PASSHE is even proposing to turn annuitant healthcare into a voucher system.

PASSHE Proposal: Salary Increments & Steps1999-2002 2003-2007 2007-2011 Proposed

Salary Increments

1999 – 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% raise

Steps 1999 – step2000 – step2001 – Final; automatic stepNew 12 step scale w/ 5% for first 5 steps and 2.5% for top 7 steps

2003 – no step2004 – step2005 – no step2006 – step plus addition of 13th step

2007 – step; cash bonus of $1750 for those at top of scale2008 – step2009 – step2010 – step/2.5% cash bonus for those at top of scale

2011/12 – no step2012/13– step Spring ‘132013/14– step Spring ‘142014/15 – stepSpring ‘15

Temporary faculty are also being asked to take the equivalent of a 35% pay cut!