Oppose Forced Furloughs

When AFSCME uncovered the administration's plan to unilaterally impose ten forced furlough days on every U employee, we stood up together to oppose this plan. Grad students, undergrads, staff, faculty and concerned citizens formed a coalition and fought hard against forced furloughs because we know that they place an unfair burden on the lowest paid staff who are already struggling to get by. We also know that includes new professors who start their teaching career with massive student debt.

We're proud that the efforts of Our Chop from the Top coalition forced the U administration to back down from its 10 day furlough plan. Our work is not done, however. President Bruininks's current plan is for a temporary pay cut of 1.15%, with a slightly higher cut for senior administrators. For unionized staff, the administration intends the cut to be taken in the form of 3 mandatory furlough days in December. This plan places an unfair burden on the lowest paid staff who are already struggling to get by, while over 250 administrators continue to earn more than $200,000. We know that for many of our co-workers, even one day without pay can create extreme economic hardship. That is why we continue to oppose forced furloughs.

We understand that some of our members believe that taking furloughs will prevent our co-workers from being laid off. The harsh reality, though, is that layoffs are taking place. Dozens of our members have already been laid off. Some of these layoffs have occurred in departments that have then hired senior administrators with six figure salaries. We believe that the best way of protecting jobs is through deeper scrutiny of expenditures and an open budgetary process that involves the entire University community. We believe that reductions can be made that protect our jobs and preserve the mission of the University.

Support the faculty call for sliding scale pay reductions

On Thursday, March 25, the faculty senate will vote on the administration's proposal for 1.15% salary reductions for faculty. This proposal addresses the faculty component of the administration's plan that includes 3 days of forced furloughs for union-represented workers. Members of Faculty for the Renewal of Public Education (FRPE) will be presenting a counter-proposal that calls for sliding scale pay reductions, rather than forced furloughs or flat-rate salary reductions. FRPE's proposal is based on a decision made by the University Board of Regents in 1932. That year, during a similar economic crisis, the Regents imposed a salary cut on a sliding scale, reducing all salaries above a certain threshold and imposing no reduction on salaries below a certain threshold.

According to a May 1932 news release by the University News Service,"The regents put into effect a slash of 20% on that part of any salary over $3600; of 15% on that part between $2400 and $3600; of 10% on that part between $1100 and $2400, but left without reduction salaries and wages up to and including the figure$1200 [sic] a year."

As FRPE states, "In 1932 the Regents demonstrated a strong commitment to equity and to protecting the most vulnerable staff at the University. The same principles should inform decisions today. The imposition of a sliding scale, down to zero for salaries below a certain threshold, would readily achieve or exceed savings projected to be achieved through the small reduction of faculty salaries currently proposed. In the Resolution on Salary Reductions we offer several examples for how this can be done. If our proposal is accepted, there would be no need to reduce salaries of the University's lowest paid workers or to make deeper cuts to academic units."

Chop from the Top

If the U is serious about saving that $13M they must eliminate recurring costs. If they don't eliminate recurring costs the U will be in the same position next year and we will again hear talk of unnecessary forced furloughs. Forced furloughs are not the answer because they do not eliminate recurring costs. The way for the U to realize permanent savings is to eliminate the overpaid administrators and CHOP FROM THE TOP.

If the 254 administrators making over $200,000 took a five percent pay cut, the U would save over $3M. If those making over $300,000 took an additional 5% decrease and those making over $400,000 took an additional 5%, another $800,000 could be saved. That's a total of over $4M. And it puts no one in financial crisis.

The U central administration should also be required to drastically scale back the number of vice presidents, associate vice presidents, assistant vice presidents, assistant to the associate vice president and other top administrators. If the U reduced by 10% the top administrative positions they could save another $7M plus. That's a total savings of over $11M in recurring savings.

Support voluntary leave rather than forced furloughs

AFSCME has also raised to the University Administration another alternative to forced furloughs. There are models in other public institutions (Hennepin County and the City of Minneapolis, for example) in which voluntary furlough/leave programs met the savings goals. If the administration implemented FRPE's sliding scale salary reductions for higher paid faculty and staff, and allowed lower paid staff to choose whether or not to take leave days, those who could afford to take days off without pay could and will do so, while those who are most vulnerable will not be forced into financial crisis.

Press Conference and Informational Picket:

U of M AFSCME sent the letter below to faculty senators yesterday afternoon. We urge you to contact faculty senators from your department and encourage them to vote in favor of the FRPE (Faculty for the Renewal of Public Education) resolutions for sliding scale pay reductions (with no cuts for the lowest paid workers at the U) and transparency in the budget process. We also encourage you to come to a press conference and informational picket in support of the resolutions on Thursday, March 25 at 1:45 in front of the law school. The faculty senate will be meeting from 2:30 - 5:00, and it's important that they have our support when they stand up to the administration.

As we struggle to come up with solutions to the University's financial problems it becomes evident that solutions reveal themselves when we stand together and fight together because alone we won't stand a chance. We won't stand a chance to make a living wage, we won't stand a chance to have affordable health care and we won't stand a chance to retain our dignity in the work place. That's why undergrads, graduate students, staff, faculty and concerned citizens are standing together and fighting together. Because when we stand together and we fight together-we win.

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March 23, 2010

An Open Letter to the University of Minnesota Faculty Senate:

Dear Colleagues,

We understand that the faculty senate will be meeting with President Bruininks on Thursday, March 25th, to consider a motion on mandatory furloughs and pay reductions. We are also aware that the Faculty for the Renewal of Public Education (FRPE) will offer two resolutions at the March 25th meeting, one calling for transparency in the University budget process, and one calling for sliding scale pay reductions. We write you today to express our support for these resolutions, and to ask you to stand with the frontline staff at the University by opposing mandatory furloughs for the lowest paid U workers, and by supporting the FRPE resolutions.

President Bruininks's current plan is for a temporary pay cut of 1.15%, with a slightly higher cut for senior administrators. For unionized staff, the president intends the cut to be taken in the form of 3 mandatory furlough days in December. This plan places an unfair burden on the lowest paid staff and faculty who are already struggling to get by, while over 250 administrators earn more than $200,000.

In preparation for last year's contract negotiations, AFSCME surveyed our members regarding their financial situation. 66% of respondents have worked a second job to make ends meet, and 64% have borrowed money or used a credit card to make ends meet. 36% have had difficulty making a mortgage payment or rent. 6% have faced foreclosure (our survey was done before the foreclosure crisis hit) or eviction, and 14% have had utilities shut off for non-payment.

We asked our members what they go without due to our salary levels. The responses we heard were heart wrenching. One member has not traveled on vacation since 1991. Others do without computers or the internet, even though their kids need them for school. Many responded that they keep their thermostat set at 50-60 degrees in the winter, and walk whenever possible to save gas money and car costs. What they dream of being able to do is not lofty: going to a movie, enrolling their children in after school or summer recreation activities, occasionally going out for lunch or dinner, retiring.

These are members of the University community, our co-workers and yours, who are working full-time, and are already struggling to get by. Now, the administration wants to force a pay cut in the form of mandatory furloughs. They want us to lose 3 days pay over the holidays. For some at the University, losing 3 days pay may mean choosing California rather than Hawaii for vacation. For many of our members, however, it means wondering whether there is any money for a holiday dinner or gifts for the kids. It means borrowing money to pay the light or phone bill to prevent shut off. Quite simply, it means economic crisis.

We write to ask you to vote against President Bruininks' proposal. We understand the concern that some have voiced that voting against the administration will be viewed as faculty members being selfish and unwilling to take a cut. Nothing could be further from the truth. A vote against the administration is, quite simply, a vote against furloughs and in support of your low wage co-workers. FRPE will be proposing an alternative that truly addresses the budget situation at the U while protecting the lowest paid workers at the University. We encourage you to vote for their Resolution on Salary Reductions. This proposal is based on a similar plan that the Board of Regents implemented during the financial crisis of the 1930's.

You may be told that voting against the administration will result in deeper cuts on academic units that will result in layoffs of low-paid workers. Unfortunately dozens of our members have already been laid off. Some of these layoffs have occurred in departments that have then hired senior administrators with six digit salaries. For this reason, we also ask you to support FRPE's Resolution on Financial Stringency, which calls for transparency in the University budget process. We believe that the best way of protecting jobs is through deeper scrutiny of expenditures and an open budgetary process that involves the entire University community.

There are options other than the administration's that can save the University money. AFSCME analyzed University salaries based on data requested and published by the Star Tribune. According to those figures, if the 250+ University employees making over $200,000 took a five percent pay cut, the University would save over $3,208,000. If those making $300,000 took an additional 5% decrease and those making over $ 400,000 took an additional 5%, an additional $868,000 could be saved. That's a total of $4,076,000.

In addition, the University Central Administration should be required to drastically scale back the number of Vice Presidents, Senior VPs, Associate VPs, Assistant VPs, Assistant Associate VPs and other top administrators. For example, if the University reduced the top administrative positions at the U, (Associate Department Director and above), by 10%, the University could save another $7,756,000. The total RECURRING savings from cutting senior administrative waste would be $11,832,000.

In addition, there are models in other public institutions (Hennepin County and the City of Minneapolis for example) in which voluntary furlough programs met the savings goals. If the administration implemented FRPE's sliding scale salary reductions for higher paid faculty and staff, and allowed lower paid staff to chose whether or not to take leave days, those who could afford to take days off without pay could and will do so, while those who are most vulnerable will not be forced into financial crisis.

On behalf of our members, we thank you for all the support and concern you have shown for our well-being. Your vote Thursday is not merely a vote regarding faculty salaries. It is a vote to use your power as faculty members to stand in solidarity with your lower paid colleagues at the University.

Sincerely,

Barbara Bezat
President, AFSCME Local 3937

Phyllis Walker
President, AFSCME Local 3800

Sharon Binek
President, AFSCME Local 3260

Denise Osterholm
President, AFSCME Local 3801