January 24, 2013
PASSHE Board of Governors Chairman issues statement on contract negotiations with faculty union
Contact: Kevin Hensil, khensil@passhe.edu
Harrisburg – Guido M. Pichini, chairman of the Pennsylvania State System of Higher Education’s
Board of Governors, commented today on the status of contract negotiations between
the State System and the Association of Pennsylvania State College and University
Faculties (APSCUF), the union that represents faculty at the 14 state-owned universities.
Mr. Pichini made his remarks during the Board’s regular quarterly meeting.
Below is Mr. Pichini’s statement:
“As we prepare collectively for the start of the spring semester, I feel it is imperative
that I address the topic most on everyone’s mind today – negotiations with our faculty
union.
“First, let me reinforce the Board of Governors’ commitment to achieving a new collective
bargaining agreement with APSCUF that is fair, that is affordable and that positions
the State System to continue to provide a quality education to our students for years
to come.
“That has been our goal throughout this unprecedented process, during which we have
negotiated with all of our unions in a single cycle. That has never happened before,
and it has been extremely difficult.
“However, as everyone in this room likely is aware, we have been successful in achieving
that goal with all of our unions, with the exception of the APSCUF bargaining unit
that represents our university faculty.
“All of the agreements that have been reached to date have included an array of cost
savings – in many cases, concessions – that have helped to offset the cost of wage
and salary increases included in them.
“I want to personally thank each of those unions – and, even more important, their
members – for recognizing the enormous challenges facing the State System and for
partnering with us to achieve this success. I truly believe the sacrifices you made
were essential to the long-term stability of our universities.
“All of us must remember why we are here – our students.
“The simple fact is without the cost savings we already have achieved through the
agreements we have reached to date – and the additional savings we are seeking through
the negotiations with APSCUF – the ability of our universities to continue to offer
quality, affordable education would be – and is – seriously threatened.
“As difficult as these negotiations have been, we have been able to come to agreement
with APSCUF on a number of very important issues, including wage and salary increases
for virtually all faculty this year and in each of the next two years. Usually, that
is the last area of agreement.
“There are only a small number of issues that have yet to be resolved, but they are
significant. We cannot continue to incur the kinds of cost increases we have been
experiencing; we must have cost savings.
“Healthcare represents an area where both cost savings and greater fairness to our
employees can be achieved – and have been with our other unions.
“PASSHE is seeking to more closely align its healthcare plan with the plan offered
by the Commonwealth to nearly 80,000 state employees, including the Governor and his
cabinet, as well as nearly one-third of all PASSHE employees.
“We have stated this goal repeatedly throughout these negotiations, and have been
completely transparent on this matter, even placing a side-by-side comparison of the
two plans on our public website.
“The unions representing both our university health center nurses and our campus police
and security officers, whose members are covered by the PASSHE-run plan, have agreed
to this concept; APSCUF continues to oppose it, without providing any response as
to why this is not a reasonable request.
“The changes we have proposed not only would help ensure that virtually all PASSHE
employees – including non-represented managers, administrators and executives – would
receive the same level of benefits, but also would result in lower premiums for everyone
in the plan.
“Most PASSHE employees covered by the plan – faculty, nurses, police and security
officers and non-represented employees – pay either 15 percent or 25 percent of the
total premium, depending on whether they participate in the System’s wellness plan.
“PASSHE currently pays more than $15,000 a year for family coverage under this plan,
compared to $10,140 for family coverage under the Commonwealth’s plan. We must address
that disparity, and we can begin to do so while ensuring greater fairness for all
of our employees.
“We also must address the enormous financial obligation facing PASSHE in the area
of annuitant healthcare, which, if allowed to continue unchecked, threatens the System’s
viability. That obligation currently stands in excess of $1.4 billion, nearly the
equivalent of PASSHE’s annual operating budget.
“The Board of Governors has the ultimate responsibility for ensuring the fiscal integrity
of the System. The vast majority of our costs – nearly 75 percent – are borne by our
students and their families. I believe there is a limit to the amount of costs we
can ask our students to absorb, especially in areas that are not directly related
to the classroom.
“The change we have proposed in annuitant healthcare would begin to address these
costs while providing future employees the option of choosing a defined contribution
plan to cover their future healthcare expenses. Those employees – anyone hired after
July 1, 2013 – still could choose the defined benefit plan, which currently is provided
to all eligible retirees.
“The employee would have a choice of either plan, similar to the choice they have
now when selecting a pension plan. APSCUF opposes this proposed change too, even though
it would impact only future employees, and would provide those employees an additional
choice while taking nothing away.
“These and other costs not related to the classroom are threatening to strip the universities
of their ability to develop and offer the types of new programs students need – and
even to maintain the ones they have now – and to modernize their academic facilities
to ensure students receive the kinds of educational experiences necessary to assure
their success.
“We must resolve these issues quickly and fairly so that we can get back to working
together on what matters most – continuously enhancing the quality of education our
students receive.”
The Pennsylvania State System of Higher Education is the largest provider of higher
education in the Commonwealth, with about 115,000 students. The 14 PASSHE universities
offer degree and certificate programs in more than 120 areas of study. About 500,000
PASSHE alumni live and work in Pennsylvania.
The state-owned universities are Bloomsburg, California, Cheyney, Clarion, East Stroudsburg,
Edinboro, Indiana, Kutztown, Lock Haven, Mansfield, Millersville, Shippensburg, Slippery
Rock and West Chester Universities of Pennsylvania. PASSHE also operates branch campuses
in Clearfield, Freeport, Oil City and Punxsutawney and several regional centers, including
the Dixon University Center in Harrisburg and the Philadelphia Multi University Center
in Philadelphia.