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Union, Inc.

A Kinder and Gentler Teachers Union?

The unions are trying to take the “we’re in it for the kids” shtick to a new level by declaring that they now collectively bargain for “the common good.”

Last week, The American Prospect posted “Teacher Unions Are ‘Bargaining for the Common Good,’” which claims that unions across the country are “expanding their focus to the broader community.” All this is code for, “We don’t want to come off as selfish, so while we are still going to push for our typical me-first (and only) union agenda, we are going to try to deceive the public into believing that we really care about kids and taxpayers.”

According to the piece, public employee union leaders and community organizations gathered in Washington, D.C. in 2014 and came up with a 3-point plan: use the bargaining process as a way to challenge the relationships between government and the private-sector; work with community allies to create new, shared goals that help advance both worker and citizen power; and recognize militancy and collective action will likely be necessary if workers and citizens are to reduce inequality and strengthen democracy.

The lofty but ultimately meaningless verbiage led the writer of the piece to conclude that “The time had come, in sum, to politicize bargaining.”

Politicize bargaining?! That’s all collective bargaining in education is and ever was – pure, unadulterated, no additives, not-made-from-concentrate – politics. The union sits at a table with school board members and hashes out contracts that, more often than not, are detrimental to students, good teachers and taxpayers. Collective bargaining agreements inhibit creativity and treat teachers as interchangeable widgets. Additionally, the taxpayer gets to foot the bill for goodies like Cadillac healthcare plans that the union – and frequently their bought-and-paid-for school board – collude on and ratify.

There is a ton of evidence that the cuddly, kind and caring teacher union concept is a fraud. Here are just a few recent examples:

In last week’s post, I wrote about a situation in Yonkers, NY where a union president and vice-president are both caught on video trying to help a teacher who claimed to have physically abused a child while using a racial epithet, and subsequently fled to Mexico, unannounced, for two weeks. (It was actually staged by investigative journalist James O’Keefe.) As all concerned parties investigate the union leaders’ responses, the Yonkers Federation of Teachers has asked the taxpayer subsidized school district to continue paying Paul Diamond, the union vice-president, his salary while he performs his union duties for the 2016-17 school year. Not unique to Yonkers, this phenomenon, known as “release time,” goes on all over the country and is an absolute outrage. It’s a practice that allows a public employee to conduct union business during working hours without loss of pay, all the while giving the union a free worker. The employee’s activities include negotiating contracts, lobbying, processing grievances, and attending union meetings and conferences. Diamond will not spend one minute teaching. No evidence of “citizen power” here.

Next, a school district in Illinois just awarded its teachers a 10-year contract that includes a 40 percent salary increase over its term, preserves a pre-retirement, 6 percent yearly pay spike to boost teachers’ pensions, an increase in sick-days from 15 to 24 per year, and a freeze on health insurance and prescription drug costs for district employees for the 10-year period. “Shared goals?” In what universe?

On the state level, we have a situation in California that doesn’t involve collective bargaining but certainly calls into question whose “common good” is being served. Contra Costa Democratic Assemblywoman Susan Bonilla’s AB 934 would change both seniority and tenure as we know it. The bill includes a provision that offers ineffective teachers extra professional support. If a teacher receives a second low-performance review after a year in the program, they could be fired via an expedited process. It would also increase the time for a teacher to attain tenure (or more accurately “permanent status”) from two to three or four years, depending on their performance. Additionally, seniority would no longer be the single most important factor in handing out pink slips. This is hardly radical stuff and would certainly make for a more effective teaching profession in the Golden State.

But the most powerful special interest group in the state, the California Teachers Association, is fighting the bill. Blithely casting the needs of kids aside, the union first claimed the bill “would make education an incredibly insecure profession.” (Yes, just like every other profession in the world.) In a subsequent post on its website, the union went bonkers, claiming, “Corporate millionaires and special interests have mounted an all-out assault on educators by attempting to do away with laws protecting teachers from arbitrary firings, providing transparency in layoff decisions and supporting due process rights.” And that was just the beginning. To read the rest of this bizarre rant, go here. But in any event, we know whose posterior CTA is trying to protect, and it has absolutely nothing to do with “reducing inequality.”

And then there is the pension situation. In California, the state teachers’ retirement system is currently experiencing a $70 billion shortfall. Is CTA willing to accept some responsibility and work to make adjustments for the common good? The union’s response to the nightmare that will ultimately fall on the shoulders of the already beleaguered taxpayer is to try to kill any reforms, maintain the miserable status quo and blame Wall Street and “corporate greed.” “Strengthening democracy?” Hardly.

Finally, last week in National Review, former Florida governor Jeb Bush laid out a plan to save America’s education system. His excellent piece included such basic ideas as letting parents choose from a marketplace of options, including traditional neighborhood schools, magnet schools, charter schools, private schools, and virtual schools, with education funding following the child. He wants to weed out failing schools and reward good and great teachers for hard work and results. But each of these ideas is fought on a daily basis by the teachers unions, since they would lose much of their power and income if Bush’s ideas were to be implemented on a grand scale.

“Bargaining for the common good” is just a touchy-feely catchphrase which shouldn’t fool anyone. The teachers unions are not acting in anyone else’s best interest. And there is little good about them, common or otherwise.

Larry Sand, a former classroom teacher, is the president of the non-profit California Teachers Empowerment Network – a non-partisan, non-political group dedicated to providing teachers and the general public with reliable and balanced information about professional affiliations and positions on educational issues. The views presented here are strictly his own.

Union Greed

The Chicago teachers’ pension scam exemplifies what unions claim to hate most about corporations.

Chicago, long known as the Second City, may still be second in some things, but it seems to be #1 in teacher union greed. As it’s time for a new contract with the Chicago public school system (CPS), the inevitable blather has begun to befoul the air. Here are a few things Chicago Teachers Union (CTU) will not use as talking points:

  • Teachers in CPS are the second highest paid in the country, making barely less than New York City’s teachers.
  • On the 2015 National Assessment of Educational Progress (NAEP), only 30 percent of 4th graders and 25 percent of 8th graders tested as “proficient” in mathematics, and only 27 and 24 percent, respectively, were found to be proficient in reading.
  • Teachers only contribute 2 percent of their salary to their own retirement; CPS kicks in the the other 7 percent, the so-called pension pick-up .
  • Chicagoans are the most taxed people in Illinois and their already crisis-level pension shortfall is in freefall.

The economic situation is so bad in Chicago that Illinois governor Bruce Rauner has been making noises about CPS declaring bankruptcy. If successful, the state would take over the district, void the contact with CTU and possibly reduce pension payments. Needless to say the union and its enablers in the Illinois statehouse are not happy at the prospect and claim it is not legal under existing statutes.

In the meantime, to placate CTU, Chicago mayor Rahm Emanuel proposed a contract so generous that Rauner called it “unaffordable.” It was one-sided enough, however, that CTU boss Karen Lewis liked it. It offered:

  • A guarantee of no economic layoffs through the end of the contract in 2019; the only way to reduce the workforce would be through retirements and attrition.
  • Cost-of-living pay increases.
  • “Step and lane” pay increases based on experience and seniority.
  • No more new charter schools beyond the 130 presently operating; the only new ones allowed would be replacements for any that closed.

Amazingly, the union’s bargaining team rejected the deal, infuriating CPS CEO Forrest Claypool. In response, he fired off a terse letter to Karen Lewis emphasizing three unilateral moves CPS would now make:

  • The district will discontinue the pension pick-up, saving CPS $130 billion annually.
  • A reduction-in-force plan will go into effect that will necessitate layoffs and save another $50 million.
  • Repurposed federal funds will result in a “reduction in general funding to the schools while having no significant overall impact on school budgets.”

Well, as Larry Elder would say, “Then the fit hit the shan.” The union called the letter an “attack” and an “act of war.” The unionistas were especially exercised about the withdrawal of the pension pick-up, but their stance is indefensible. In the Windy City, teachers are obligated by law to contribute 9 percent to their retirement. But in fact, for 35 years CPS (i.e. the taxpayers) has been picking up 7 of the 9 percent. So teachers have been getting away with legal theft, paying only 2 percent of their own retirement contribution, which has helped to position Illinois as the state with the worst credit rating in the U.S.

Moreover, please keep in mind that Chicago has the second highest paid teachers in the country, with a median salary of $71,017, not counting comprehensive healthcare benefits for the teacher, their spouse or domestic partner and children. Also, the average teacher salary is 51 percent higher than Chicago’s median household income, which is estimated at $46,877. And teachers work just 178 instructional days (plus a few non-instructional ones), whereas other full-time workers toil for 240-250 days a year.

But some teachers were outraged at Claypool’s letter and about a thousand of them tore through the Loop aiming their venomous arrows at Bank of America. Sixteen were arrested for sitting in and chanting inside the bank. As Karen Lewis said, “(We’re) here, because we have to make a choice in the city: banks or schools.” (Don’t we need both?) The teachers also disrupted rush hour traffic, inconveniencing thousands of commuters. Ms. Lewis didn’t explain what the demonstrators had against people driving home at rush hour, many of whom pay a lot more than their “fair share” to the teachers’ pension fund.

At the end of the day, probably the best thing would be for CPS to declare bankruptcy, as Rauner proposed. It’s a novel approach, but one that, at first glance, would seem to have little chance of implementation. However, the Republican governor claims that Democrats outside of Chicago are in favor of it because hitting the reset button would void union contracts, thus saving taxpayers all over the state mountains of unnecessary debt. Declaring bankruptcy could also set a precedent. (Take note Los Angeles: LAUSD is due to go belly-up in 2019.)

Final note to union leaders, protesting teachers and fellow travelers: You are obviously looking out for yourselves. Fine. But please stop using “corporate greed” as a rallying cry. When you scream that “corporations must pay their fair share,” please be assured that they already do and then some. Federal tax rates on corporate income vary from 15 percent to 39 percent. Teachers unions – and in fact all unions – don’t pay a penny in income tax. They not only don’t pay their fair share; they pay no share at all. Now that’s what I call greed, with maybe a little gluttony added for taste.

Larry Sand, a former classroom teacher, is the president of the non-profit California Teachers Empowerment Network – a non-partisan, non-political group dedicated to providing teachers and the general public with reliable and balanced information about professional affiliations and positions on educational issues. The views presented here are strictly his own.

NEA Greed Machine is in Overdrive

Tax Freedom Day is April 17th. Freedom from teacher union extortion? To be announced.

The National Education Association has thrown itself full force into the “corporate loophole” demagoguery campaign. According to the NEA, children are being victimized by avaricious corporate types who don’t pay their fair share of taxes. The NEA exhorts the American people to “stand up for the middle class and support closing corporate tax loopholes at the federal and state level, so that additional resources can be invested in public education and other services that build our communities.” In a message oozing with class warfare, we learn that “Corporate tax loopholes are costing our schools and communities resources that would help the next generation achieve the American Dream.” (Cue the violins.)

They then post a list of programs that would thrive if the greedy corporate bastards would just pay their fair share – Title 1, Pre-K education, etc. NEA of course fails to mention that these programs, though popular, are essentially federal boondoggles. They don’t really do what they purport to do. They do make work for unionized adults, however, which if you haven’t been paying attention, is all NEA really cares about. But I digress….

Using Citizens for Tax Justice as their source, NEA claims that closing the seven largest corporate tax loopholes would provide an estimated $1.487 trillion in additional revenues over the next ten years. Coincidentally, CTJ just happens to be the union founded and funded lobbying wing of something called the Institute on Taxation and Economic Policy.

At this time, the U.S. corporate tax rate is 35% which is the highest in the world and since their fiduciary responsibility is to their stockholders, corporations might indeed need to find ways to save money.

But, maybe there are a few corporate loopholes that should be closed. And I have just the one that we should start with. Using information gathered from the U.S. Department of Labor, RiShawn Biddle reports,

Overall, the NEA collected $399 million in dues and other revenues in 2010-2011, barely budging from revenue numbers last year. This despite a four percent decline in membership, from 3.3 million members in 2009-2010 to 3.2 million in 2010-2011.

Sad to say that the bulk of that $399 million comes from union dues automatically deducted from teachers’ paychecks. Most public school teachers in the U.S. are forced to pay union dues as a condition of employment. And of course, all public school teachers are funded by taxpayer dollars. So it is the private sector that is actually funding an entity that is trying to extort even more money from the private sector.

What did NEA do with that $399 million? One third or $133 million went on politics and “contributions” to groups that support NEA’s agenda. In fact, referring to the National Education Association and the American Federation of Teachers’ political spending, teacher union watchdog Mike Antonucci wrote in 2009,

…America’s two teachers’ unions outspent AT&T, Goldman Sachs, Wal-Mart, Microsoft, General Electric, Chevron, Pfizer, Morgan Stanley, Lockheed Martin, FedEx, Boeing, Merrill Lynch, Exxon Mobil, Lehman Brothers, and the Walt Disney Corporation, combined.

Moreover, if NEA gets its way and the 35% corporate tax rate stays in place and the loopholes are plugged, Americans will be paying more for the products made by corporations. Just what the country needs – higher prices. As of now, Americans will spend more in taxes in 2012 than they will on food, clothing, and housing combined.

Oh, and one other little minor detail. The NEA is a corporation that is accorded a 501(c)(5) tax exempt status. So out of the $399 million they took in, NEA paid $0 in taxes!

It is not only the national teachers unions that get away with loophole flimflam; all the state teacher union affiliates take advantage of their tax exempt status too. In my state, the California Teachers Association brings in almost $200 million a year and pays $0 in taxes. CTA also spends more on lobbying and politics (again, with forced dues) by far than any other corporation in the state.

If we are to close one corporate loophole, we need to start with the one that benefits the teachers (and in fact, all) unions. Parents, children and taxpayers will greatly benefit. The losers will be a certain group of brazen corporate types that have been getting away with theft for far too long.

Perhaps blogger Jason Arluck put it best,

Taken together, the National Education Association (NEA) and the American Federation of Teachers (AFT) represent the single largest lobbying conglomerate in the country, but unlike private firms, their contributions come from the pockets of American taxpayers who are forced to fund not just America’s failing public schools, but also one of main sources of their failure.

Today is April 17th, the day our income taxes are due. It would behoove each and everyone of us to think about how much of our hard earned money we are forced to pay to the more aptly named National Extortion Association and other teachers unions, the true exemplars of corporate greed.

About the author: Larry Sand, a former classroom teacher, is the president of the non-profit California Teachers Empowerment Network – a non-partisan, non-political group dedicated to providing teachers with reliable and balanced information about professional affiliations and positions on educational issues.

CTA in Bed with the Occupy Crowd? LOL!

The California Teachers Association is seeking cover in the Occupy Wall Street movement. The OWS crowd doesn’t understand that CTA and other public employee unions are a major part of the problem.

Last week, part of my post concerned itself with the March 5th “Occupy the Capitol” protest being promoted by the California Teachers Association. I wrote,

“Not only is CTA inviting the OWS rabble, they are calling for teachers to attend, even though it is a school day, thus costing taxpayers all over the state untold thousands in costs for subs and robbing children of a productive school day.”

Little did I know, March 5th was just the tip of the iceberg. The CTA website is now touting a “Week of Action” covering the first seven days of March. Many activities are planned and will be led by various “Occupy” groups that have sprung up like weeds. The result is a grand mishmash of radical organizations coming together to vent their spleen over various and sundry issues, and all links to their activities are available through the CTA website.

Right on the CTA homepage you can access the MarchFirst DayofAction Facebook page which whines about the evils of corporations and privatization.

Then there is March 1 National Day of Action for Education website which blasts,

“We call on all students, teachers, workers, and parents from all levels of education —pre-K-12 through higher education in public and private institutions— and all Occupy assemblies, labor unions, and organizations of oppressed communities, to mobilize on March 1st, 2012 across the country to tell those in power: The resources exist for high-quality education for all.” If we make the rich and the corporations pay we can reverse the budget cuts, tuition hikes, and attacks on job security, and fully fund public education and social services.”

This site, with its clenched fist logo, also has a list of supporting organizations. The roster consists of a motley collection of radical retreads — SDS and MEChA and latter day acolytes – By Any Means Necessary and Occupy groups from all over the country.

Occupy Education California has a list of accomplices on their home page – American Federation of Teachers, California Federation of Teachers, Berkeley Faculty Association, Codepink, La Raza, SDS, Socialist Organizer and Old Lesbians Organizing for Change.

There is even a meet-up page online, so that if you are an OWSer and think that you must “do something,” you can find an event here. (Amazingly, there is a group in Beverly Hills. So I guess after stuffing yourself at Trader Vics, you can go out and rail at the
rich.)

All these groups’ messages are a thinly veiled attack on capitalism and can be summarized as such:

Corporations and rich people bad.
Big government good. They take money from corporations and rich people and give it to us.

Clearly there is a 1960s flavor to all this – a pastiche of angry student groups and serious radicals, but with a new wrinkle, especially in CA – teachers unions and college faculty associations are involved. During the 60s, most unions of any kind wouldn’t be caught dead at protest rallies, but these are different times and different unions. The irony here is palpable. The teachers unions and other public employee unions, barely existent in the 60s, are claiming victimhood, but in reality are a big part of the problem.

One of the mantras of the Occupy crowd is that corporations should pay their fair share.

Do the OWSers know that the California Teachers Association and other teachers unions are corporations with a special 501(c)(5) tax status which means that they pay no tax? Yes, CTA is a corporation that brings in nearly $200 million a year and pays no taxes. Yet, CTA is promoting events that call for corporations to pay their fair share??!! (If anyone reading this blog has the misfortune to get caught up in an Occupy event, why not ask one of the protesters if they think it’s fair that CTA should pay nothing in taxes. Please post their response in the “comments” area below.)

Do the OWSers know that private corporations in the U.S. have a 35 percent tax rate which is the second highest corporate tax rate of all industrialized countries?

Do the OWSers know that many the leaders of the unions they are partnering with make in the neighborhood of $500,000 a year which makes them one percenters?

Do the OWSers understand that corporations are behind their beloved revolutionary accoutrements – smart phones, lap tops, social media websites, etc?

Do the OWSers understand that CA is in deep financial trouble in large part due to overly generous public employee union pension funds and that these funds invest in the stock market (a collection of corporations) to make up for the shortfall?

Do the OWSers and their new best friends in the teachers unions have a clue as to how many teachers have money tied up in 403(b)s? These tax sheltered annuities provide a way for teachers to invest in stocks (corporations) and defer any tax payments on capital gains until after they retire?

The anti-corporate hysteria has spread like wildfire, but corporations are not the problem. CTA and other public employee unions, with their privileged tax exempt status and endless demands on the private sector, are the real greed mongers. Yet CTA et al have the cojones to join forces with the OWSers. And the OWSers are either too uninformed or too brainwashed to realize the irony.

About the author: Larry Sand, a former classroom teacher, is the president of the non-profit California Teachers Empowerment Network – a non-partisan, non-political group dedicated to providing teachers with reliable and balanced information about professional affiliations and positions on educational issues.