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CSUEU E-NEWS: July 27, 2012

CSU trustees weigh trigger cut options as they bestow president pay hikes, Prop. 32 is intended to hurt unions, studies show that union membership and middle class declines are linked, and more...

Biweekly news digest from the California State University Employees Union

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TRUSTEES WEIGH BUDGET OPTIONS AND EXEC PERKS
SACRAMENTO BEE: PROP. 32 IS INTENDED TO HURT UNIONS
CHARTING THE MIDDLE CLASS’ DECLINE
CSEA MEMBER BENEFITS: HAVE FUN AND SAVE MONEY
THIS DATE IN HISTORY

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CSU Trustees Weigh Budget Options, Bestow Executive Perks

A key agenda item for the CSU Board of Trustees’ July 17 meeting in Long Beach was discussion of budget options if Prop. 30--Gov. Brown’s tax initiative--is voted down this November, thus generating an automatic $250 million trigger cut to the CSU. Two options were outlined:

Preserving enrollment and student access
In this scenario, designed to prevent cuts in enrollment, a tuition increase of $150 per semester per full-time student would start in January, 2013. Since that wouldn’t cover the full $250 million, the balance would come from a 2.5 percent reduction in pay and benefits, also to be put into effect in January 2013, contingent on collective bargaining.

Preserving Price
This scenario avoids fee hikes but reduces enrollment in the second year by 1.5 percent, resulting in about 6000 students who would have to be turned away. Fewer students would mean less staff, with an estimated 750 jobs lost. In addition, salary and benefits would be reduced by 5.25 percent.

No action was taken, but these items will inevitably come up again at one or both of the next two trustee meetings, scheduled for September 18-19 and November 13-14. Read the full CSU presentation (PDF).

“These cuts and related changes are neither unavoidable nor imminent,” said CSUEU President Pat Gantt. “All of these items must be bargained with the CSUEU on behalf of our represented employees.”

He added, “The suggestion of layoffs, salary cuts or increased cost sharing should motivate everyone to work on making sure that the governor’s tax measure passes this November. We must push hard to pass this measure to avoid a $250 million cut, thereby limiting impacts on our bargaining units.”

At the same meeting, the trustees rubber-stamped proposals to bestow yet more executive pay hikes, this time giving raises to three incoming campus presidents. New Cal State Northridge President Dianne F. Harrison will receive $324,500, including $29,000 from the campus foundation; incoming Cal State San Bernardino President Tomas D. Morales will receive $319,000, including $29,000 from the campus foundation; Leslie D. Wong, incoming president of San Francisco State, will receive $325,000 including $26,251 from the campus foundation.

This July 18 KABC-TV Los Angeles news coverage features CSUEU members Mike Chavez and Rich McGee speaking out about the need to curb executive raises and support university workers. Also on the18th, CSU Fresno Chapter 309 President Nancy Kobata was interviewed for a KGPE-TV report.

Within hours of the decision, Gantt issued this statement: “The trustees’ decision to approve pay raises for several incoming campus presidents using funds that would be raised specifically for the salary supplements is insensitive, rude, ill-advised, and poorly timed. It’s insulting to employees, students, and the public to keep hiking presidential pay, no matter where the funds come from, at a time of ever more draconian cuts to services and hikes in tuition.”

Sacramento Bee: Prop. 32 Is Intended to Hurt Unions

In this July 24 article, Sacramento Bee columnist Dan Walters spells out what California’s unions have been saying for months: Prop. 32, also known as the Corporate Exemptions Act, “is clearly part of a nationwide effort by conservative groups to hamstring union political influence.”

See a coalition video explaining why this November ballot initiative must be defeated.

Check out these informative materials with complete details about Prop. 32, hot off the press from SEIU State Council:

Charting the Middle Class’ Decline

Anti-labor politicians ignore the fact that unions were a major force in building and sustaining the great American middle class, and as they declined, so has the middle class. David Madland of the Center for American Progress showed in a recent report that the middle class’ share of national income has steadily declined since 1967, in sync with union membership declines, as the super-rich have taken a larger share of national income than any time since the 1920s. The correlation reinforces the idea that the presence of strong labor unions helps create and support a strong and vibrant middle class.

As journalist Timothy Noah states in his book, The Great Divergence, “Draw one line on a graph charting the decline in union membership, then superimpose a second line charting the decline in middle-class income share, and you will find that the two lines are nearly identical.”

Have Some Summer Fun and Save Some Money

CSUEU members have exclusive access to many discounts and services through California State Employees Association (CSEA) Member Benefits. CSUEU membership gives you the ability to purchase discounted tickets for fun activities like movies and theme parks. Why not save some money while spending time with loved ones?

The group pricing and discounts are just one more way that CSUEU helps members stretch their hard-earned dollars just a little further.

To learn more about your member benefits and discounts, visit the CSEA Member Benefits page.

CSUEU and CSEA are always looking for ways to enhance our benefit packages with products ranging from life insurance to movie passes. Here’s a list of frequently asked questions.

Here's how you can stretch your budget:

  • Discounted admission to theme parks like
  • Disneyland and Six Flags
  • Value-priced movie and event tickets
  • Affordable rates on hotel lodging, cruises and airfare
  • Special discounts on computers, cell phones and gift certificates
  • Group pricing on insurance including life, home, auto and pet
  • Members-only rates for financial and legal services

Having your Member Benefits department’s newsletter delivered directly to your email inbox once a month is an easy way to save money. Subscribe at the Member Benefits website.

This Date in History

This Sunday, July 29, marks the anniversary of the 1970 signing of the first union contract between Delano-area grape growers and farm workers who were represented by the United Farm Workers

With such tactics as a five-year table grape boycott and a series of hunger strikes by union leader Cesar Chavez, the UFW struggled to raise farm worker pay from 40 cents an hour, to win union recognition from savagely resistant grape and lettuce growers, and to stop the use of deadly pesticides that were killing children in the fields.

Visit the UFW website to learn more about the boycott and its successful resolution.

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See back issues of CSUEU E-News, distributed every other Thursday.

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