Why A Strike Authorization Matters:

1. 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

2. PASSHE Is Sitting On $800 Million in Unrestricted Net Assets And Can Afford to Give Faculty a Fair Contract PASSHE has unrestricted funds equal to almost two years of the state appropriation or 50 percent of its annual operating budget. $800 million Stronger The Median Ratio for Aa2 Rated Institutions is 27% Weaker Source: PASSHE Chart Unrestricted net assets compared to total annual operating budget, including auxiliaries.

3. Faculty Cannot Afford to Go Another Year Without Action 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

4. If We Give In: Temporary Faculty Salaries Cut by 35% Think you or your colleagues can afford it? • These unfair cuts would hurt female faculty the most: 59% of all temporary faculty are women. Source: 2010 Pay Scale; Spring 2012 SysPay Data

5. Do We Want Faculty Being Pushed Into Poverty? 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.htm Medical Assistance: http://www.dpw.state.pa.us/foradults/healthcaremedicalassistance/incomeandresourcerequirementsforhealthybeginnings/index.htm LIHEAP: http://www.dpw.state.pa.us/foradults/heatingassistanceliheap/homeheatingassistanceliheapeligibility/index.htm Childcare Work: http://www.dpw.state.pa.us/forchildren/childcareearlylearning/childcareworkssubsidizedchildcareprogram/index.htm

6. 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

7. 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. Percent of Amount Paid Out of H&W Fund Vs. Billed Charges (Source: H&W Annual Report: Graph 11) Dental Vision Suppl. Source: Health and Welfare Fund Annual Reports (2005-2011); BLS Medical Inflation Data (2005-2012).

8. 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)

9. 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!

10. Examples of PASSHE’s Negotiating Pattern: Distance Education

11. Examples of PASSHE’s Negotiating Pattern: Healthcare PASSHE is even proposing to turn annuitant healthcare into a voucher system.

12. PASSHE Proposal: Salary Increments & Steps Temporary faculty are also being asked to take the equivalent of a 35% pay cut!