+ Aetna Insurance Company
offers its Opportunity Plus retirement annuity exclusively through New York
State United Teachers (NYSUT) — an American Federation of Teachers (AFT)
affiliate. The program is endorsed by NYSUT and offers reduced commission
rates. In compliance with the law, Aetna states that "All of the
contributions received by Aetna on behalf of participants are invested in
the participants’ accounts in the investment options selected by
participants. No portion of their contribution is returned to NYSUT."
However, in exchange for this exclusive arrangement, Aetna does make
payments to NYSUT. According to the Opportunity Plus prospectus, "NYSUT is
reimbursed for direct out-of-pocket expenses incurred in the promotion of
the Opportunity Plus program up to a maximum of $75,000 per year. In
addition, the Company will pay NYSUT between $30,000-$42,000 per month from
1994 through 1998. NYSUT has indicated to the Company that it intends to use
these amounts to enhance benefits to the membership." This arrangement sheds
some light on endorsement agreements that are far from uncommon among union
affiliates. An annual payment of $435,000 to $579,000 to an affiliate the
size of NYSUT is not chump change. It also suggests that the way to
determine union income from these arrangements is to avoid the vague and
convoluted union documentation, and go instead to the data of the private
firm offering the benefit, who must explain the arrangement to its
stockholders.
+ In what should become a model for think tanks in other states, a group
of public policy experts in Wisconsin put together a study of the contract
between the Milwaukee School District and the Milwaukee Teachers’ Education
Association. Milwaukee has been the scene of labor unrest recently. Howard
Fuller, director of the Institute for the Transformation of Learning at
Marquette University, George A. Mitchell, a public policy consultant, and
Michael E. Hartmann, director of research at the Wisconsin Policy Research
Institute, co-authored the study which was featured in the October 1 issue
of Education Week. The authors concluded that contract provisions are known
by only a handful of people and rarely improve academic achievement. The
authors recommend collective bargaining take place in public to increase
accountability.
The report is available from Mr. Fuller’s organization (414) 288-5775.
The study also notes that after the union’s executive director met with
one of the report’s authors the union staff declined to respond to questions
and refused to provide copies of important documents and publications. That
type of attitude promises to keep EIA in business for a long time....
+ A letter to the editor of the Detroit News warmed my heart. It
was from Tom Lukshaitis, president of the Sandusky Education Association. He
wrote, in part: "As a local president of a Michigan Education Association
(MEA) bargaining unit, I can honestly say the only time I’m aware of what
the brass in our organization gets in salary is when it is reported in the
newspapers.
"In the past, I’ve asked for the specific salaries of many different
leaders in our association. All I ever received was a very intricate salary
schedule with many different levels to go along with salary steps. The
decision as to what each of our executives make is not made by or reported
to the general membership.... I believe in what our union stands for. The
office and field workers of the MEA try their best to help the constituents.
Unfortunately, MEA leaders have allowed the organization to become more
important than the purpose for which it stands. It appears that our execs
have spent considerable time promoting their importance, instead of spending
time on what is important."
+ The Washington Education Association must be feeling the heat of
multiple lawsuits and campaign finance investigations. Their web page
features a series of attacks on the Evergreen Freedom Foundation (EFF), the
organization whose stellar work uncovered the irregularities in the first
place. WEA’s computer thesaurus is evidently operating at optimal speed, as
the union claims that because EFF’s facts have been "inflammatory,
histrionic, far-fetched and grossly exaggerated, we chose not to respond
directly..." (Where have I heard that "exaggerated" and "chose not to
respond" phrase before? Hmmm...)
+ The Professional Association of Georgia Educators (PAGE) is the state’s
alternative teachers’ association, and is unique because its membership
(about 45,000) is larger than the state’s NEA affiliate, the Georgia
Association of Educators (GAE). GAE has about 32,000 members. "New teachers
moving into the state, they’re just elated to know they don’t have to join
the NEA," said Barbara Christmas, executive vice president of PAGE. GAE has
its own explanation of PAGE’s success: crypto-racism. "If you were to look
at the board of PAGE and its employees today, they are almost all white,"
said Grady Yancey Jr., president of GAE. "It is not an inclusive
organization as far as representing the diverse population of students."
PAGE’s annual dues are $99. GAE’s are $273.