Document from Bing Liu

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[The following document was sent by Dr. Bing Liu for distribution to the faculty.

—Gary Thompson]

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INCREASING DISCRIMINATION AGAINST SINGLE FACULTY MEMBERS IN PROPOSED CONTRACT

It is the policy of Saginaw Valley State University that no unlawful discrimination will be practiced or tolerated in the provision of employment, education, organization, athletics, housing, public accommodations and other services to the public. Equal opportunity will be provided regardless of race, religion, sex, sexual orientation, national origin, age, marital or familial status, color, height, weight, handicap or disability.

In the recently expired contract and in previous contracts, the health insurance contributions that the administration agreed to have been biased in favor of married couples and families. As a result, single faculty members have lost money since the total allowance that the administration is willing to spend on faculty is limited. Single faculty members have lost the chance to negotiate for a larger percentage of salary increase since huge sums have been allocated for health insurance for couples and families. The huge difference is only based on one’s marital or familial status.

Single(S) Two party(T) Difference(T-S)/year Family(F) Difference(F-S)/year
2008-09 600/month 950/month 350 x 12 = $4200 1075/month 475 x 12 = $5700
2009-10 600/month 997/month 397 x 12 = $4764 1128/month 528 x 12 = $6316
2010-11 600/month 1046/month 446 x 12 =
$5352 1185/month 585 x 12 = $7020

According to the full time faculty’s minimum base salaries in the year 2007-8, the median salary is $51,394. I use this number to compare the actual income difference between singles and couples and families.
Single with 3.6% , 3.4%
And 3.25% increases Two party Actual % of increase Family Actual % of increase
2008-09 51,394 x 1.036 = $53,244 53244 + 4200 =
$57,444 11.77% 53244+5700
= $ 58,944 14.69%
2009-10 53244 x 1.034 = $55,054 55054+4764
= $59,818 12.35% 55044+6316
= $61,370 15.26%
2010-11 55054 x 1.0325 = $56,843 56843+5352
=$62,195 12.97% 56843+7072
= $63,863 16%

We have 283 full time faculty members. Assuming that about 70% of the faculty is couples or families, the total for those faculty is 198. I use the mean of two extra insurance costs (compare with single) to estimate the total extra expenses that the administration is willing to pay.
Mean Total extra
2008-09 (4200+5700)/2 = $4950 4950 x 198= $980,100
2009-10 (4764+6316)/2 = $5540 5540 x 198 = $1,096,920
2010-11 (5352+7020)/2 = $6186 6186 x 198 = $1,224,828

If adding the cost of the base salary increase that the administration promises to the total extra from the last column of above table, every faculty, including single faculty, would have at lease 10 % base salary increase every year.

Cost of Promised salary increase If total extra goes to salary increase
2008-09 (53244-51394) x 283 = $523,550 (523550+980100)/283/51394
= 10.33%
2009-10 (55054-53244) x 283 = $512,230 (512230+1096920)/283/53244 =10.68%
2010-11 (56843-55054)x283 =
$ 506,287 (506287+1224828)/283/55054
 = 11.11%

The increase in base salary in the long run would benefit junior faculty significantly. Imagine that in twenty years, after children have left home. Your base salary will have grown exponentially. All faculty members pay the same union dues and fulfill the same basic primary functions at SVSU. Yet the contract, especially this year, benefits some faculty at the expense of other faculty. Increased salaries benefit all faculty members. Discriminatory increases in contributions to health benefits do not benefit all faculty and negatively affect all faculty in the long run.

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