--The Da i
Collegian Friday, June 24, 1977•
An Open Letter
To The University Community
You should be aware that contract negotiations between Penn State and its technical service
employees, which began in January, are now ended. On June 30, members of Teamsters Union Local
No. 8 will vote to accept or reject the University's final offer, consisting of a total salary increase of 5%
and a compensation increase of 6.8%. Because of the importance of this matter to the total University
community, I want to report on the nature of the contract offer and how the vote will affect you the
faculty, staff, and students. .
Last year the membership of Teamsters Union Local No. 8 approved a two-year contract with a
reopener clause for (a) negotiations on wages for the period July 1, 1977, to June 30, 1978, (b)
improvements in the surgical schedule and (c) free dependent•coverage for the health insurance
program.
The leadership of the Union and representatives of the University have been engaged in negotia
tions on these items for the last several months. The University's final offer provides for a 5% increase
in wages, which. is within the budget approved by the Board of Trustees and fully comparable with
increases received by other groups of University employees. The contract offer. also provides for
improvement in-the UNICARE surgical-schedule, increasing the maximum benefit from $450 .to $750.
. The maximum benefit for each individual surgicalprocedure has been increased by some 67 percent.
In addition, the basic maternity benefit (doctor's fee for normal delivery) . has increased from $l5O to
$350. The cost to provide these increases, including additional contributions for social security and the
State pension plan, amounts to 6.8%. During negotiations, the demand for free dependent coverage
for health insurance was withdrawn by the Union.
In short, the University has offered an increase in wages and an Improvement in fringe benefits fully
comparable with the wage and benefit increase that will be received by other groups of University
employees effective July 1, 1977.
The Union leadership asked for an 8 percent wage increase and has announced its intention to
recommend to the membership of the Union rejection of the contract offer. The University is not able to
meet this wage demand.
Why didn't the University offer more? What would happen in the event of a strike?
The answer to the first question is that Penn State is entering into the most austere budget year it
has faced in recent history. The budget approved by the Board of Trustees at the May meeting
required the University to close a $14.5 million gap (exclusive of the Milton S. Hershey Medical Center)
between our State appropriation request and the recommendation in the Governor's budget. It was
necessary to eliminate $3 million proposed In the budget request to restore previous cuts; to eliminate
critically 'needed expenditure increases of $3.7 million; to make internal budget cuts of $3.2 million;
and to increase tuition by $4.6 million.
Although the budget approved by 'the Board of Trustees assumed a $3 million increase in the
University's State appropriation, it is still , not certain that the Legislature will vote to approve this
increase. Failure by the Legislature to approve the $3 million increase would again throw our budget
out of balance, and could result in a second round of tuition increases and further serious cuts in
programs.
The University, with Board approval, has seen fit to proceed with salary increments on July 1, 1977
at the 5% level even though the $3 million increase from the State on which such increments are
based has not been finalized. We are in no position to go further.
Turning now to the second question, what are the implications of a strike by the technical service
employees? If two-thirds of the Union members voting reject the finalbontract offer, the Union leader
ship will be authorized to call for a strike.
If such a strike is called by the Union leadership of the technical service employees, the University
will remain open and will continue to operate its academic programs and essential services. Incon
veniences will certainly occur, but contingency plans have been made by each unit throughout the
University to cope with a potential work stoppage.
It is my fervent hope that an understanding of the University's fiscal situation will prevail, and an
early contract settlement will be reached, which will avoid a strike.
June 21, 1977
. . , Photos by Patrick .. t
um, yam .
Y - -__
Don Charley (Ist-computer science), one of the four dessert- ner last night in East's Findlay Dining Hall. The Behrend
eating champions from Be h rend House of Packer Hall con- House team broke the record set by Geary Hall ' s Jefferson
,
centrates on breaking the record (above) and looks around House in January of this year. ;,--
eat turn up . for relief afterwards (left). The event took place during din- r.
:'
W s)‘tvol(le),
dohn W. Oswald
President
Sincerely,
There is nothing like a
nice cola bowl of soup.
Mom may have forgotten to tell
you that while she was busy re
minding you fof - the virtues of hot
soup but then very few mothers
had ' a . French Chef - who' could
make refreshing vichyssoise . or
really cool cucumber soup or icy _
gazpacho.
Every day we have a soup to help '
you keep cool as well as some
great hot soups. After all, mom did
know what she was talking - about.
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