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Wi\t ^j9ailg |Iennstffoamatt VOL. xan NO. 131 -PHILADELPHIA, WEDNESDAY, DECEMBER 14, 1977—

fiuiurirH 1885

Copyright. \111 The Daily Penniyivaman

Senate Passes Appropriation; U. Signs Labor Agreement Rehiring Is Assured In Harrisburg Pact

By STEVEN A. MARQUEZ The end of the four-month-long campus

housekeeping dispute came in Harrisburg Monday, as the University signed an agreement to rehire the housekeepers.

The agreement, written by State Senator Thomas Nolan (D-Rttsburgh) calls for the workers to be reinstated by January 16, with a raise in pay and no cuts in benefits. The housekeepers' union, Teamsters local 115, still must bargain with the administration for a contract.

Although both sides expect that a contract will be formulated before January 16, the housekeepers will be reinstated whether or not a contract is reached.

The signing of the agreement by Vice- President for Commonwealth Relations James Shada came just hours before the State Senate overwhelmingly approved the University's $17 million appropriation. Representing the Teamsters at the signing was Local 115 official Gerald Sheehan.

"The agreement means the University had to do a 180-degree turn," Local 115 President John Morris boasted Monday evening. "It is a victory for the union." -

The University, up until last week, had steadfastly refused to reinstate the workers, who were fired August 4 and replaced with outside contractors. Pressure from the Senators and the National Labor Relations Board (NLRB) were major factors in the University's reversal of its position.

University Prresident Martin Meyerson claimed Tuesday that despite the rehirings, the University would not back down from its determination to achieve cost cuts in housekeeping.

"1 don't think either side won or lost," asserted Director of Labor Relations George Budd.

The agreement contains the following points: -Rehiring the workers on or before January 16 with

a five-percent raise and no cut in benefits. -Recognition of Local 115 as the "sole exclusive

bargaining agent" for the housekeepers. -Compensating the housekeepers for the difference

between back pay lost during the dispute and unemployment compensation received. The total cost of compensation is estimated at $300,000.

-Removal of the outside contractors. -Immediate bargaining of a contract for the

workers. -Dismissal of charges filed by both sides with the

NLRB. Budd said the University would "shortly" mail out

recall letters to the housekeepers. 315 of the 343 fired workers are expected to return to work, with the others either retiring or going on long-term disability leave.

The agreement was written by Nolan last Wednesday and presented to both sides at a meeting in Harrisburg Thursday evening. However, no agreement was reached at that meeting, since there was a conflict over a provision allowing the workers to cross other picket lines on campus.

(Continued on page 3)

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BOTTOM: Senator Thomas Nolan prepares the agreement for the University and the union to sign In his office Monday. MIDDLE: University lobbyist James Shada (right) discusses the negotiations with Senator Paul McKlnney, whose district includes the University. TOP: Teamster pickets were a common sight In the state capital this fall.

Senate Votes 45-2 For $17 Million Bill

By CAROL HUTCHINSON The Pennsylvania Senate easily passed the

University's delayed $17 million appropriation Monday, but not before the University had signed an agreement with Teamsters Ix>cal 115 promising to rehire more than 300 fired campus housekeepers.

The Senate vote of 45-2 ended months of controversy between the University, the legislature, and the union. It is highly questionable whether the appropriation would have passed if the University had not convinced several key Senators that it was close to a settlement with the union.

The University's bill was defeated by two votes in its original Senate consideration October 18, apparently as a result of lobbying by I/>cal 115.

However, none of the other state-assisted colleges and universities in the Commonwealth have received their 1978 state funding totalling $300 million because the legislature was unable until last week to pass a tax increase to fund them.

It remains uncertain when the University will receive the first installment of its Commonwealth allocation because the General Assembly has some unfinished legislation to pass before the schools can be funded.

Monday's Senate vote on the University's bill was vastly different from its original consideration, when fifteen Senators voted against it primarily because of the labor dispute.

Included among those who did not vote for the bill the first time was Senator Paul McKinney (D.- Philadelphia), whose district includes the University. McKinney said he felt compelled to vote against the bill originally because of intense Teamster pressure, claiming, "I have to get re-elected." McKinney supported the bill Monday.

At a Senate Appropriations Committee meeting Monday prior to the full Senate session, Senators Thomas Nolan (D.-Pittsburgh I and Joseph Smith (D.- Philadelphia ) reported to the committee on the status of the University's labor dispute.

Nolan is a former Senate majority leader as well as a former labor leader who voted against the University's bill the first time because he was opposed to the tax increase.

Smith, the chairman of the appropriations committee, voted against the University's bill the first time because of the labor dispute.

Smith and Nolan became heavily involved in the dispute last week. Nolan drew up a settlement proposal and both Senators mediated a six-hour meeting between the University and the union in the Capitol last Thursday night.

Smith opened the Appropriations Committee meeting with his report on the University's labor dispute, and then Nolan outlined the details of the agreement.

"The purpose of this agreement is to put the people back to work, not to negotiate a contract," Nolan said.

(Continued on page 2)

Page 2

Union Agreement Helps U. Funding

(Continued/rom page i) He said the only problem with the proposal was that

the union had insisted that it not be required to cross picket lines in the case of a strike by another campus union. Nolan said he refused to accept this provision, believing it must be negotiated in a contract between the University and the union.

The Appropriations Committee then voted nearly unanimously to bring all the schools' so-called "non- preferred" appropriations onto the floor of the Senate for a vote. Although one Senator suggested that the Committee increase each bill to cover interest charges the schools have incurred through borrowing, Smith replied. "We don't have the money."

After the meeting ended. Vice President for Commonwealth Relations James Shada, the University's Harrisburg lobbyist, went into Nolan's office and signed the agreement on behalf of the University. Jerry Sheehan, a l4cal 115 official, signed for the union.

Senior Vice President for Development E. Craig Sweeten said Wednesday that Shada signed the agreement because he was the only University representative "who had been very much involved in the details. Shada was signing pro tern ," Sweeten said.

The document was officially signed Tuesday by Director of labor Relations George Budd and Local 115 President John Morris.

When the Senate members convened later Monday afternoon, they speedily went through the non- preferred appropriations, passing them by wide margins. When the University bill came up for consideration, Nolan stood and explained that a labor agreement had been reached between the University and Ix)cal 115. Nolan was the only Senator who spoke about the University's bill.

Before any of the schools can receive their money, the full $300 million must be raised by the legislature.

The Daily Pennsylvanian Wednesday, December 14,1977

THE HOUSE OF REPRESENTATIVES, presided over by Speaker K. Leroy Irrli, Tuesday narrowly passed the University Museum's $100,000 appropriation, ai well as a utilities tax which will help to fund the state's colleges and universities. The current revenue package is slated to include $155 million in personal and corporate taxes, $47 million in utilities taxes for out-of -state customers, and $82 million in Commonwealth budget cuts.

Further clouding the funding picture for the schools is the fact that the revenue package falls some $16 million short of the necessary $300 million. It will presumably have to come from somewhere in the Commonwealth's $5 billion budget unless the legislature finds another source of funding.

University President Martin Meyerson said Tuesday he thought the appropriation "would have squeaked through anyway" without the labor agreement.

Budget Director Jon Strauss said Tuesday he was

"delighted" with the Senate vote."There's no question it would have been very bad for the University" if the appropriation had been denied, he added.

bweeten said he "did not know" whether the bill would have passed the Senate if there had been no labor agreement. He predicted the Philadelphia senators would not have voted for the bill if there had been no agreement.

"The problem all along has been labor," Sweeten added. "After the agreement was settled upon, things went pretty well. There was no basic antagonism towards the University's appropriation."

I-ocal 115 President John Morris said Monday he did not think the University's bill would have passed if it had not been for the agreement.

University vs. Teamsters: Who Really Won? By STEVEN A. MARQUEZ

The University achieved its Pyrrhic victory in the halls of the State Capitol Monday afternoon.

The State Senate finally approved the University's

News Analysis $17 million appropriation, but only after the administration formalized its nearly total reversal of its position in the campus housekeeping dispute.

The subsequent 45-2 vote in favor of the University's funds attested to the gravity of the Sta'.e Senate's

concern that the labor dispute be resolved. It also revealed the extent to which Harrisburg politicians can influence University decisions.

The agreement, composed by Senator Thomas Nolan (D.-Pittsburgh), is clearly a compilation of all the demands made by Teamsters Local 115 President John Morris at the strike's outset. The union won the rehirings of its housekeepers, the right to represent the workers in bargaining, the removal of the outside contractors hired to replace the housekeepers, and full benefits and a raise in pay for the workers.

The union was unsuccessful in gaining full back pay

ALTHOUGH TEAMSTER PICKETS REFRAINED from lobbying In Harrisburg when Monday's agreement was signed. Local 115 members made several trips to Harrisburg when a vote on the University's appropriation seemed ^imminent. Teamster lobbying caused the defeat of the original consideration of the University's bill October 18.

for the housekeepers, and a provision to allow the workers to cross campus picket lines was swept under the rug by the senators. However, it has emerged from the dispute virtually unscathed.

Meanwhile, the University must face the somewhat unenviable prospect of dealing with the Teamsters in contract negotiations. Morris, known as a tough bargainer, has said that he considers the savings achieved by the reduced housekeeping staff (28 of the 343 housekeepers will not return to work) to be a sufficient reduction of costs in the department. The administration still hopes to include additional cost- cuts in the housekeeping contract.

Two outside agencies which have had significant impact on the progress of the dispute, the State Senate and the National Labor Relations Board (NLRB) will now fade from the picture.

The Senate's satisfaction with the agreement was evident in its overwhelming approval of the appropriation. While pressure from the Senators, espcially Nolan and Appropriations Committee Chairman Joseph Smith (D.-Philadelphia) were a major factor in the settlement of the dispute, Monday's agreement will be as far as the politicians go. Nolan and Smith have strongly emphasized that Harrisburg will have nothing to do with the contract negotiations.

The NLRB had pushed the University into drafting a settlement offer December 5 by threatening to file a formal complaint charging the administration with violation of federal labor laws. But the NLRB will now end its involvement in the dispute. Its charges against the University, and charges that the union engaged in illegal picketing, will be dropped. No NLRB involvement will take place in contract bargaining.

With all the outside agencies apparently satisfied, the progress of the negotiations now depends only on the University and the Temsters. The dispute a considerable abberation from conventional strikes, now becomes merely a closed battle in bargaining sessions. Should a disagreement occur over the contract, the housekeepers could conceivably go out on strike, but this time they would be employees of the/f University. _yjf

The Fight Ends The following is a chronology of the events leading to the signing

of an agreement between the University and Teamsters Local 115, and the passage of the University's $17 million Commonwealth appropriation.

January, 1977 — University notifies Local 1202, the housekeeping union, that it is considering going out of the housekeeping business and hiring outside contractors.

February, 1977 — Governor Milton Shapp recommends a $16.2 million 1978 Commonwealth appropriation for the University, a cut of $1.5 million from the 1977 allocation, and nearly $6 million less than the University had requested.

Spring, 1177 — Local 1202 considers joining Teamsters Local 115 to obtain a stronger bargaining agent.

June, 1977 — June 23: 1202 members vote to join Local 115. The National Labor Relations Board (NLRB) certifies the election Julyl.

July-August, 1977 — The legislature argues over the Commonwealth budget as many legislators vehemently oppose a tax increase. The debate continues past the July 1 start of fiscal year 1978 and state employees and persons on welfare are forced to go without money. The House of Representatives August 19 finally approves a budget bill which intentionally removes $300 million for colleges and universities until a tax hike can be agreed on to pay for them.

Meanwhile, back on campus, the housekeepers' contract expires on August 1, and on August 4, the University notifies them that they have been fired. On August 9, the Teamsters begin picketing on campus.

September, 1977 — The House of Representatives narrowly passes the University's appropriation, and the labor dispute is a topic of extensive debate on the floor of the House. Some representatives favor voting against the University because of the fired housekeepers, while other believe that the legislature should not involve itself in a labor dispute. An extensive and unprecedented cooperative lobbying effort is initiated between all the Pennsylvania colleges and universities, which are trying to pressure the legislature into passing their funding. Many of the schools are heavily in debt because they have been forced to borrow money. Advertisements and letter-writing campaigns are begun.

October, 1977 — The State Senate defeats by two votes the University's appropriation, apparently as the result of heavy Teamster pressure on senators. The Senate later decided to reconsider the appropriation bills for all the schools after the revenue had been passed.

November, 1977 — The NLRB, which has been studying the case since September, begins issuing warnings and complaints. On November 4, the Board finds merit in Teamster charges of unfair labor practices against the University, and on November 11, it charges the union with illegal picketing. On November 18, the NLRB issues a formal complaint against the union. Then on November 22, the University announces in Harrisburg it will open negotiations with the union.

Meanwhile, both houses of the General Assembly struggle over the tax hike.

December, 1977 — Talks between the University and the union begin on Friday, December 2 and continue throughout the weekend. President Martin Meyerson prepares a draft offer which is presented the next week to the union, the NLRB and the senators in Harrisburg.

The Daily Pennsyivanian then discloses on Tuesday, December 6, that the University has offered to rehire the housekeepers. The University confirms this story on Wednesday, December 7, the same day the House of Representatives passes a tax increase. The Senate passes the hike the next day, Thursday, December 8.

During this week, Senators Thomas Nolan, a former labor leader and former Senate Majority leader, and Senator Joseph Smith, the chairman of the Senate appropriations committee, also become Involved in the drafting of an agreement. They meet with representatives of the University and the union on Thursday, December 8.

On Monday, December 12, it is announced at a Senate Appropriations Committee meeting that the University and the union are about to sign an agreement, excluding the picketing clause the union has sought. The appropriation is then easily approved by the committee.

Minutes later, the agreement is signed by representatives of the University and the union in Nolan's office.

Later that afternoon, the Senate easily passes the University's appropriation.

Still to come — The University and the union must still negotiate a contract. It is uncertain when the University will finally receive the state money, because the needed revenue plan has not yet been finalized. Meanwhile, the University is spending $700 a day in interest charges on a $3 million bank loan. As of Friday, $15,000 in interest charges had accumulated.

Labor Pact (Continued from page 1)

The Teamsters insisted on tne provision, but the University asserted that the matter should be resolved in contract negotions. After pressure from Nolan and State Senator Joseph Smith ■ l>- Philadelphia), the Teamsters agreed to allow the picketing provision to be deleted from the agreement.

"I think it is fair that this matter (picketing) be worked out at the bargaining table," Meyerson commented.

The State Senate first entered the picture when the Teamsters began lobbying efforts against the state appropriation. Due largeiy to these efforts, the Senate rejected the funds October 18.

With the appropriation up for consideration last week, a delegation of Senators appointed Nolan on December 5 to attempt to work out an agreement.

On tne same date, the University proiosed rehirings in a meeting with the NLRB. The NLRB was preparing to charge the University with the labor law violations involving the firings. The NLRB was also ready to

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Wednesday. December 14,1977 page S This issue prepared by: Carol Hutchinson, Drusie Menaker, Eric Jacobs, Mike Thompson, DaveRosenbaum, Oreta Richardson, Wanda Rlspers, Martin Siegel, Mel Neisner, Judy Rubenstein, Lisa Gottlieb, Ray van der Horst, and Steven A. Mdrquez.

begin hearings against the Teamsters, charging them with ■llegal picketing practices.

The two sides had resumed bargaining December 2, after an offer was made by the University to negotiate. Two days later, meyerson first called for the rehirings in a draft submitted to the NLRB, citing the union's willingness to discuss cosl cuts in housekeeping. Meyerson said the rehirings were "dependent on the full state appropriation and both sides rxmoving the charges before the NLRB."

NLRB regional Director Peter Hirsch said Tuesday that all charges would be dropped as soon as he recieves written

(Continued on page 4)

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Labor Pact (Continuedfrom pa;:". 3)

notification from both sides. "At this point we really haven't gotten much more about the agreement than what we've seen in the papers," he remarked.

Budd claimed the rehirings could not be immediate because the four contracting companies had to be given time to leave campus.

The pickets on campus since August 8, will not be removed until the housekeepers vote to ratify the agreement.

The two sides are expected to begin negotiations over a contract before the end of the week. University officials said they would continue to push for cost reductions in housekeeping when bargaining the contract. The workers were fired, the University claimed, to save $750,000 a year in costs.

"The needs of the University can be met by the Teamsters if they are willing," Budd stated. "The bottom line is cost

savings." Meanwhile. I he Slate Senate is

withdrawing from the labor dispute. "Our purpose was to secure the return of these employees to work and make them whole in terms of their wages and benefits," Nolan said in a statement released Monday, adding that the contract •remains the subject of

bargaining between the University ami the union."

_The Daily Pennsylvanian

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