AFSCME 3299: UC ELITES ARE SQUEEZING THE MIDDLE CLASS AND ATTACKING LOW WAGE WORKERS

FOR IMMEDIATE RELEASE: September 18, 2013

CONTACT: Todd Stenhouse, [email protected],
(916) 397-1131

Facing millions of dollars in Retiree Healthcare Cuts, as many as 99% of the UC System’s lowest wage workers already qualify for some form of public assistance.

Oakland: The University of California is preparing to impose new retirement plan changes that will cost the 22,000 members of its largest union more than a billion dollars in increased healthcare premiums when they retire.[i]

The retiree health plan changes, which do nothing to address the fastest growing drains on UC’s finances– skyrocketing executive payroll and multi-million dollar pensions for UC’s highest paid employees– were already imposed on UC Patient Care Technical Workers and other UC employees back in July. UC’s Service workers–over 8,000 full time custodians, food service workers, maintenance workers and others will be especially hard hit by the cuts because they are the lowest paid employees at UC, and perform physically demanding labor that often results in injury. In fact, according to OSHA records, workplace injuries amongst UC Service workers increased by 17.5% since 2009, and one in ten service workers (including 1 in 7 custodians, and 1 in 5 food service workers) get hurt on the job.[ii]

“Californians expect UC to build ladders to the middle class, not condemn thousands of its career workers and millions of aspiring students to a life of poverty,” said AFSCME 3299 President Kathryn Lybarger. “We will not sit silently as a small group of UC Administrators transform America’s premier public university into a relic from the ‘Gilded Age’ that exploits its most vulnerable.”

While UC tuition has tripled over the last decade, an analysis of payroll data shows that the number of UC employees receiving $250,000 or more in salary has more than doubled since 2007.[iii]   During that same period, payroll costs for the top 1% of UC employees grew by more than $250 million per year.[iv]   Each year, top executives also receive millions in extra perks, like car and housing allowances, and relocation assistance.[v]  And according to the Associated Press, since 2010, the number of UC employees receiving six figure annual pension payouts has grown by 30%–with more than 2100 retirees receiving such sums in 2012 alone.[vi]

Meanwhile, 99% of UC service workers could be income eligible for some form of public assistance (Public Housing, Medi-Cal, Healthy Families, WIC or Federal School Lunch).[vii]   The average salary for this group of full-time career workers is less than $36,000, and the average retirement at age 60 after twenty years of physically demanding service is $17,500 per year.[viii]   Under the terms of “post-employment benefit reforms” that UC has already forced on most of its employees, each of these low wage workers will soon see lower take home pay, and will lose up to $160,000 over the course of their lifetimes through higher retiree healthcare premiums.[ix]

“I work full time at UC, and need to hold down two other jobs just to feed my family,” said Denis Garcia, a Food Service Worker at UCSF Mission Bay’s “The Pub,” and married father of three. “I value my job and all I want is a is a chance to live with dignity and give my kids a shot at a better life. The question is, why doesn’t UC?”

[i] Current EX and SX members will pay approximately $1,007,244,098 more in RHC premiums over the course of their retirement. Assumes 20 years of life after retirement and 2013 healthcare premium costs. Healthcare premium costs are expected to rise each year therefore this number is an underestimate. Data sources: April 2013 CPS data (current SX and EX workers); August 2012 Healthcare Utilization data (shows which health plan they are on and determines whether they would be have a single plan or self+spouse plan at retirement); UCOP response to AFSCME RFI July 2, 2012 — 2012 UC personnel data (birthdates and YOS to determine whether or not they are grandfathered).

[ii] OSHA Form 300s 2009, 2010, 2011, 2012. Workplace injuries rose 17.5% from 2009 to 2012. In 2012, 1 in 10 service workers was injured on the job. 1 in 7 custodians injured on the job in 2012. 1 in 5 food service workers injured on the job in 2012.

[iii] Between 2007-2012, the number of UC Employees making more than a quarter million dollars a year grew from 1538 to 3094. http://ucpay.globl.org; https://ucannualwage.ucop.edu/wage/

[iv] UC Compensation reports: http://ucpay.globl.org; https://ucannualwage.ucop.edu/wage/

[v] http://compensation.universityofcalifornia.edu/reports/2012-annual-report-executive-compensation.pdf

[vi] http://www.ocregister.com/articles/retirement-359598-state-pensions.html

[vii] Data sources: CPS April 2013 – base pay for full time SX workers only; 2013 income eligibility guidelines for public housing programs by county, Medi-Cal Kids (formerly Healthy Families), WIC, and Federal School Lunch Programs. Public Housing: http://www.huduser.org/portal/datasets/il/il2013/select_Geography.odn Medi-Cal Kids (formerly Healthy Families): http://www.healthyfamilies.ca.gov/hfprogram/Income_Guidelines.aspx WIC Income Guidelines: http://www.fns.usda.gov/wic/howtoapply/incomeguidelines.htm Federal School Lunch Guidelines: http://www.fns.usda.gov/sites/default/files/IEG_Table-032913.pdf

[viii] Data source: UCOP response to AFSCME RFI on September 26, 2012 which includes average retirement rates

[ix] Increased retiree healthcare costs for a non-grandfathered retiree on Anthem Blue Cross PPO plan amounts to $160,000 over 20 years. Data sources: April 2013 CPS data (current SX and EX workers); UCOP response to AFSCME RFI on December 3, on SX and EX 2011 Healthcare Utilization data (shows which health plan they are on and determines whether they would be have a single plan or self+spouse plan at retirement); UCOP response to AFSCME RFI on July 2, 2012 — 2012 UC personnel data (birthdates and YOS to determine whether or not they are grandfathered).