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Labor College's Deal Questioned

January 18, 2010

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At many faculty gatherings these days, one hears quips and complaints about for-profit higher education. Professors who value what they consider essential and eroding traditions -- a significant tenure-track faculty and the centrality of the liberal arts, for example -- resent the adjunct-heavy, career-education dominant model of higher education that is widely used in for-profit higher ed. As a result, many faculty advocates are skeptical not only about for-profit higher education, but about the growing number of alliances between nonprofit colleges and for-profit colleges. A common criticism of these partnerships is that they shift the focus away from traditional academic programs into areas that are seen as more lucrative (and that generally are more career-oriented).

So more than a few professorial eyebrows were raised by the news late Thursday that the latest nonprofit college to team up with a for-profit higher education entity was none other than the academic arm of organized labor: the National Labor College.

The college awards bachelor's degrees and provides other specialized training to the up-and-coming leaders of the labor movement. But the deal announced Thursday seeks to greatly expand that mission. With support from the AFL-CIO, the college wants to offer online degree programs for the rank and file of working class Americans and their families -- a target population of millions. While plans are still being developed, officials say that initial degree offerings could be in fields that haven't been the college's focus, such as business, health care and criminal justice.

To serve many more students, in fields in which the college doesn't currently offer degrees, the National Labor College has teamed up with the Princeton Review and the Penn Foster Education Group, two for-profit entities. The former is best known for its test-prep services, and it recently moved into distance education by buying Penn Foster, which runs online college and high school programs, with a focus on areas like business, health care and criminal justice, among others.

When Inside Higher Ed published an article about the alliance, the reaction that arrived (in comments and also in e-mail and phone calls suggesting more reporting) came from faculty members who, despite no direct ties to the labor college, Princeton Review, or Penn Foster, felt betrayed. And their anger came not from any specific criticisms of the individual entities involved, but from the idea that organized labor's college was turning to for-profits to expand.

The president of an American Federation of Teachers local posted a comment saying: "This is a sad day for the working class and a sad commentary on the state of organized labor & the institutions that allege to represent our interests."

The president of the labor college said in an interview that he and others took specific steps to make sure the new faculty members hired would be union members with outstanding working conditions. And he described the process he took to check out Penn Foster's labor relations (which he said are excellent -- although his focus was on support staff and he acknowledged not knowing about the status of faculty labor). But he also argued that Penn Foster's role in the new partnership will be much more minimal than the announcement suggested.

Part of the reaction to the news comes from the fact that the president is William Scheuerman, who until two years ago was president of United University Professions, the faculty union of the State University of New York, and in that role was a national leader of the AFT's higher education division. As a union leader, Scheuerman gave speeches in which he took on tight-fisted administrators, budget-cutting politicians and the likes of David Horowitz.

In that role, he argued that for-profit higher education needs extra scrutiny. In an interview with Inside Higher Ed in 2005 after a "60 Minutes" expose about for-profit higher education, Scheuerman talked of the need for tighter regulation of the industry, and described efforts to lobby Congress to increase oversight.

Of for-profit colleges, he said: "They’re in the business of turning a buck to show shareholders they’re profitable. Education is a secondary consequence. Whereas in traditional institutions of higher learning it is the goal." His concerns then were not new. In 2004, he co-wrote an article (again,while he was a faculty union president) called: "Edubusiness Comes to the Academy: The Virtual University and the Threat to Academic Labor."

In an interview Saturday, Scheuerman acknowledged that it surprised some of his friends that he moved ahead with this deal. "I had calls saying, 'Hey. You are working with a for-profit?' "

He insisted that the deal the National Labor College made with the for-profit entities protects academic labor and academic values. A first distinction he made is that all academic decisions will, he said, be controlled by the National Labor College, not Princeton Review or Penn Foster. The announcement issued by the college and its partners had references to the relationship, which Scheuerman acknowledged could make it sound like the other entities will do more than marketing and providing technical help. The announcement also said that while the college will be "solely responsible for the integrity and quality of the programs of the new College for Working Families," that the agreement "will bring together the skills and significant financial resources of The Princeton Review and Penn Foster in development and delivery of the College's programs."

Scheuerman said Saturday that the main functions of the new partners will not be academic, but technical and marketing. "We need back-up support," given the expected growth of the college, he said. He said that "development and delivery" did not mean that Penn Foster was going to play a curricular or teaching role.

Asked whether Penn Foster might have more of a role, given that its academic focus is closer to the vision of the new college than is to that of the labor college, Scheuerman said that "obviously we are going to talk to Penn Foster," but that faculty would be hired by the new college, controlled by the Labor College. "We're not going to use their faculty," he said.

The faculty who are hired, he said, will be unionized. Currently, the Newspaper Guild represents full-time, tenure-track faculty at the college and the AFT represents adjuncts. Scheuerman characterized the split on the faculty as about 50-50. (The guild's Web site reports that it has about 20 members at the college, including librarians and archivists, while the head of the AFT unit says that it has 45 members.)

Scheuerman said he didn't know how many of the new faculty jobs would be adjunct vs. tenure track, but he said that they would be represented by the relevant union when hired.

In selecting Penn Foster as a partner, he said that he and a few others from the college went to the company's Scranton headquarters and, among other things, met with the United Steelworkers local that represents service staff at Penn Foster. The labor college wouldn't have moved ahead, Scheuerman said, without verification that Penn Foster had good labor relations and that new hires for the new college could be union members. He acknowledged, though, that he did not know the arrangements under which Penn Foster hires faculty members -- and professors who questioned the deal said that they didn't know why a labor college would want to do business with an entity without first finding out how it treats faculty members on key issues such as having a tenure system, collective bargaining rights and so forth.

Tenure is largely unheard of in for-profit higher education (although many for-profit colleges offer multi-year contracts). A review of faculty job titles on Penn Foster's Web site suggests that there is a career ladder there for faculty members, as individuals are identified as being a grader, instructor, senior instructor or department chair. The current job openings listed by the college are all described as adjunct or part-time positions.

Officials at Penn Foster declined to say whether any faculty members there have tenure. The spokeswoman said that issue could be discussed only by the academic vice president. The academic vice president in turn said that the question -- even a yes or no question about whether Penn Foster has tenure -- could be answered only by the CEO, who did not respond.

Greg Giebel, who teaches union administration at the labor college and is president of its adjunct union, said that he had mixed feelings about the news. Giebel said that college leaders had told the union about plans for a major expansion, and assured the union that the new faculty would be unionized. Giebel said he applauded the idea behind the college expanding its offerings for working Americans beyond the current union-focused curriculum. Further, he said that many at the college have wanted to see it find ways to build closer ties to the AFL-CIO and that the new programs seem like an "encouraging" effort in that direction.

However, Giebel said that in the administration's discussions with the union about expansion, no mention was made of the Princeton Review and Penn Foster or of "the implications of doing it with an outside party." Giebel said he learned of the role of for-profit entities with the college's expansion from news accounts, not from the college.

He said he assumes that the role for the outside entities will be subject to contract discussions as "it's a change in working conditions so they need to put it on the table."

For now, Giebel said he is waiting to learn more about the deal. While not criticizing Princeton Review or Penn Foster, he said that many faculty members nationally worry about the impact of for-profit higher education so "this is something we need to address." He added that "I absolutely understand that to some, it seems like a Walmart subcontracting to a third world, non-union provider, which is a very different model than the nonprofit higher education model."

Scheuerman said that he couldn't have briefed Giebel or other faculty members on details of the plans because the Princeton Review (and other entities with which the college had discussions) are publicly traded companies, so there would have been insider trading implications to discussing the deal in advance of its announcement. He also stressed that the final terms of the arrangements haven't been worked out yet, and that they would reassure those who are worried. "Come back in a year," he said.

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Comments on Labor College's Deal Questioned

  • NLC's joint venture with Penn Foster and Princeton Review
  • Posted by Susan Schurman , Professor, Department of Labor Studies and Employment Relations at Rutgers on January 18, 2010 at 7:30am EST
  • I can understand my professorial colleagues apprehension about the deal between the world's only accredited academic institution devoted soley to union members and their families and a for-profit insitution. All of us in the professoriate want to prevent the degradation of both labor and academic standards in the academic workplace. We believe deeply that the quality of the educational offerings provided by higher education insitutions rests on the governance role and responsibility of full-time tenured faculty. We know that few for-profit institutions operate with the levels of full-time tenured faculty. However, I would urge my colleagues to give this particular joint venture time to develop before we pass judgement.

    I spent 10 years as the founding president of the National Labor College. This expansion from serving as the "West Point" of the labor movement to serving as the "community college for union families" was part of the vision of the College from the beginning. In fact, it has been part of the mission of the institution since its founding as the AFL-CIO Center for Labor Studies in the late 1960's and later as the George Meany Center for Labor Studies. The difficult question was how to realize that mission given the limited (and shrinking) resource base of the AFL-CIO and its affiliated unions. Very soon after the College received its initial accreditation by the Middle States Commission on Schools and Colleges, we began searching for partner institutions with the breadth of curriculum, resources, accreditation and compatible mission to help us implement this part of our vision. We began by developing a series of joint ventures with two and four year colleges and universities around the country. But the limitations of that strategy soon became apparent: instead of generating surplus resources that could be used to serve more students, it consumed resources, limiting our ability to expand our programs. Finding a single partner with a national (and hopefully international) scope became the focus. We interviewed a number of potential partners - almost all of them for-profit institutions because these were the only ones willing to put sufficient resources on the table to create a serious undertaking. But none of them passed muster. Either they did not meet our labor standards or they were unwilling or unable to give us the control over academics that we required.

    I want to congratulate Bill Scheuerman , President of the NLC, on achieving this partnership with Penn Foster. Penn Foster is one of the oldest and most respected institutions in the field of nontraditional education and has served working class students well for over a century. This partnership will enable thousands of union members to gain skills and credentials at a price they can afford that will help them through the difficult economic transition to the global economy. Right now there are millions of working Americans with enough college credits to be within one year of either an Associates or Bachelors degree who are searching for an education opportunity that they can fit into their busy schedules. Right here in New Jersey there are upwards of 800,000 such individuals. All of us in the higher education community should be thinking about how we can play a role in helping these people find a path to their educational dream. Our country's future standard of living depends heavily on making postsecondary education that leads to good paying jobs accessible to all. The National Labor College-Penn Foster partnership can't begin to meet the need. But it is an important model. Hopefully the rest of us will do our part. Meanwhile, let's give Bill and the NLC folks the chance to make this work. His past record as an great education trade union leader makes him exactly the right person to oversee the venture and ensure that both academic and labor standards are protected.

  • Reading closely between the lines....
  • Posted by vfichera on January 18, 2010 at 10:45am EST
  • It is clear that the new agreement between the NLC, the AFL-CIO, and PR and its owned Penn Foster will create a new entity, the College for Working Families. As such, it will likely have its own distinct collective bargaining unit -- thereby leaving largely unaffected the contracts at the NLC which currently exist.

    The NLC President appears to have deliberately “turned a blind eye” to the matter of faculty labor conditions at PR and Penn Foster precisely so that the answers to the questions about labor-management relations with the for-profit entity could be “I don’t know.”

    Note that Princeton Review made it clear in its public announcements that it would speak only to its investors and not to the public (http://www.earthtimes.org/articles/show/the-princeton-review-to-host,1120890.shtml), formally placing the NLC on the front lines with the apparently agreed-upon “lack of knowledge“ about faculty labor conditions at PR and Penn Foster.

    In making the NLC an “independent” entity during the past decade with a board of trustees chaired by the AFL-CIO president -- rather than continuing as an integral part of the AFL-CIO -- the AFL-CIO’s financial control of aspects of the operations and relations of the NLC are shielded from the financial reporting requirements of the LMRDA (Landrum Griffin) -- and the AFL-CIO gets to declare and deduct its “laundered” monies as contributions to a non-profit entity as well. The “transparency” of a private, non-profit is essentially limited to its IRS 990 filing.

    The interests of Penn Foster are transparent from its earlier announcement concerning its operations, cf. this from 2008: "We have reviewed our options and are most interested in acquiring a campus-based institution offering bachelor degree programs,” said Mr. Udell, adding, “Penn Foster’s goal is to strengthen a college's traditional campus-based operation while adding a national and international distance learning component that would position the institution as a nationally recognized provider of a quality education.”
    http://cache.zoominfo.com/CachedPage/?archive_id=0&page_id=-1776375392&page_url=%2f%2fwww.pennfosterinc.com%2fNameChangeAnnouncement.aspx&page_last_updated=8%2f7%2f2008+6%3a33%3a29+PM&firstName=Richard&lastName=Ferrin

    When a for-profit “acquires” a non-profit, whose “model” shall we presume will dominate in the resultant faculty labor arrangements at the new “acquisition”? Indeed, former NLC President Shurman unwittingly reveals the driving motto: “Whoever has the gold, makes the rules.“

    Indeed, the NLC’s administration has been acting like “traditional” non-profit college administrations: the full-time faculty of the NLC will retain academic control of program curricula for, as their CB agreement states, they alone are the Faculty -- all adjuncts are formally proscribed from that bargaining unit (cf. www.wbng.org/contracts/nlc2005-09.pdf). And, given that the full-time to part-time ratio is about 1 to 3, the NLC is well within the national average concerning the exploitation of contingent faculty labor.

    In a way, the full-time faculty contract (I have been unable to locate online a copy of the AFT part-time faculty contract) puts its finger on the crux of the matter: “24.1. The College and the Guild agree that it is their mutual aim to act at all times
    in such a manner as to treat all employees of the NLC with respect and dignity” (http://www.wbng.org/contracts/nlc2005-09.pdf).

    What does it tell us when faculty employees demand the right to grieve in order to achieve “respect and dignity” at the National Labor College?

  • privatizing the National Labor College
  • Posted by Paul Zarembka , Professor of Economics at SUNY at Buffalo on January 18, 2010 at 1:15pm EST
  • Note the sentence in this excellent, comprehensive article:

    "Scheuerman said that he couldn't have briefed Giebel or other faculty members on details of the plans because the Princeton Review (and other entities with which the college had discussions) are publicly traded companies, so there would have been insider trading implications to discussing the deal in advance of its announcement."

    The Princeton Review stock (symbol: REVU) did indeed rise.

    This means that anything significant cannot be discussed with the faculty until it is a done deal! Wow!

  • Posted by MC on January 18, 2010 at 2:45pm EST
  • Why should we be creating a yet another college, I wonder. Aren't the existing colleges, state universities, and community colleges already competing for students? This really does not make any sense. How is this going to help anybody???

  • Posted by M. Capstar on January 18, 2010 at 3:30pm EST
  • Susan Schurman’s response represents the kind of pro-corporate management discourse that uses a noble-minded rhetoric about the rights of one group to disable (or un-able) good working conditions of another group. Employed by (some) tenured professors who themselves do not have to worry about their own working conditions and job security, it postures as driven by pro-working class sentiment while in fact reinforcing anti-labor practices. If Professor Schurman is so concerned about the ability of working students to afford good post-secondary education, she might want to consider working towards lowering her own institution’s tuition, perhaps by volunteering to have her own tenure track contract and salary dissolved and replaced by a part-time faculty contract and paycheck.

  • Degrading of degree
  • Posted by Sam Navarro , Instructor, Vocational Education at Los Medanos College on January 20, 2010 at 10:30am EST
  • I just heard about NLC partnering with a for profit institution. One of the excuses given was that their technical knowledge is needed. What do we in the union movement do next? Partner with Walmart because we need their distribution channel.

    I was proud to be a graduate of NLC, now I have to hang my head when asked where I did my undergrad work. The shortsightedness of the administration just degraded everyone’s degree.

  • Understand to a Point
  • Posted by L. Smoot on January 20, 2010 at 2:15pm EST
  • I too do not understand why another entity must be created. What I fear is that once the "College for Working Families" is up and running, the NLC will be phased out. The majority of instructors will then be adjunct and in times to come will share the same reputation as other on-line for profits such as Phoenix University. Why not enhance the on-line education from NLC and instead of creating another college that will take away from NLC instead of shoring it up with new students? I understand the need to do more on-line education as it opens avenues to more working adults who need and desire that education.

    Within Labor, education seems to be the first place to cut funds from. Even at the AFL-CIO who got rid of their "education" department some years ago. That department was supposed to be there to educate members and now it's just a memory.

    More and more unions are dumping their education departments or not funding them. Behind every struggle education is the key to victory - education changes the hearts and minds of the people. Just as the sculptor is to the stone, so is education to the student.

    Lastly I must wonder why would no one ask about the professors tenure and working conditions issue? This should have been one of the top three questions! "...if one of us is chained, none of us are free."

  • contracts and memoranda
  • Posted by Ross Borden , lecturer in English at SUNY Cortland on January 20, 2010 at 7:00pm EST
  • It turns out that the adjunct faculty at NLC, who are excluded from the bargaining unit represented by the Newspaper Guild, are represented by AFT. The AFT Contract Database, an online library accessible to AFT members, is a huge collection, but the contract with NLC isn't there. I would like to suggest that William Scheuerman arrange to have the contract filed online, if only out of respect for his former office as AFT VP. NLC is an important resource. If the contract with adjunct faculty is exemplary, we need it as an example; and if it isn’t, we need to understand what the impediments are.

    Ditto with a model of the separate memorandum for Instructional Faculty represented by the Newspaper Guild:

    “The wages and vacation and compensatory time benefits of any Instructional Faculty member with less than a full work load shall be apportioned or prorated in a separate written memorandum between the Faculty member, the Guild and the College.”

    It is hard to understand how solidarity works if a single workforce is divided among separate contracts and memoranda. The current contract between NLC and the Newspaper Guild allows for something better for adjunct faculty next time round: “The College and the Guild agree that their exclusion during this contract term does not preclude coverage of adjuncts in this contract’s successor Agreement.”

    Here's hoping. But now that I’ve understood that adjunct faculty at NLC are represented by AFT in a separate contract, I am wondering if they would first need to disaffiliate with AFT, and also whether the Instructional Faculty would do better with AFT than with the Newspaper Guild. I am also wondering why the NLC, of all places, should make it so hard to develop a single bargaining-unit.

    Ross.Borden@NewFacultyMajority.org

  • union leadership is as union leadership does
  • Posted by hoppingmadjunct , Lecturer at SUNY on January 20, 2010 at 8:30pm EST
  • Bill Scheurmann's "past record as an great education trade union leader" includes declaring a UUP "Year of the Part-Timer" while telling the NYS Higher Education Commission that the single greatest threat to higher education is not faculty inequity but the lack of full-time faculty. As a part-time SUNY faculty member who commuted between three campuses to make half of what my full-time colleagues made for teaching different sections of the same courses, not to mention giving up weekends for a union that has changed my working conditions not one iota in over a decade, I think that "giving Bill and the NLC folks a chance" and "giving this particular joint venture time to develop" would be like what trusting Bill's rhetoric in the past has been like for me and my SUNY adjunct colleagues: misplaced faith.

  • Insider trading issues?
  • Posted by vfichera on January 21, 2010 at 12:45pm EST
  • Remember that faculty in private colleges and universities (the faculty that have membership in faculty senates, etc. and can participate in governance, at least) are MANAGERS by the Yeshiva decision of the U.S. Supreme Court, and therefore need the permission of their administration to organize.

    So, insider trading would only be a "problem" if a manager in fact traded or revealed the information to others who traded -- it is NOT forbidden for managers to know that management is about to arrange for a merger. It's only forbidden to act on that knowledge for gain.

    Princeton Review/Penn Foster managed to get the NLC to cut out its faculty on this decision entirely (and to get the NLC to present to the public an impossible to believe "don't ask, don't tell" position on faculty labor conditions) -- clearly the tail will wag this dog later in curricular matters as well.

    All faculty who are AFL-CIO union members (e.g., AFT, etc.) are on notice: their union bosses are only too willing to "sell them out" -- and these bosses have the "vehicle" of the National Labor College to profit from these transactions in administrative and second-career faculty appointments, salaries, and perqs.