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Building a Competitive Education Industry
A Weekly Column by Myron Lieberman

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Why the NEA/AFT Support and Oppose Privatization Simultaneously

Like many others who have written about privatization in education, I have characterized the NEA and AFT as adamant opponents of it. This characterization is valid as far as it goes, but it doesn't go far enough. A more complete picture would show that the NEA and AFT, to cite just a few unions that organize public employees, are the biggest proponents of privatization. This apparent contradiction disappears when we go beyond the labels.

In collective bargaining, the NEA/AFT invariably propose binding arbitration of grievances. A "grievance" is a claim by a covered employee or the union that the school district has violated the contract (or misinterpreted or misapplied it, which is the same thing). Some contracts define "grievance" more broadly, but the heart of the union proposal is that the terminal point of the grievance procedure should be final and binding arbitration by an impartial third party, typically an arbitrator chosen according to the rules and regulations of the American Arbitration Association (AAA).

Ordinarily, if a party violates a contract, and refuses to acknowledge the fact or compensate you for the violation, your remedy is to take the offending party to court, where an impartial third party (judge or jury) will render a decision. What, then, is the union's argument for binding arbitration? If the union or an employee has violated the contract, management doesn't need an arbitrator to uphold its contractual rights; management can simply take action to remedy the violation -- disciplinary action if appropriate. This is why allegations that the contract is being violated are invariably made by the union. Thus, the NEA/AFT affiliates invariably seek binding arbitration as the terminal point of the grievance procedure.

The NEA/AFT assert that arbitration is a much faster and much less expensive way of resolving disputes over whether management has violated the contract. "Do you really want to force us to initiate a lawsuit to decide whether you didn't give a teacher her thirty minute duty free lunch period?" the UniServ director will ask. "It isn't in your interest or ours to be involved in litigation for years over these matters."

There are valid objections to this argument, but they do not affect the point I wish to make. It is likely that over half of the public school teachers in the U.S. are covered by contracts with NEA/AFT affiliates that include binding arbitration of grievances. Essentially, binding arbitration of grievances is privatization. The union is arguing that private, that is nongovernmental, disposition of claims of contract violations is superior to having the claims resolved through court proceedings, that is, governmental processes. The arguments made by the union are that private dispute settlement is faster and more efficient than governmental resolution of them -- precisely the same arguments for privatization that are made in other government services as well as in education.

We need not look very far to understand why the NEA/AFT promote privatization of dispute settlement while simultaneously opposing privatization of teaching, transportation, food service, and several other services required by school districts. Judges and court personnel are not NEA/AFT members, nor is there any realistic possibility that they will be. In contrast, teachers and school support staff are union members, either in fact or potentially.

In short, it would be fair to say that the NEA/AFT support privatization when it enhances union interests, but oppose privatization when it adversely affects them. "Union interests" are not to be regarded as the same as "teacher interests." "Teacher interests" would lie in reducing the cost of support personnel, so that more district funds would be available for teachers. The union interest lies in maximizing its dues revenue, and this means maximizing its membership base. This forces the union to appeal for support from the support personnel, and this appeal is simple: "Join our union and it will protect you against having your jobs contracted out," that is, privatized. It is a mistake to assume that privatization is tantamount to wage reduction, but that is the way the NEA/AFT want their members to think about it.

Now, there is nothing especially repugnant about the NEA/AFT efforts to protect the union interest on these issues. Within certain limitations, every group, even prisoners, is allowed to do this, and probably most "special interests" do so in ways that are sometimes contrary to the public interest. Obviously, if the real reason for NEA/AFT opposition were laid on the table, it wouldn't get anywhere; the union can't achieve its goals legislatively or in bargaining by saying that it opposes privatization because the latter is bad for the union. Instead, the NEA/AFT have to camouflage the reason, and they do this by labeling contracting out as "privatization," and then demonizing privatization. Sometimes the strategy works because education reporters are a gullible group who take the union's arguments seriously. And because the media do, many citizens do also, to the detriment of all of us.


Past Columns by Dr. Lieberman

Looking At School Choice In A New Light-May 19, 2000

See File

Education Policy Institute, PMB 294, 4401-A Connecticut Ave., NW, Washington, DC 20008-2322 202/244-7535, Fax 202/244-7584 http://www.educationpolicy.org, revised 5/30/00