ProActive Chicago Teachers and School Employees

PACT Newsletter: June 2009

Vote NO on Budget Unless Officer Contracts are Provided to House.   CTU Delegates are elected officials with fiscal and constitutional responsibility for voting on the CTU budget.  Voting on a lump sum budget, without knowing what is in it, is wrong and possibly illegal.  Delegates who received a copy of the Field Rep Contract being passed out by someone at the May House meeting will see proof of the $50,000+ perks that staff (and officers) annually receive $23,000 in AIG annuities, $18,000 in pensionable expense accounts, a Holiday Bonus of a week’s pay , all without the knowledge or approval of the House or membership.    That’s $50,000 for 30 people, over 5 years, for a grand total of $7.5 million in member dues, so far, on top of salary and 7% pension pick-up.  This is where the missing $5.6 million and the $2 million loan have gone: right into the pockets of 30 people.  Unless at least the Officer contracts are shared with the House (officers are not staff so don’t fall under Stewart’s baseless “privacy” policy), we recommend voting NO on the budget. 

 

CTU Constitution Requires Delegates Approve All Multi-Year Contracts.  The 5-year agreement with the Field Staff, with all of the above secret perks and benefits, ends in 2012, despite Stewart’s “pledge” not to approve any contract beyond her term.  Despite Stewart’s ludicrous claim that the House has no right to know what is in the officer and staff contracts, the CTU Constitution  actually requires that “all multi-year contracts” must be approved by the House.  No one is proposing these contracts be published in the Sun-Times, but our own Constitution requires Delegates approve them.

 

Stewart’s Rejects Pyster Effort to View Contracts but Viewed All Lynch Officer/Staff Contracts. The letter on the reverse provides proof, in Stewart’s own handwriting, that the Stewart team had full access to all Lynch officer and staff contracts.   (They never used this information against us because there was nothing to use.  Our salaries were based on our lane and step for an 8-hour day and 12 month year, and there were no additional, hidden perks.  I eliminated the AIG annuity perks, provided to the staff by my predecessor to cover my entire term with his and Stewart’s supporters.  We provided a $7,200 unpensionable annual car allowances.  There were no Holiday Bonuses.  Also on the reverse is Stewart’s response to Delegate Lou Pyster, after she stated to the House that members could go to CTU and view the contracts. 

 

What are they Hiding?  As you can see, Stewart and her team have done everything possible to cover up what they have given themselves, including ignoring the CTU Constitution, shouting down delegates trying to speak to this issue at meetings, and having Field Reps harass members.  At the May meeting, for example, Field Rep Nate Dickson, on the clock as a CTU staff member, was trying (unsuccessfully) to intimidate delegates and members passing out literature by taking their pictures!  Stewart also undermined the Constitution by not bringing Pyster’s motion on the contracts back to the House for a vote.  When a delegate’s motion gets referred to a committee, the committee’s recommendation gets brought back to the House for a vote.  Not at the May meeting.  The Executive Board’s rejection of the motion for providing officer and staff contracts to the House was announced to the House but not put up for a vote.  It is now clear (after 40 additional votes “materialized” during the division of the House) that the majority of Delegates want this information disclosed.  This motion must come back to the House.   Th budget issue is vital: all these perks have depleted CTU’s ability to fight  pension attacks, CPS attacks & more!

 

Delegates Need to Demand Democracy.    Delegates must stand up for their rights.  We must demand that democracy be restored to our House.  No motions have been allowed from the floor in months.  Petitions have been required just to get issues on meeting agendas.  Special meetings have to be called for, despite the leadership,  because discussion and debate are quashed on the House floor.   Less than fifty percent of the House even bothers to show up anymore because they are so disgusted.   It’s way past time to take our House and our Union back.  Let’s do it!

 

Special Meeting Issue: 20^th Day Solution: Aggressive Grievance Enforcement.   The Stewart team’s lack of responsiveness to school based issues is the real culprit behind 20^th day problems.   (Only 180

 delegates came to this meeting.)    As delegates know, the union can grieve CPS policy infractions as well as contract violations.  CPS policy now states that schools are no longer subject to the 20^th day

reduction in force since principals get guaranteed staffing numbers in June.  Teachers hired after June are supposed to be secure.  Further “as schools enroll additional students, positions will be opened to hire teachers at the earliest stages of the school year.”  Instead of blaming delegates for waiting too long to complain, Stewart’s team should have made enforcement of this policy a top priority.  And they haven’t.

 

 PACT Newsletter: April 2009

As elected school leaders, entrusted by our members to speak and act on their behalf,  I ask you to consider the following, all of which has occurred since 2004 under Marilyn Stewart (who earns $275,000 in annual compensation from members’ hard earned union dues):

 

 

 

Job Losses:             2,000 teacher positions to charter/contract schools since 2004

 

                                 2,400 ESP positions completely eliminated since 2004

 

                                 Total CTU job losses to date:  4,400

 

 

 

Schools Closed:      -  60 CPS schools closed

 

                                 +67 non-union charter schools opened

 

                                 +  7 non-union contract schools opened

 

                                 + 26 (projected in 2010)

 

 

 

Students Gone:           2005         22,400 students

 

 

 

1. 30,600    
2. 40,200
3. 50,500
4. 64,300
5. (projected) 81,700

 

 

 

CTU Reserves:    2001=  $5,665,925                                                         (Union Teacher 1/02)

 

                              2004=  $5,600,833                                                         (Union Teacher 2/05)

 

                              2005=  $ 3,412,533                                                        (Union Teacher 2/06)

 

                              2006=  $ 2,293,490  + $1.2 mil. deficit                        (Union Teacher 1/07)

 

                              2007=  $    188,000 + $2.1 mil.deficit + $2 mil. loan  (Union Teacher 3/08)

 

                              2008=   $   867,968 +$3 mil. loan                                (Union Teacher 2/09)

 

 

 

CTU AIG Payments to 30 Officers/Administrators/Field Staff  @ 22% addl compensation

 

(does not include their $18,000 annual pensionable expense accounts + 1 week Christmas bonus)

 

                             2004=            $       830,000

 

                              2005=                  1,110,000

 

                              2006=                  1,460,000

 

                              2007=                  1,550,000

 

                              2008=                  1,600,000         

 

                              Total 2004/08= $ 6,550,000                                             

 

 

 

CTU Dues:           $1,000/year in 2009

 

 

 

This squandering of our union’s assets must stop.  PACT urges delegates to demand a forensic audit of this misappropriation of union funds, which have gone into the pockets of CTU officers and professional staff.   As our schools have closed and jobs have been eliminated, they have enriched themselves on the back of union members.  It’s a disgrace and CTU members deserve better, so much better.

 

 

 

December 2008

I write to you with great urgency about what is happening to our union and to urge you to take the trust your members gave you and do something with it.  I cannot stand seeing the destruction of our union, both from the inside and out.  We have the power given to us by our members & our Constitution, to put a stop to this destruction.

As I reported last spring, our last audit revealed that $5.3 million is missing from our treasury.  Yes, $5.3 of your hard-earned dues squandered, in large part, on secret benefits a handful of partisan CTU officers and staff members (see attached).   Were you aware that, in addition to the stated salaries in the budget that you voted for an additional $25,000 per year in annuity payments (in addition to their pension payments),  a $13,000 annual pensionable car allowance, and a week’s salary of approximately $3,000 as a “Holiday Bonus” for Stewart and 39 of her closest UPC officers and staff members?   When you compare the budgets over the last 4 years (all showing “surpluses”) with the expenses in the audit, Stewart spent $4.3 million over the “approved” budgets in unauthorized expenses.  The additional $45,000 in annual compensation for 40 people amounts to over $4.3 million in payments the House never authorized and accounts for this discrepancy.  This is where most of our $5.3 went—in their pockets (see attached).

Additionally, Stewart's own now discredited vice-president has admitted in court documents that the House voted down her contract.  He admits that the CTU budget failed in last June's House vote.   Stewart unilaterally cancels House meetings, turns off microphones to silence opposition, and blames delegates for not turning out to her activities at P.U.S.H.   She refuses to disclose the officers’ contracts.  She blatantly disregards the CTU Constitution.  She takes home $275,000 of your dues money each year, most of the perks secret and unknown to delegates or members.  Meanwhile, 80,000 CPS students have been siphoned off to charter schools, virtually a district within a district, on Stewart's watch.  With them 2800 teaching jobs and 3000 ESP/PRSP jobs have disappeared.  Countless more are in the offing.  

Stewart has gotten away with all of this because the House members have let her.   Why didn't delegates rise up when her contract was really voted down?  Why not when the budget, which gives Stewart and company license to give themselves whatever they want at members’ expense, was so obviously defeated?  Why haven't House members demanded to see these officer and staff contracts?  Demanded to see the AFT audit which should have been shared with the House?  Demanded a forensic audit at the revelation that $5.3 million is missing—and unaccounted for?  Demanded that CTU act to stop the mayor from closing more schools & losing more union jobs?

Attached is a copy of my demand for an investigation by the AFT.  I don't hold out much hope for this investigation as Stewart is in the AFT ruling party, Stewart's lawyer is also the AFT lawyer, and the AFT has been complicit in keeping information about our finances from us.  Yet putting these travesties on the record is doing something.  Putting these people on notice is something.  Sharing this information with your members is something.  A motion demanding to see their contracts is something.  A motion demanding a forensic audit is something.  A motion demanding a special order of business on CTU finances is something (see reverse). 

More of us have to do something or nothing will change.  We cannot wait 18 months until the next CTU election.  We must do something now.  Which “something” can you support?

 

Deborah Lynch

deborahmlynch@yahoo.com

312-890-7713

 

Attachment: 

My name is Deborah Lynch.  I am a Chicago public high school teacher and member of the Chicago

Teachers Union (CTU), IFT,AFT, AFL-CIO.  I am currently an elected CTU delegate for

Gage Park High School .  I am also the past president of the CTU (2001-2004). 

 

I lost the 2004 CTU election to current CTU president Marilyn Stewart in a contentious, disputed election, by 600 votes out of 24,000 (51% to 49%). The AFT, the national affiliate of the CTU, dismissed claims of vote fraud and ruled Stewart, a member of the ruling AFT party, who was represented by the AFT’s own lawyer, the winner.  Stewart’s vice president, who is currently being ousted by Stewart, claims her team spent $200,000-300,000 on that election, giving credence to suspicions that AIG Corporation bankrolled their election in exchange for an exclusive CTU endorsement and subsequent millions of dollars in business.   I ran against Stewart again in 2007 and lost, 75% to 25%, an election during what she claimed to members was the middle of contract negotiations.   Vice President Dallas has accused Stewart, as part of his civil lawsuit of spending $500,000 on dinners, which he told me in a personal conversation, occurred during the 2007 CTU election.

While I clearly have a bias against the Stewart regime, I also have a deep knowledge of the CTU Constitutional requirements, the Constitutional authority of the CTU governing bodies (Executive Board and House of Delegates), and the CTU budget and audit processes.   The CTU is now virtually bankrupt.  When I took office in 2001, I inherited $5.2 million in net assets from outgoing the CTU president.  When I left in 2004, there was $5.2 in net assets, as my team stayed within the 3-year budgeted amounts.  That amount of CTU net assets has eroded each year, according to the most recent CTU audit published April 2008.  That audit shows the net asset total to be $188,000.  There is a $2 million deficit and a loan for another $2 million. 

I believe there is compelling evidence that millions of CTU dues dollars have been misappropriated by the Stewart team in the following ways:

1.) As stated, Stewart’s own Vice President Ted Dallas claims in his civil lawsuit against her that Stewart spent “$500,000 in dinners”.  In a personal conversation with me, he admitted that these expenditures were union dues dollars spent for the Stewart-Dallas slate during the 2007 CTU Officer and AFT/IFT Convention Delegate election. This is a blatant violation of federal election law, which pertains because the election was for both local CTU officers and AFT/IFT Convention delegates, and AFT/IFT represent non-public employees.

1.) Stewart has spent (and continues to spend) millions in dues dollars on secret, unauthorized annuity payments to AIG-VALIC on herself and her partisan officers and staff members.   These hidden benefits are not reflected in the CTU budget which must be voted on by CTU delegates.  They account for much of the discrepancy of $4.3 million between Stewart’s authorized budgets and the audits showing actual expenditures during the period 2004-2008.   CTU Delegates (and members) are not aware of these secret benefits nor have they authorized them.

Attached are background materials which I believe support these claims.  I appreciate your review of this information.

AIG-VALIC Annuities

1.   Immediately upon taking office, Stewart’s team had the CTU Executive Board

vote AIG-VALIC an exclusive endorsement.  This endorsement is published in every issue of the monthly CTU newspaper, sent to 35,000 CTU members monthly.

2.   Also immediately upon taking office, the Stewart team resumed the secret annuity payments

to officers and staff (worth 22% of each person's salary), which were discontinued by me in 2001.

3.   These officer/staff annuity payments amount to $1.5 million each year, in addition to benefits reaped from the “exclusive endorsement” and could be seen as payback for AIG-VALIC’s financial support.

4.   Given that officer/professional staff salaries are all over $110,000, these annual AIG-VALIC payments of 22% are about $25,000 in additional compensation per person, (a total of $100,000 each for their 4 years so far), in addition to their published salaries.  Neither delegates nor members are aware of these benefits.

5.   Despite repeated requests to view their contracts, a tradition of all past presidents, Stewart refuses to allow anyone, elected delegate or member, to view what they've given themselves and fellow staff members. This is where the AIG-VALIC benefit is defined.

6.  In essence, it appears that AIG-VALIC bankrolled their 2004 campaign.  Stewart promotes AIG-VALIC through an exclusive endorsement, they make payments of union dues for themselves to VALIC over $1.5 million a year, and all personally benefit from these very same annuity payments. 

7.   I am currently working with a law firm to explore a lawsuit over this secret benefit (and the subsequent squandering of the union's net assets, leaving the CTU virtually bankrupt).  This could be a way to get the proof of AIG-VALIC's involvement and expose this greed and corruption.

8.   Here are the amounts paid out to AIG-VALIC for officer and staff annuities, between 2001-2007 (source: CTU audits for those years):  You can see where the practice was stooped for officers and field representatives (2002-2004), and where it was resurrected immediately upon their taking office.  CTU secretaries receive this benefit in lieu of a pension plan for all of these years.  (This benefit is also payback to staff for helping to bankroll their 2004 and 2007 elections.)  Again, CTU members and delegates have no knowledge of this.  Stewart spent about the same amount on the annuities as the "unauthorized, overbudgeted amount", per the audits, and the House never voted to approve them.

               2000    $1.04 million

               2001       1.46

               2002        .81

               2003        .70

               2004        .83

               2005       1.11

               2006       1.46

               2007       1.55

 

Expenditure of Union Dues in 2007 CTU Election

1.  Dallas claims that Stewart approved "$500,000 in dinners over a 12-month period."  He admits this period was during the 2007 CTU Officers election.  (This was done in violation of federal election law as well as the CTU and AFT Constitutions.)  Regarding their expenditure of $500,000 in dinners. 

Dallas told me personally that this was done during the 2007 election.  These were fancy dinners for thousands of members in restaurants across the city of Chicago , to campaign for their re-election. 

 

2.  I have several witnesses who will testify that the Stewart team urged people to vote for them in their dinner speeches and passed out UPC campaign literature, also.  

Dallas

confirmed this and it is part of his lawsuit against Stewart, though his suit doesn't specify the dates in his suit, just the amount.   In a 10/17/08 personal conversation,

Dallas

also said the Stewart team has spent over $400,000 on the CTU’s law firm to remove him from office so far.  This is also being done without authorization of this expenditure by the CTU House.

 

Officer and Staff Benefits

1.    On the missing $5.4 million and the $3 million in loans, I have all budgets, the complete audits, field rep contracts, and a 2007 officers' contract.  I can prove that all $5.4 million went directly into their pockets ( e.g. $23,000 annual AIG-VALIC contributions, pensionable $15,000 annual car allowances, unlimited expense accounts, annual holiday bonuses of a week's salary, all for 40 officers and staff members in their political party). 

2.   All officer and staff pensionable expense/auto compensation goes to increase their pensions which are paid out of public funds.  Having one's car allowance be pensionable compensation is illegal.

3.  Dallas also said that all the staff members were required to contribute $3,000 each for their campaigns, despite the fact that staff members are supposed to remain apolitical. 

4.   Over $850,000 in unauthorized payments went to the 5 officers alone ($210,000 per 5 officers over 4 years: $25,000 VALIC annuity, $15,000 pensionable car allowance, and $2,500 holiday bonus)--all done without any approval at all--without even the House's knowledge as they continue to refuse to show their contracts. Regarding the claim of $850,000 in unauthorized payments to the 5 officers:

               1.) annuities @ 22% of salary (average officer salary = $120,000)=   $ 25,000

               2.) pensionable car compensation                                                          $15,300   

               3.) 1 week's pay for holiday bonus=                                                         $2,500                                                                                             

                                                                                                             Total     = $ 42,500 each

                     Grand total: 5 officers x 4  years   to date                                     = $848,000

 

Constitutional Breaches

 

1.  Constitutional breach:  By-Laws Article XV Compensation and Expenses,

Section 1.  “By a two-thirds majority, the House of Delegates may sanction provision in the union budget for a specified compensation for one or more of the officers as resources will allow." These compensations (above) have never been brought to the House; House members are unaware they exist; they are not included in the budgets they present, which do include the officers' base salaries.  Stewart repeatedly refuses, verbally and in writing, to share these contracts; her team has lied about the budget votes of the last 3 years, over delegate objections against the budgets and against the announced results, and never reached the required 2/3 majority on officer compensation.

2.   There is another provision in the CTU Constitution: "The Union shall not promote or permit itself to be used to promote any advantage for any member or particular group of its members unless the House of Delegates shall decide by a majority vote that such action is in the interest of the

Union as a whole." There is a whole "group of members", i.e. officers and professional staff, which has a huge financial advantage over the other members at their expense, but unknown to them.

 

3.  The CTU Constitution also requires that any mulit-year contract be approved by the House of Delegates.  While the Field Representatives Contract is multi-year, it has never been presented to the House of Delegates, in violation of this provision.

 

CTU Budget Information

1.   Here is a comparison of the actual supposedly approved budgeted amount for each year with the actual published audit amounts for each year:

 

04-05    $5.8 mil approved by House for salary/benefits; $7.7 mil actually spent   ( $1.9 mil over)

05-06     6.8 mil approved by House; $7.9 actually spent                                         ($1.1 mil over)

06-07    7.0 mill approved; $8.3 actually spent                                                         ($1.3 mil over)

07-08    7.9 mil approved;  audit not yet complete                 

Total unauthorized expenditures 2004-2008:                                                               $4.3 million                                          

 

2.   CTU budget vote counts (Constitution requires 2/3 vote for officer compensation):

6/05  207 yes/167 no(Substance reported that Stewart reversed yes/no votes)

6/06  259 yes/117 no (as I noted before—voted only to close debate, not budget)

6/07  A voice vote and thought to be close

6/08  175 yes/170 no (thought by most that yes/no vote was reversed)

 

3.   Budgets 2001-2009.  The Stewart team falsely indicated a budget surplus each year when they were borrowing millions and denying they were borrowing. 

4.   In Dallas' lawsuit against Stewart, he claims that a.) she reversed the YES and NO votes on the 2008-09 House budget vote;

5.  Dallas also said their Sergeant at Arms would rig vote counts in the House of Delegates on the budget and on other issues.  He stated their appointed Sergeant of Arms would automatically add in all the other sergeants-at-arms and the 5 officers to every count to pad close votes.

6.  Dallas , in a 10/17/08 personal conversation, said the Stewart team has spent over $400,000 on the CTU’s law firm to remove him from office so far--and counting.  This is also being done without authorization of this expenditure by the CTU House.

 

References:

1. Field Representatives Contract, 2007-2011 (under the table copy)

2. Officers' Contract, 2007 (included in

Dallas

lawsuit against Stewart)

3. Personal conversation with Ted Dallas, Monday, June 16, 2008 and Friday, October 17, 2008

4. CTU Budgets, 2000-2008

5. CTU Audits, 2000-2007

 

 

 

PACT Newsletter: September/October 2008

CTU Budget Meeting Debacle.   Delegates who attended the June meeting where the CTU budget was voted on know about the contentious budget vote.  Many were concerned enough about the veracity of the vote count that they supported the proposed change in counting future division votes at the September House meeting.  Congratulations to Kelly H.S. Delegate Eric Skalender for a good motion. Yet many delegates did not realize that the meeting was ended illegally, in violation of the CTU Constitution. Roberts Rules of Order were just thrown out in the midst of the chaos.   The “results” of the division vote were announced.  Then Stewart said “This meeting is over” without 1.) a motion to adjourn; 2.) a second, or 3.) a vote of the House.   In acting in this authoritarian manner, Stewart denied Delegates the right to a roll call vote on this critical and urgent issue, as CTU sinks deeper and deeper into financial debt.  This is the point I was trying to make at the September meeting but my microphone was turned off to silence me.

 

Roberts Rules of Order (RRO) are Dead at CTU.  According to our Constitution, our meetings are to be governed by RRO.  The Stewart team’s entire focus in House meetings is to silence any attempt to bring information they don’t want out and opposing views.  It is illegal to turn off the microphones, period, as Points of Order and Points of Information are permissible at any time of the meeting.  If the mics are shut off, Delegates cannot exercise these rights afforded them by RRO.  Further, the parliamentarian’s advice is simply that--advice.  When there is a Challenge to the Ruling of the Chair, it is the House’s right to decide whether to support the ruling of the Chair, or hear the member’s concern.  In my September effort, I made a Motion for a “Point of Order,” which is a motion to right a procedural wrong. I received a second and should have had a right to speak to my motion. I wanted to point out the wrong that occurred in the budget vote, and propose a “right”.  Whether or not delegates wanted to hear that, consider a roll call vote, or vote me down was its right, not Stewart’s and her paid parliamentarian. 

 

 

Dallas Had a Right to be Heard.  

Though absolutely not a fan of Mr. Dallas, he too had a RRO right to speak when he was mentioned by name in the meeting.  His microphone was also cut off, preventing him from responding.  Here’s a 38 year member, who has been publicly vilified, and subjected to a secret kangaroo court.  Stewart has refused to tell Delegates directly and specifically what is going on in the Stewart-Dallas wars, but the man had a right to be heard.  We delegates, even if we don’t agree with the member or the member’s views, should insist on having the rules we are supposed to be operating under followed.  To remain silent is to be as complicit as Stewart. 

 

September Meeting.  At that meeting Stewart got away with not telling the House what was going on with Dallas ; not answering questions about a suspicious budget vote; her continued refusal to reveal officer and staff contracts, to address the missing $5.4 million, or the terms of the additional $3 million loans. (Despite telling Delegate Lou Pyster he can see to see contracts, he has a letter from her in writing denying his 3-year quest to view them.). And, no motions were allowed in the question period.

 

Financial Crisis: Reconsider Budget Vote.  Meanwhile, many Delegates believe that the budget did not pass.  Even the parliamentarian had to admit that the House could reconsider the budget vote. $5.4 million has disappeared from our treasury.  We are $3 million in debt and have no idea the terms or full extent of those loans.  Yet Stewart continues to collect $275,000 annually from her two union posts, at members’ expense, and the other officers and staff get tens of thousands of dues dollars in secret 1.) annuity payments, 2.) Holiday bonuses, and 3.) pensionable car allowances.  The House should reconsider the budget vote and demand the documents needed to make an informed decision. We owe that to members.

 

If Our Issues are Your Issues, Join PACT.  If you are concerned about the missing millions, school closures, lack of member service,& the disappearance of democracy in CTU, then consider joining PACT.  We meet the Monday prior to House meetings, 4:30 @ Leona’s, 1419 W. Taylor Street (free pkg in rear).  

Deborah Lynch, PACT Chair, Teacher/Delegate, Gage Pk HS