2008 reporter may08 final

THE

Publication of the State Employees Association of North Carolina • May 2008 • Vol. 26 No. 3 • Circulation 55,000

Time for General Assembly to Put Public Services First Pay, Retirement and Collective Bargaining Up this Session

By Erica Baldwin and Suzanne Beasley Malysz With the return of lawmakers to Raleigh for the General Assembly “short session” on May 13, it is time to focus on the legislative process and SEANC’s role in protecting the public services you provide.

State budget projections look promising with revenues nearly $125 million ahead of forecast, according to a March 18 report by the General Assembly’s Fiscal Research Division. This means legislators should have adequate funding for state employee raises and retiree cost-of-living adjustments (COLAs).

Pay SEANC secured the largest back-to-back pay raises in nearly two decades — 5.5 percent in 2006 and 4 percent in 2007. This year the association hopes to build on that success to ensure state employees’ pay is more competitive with market rates.

According to an Office of State Personnel report, state employee turnover costs are $362 million annually, more than the cost of a 5 percent pay raise. As employees’ pay becomes more competitive, the state will be able to retain experienced employees and reduce turnover costs — a benefit to all North Carolina taxpayers.

Health Care Though SEANC lobbyists do not expect many State Health Plan issues to come up during the short session, they will continue to block any efforts to increase costs for employees and retirees. As the Indemnity Plan phases out at the end of June, all health plan members will begin using the Preferred Provider Organization network.

Retirement SEANC will continue to work for retiree benefits, including a 4.1 percent COLA and an increase in the retirement formula to 1.84 percent. Additionally, SEANC will persist in its efforts to increase the employer retirement contribution, which has been much lower than employees’ required 6 percent contribution since 1999.

Introduced last year, SEANC will work to get House Bill 1806 passed this session. If enacted, the pension system investment decisions would be made by a committee or board, not by the state treasurer alone, who currently serves as the sole fiduciary. Presently North Carolina is one of only

Photo by erica Baldwin

“I’m proud of the budget accomplishments for state employees in last year’s budget. However, there is a lot more work to do to protect and advocate for our state employees — North Carolina’s future depends on it,” said Rep. Tricia Cotham (D-Mecklenburg), a member of SEANC District 38.

Leonard Reynolds, SEANC Western Region representative to the Executive Committee, talks about state employee and retiree concerns with Sen. Steve Goss (D-Watauga) during MAT Lobby Day on May 8, 2007, in Raleigh.

three states with a sole fiduciary. The other two states, New York and Connecticut, implemented safeguards to remove the opportunity for a sole trustee to choose money managers for personal or political gain.

Collective Bargaining SEANC will work toward its goal of repealing G.S. 95-98, which prohibits public employee collective bargaining. See the Counselor’s Comments on page 6 for more.

Workplace Protections Attacks on state employees’ workplace protections come up unexpectedly each session, often tucked into obscure bills. In recent years SEANC fought back legislation to eliminate longevity pay for career state employees, protected priority re-employment status for reduction-in-force employees and helped defeat an attempt to remove State Personnel Act (SPA) protections from thousands of Department of Transportation employees. SEANC is on alert that the university system is attempting to remove protections from their SPA employees this session and SEANC is working to turn back this effort.

What You Can Do Sign up for Member Action Team (MAT) training and attend MAT Lobby Day on June 24 to talk to your legislators face to face about the importance of pub-

lic services. Contact the SEANC Member Action Department at 800-222-2758 for more information.

The effort of our well-prepared MAT grassroots lobbyists was a huge success last year. ebaldwin@seanc.org, sbeasley@seanc.org or 800-222-2758

What’s Inside Primary Endorsements pg. 3

May Convention Preview pgs. 7-10

2 Retirement

Is This What The State Treasurer Doesn’t Want You to Know?

By Charles Heatherly Within a decade after retiring in the 1990s, a career state employee could expect his or her income from the North Carolina pension fund to just about equal take home pay while working. But no longer.

Why? During his 24-year tenure as state treasurer, the late Harlan Boyles pursued a philosophy that put the welfare of current and future retirees first. That good stewardship paid off in steady growth of pension fund investments and resulted in generous cost-of-living adjustments (COLAs) for retirees, rising 104 percent during Treasurer Boyles’ career, that were paid entirely out of earnings. During just his last seven years, retiree COLAs increased 27.5 percent.

During state Treasurer Richard Moore’s seven years, retiree COLAs have increased only 14 percent (some of which were subsidized by the General Assembly), while the cost of living went up 20 percent according to the U.S. Bureau of Labor Standards. So, if you’re a retiree and you wonder if your pension checks might be losing ground in the battle with inflation, that’s because they are!

The Wall Street fund managers hired by Moore to handle your pension investments have fared much better. Moore increased the number of fund managers by tenfold and increased their compensation by more than 1,000 percent. By the end of his eight years as treasurer, Moore will have paid out more than $1 billion in management fees. Some of these folks have returned the generosity by giving more than $1.5 million to his political campaign for governor.

Is there a connection between these generous fees and Moore’s campaign contributions? You figure.

The mediocre performance of most North Carolina pension fund investments during the past seven years gives credibility to the suspicion that the welfare of retirees is not his primary concern. Boyles didn’t pay anywhere close to $1 billion in fees to fund managers during his entire 24 years in office.

Despite Moore’s frequent claims that North Carolina’s pension fund is the second best funded in the nation, there is evidence that this claim may be overstated.

An actuarial report of the Teachers’ and State Employees’ Retirement System released by the treasurer last fall drew praise for its conclusion that the fund is adequately funded. However, the three assumptions on which the report’s rosy conclusion is based haven’t been valid for several years.

For example, the actuarial report assumes that the state of North Carolina contributes 6.19 percent into the fund. That assumption has been invalid for the past several years. Contributions haven’t been that high since 1999.

Second, the actuarial report assumes that investment gains would continue at a rate of at least 7.25 percent. From 2000 to 2006, investment gains averaged only 3.5 percent, less than half the assumed

rate. Only last year did investment gains match the assumed rate, and since then Wall Street stocks have experienced a sharp decline that may have wiped out that increase. Under Moore’s tenure, two-thirds of the North Carolina pension funds are invested in stocks or the even riskier real estate, venture capital and extremely volatile hedge funds.

Third, the actuarial report also assumes that projected salary increases for active employees paying into the system will range from 4.5 percent to 16 percent, a highly unrealistic expectation since pay hikes have averaged around 2 percent for state workers during the past six years.

I have calculated the gap between the actual funding of the state pension fund and what the total should have been had these three assumptions been met. The fund is more than $10 billion short, even after adjusting for $1.3 billion annual payrolls.

The actuarial report acknowledges that the funding level of the Teachers’ and State Employees’ Retirement System has dropped from 111 percent in 2001 when Moore became treasurer to 106 percent at the end of 2006. In view of the erroneous assumptions, the decline may be greater.

For retirees, however, the inability of the pension fund to provide annual cost-of-living increases at least equal to the rate of inflation rate is troubling.

4 o

If we are going to allow the state treasurer to mix politics and business, we ought to re-examine his role as sole fiduciary of the pension funds, and we ought to require a great deal more accountability than presently exists. heath7@bellsouth.net or 919-859-6995 Charles Heatherly served as Deputy State Treasurer during the administration of State Treasurer Harlan Boyles and retired in 2001.

What is an actuarial assumption?

In the case of retirement plans, an estimate made for the purposes of calculating benefits.

Possible variables include life expectancy, return on investments, interest rates, and compensation. By calculating the possible payout of benefits, the actuary can determine what premium to charge and what amount the insurance company should set aside as readily available cash or liquid securities.

Source: www.investorwords.com

Quotes to Note

4 o

“What you call ‘political warfare’ we call member advocacy and public accountability…They [state employees] deserve accountability from the politicians they elect and a strong advocate for their retirement benefits.” SEANC Executive Director Dana Cope’s response to NC Spin regarding SEANC’s public records lawsuit on Feb. 21.

“It has nothing to do with politics…If Treasurer Moore supplies us with the information we have requested, we would consider dropping the lawsuit in a heartbeat.” SEANC Treasurer Art Anthony on WTVD-TV ABC 11 on Feb. 15.

“I’m hoping that [the retirement fund] is protected, but right now there are some doubts.” Anthony Hall of District 11 on WRAL-TV 5 on Feb. 13 regarding state Treasurer Richard Moore’s pension fund investments and whether his hiring decisions were politically motivated.

“We think it’s unfortunate that the treasurer is ignoring the real issue here. This is about our public records request, not about a campaign.” SEANC Assistant Director of Communications Erica Baldwin in The News & Observer article “Moore blasts records lawsuit as ‘bogus’” on Feb. 15.

“No one can seem to find the e-mail with the answers. Were they destroyed? Were they misplaced? Or was it the proverbial animated dog that ate them? We don’t know.” SEANC Executive Director Dana Cope regarding missing e-mail responses from the state Treasurer’s Office in the April 4 News & Observer article, “E-mail must be kept, media tell state panel.”

“Richard Moore, the champion of financial purity, looks like an even bigger hypocrite.” A Feb. 19 Wilmington Star News editorial, “Reminding voters who Moore is.”

“Essentially, what you have is privatization with no accountability.” Gov. Mike Easley in The News & Observer article “Easley seeks power to fix mental health” on March 5 in the newspaper’s investigative series about privatizing mental health services.

“The state’s leaders must understand that the imperatives of privatization and the imperatives of a safety net are, to a large extent, mutually exclusive…the state is already spending that money.

Let’s spend it wisely and effectively.” Dr. Harold Carmel in a special report to The News & Observer, “State must rebuild its mental health safety net,” on March 2.

3 Political Action

Time to Vote: EMPAC Endorses Candidates for May 6 Primaries

By Erica Baldwin On April 5 the Employees Political Action Committee (EMPAC) announced its endorsements for the May 6 General Assembly primaries. Of the 25 endorsed candidates, 13 are SEANC members who have their names on the ballots in hopes of securing a stronger voice for state employees and retirees in the legislature.

“The endorsed candidates understand the needs of state employees and retirees. Our votes can help decide the future of our pay, health care and retirement,” said SEANC Political Director Kevin LeCount.

Most winners of the primary races will face chal-

lengers in the general election on Nov. 4. See a list below of all EMPAC-endorsed primary candidates.

decisions for compliance with the EMPAC bylaws and operations.

Endorsement Process

Why does SEANC need a PAC?

EMPAC is divided into 15 areas across North Carolina and each district can participate in the process. Candidates in competitive primary races were invited for endorsement interviews by EMPAC area members. Based on the candidates’ support for state employee and retiree concerns, interview panelists then made recommendations to their EMPAC area. To finalize the endorsements, the state EMPAC screened the results of each EMPAC area’s

State law prohibits SEANC from using dues to support political candidates running for elected office. As a state employee, your job is political. Fair or not, your pay, benefits and way of life depend on politicians. When you contribute to EMPAC, you can help elect like-minded public officials. Call SEANC at 800-222-2758 to join EMPAC today. ebaldwin@seanc.org or 800-222-2758

✔ May 6 Primary Endorsements ❏ N.C. House Candidate (Party)

House District

N.C. Senate Candidate (Party)

Counties

Robert Richardson (D)

5 Hertford, Bertie,

Perquimans, Gates Angela Bryant* (D) 7 Halifax, Nash Edith Warren* (D) 8 Pitt, Martin George Shaeffer (R) 15 Onslow Greg Taylor (D) 22 Cumberland, Bladen

Charles Graham (D) Betty Mangum (D) Nalin Mehta (R) Sidney Sandy (R) Jeff Barnhart* (R) Ric Marshall (D) Shirley Randleman (R) Drew Saunders* (D)

Robert Richardson (D)

47 Robeson 52 Moore 67 Stanly, Union, Montgomery 68 Union 82 Cabarrus 92 Yadkin, Surry, Iredell 94 Wilkes 99 Mecklenburg

Angela Bryant* (D)

Edith Warren* (D)

George Shaeffer (R)

Greg Taylor (D)

Senate District

Counties

Shelly Willingham (D) 3 Pitt, Edgecombe,

Martin Chuck Stone (D) 5 Wayne, Pitt, Greene Vernon Malone* (D) 14 Wake Ann Akland (D) 14 Wake Jack Nichols (D) 16 Wake Josh Stein (D) 16 Wake Floyd McKissick* (D) 20 Durham Ellie Kinnaird* (D) 23 Orange, Person Katie Dorsett* (D) 28 Guilford Fletcher Hartsell* (R) 36 Cabarrus, Iredell Jim Jacumin* (R) 44 Burke, Caldwell Steve Goss* (D) 45 Wilkes, Watauga, Alexander, Ashe

Shelly Willingham (D)

Chuck Stone (D)

Vernon Malone* (D)

Ann Akland (D)

Charles Graham (D)

Betty Mangum (D)

Nalin Mehta (R)

Sidney Sandy (R)

Jack Nichols (D)

Josh Stein (D)

Floyd McKissick* (D)

Ellie Kinnaird* (D)

Jeff Barnhart* (R)

Ric Marshall (D)

Shirley Randleman (R)

Drew Saunders* (D)

Katie Dorsett* (D)

Fletcher Hartsell* (R)

Jim Jacumin* (R)

Steve Goss* (D)

*Incumbent

Blue = SEANC member

4 columns

President’s Message by

Linda Rouse Sutton J

The Clock is Ticking I

don’t know at what point in time you will read this, before or after our May convention when some 900 SEANC delegates will decide Sutton if we should affiliate with SEIU, but for what I have to say time doesn’t matter. These truths are the same.

1. We want to be able to represent our members better.

2. We want to continue to be known as SEANC. 3. We want to continue to have our blue color.

4. We want to continue to have retirees as a vital part of our organization.

5. We want to continue to select our members, our staff, our officers.

6. We want to continue with our convention as it currently is held.

7. We want reasonable dues for active and retired members.

8. We want to continue to represent managers.

9. We want to keep EMPAC as it is.

10. We want to continue to select whom we support in our legislative and statewide races.

I could go on and on, but I think these are among the most important items our members want for SEANC. We decided to be proactive, rather than reactive, to keep SEANC as it is today and get the best benefits for our members. For more than a year, your Executive Committee, as well as other members, visited SEIU members around the U.S. and realized that at some time, things must change in order for SEANC to remain the same.

We heard the same message no matter where we went and no matter with whom we talked. We talked with SEIU state association affiliates’ rank-and-file members, organizational presidents and executive directors.

It became increasingly evident that if SEANC wanted to stay in control, we

were going to have to take action and map out our future on our terms. We researched the bylaws and constitutions of various like-minded organizations, talked with experienced members and looked at their public sector numbers, their resources, their performance and their history.

In regard to each and every issue, SEIU always came out on top. SEIU, in our opinion, had several of the “bests” — the best history, best resources, best integrity, best public employees and, best of all, an outstanding history of winning for and with SEANC members. They also had bylaws that allowed flexibility for SEANC to negotiate the best deal for our members. Based on this research and investigation, I proudly hope you see the benefits of affiliating with a like-minded organization and the national presence it brings.

If SEANC delegates approve this affiliation, we will make history for public employees in the South. We realize what businesses and some of the “powers that be” have said about unions and collective bargaining in the past, and it hasn’t been pretty.

We want to be the organization that changes all that.

SEANC wants to be the one who puts together a collective bargaining structure that will enhance the quality of services provided by state employees to the public, as well as enhance employee benefits with management and employees working together in a unified environment. We want to initiate a structure which encompasses retirees as well. This will help every taxpayer. How? By hopefully reducing the $362 million in annual turnover costs due to inadequate pay and benefits which impacts all of North Carolina’s taxpayers — state employees and non-state employees alike.

We want to be part of the solution, provide for our families and have SEANC make history in a positive way!

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THE REPORTER USPS 009-852 (ISSN 1069 2142) is published in the months of March, May, August and November for $3 per year, per member, by the State Employees Association of North Carolina, Inc., P.O. Drawer 27727, Raleigh, NC 27611-7727.

Periodicals postage paid at Raleigh, N.C. and additional offices.

POSTMASTER:

The time has come for SEANC delegates to make a decision.

address

lsutton@seanc.org or 252-559-0291

Raleigh, NC 27611-7727.

changes

to:

Send THE

REPORTER, P.O. Drawer 27727,

Judge Doug McCullough SEANC Member Since 2001 Up For Re-Election in 2008 I Need & Welcome the Support of My Fellow SEANC Members.

Go To

www.re-electjudgemccullough.com To Contact Me & Volunteer To Help.

Paid for by the Committee to Re-Elect Judge McCullough.

5 columns

Executive Director by

Dana Cope

Countdown to May 6: Let’s Vote for SEANC Members

Cope

With the North Carolina primaries around the corner, it’s time to make a vote that counts — one that will affect your pay, benefits and way of life. It’s SEANC’s goal to elect 10 or more SEANC members to the General Assembly, and I’m proud to report we are on our way. During the last two election cycles you helped elect Rep. Linda Coleman (D-Wake), Sen. Doug Berger (D-Franklin) and Rep. Pat Hurley (R-Randolph) — all former rank-and-file state employees who know the importance of quality public services and the people who provide them.

So on May 6, remember your fellow SEANC members running for office and do everything you can to help elect “our own.” No one will ever understand the issues of state employees and retirees as we do. We need more SEANC heroes on Jones Street in Raleigh.

In particular we have three excellent candidates with a great chance at office. Our very own past president, Chuck Stone, is running for the open senate seat in District 5 being vacated by Sen. John Kerr (D-Wayne). Imagine having a senator with Chuck’s knowledge of your issues and passion to fight for you. Chuck is in a very competitive primary and would welcome any help you can give him.

Past First Vice President Sidney Sandy is running in the primary for the House seat currently held by Rep. Curtis Blackwood (R-Union) in District 68. Sidney is enthusiastic about giving this race his all and, as a state retiree, he understands that we need folks in Raleigh speaking out for us. Let’s help him do just that.

Finally, former SEANC Treasurer Jimmy Garner is running for the house seat currently held by Rep. Leo Daughtry (R-Johnston) in District 26. Jimmy is mayor protem of Pine Level and feels it is time to take that experience and his time as a SEANC officer to help SEANC in Raleigh. Jimmy does not have an opponent in the primary, so look for his name on the November ballot.

We are lucky to have individuals like this running. What can you do? Volunteer for these candidates. Contribute to their campaigns. And most importantly, vote on May 6 for these and other state employee-friendly candidates (see page 3).

The biggest thing we could do for North Carolina this election season is work hard to put these members into office to ensure working families have a stronger voice in Raleigh! dcope@seanc.org or 800-222-2758

6 COLUMNS

Counselor’s Comments

By Tom Harris SEANC Chief of Staff/General Counsel

Collective Bargaining: The Time Has Come Surveying the legal landscape, it’s more evident than ever that now is the time for the General Assembly to move North Carolina out of the dark Harris ages by repealing G.S. 95-98, the statute that prohibits collective bargaining by state and local government employees.

In a recent presentation to the SEANC Collective Bargaining Committee, North Carolina State University professor Richard Kearney demonstrated just how out of step North Carolina is with the vast majority of other states that permit public employee collective bargaining at least at some level of government. Moreover, the International Labour Organization (ILO) has ruled that North Carolina’s collective bargaining ban violates international law.

SEANC members are encouraged to contact their legislators and to sign onto an open letter to North Carolina legislators that urges them to support House Bill 1583, which would repeal G.S. 95-98 (see below).

Trailing Other States Dr. Kearney shared the following statistics from the upcoming new edition of his book Labor Relations in the Public Sector. All but seven states have public employee collective bargaining at some level of government. Of the remaining seven, only two, North Carolina and Virginia, have statutes specifically prohibiting public employee collective bargaining.

Twenty-nine states have statutes allowing collective bargaining at all levels of state and local government.

Fourteen other states allow collective bargaining by at least some public employees. Among these states are a number of southern states: Georgia, Tennessee, Florida, Alabama, Kentucky, Texas, Oklahoma, West Virginia and Maryland.

North Carolina is the only state among the 10 most populous states that totally prohibits public employee collective bargaining. Isn’t it time for our state to move into the 21st century in terms of public employee rights?

Violating International Law The ILO is an agency of the United Nations that seeks the promotion of social justice and internationally recognized human rights. Last year, the ILO issued a strongly worded decision calling for the repeal of G.S. 95-98 based on the grounds that the statute violates internationally recognized human rights standards. As a member of the ILO, the United States is obligated to respect the basic principles of freedom of association and collective bargaining.

The ILO has instructed the United States to take steps to bring North Carolina into conformity with the international standards. As the ILO report recognizes, the only way North Carolina can stop violating workers rights is by repealing G.S. 95-98. The General Assembly must take action. tharris@seanc.org or 800-222-2758

How can you help gain support for collective bargaining?

Let your legislators know you need their support for collective bargaining — SEANC has pledged 1,000 signatures to the Hear Our Public Employees Coalition letter campaign.

You can sign the letter one of two ways: ➤ Go to www.nchope.org and click “Sign our Open Letter to NC Legislators.” ➤ Contact the SEANC Central Office for a hard copy of the letter.

SEANC Convention Poised for Historic SEIU Affiliation Vote

By Toni Davis On May 2-3 nearly 900 SEANC delegates from across North Carolina will meet in Greenville to participate in the association’s 25th Annual Convention.

The convention will take a single, historic vote — whether or not to affiliate with the Service Employees International Union (SEIU). Many believe the affiliation vote with SEIU provides an opportunity to make SEANC stronger at a time when state employees face new threats both inside and outside North Carolina that jeopardize (1) the pay and benefit improvements SEANC has made and (2) the association’s ability to continue winning for state employees.

“Like North Carolina’s teachers who are affiliated with the national teachers’ union, state employees could benefit from a national presence to strengthen public services,” said SEANC President Linda Rouse Sutton.

year, but the Board of Governors decided on March 8 by a vote of 52-5 to convene the annual convention early and conduct all remaining business, such as the election of officers and ranking of the Top 10 Policy Platform Objectives, in Greensboro on Sept 4-6.

North Carolina is Watching It’s not just state employees who are curious about the outcome of the vote in Greenville — legislators, the business lobby and academics are awaiting the association’s vote. Duke University of Law Professor Catherine Fisk noted in the March 21 Triangle Business Journal that should SEANC and SEIU affiliate, “It would be huge. It would have a dramatic impact on state workers and SEIU. And it would also have an effect on politics in the state.”

Political Resources Yield Results

Prior to the convention, all SEANC members had the opportunity to ask questions, provide input and get answers about the affiliation agreement at five summits held around the state in April. The input provided by members at the summits was incorporated into the affiliation agreement. Another objective of the regional summits was to let members know that SEANC will maintain its autonomy and manager and retiree members.

In fact, SEANC’s partnership with SEIU has already impacted politics in the state. That’s because SEIU has poured approximately $2 million in political contributions into the state since SEANC-SEIU’s “Stronger Together” partnership began in 2004. These resources helped elect SEANC members such as Rep. Linda Coleman (D-Wake), Sen. Doug Berger (D-Franklin) and Rep. Pat Hurley (R-Randolph).

“I was relieved to learn that if we affiliate with SEIU, our name, colors and dues would be controlled

by SEANC, while allowing us the benefits of SEIU membership,” said Angela Lyght of District 19 after attending the Piedmont Region’s summit.

“One of the reasons that state employees earned their largest back-to-back pay raise in nearly two decades was due to SEANC’s and SEIU’s increased influence in the legislature,” said SEANC Executive Director Dana Cope.

Traditionally SEANC holds one convention per

tdavis@seanc.org or 800-222-2758

8

Convention Preview — May 2-3

SEANC-SEIU Part

POLITICAL STRENGTH MEMBE

2004

2006

2005

SEANC and SEIU partner to form NC for Health Care to promote access to affordable health care for all.

Inspired by SEIU’s successful Heroes program, SEANC develops the Member Action Team (MAT) program in 2005.

SEANC BOG votes to support the SEANCSEIU Partnership Agreement.

SEANC staff begins participating in regular political, legal and communications trainings with SEIU state affiliates from around the country.

SEANC moves up from the 276th strongest political action committee (PAC) in NC in 2002 to the 32nd strongest PAC in the state in 2006.

SEANC and SEIU sign the Stronger Together Partnership Agreement.

SEANC leaders attend the SEIU convention and learn about SEIU’s Heroes program for political activists.

What’s in it for SEANC members?

For SEANC, affiliation with SEIU would help:

What’s in it for SEIU members?

For SEIU, affiliation with SEANC would help:

Who is SEIU? The Service Employees International Union is:

• Improve pay, health care and retirement security

• Unite public employees in the South

• More than 930,000 public employee members

• Win collective bargaining rights for state employees

• T each SEIU how to build a strong association without collective bargaining

• 1.9 million working members

• Build a powerful retiree program

• The fastest-growing union in North America

• E mulate SEANC’s successful member discount and insurance programs

• T he most effective political operation in the country according to the National Journal

• Provide resources to fight privatization • L earn from state employee members’ successes and struggles around the nation • Counter anti-government forces • Protect and increase SEANC’s membership • Continue to build SEANC’s political strength • Represent SEANC in the halls of the U.S. Congress

• I ncrease the collective strength of working families on Capitol Hill

• 50,000 retiree members

9

Convention Preview — May 2-3

tnership Timeline

ER EDUCATION MEMBER INPUT

2007 SEANC conducts a poll and focus groups to learn more about member views and gauge initial support for affiliation (69% support).

2008 SEANC has trained 700 MAT activists and EMPAC grows from 0 to 5,200 members contributing by payroll or pension deduction.

SEANC brings in SEIU Public Service Advocates to educate SEANC members about collective bargaining and affiliation.

SEANC forms Collective Bargaining/Affiliation/Executive Order 105 Committee.

SEIU state affiliate members attend SEANC regional summits, past presidents’ meeting, MAT trainings, district meetings, Board of Governors meetings, Retiree Council meetings and the SEANC convention.

SEANC secures additional funds for retiree COLAs while maintaining health insurance funding for active and retired state employees.

Executive Committee asks leaders to collect surveys to get input on collective bargaining and affiliation.

SEANC members travel to WA and CT to meet SEIU state association affiliates.

SEANC leaders observe political endorsement process at SEIU state affiliate in OR.

Members of SEIU state affiliates visit NC to exchange information on affiliation and collective bargaining.

SEANC leaders conduct straw votes at annual meetings. Majority supports the bylaws change to allow consideration of affiliation.

SEANC leaders meet with SEIU state association affiliates in OR, WA, CT and DC to learn about political strength, collective bargaining and the role of members/retirees.

At SEANC convention, 70% of delegates support the bylaws change to allow consideration of affiliation.

SEANC conducts poll to get member opinion on collective bargaining and affiliation (74% support affiliation, 76% support collective bargaining).

On March 8 SEANC Board of Governors votes 47-10 to enter affiliation negotiations with SEIU and 52-5 to convene convention early on May 2-3 to vote on affiliation.

10

Convention Preview — May 2-3

Time to Build a Stronger Voice for State Employees with SEIU Doris W. Greer, State Policy Platform Committee Chairwoman and District 3 Member Seattle – First of all, it was an honor and privilege to be asked to be a part of the Washington delegation on Feb. 3-6. What did I learn from this trip? Stay the same AND do something different!

We can have the best of both worlds. I see the partnership between SEANC and the Service Employees International Union (SEIU) as being extremely beneficial. The benefits are twofold, and we have much to gain.

We will have the advantage of being able to keep our name, logo, bylaws and policy platform and also keep EMPAC. We will basically look the same to the outside world.

Do Something Different My trip to Washington enlightened me greatly by showing me that we have much to gain through partnership with SEIU. By doing something different, we benefit from a stronger voice to fight for our benefits and to lobby for more attractive salaries for our state employees. SEIU is the union that improves the lives of working people. SEANC needs to be a part of that.

Photo submitted by Linda Rouse Sutton

Stay the Same

Participants pose for a group photo during their trip to Seattle on Feb. 4. Pictured front row, left to right, are North Carolina SEIU Director Kathy Eddy, SEANC President Linda Rouse Sutton, District 27 Chairwoman Brenda Hooker and SEIU Communications Director Avril Smith. Pictured second row, left to right, are Legislative Affairs Director Ardis Watkins, Policy Platform Committee Chairwoman Doris Greer, Jerry Brooks of District 8, Julie Parrish of District 40, District 24 Chairwoman Cathy Fields and Jonathan Stephenson of District 19. Pictured back row, left to right, are Finance Director Rex Foster, District 45 Chairman Charles Johnson and Executive Director Dana Cope.

Randy Dorn, executive director of the Public School Employees of Washington, was outstandtion that has convinced me that this is the direction ing in his presentation along with all the others who SEANC needs to take. spoke on behalf of SEIU. We were encouraged to During my visit to Washington, I had the opporask questions, and tunity to visit my they were very forthfirst cousin Doro“SEIU is the union that improves the lives of coming in all their anthy and her daughworking people. SEANC needs to be a part of that.” swers to us. Prior to ter Lindsey, whom my Washington trip, I had not seen in my knowledge of over 25 years. I SEIU was limited. However, I walked away from was telling them about the purpose of my being in this wonderful experience armed with informaSeattle, and when I mentioned SEIU, Lindsey told

Connecticut state employee retirees told us they found it difficult to succeed in collective bargaining without first becoming affiliated with a like-minded organization that had the expertise to assist them.”

— Sterling Primus, retiree from DOC, Piedmont

SEIU is a good match for SEANC because it lets mangers, supervisors and retirees be members.”

— Wayne Fish, DOC, West

I came away with a positive feeling that SEANC should strongly consider affiliating with SEIU. As a result of this affiliation, I believe we will be a better and stronger association, allowing us to be more effective for our hardworking state employees. dgreer@seanc.org or 828-264-3332

“We must no longer fear the word ‘union,’ but embrace it so we may reap the benefits enjoyed by other state workers across the country. SEIU has been with us since the first thought of us uniting together; they have put their blood, sweat and tears along side us. They will help us be all we can.”

“I feel it’s important for our association to affiliate and have that extra clout and political pull in order to accomplish the goals we seek to attain.

“Affiliation with SEIU could result in a better benefits package and more power in the fight to keep what we have for all state workers.

We also need representation at the federal level, as well as state level, especially concerning health care.

me that her husband worked as a park ranger. She said they were members of SEIU and that being a member had helped them greatly with their benefits and salaries.

— Maureen McMullen, DOT, South Central

“It’s as simple as this: we are keeping SEANC blue while gaining strength with SEIU — a win-win situation!”

— Erica Harris, DHHS, North Central

“SEIU has almost a million public employee members.

I’m honored that they would want us to affiliate. We can learn from them and have a stronger voice. If we are teamed up with a national union, SEANC would have more clout in the state.”

— Preston Moore, DHHS, East

11 Public policy

SEIU Ranks House Reps’ Support for Working Families

By Kevin LeCount, SEANC Member Action and Political Director

“Nearly one-third of state revenue comes in the form of federal funds,” said SEANC Executive Director Dana Cope. “We need to realize that we, as state workers in North Carolina, are affected by what goes on in Washington.”

SEIU’s 2007 Congressional Scorecard

92%

David Price (D-Chapel Hill) Mel Watt (D-Charlotte) Brad Miller (D-Raleigh)

85%

G.K. Butterfield (D-Wilson)

78%

Bob Etheridge (D-Lillington) Heath Schuler (D-Waynesville) Mike McIntyre (D-Lumberton)

64%

Walter Jones (R-Farmville)

35%

Robin Hayes (R-Concord)

7%

Sue Myrick (R-Charlotte)

0%

Virginia Foxx (R-Banner Elk) Howard Coble (R-Greensboro) Patrick McHenry (R-Cherryville)

Key votes on the scorecard included the passage of a minimum wage increase, an affordable drug bill, student loan relief, Head Start program funding and the Employee Free Choice Act, which would protect employees’ freedom to form unions and bargain for better pay, benefits and working conditions without employer harassment.

“I support workers’ rights to organize,” said Republican Rep. Walter Jones at a SEANC District 65 meeting in Greenville on March 18. Jones stated his support for employee organizations at the federal level and congratulated SEANC for being a strong, active voice for state employees.

Three lawmakers scored 92 percent on the SEIU scorecard — David Price (D-Chapel Hill), Mel Watt (D-Charlotte) and Brad Miller (D-Raleigh).

See how all of North Carolina’s representatives fared on the scorecard at left.

“It is important that North Carolina state employees keep an eye on how our federal legislators vote,” said Rep. Brad Miller (D-Raleigh).

“Student loan relief, an increased minimum wage, expanded health care for children — all of these issues and many others that we decide in Washington have a definite impact on state employees and their families.”

SEIU works to ensure that all workers are protected under labor law and have remedies to enforce their rights under federal, state and local labor, safety and health, and anti-discrimination laws. SEIU shares SEANC’s belief that employers should be held accountable for violations of workers’ rights. SEIU continues to support major fed-

PHOTO BY GLORIA HIGHSMITH

Eight of North Carolina’s 13 representatives to the U.S. House supported a majority of working family-friendly legislation, according to the Service Employees International Union’s (SEIU) 2007 Congressional Scorecard.

SEANC President Linda Rouse Sutton, right, gives pro-employee U.S. Rep. Walter Jones (R-Farmville) a SEANC pin on March 18 during a District 65 meeting in Greenville, as District 65 Chairwoman Vivian Bazemore looks on.

eral legislation that would reform U.S. labor laws to ensure all workers are protected.

North Carolina’s senators did not support major pro-working family initiatives, however. Both Republican Sens. Richard Burr and Elizabeth Dole voted against the Employee Free Choice Act and against expanding health care for children. klecount@seanc.org or 800-222-2758

The Reporter Toni Davis, Editor-in-Chief Erica Baldwin, Managing Editor Carri Derrick, Associate Editor/Advertising Manager Mary Adelaide Bell, Associate Editor Viola Alexander, Intern STATE EMPLOYEES ASSOCIATION of NORTH CAROLINA P.0. Drawer 27727 • Raleigh, NC 27611 1621 Midtown Place • Raleigh, NC 27609 Telephone 919-833-6436; 800-222-2758 www.seanc.org

Photo by Carri Derrick

(Please use Post Office Drawer for mailing purposes.)

SEANC Partners to Help End Childhood Obesity Ashley Bell, chairwoman of the North Carolina Alliance for Health Executive Committee, and Chuck Stone, director of North Carolinians for Affordable Health Care, center, look on as SEANC Executive Director Dana Cope signs the “Resolution in Support of Defining Quality Physical Education in NC’s Basic Education Plan” on March 26 at the SEANC Central Office in Raleigh. The SEANC Board of Governors voted to support this initiative during its March meeting.

ADVERTISING POLICY SEANC accepts advertising material from companies and persons seeking to communicate with SEANC members. Acceptance of this advertising does not indicate SEANC approval or endorsement or any representation that the message, product or service is as represented by the advertiser. SEANC accepts no responsibility and shall not be liable for any use of or reliance on any such information, product or service. SEANC is a private entity and is under no obligation to carry advertisements of any nature, political or otherwise, that may be viewed as contrary to the interests of the association and its membership.

12 member action

Photo submitted by Beth Morris

Photo submitted by Tanica Jackson

Compiled by Carri Derrick and Viola Alexander

District 3 Donates Items to SafePlace

District 66 Bowls for Charity District 66 participated in the 27th annual Kinston-Lenoir County One-on-One Program charity bowling tournament at the Galaxy of Sports bowling alley in Kinston on March 15. The annual event raises funds for the nonprofit mentoring organization, which is also a United Way partner. District 66 sponsored a lane and two teams. Pictured front row, left to right, are bowling team members Janelle, Christa, Destinee, Jessica and Monica. Pictured back row, left to right, are District 66 members Joyce Hemby, Edward Golden, Tanica Jackson and Rod Passell.

Photo by Henry Belada

District 3 members donated baby and health care items for use at SafePlace in Mitchell County. SafePlace exists to end sexual and domestic violence through safety, healing, prevention and social change. The program operates emergency shelters, a 24-hour hotline, hospital accompaniment programs and legal services. District 3 members who helped with the project gather for a picture on March 25 at DT’s Blue Ridge Java in Spruce Pine. Pictured front row, left to right, are District 3 members Vicky Greene, Rhonda Robinson, Kay Goins, Reta Greene and Andy Kirby. Pictured back row, left to right, are District 3 Chairwoman Janice Smith, SafePlace representative David Pike and Bob Hite of District 3. District 3 members who attended, but are not pictured, include Doris Greer, Teresa Canton, Bob Gibbard and SEANC West Member Action Coordinator Julie Young.

District 7 Holds Silent Auction District 7 and the J. Iverson Riddle Developmental Center (JIRDC) held a silent auction to benefit the Norma Caldwell Scholarship Fund on March 13. The event raised $1,191. Last year the district awarded three $500 scholarships from the fund. Caldwell was a JIRDC retiree and active SEANC member before she died in 2005. During the auction, the district signed up two new members. Posing with the donated items, left to right, are District 7 members Joe Belk, Windy Hayworth and Joy Caviness.

13 member action

Come to MAT Lobby Day June 24!

Photo by Benny Brigman

Look for more details in the June Short Report or at www.seanc.org

District 65 Second Annual Scholarship Golf Tournament Thursday, June 5 • 1:00 p.m.

Ayden Golf & Country Club

District 65 Holds Under-40 Membership Blitz District 65 held a membership blitz to attract younger members at East Carolina University in Greenville on Feb. 20, where they recruited seven new members.

District 65 and Youth Council member Alicia Simpson, right, talks with a new member about the benefits of SEANC.

4343 Ayden Golf Club Rd., Ayden $60 per person ($240 per team) Rain Date – June 12 Deadline for entries is May 29 Contact Del Kingsland (252-328-1940 or Kingslandd@ecu.edu) or Lynn Tuthill (252-744-2891 or tuthilll@ecu.edu) for more info.

14 member action SEANC GOLF TOURNAMENT ENTRY DEADLINE: JUNE 2, 2008

WHO?

SEANC members and spouses

WHAT? Annual golf tournament WHEN?

June 14-15 (daily 8 a.m. tee time)

Photo submitted by Kathleen Francus

WHERE? Hyland Hills Golf Club, 115 Fairway Drive, Southern Pines WHY? Benefit the SEANC Scholarship Program Entry fee for the tournament is $100 and includes two days green and cart fees, social, buffet, prize and trophy costs. Entry fee must accompany completed entry form. Tournament proceeds benefit the SEANC Scholarship Program. Golfers pay $27 for a practice round at Hyland Hills after noon on Friday, June 13. You must make your tee times for the practice round.

District 13 members, left to right, Amber Dinger, Kathleen Francus, Gwen Whitley, Dan Dombchewskyj and Crystal Carmichael participate in the Fire and Life Safety Bowl at the Oasis Temple in Charlotte on March 13.

District 13 Participates in Safety Event

The field will be limited on a first-come, first-serve basis. Foursomes are welcome to play, but please note on your entry and send together. Golfers will be flighted after first round of play. Trophies will be awarded to winners on gross scores. Scorecard playoffs beginning on No. 1 will break the ties except in the championship flight, which will go to a sudden-death playoff beginning on No. 1. The flight winners will be limited to SEANC members and spouses.

By Gwen Whitley, District 13 For the fourth year in a row, District 13 (UNC-Charlotte and Central Piedmont Community College) served as a proud sponsor of the 30th Annual Fire and Life Safety Bowl on March 13 at the Oasis Temple in Charlotte. The Bowl was presented by the Mecklenburg County Fire Marshal’s office, Charlotte Fire Department and Charlotte-Mecklenburg schools. The goal of the event was to teach children about fire and life safety.

The Bowl is a team competition, in game show format, among local elementary school students (approximately 150 4th and 5th graders) who have studied fire and life safety practice manuals. Twenty-nine public and private schools from Mecklenburg County competed. Prizes are awarded to winning teams and their schools. This year’s first place winner was Oaklawn Learning Academy.

District 13 members who assisted in the activities were Crystal Carmichael, Loretta Carr, Monica Crawford, Amber Dinger, Dan Dombchewskyj, Angela Eddie, Sue Eldridge, Kathleen Francus, Kirstin Gelinas, Lewis Jefferies, Trudy Moore, Marie Walley and Gwen Whitley.

SCHEDULE OF EVENTS FRIDAY, JUNE 13..................NOON

6-7:15 p.m.

PRACTICE ROUND SOCIAL, DAYS INN POOLSIDE

SATURDAY, JUNE 14............8 a.m.

FIRST DAY OF PLAY

6-7:30 p.m. BUFFET, HYLAND HILLS SUNDAY, JUNE 15................8 a.m. SECOND DAY OF PLAY AWARDS, HYLAND HILLS

ENTRY FORM FEE: $100 SEANC DISTRICT #:_______________ SS #:______________________________ NAME:___________________________________________________________ ADDRESS:_ _______________________________________________________ CITY, STATE, ZIP:___________________________________________________ STARTING TIME PREFERENCE:_____________ HANDICAP:_ ________________

q CHECK HERE IF SENIOR AND DESIRE TO COMPETE IN SENIORS’ DIVISION. Golfers age 55 and older are eligible. Seniors who wish to compete for the tournament championship must play from the regular tees.

Mail entry and fee by June 2 to: Don Jones, Box 1452, Raleigh, NC 27602 919-570-8522 (h); 919-828-4620, ext. 222 (w)

Photo by Steve Lawson

Motel information • Days Inn, US Hwy #1 at Morganton Road, Southern Pines, NC 28388.

Rate: $63.75 For reservations call 800-262-5737 or 910-692-8585.

District 13 Recruits at UNC-Charlotte Benefits Fair Janie McClure of District 13, left, talks about the benefits of SEANC membership with a fellow employee during a benefits fair at the University of North Carolina at Charlotte on March 5. Several other District 13 members assisted at the booth, including Dan Dombchewskyj, Crystal Carmichael, Amber Dinger and Clara Goodman.

• Hyland Hills Motel, 130 Fairway Drive, Southern Pines, NC 28387.

Rate: $55 For reservations call 800-841-0638 or 910-692-7615.

• Entrants must make and confirm motel reservations by May 24 to receive the published rates. (Be sure to let motel personnel know you are with Don Jones/ SEANC golf tournament.)

15 member action

SEANC 2008 District Annual Meeting Dates (as of April 14)

Dist. Date

Location

Time

Dinner

1

June 23 Community Services Building, Sylva

6:00 p.m.

2

June 9

5:30 p.m.

3

June 24 Broyhill Conference Center, Boone

First Baptist Church, Park Street, Swannanoa

5:30 p.m.

Photo by Carri Derrick

4 5 May 22 Western Piedmont Community College (WPCC), Hildebrand Hall 6:00 p.m.

Cafeteria, Morganton

District 44 Adds Proud New Member SEANC Eastern Region Member Action Coordinator Spillman Grice, right, signs up new District 44 member Robert Smith at the SEANC Central Office in Raleigh on March 11. Smith is a State Capitol Police sergeant, and his picture, along with other state employees, is proudly displayed in the halls of the SEANC Central Office.

6

July 15 Chapel Assembly Room, Broughton Hospital, Morganton

5:30 p.m.

7

May 22

J. Iverson Riddle Developmental Center Gym, Morganton

5:45 p.m.

8

June 19

Fire Mountain Restaurant, North Wilkesboro

7:00 p.m. Yes

9

June 19 TBD

10

May 30 China Grove Community Center, China Grove TBD

11

May 22 Albemarle Traffic Services, 903 Coble Ave., Albemarle TBD

12

May 22 Captain’s Galley Restaurant, Hwy 49, Harrisburg

6:30 p.m.

6:00 p.m. dinner, Yes 6:30 meeting

13 16

June 10 Diggs Gallery at Winston-Salem State University

6:00 p.m.

17

June 16

John Kernodle Senior Center, 1535 S. Mebane St., Burlington

6:00 p.m. Yes

18

June 10

Shoney’s Restaurant, 1320 E. Broad Ave., Rockingham

6:30 p.m. Yes

19

June 17 OWASA , 400 Jones Ferry Road, Carrboro

5:30 p.m.

20 21

June 19

22

June 9 Brass Lantern, off I-95, Dunn

Photo submitted by dennis mecum

23 April 24 24

First Baptist Church, 200 W. D St., Butner St. Paul Community Building, St. Pauls

May 15 AG Service Center, Elizabethtown

5:45 p.m. Yes 6:00 p.m.

6:30 p.m.

6:00 p.m.

25 26 27

June 12 Ole NC BBQ, 4201 N. Roxboro St., Durham

6:00 p.m. Yes

36

June 10

5:00 p.m.

SEANC Central Office, 1621 Midtown Place, Raleigh

37

DOC Employees Raise Money for Special Olympics

38

June 19

SEANC Central Office, 1621 Midtown Place, Raleigh

39

June 10

McKimmon Center at NC State University, Raleigh

5:30 p.m.

Department of Correction employees from Central Prison, Nash Correctional Institute and Wake County Community Correction took part in a “Polar Plunge” to raise money for the Special Olympics at Silver Lake Water Park in Raleigh on Feb. 16. Pictured, from left to right, are Division of Prisons Chief of Security Scott Peele, Deputy Warden and District 26 member Michael Munns and Training Specialist and District 45 member Dennis Mecum.

Lindsay Stover, deputy warden’s secretary and District 45 member, also took the plunge.

40

June 3

Golden Corral, Hwy. 64, Raleigh

6:00 p.m. Yes

41 42

June 26

SEANC Central Office, 1621 Midtown Place, Raleigh TBD

43

June 26 TBD TBD

44

June 17 Logan’s Roadhouse, Garner

6:00 p.m. Yes

45 46 47

June 24

SEANC Central Office, 1621 Midtown Place, Raleigh

5:30 p.m.

56 57 58

June 10 Holt Lake BBQ & Seafood, Smithfield TBD Yes

59

June 9 Conference Center, Cherry Hospital, Goldsboro

6:00 p.m.

60 61

June 20

Matthew #25 Building, Burgaw

7:00 p.m.

Photo by Orie Henry, Jr.

62 63

May 20 Heritage House, Windsor

6:30 p.m.

64

June 3

6:30 p.m. Yes

65

June 17 TBD TBD

66

May 22 King’s Restaurant, Hwy. 70, Kinston

6:00 p.m. Yes

67

June 17 West New Bern Fire Department, 900 Chelsea Rd, New Bern

6:30 p.m.

Parker’s BBQ, Memorial Drive, Greenville

68

District 59 Delivers Meals on Wheels District 59 member Olivia Patterson holds coolers of hot meals to deliver to Goldsboro senior citizens on Feb. 6. District 59 has been active in the Meals on Wheels program for more than 20 years.

69 70

June 10 TBD TBD

71 Please contact your district officers to confirm meeting dates, times and locations, as they are subject to change.

If your district meeting is not listed or is incorrect, please send the correct and complete information to Carri Derrick at cderrick@seanc.org or 800-222-2758. Look for updates at www.seanc.org.

16 FEATURED MEMBER DISCOUNT VENDOR 2008 Discount Theme Park Tickets Whether water parks, roller coasters or NASCAR is your speed, SEANC has a deal for you! SEANC and the State Employees’ Credit Union have teamed up once again to offer members discount theme park tickets. Tickets are on sale through Sept. 30 at all SECU branch locations and the SEANC Central Office.

Child Gate – $19.99 Adult Gate – $45.99 SEANC & SECU Price $33 Child Gate – $29.95 Adult Gate – $51.95

Child Gate – None Adult Gate – $34.40 (tickets good at Myrtle Beach, SC, Concord, NC and Sevierville, TN)

SEANC & SECU Price $33 Child Gate – $19.99 Adult Gate – $29.99 SEANC & SECU Price $23 Child Gate – $21.50 Adult Gate – $30.10

SEANC & SECU Price $24

Child Gate – None Adult Gate – $39 SEANC & SECU Price $24 Child Gate – $22 Adult Gate – $30 SEANC & SECU Price $23

SEANC & SECU Price $24

“Thanks, SEANC, for keeping my health insurance premium free.”

LeAndrew Bartlett of District 21, Retiree from the Department of Juvenile Justice and Delinquency Prevention

SEANC and SECU are not responsible for lost tickets. No ticket refunds or exchanges. See official theme park Web sites for child ages and height requirements, park calendars with dates and hours of operation. Visit www.seanc.org under “ Member Benefits” and “Special Offers and Tickets” or contact Tony Booe at tbooe@seanc.org or 800-222-2758.

SEANC Conference Rooms Conference rooms for up to 100 people are available for rent at the SEANC Central Office for individuals, organizations and companies. A daily fee of $150 per room per weekday includes a professional business environment with audiovisual equipment, access to a food preparation area and room arrangement to suit your needs. Conference rooms A and B can be combined into one large room for $300 per weekday.

(1) Mitch Leonard Conference Room A, 859 sq. ft.

(2) Mitch Leonard Conference Room B, 859 sq. ft.

(3) Conference Room C, 280 sq. ft.

Location: 1621 Midtown Place, Raleigh, NC 27609 Let SEANC provide an impressive environment to make your meeting or training session a success!

Contact Mary Adelaide Bell at 800-222-2758 or mbell@seanc.org to secure your conference room today.

State Employees Association of North Carolina P.O. Drawer 27727 Raleigh, NC 27611

Periodical Postage

PAID Raleigh, NC