Employee Forum stands against privatization

The UNC Employee Forum officially took a stance against Follett’s proposal to privatize the UNC Student Stores in their meeting Wednesday.

The unsolicited proposal from a company that owns more than 1,000 student stores in the U.S. was presented to the University more than two months ago. In recent weeks, it has ignited a wave of opposition from students, employees and members of the Employee Forum.

Chancellor Carol Folt started the meeting — one week after students protested the potential privatization outside her office.

Folt said the University’s duty is to make difficult decisions within the plight of tight budget realities. She said 40 percent of the University’s operating cost is not being covered by the state.

“Those gaps have been filled by saved reserves; they aren’t annual costs. That means that when those reserves are down, we’re done,” Folt said. “We are looking at everything we can to make it possible to work together in an effective and efficient way.”

Folt said no decision had been made yet, and the proposal is being examined from all angles.

Eric Johnson, a spokesperson for the Office of Scholarships and Student Aid, said he attended the meeting to discuss the Student Stores’ role in the University’s financial aid paradigm.

“They provide about $400,000 a year for undergraduate scholarships,” he said.

Johnson said the figure compared to the overall UNC financial aid grant-funded budget for undergraduates, about $75 million, is comparatively small. But he said any form of institutional funding is important to the financial aid office.

“Whatever happens, we hope that support will continue,” he said.

Student Stores employees also attended the meeting to communicate their disapproval of Follett as a potential Student Stores buyer.

Donald Morelock, who has worked for Student Stores for about 18 years, said Student Stores employs more than 200 students a year, and paying them yields around $500,000 in unofficial financial aid.

Student Stores employs about 50 full-time employees who average 13 years of service, according to data published by The (Raleigh) News and Observer. The data says the store pays an average salary of $46,388.49 to its employees — a figure Morelock says is currently in jeopardy.

“An outsourced privatized company just does not do this,” he said. “You can research and see their practices across the board are skeleton crews, underpaid workers.”

Morelock said even as an independent entity, Student Stores has not been a client of Follett because the company’s prices were too high.

“We fired Follett; now they want to buy us,” he said.

A proclamation, proposed by the forum about 20 years ago to outline the thought process for considering outsourcing, was reaffirmed in a 21-2 vote.

“(We are) basically stating that our stance on this issue hasn’t changed. There’s a set criteria by which we request that the administration follows when considering outsourcing procedures, and we voted to reaffirm that because we have a new administration,” said Katie Turner, chairperson of the forum’s Communications and Public Relations Committee.

Turner brought a resolution to the floor that would ask the administration to reconsider outsourcing Student Stores to Follett. The resolution highlights particular concerns, including potential reduction of employee hours and higher textbook prices.

The resolution passed unanimously with two abstentions. The proclamation and resolution will be presented to Matt Fajack, vice chancellor for finance and administration, and Brad Ives, associate vice chancellor for campus enterprises, on Thursday.

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