How UMass Amherst’s Advancement Division was Privatized–a Documentary History
Note: Each link will take you to a digital version of the relevant document referenced in the text.
Background
Until May 1, 2023, fundraising and alumni relations for UMass Amherst was substantially conducted by two work units. The first, once known as Advancement, was a division within the university which had approximately 125 employees, all of them state employees, subject to Massachusetts state law regarding transparency, compensation, state ethics, and conflict of interest. As state employees, each member of the Advancement team was eligible to join the Massachusetts State Employees’ Retirement System (MSERS), which provides a pension for each UMass Amherst employee who works full-time for the state for a minimum of ten years. Many members of Advancement were enrolled in the state pension, and many had reached, if not exceeded, their ten-year point of investiture.
But not all fundraising was done by the public employees in Advancement. In 2003, a 501(c)3 foundation, known as the UMass Amherst Foundation (UMAF), was created. Employees of the UMAF work for the foundation, not for the public university, and so are not eligible to participate in the state retirement system. In Massachusetts, institutionally related foundations can exist to assist in fundraising exclusively for the benefit of an institution of public higher education.
Institutionally Related Foundations are public charitable trusts run for the benefit of state institutions of higher education. These trusts are bound by chapter 15a, section 37, of the General Laws of the Commonwealth of Massachusetts, and to address the overlapping nature of public-private fundraising with respect to public higher education, subsection (d) of the General Laws specifically states that: “in no event shall an employee of the [public] institution spend more than twenty-five percent of his work hours engaged in services for a [private] foundation.” In other words, Advancement members (state employees) could spend up to 25% percent of their work time performing services for the UMAF without endangering their own standing as public employees, including their stake in the state pension system.
The Privatization of UMass Amherst’s Advancement Division
In December 2022, University of Massachusetts Amherst administrators, and their private attorneys, approached two staff unions, the Professional Staff Union (PSU) and the University Staff Association (USA), whose members composed the vast majority of Advancement employees. At that time, UMass Administrators claimed that the Massachusetts State Retirement Board (MSRB), which oversees the state retirement pension, had approached UMass with concerns that some Advancement employees, several of whom had worked in Advancement for more than 20 years, were in danger of losing their pensions for violating the “25% rule” contained in chapter 15a, section 37d of the state’s General Laws in their occasional work for UMAF.
The MSRB later undermined the UMass administration’s claim in a public meeting on March 30, 2023. MSRB board member Theresa McGoldrick stated during the hearing that, “as far as I know, we’ve been given no information other than a letter from a law firm hired by UMass. There’s no information or evidence to show whether they [Advancement employees] do that kind of [private UMAF] work or not, [or if] there’s been any violation in statute.” State Treasurer Deborah Goldberg added, “this situation is clearly and absolutely 100% UMass Amherst’s responsibility,” and that Advancement employees “have been confronted with a confusing, disruptive, and stressful situation for them and their families.” (Audio of the meeting and a typed transcript is available here.) Put another way, the MSRB had never expressed any concerns about Advancement members’ status as public employees.
UMass Amherst management and UMAF then jointly hired a private attorney, Elissa Flynn-Poppey of the firm Mintz, who presented a suite of scenarios to PSU and USA for reorganizing and privatizing Advancement, which ranged from the somewhat disruptive (some state Advancement positions privatized) to total liquidation (nearly all state Advancement positions privatized).
PSU and USA demanded that management bargain over the restructuring of Advancement and submitted a proposal that would ensure that state workers continued to do the vast majority of fundraising work–a proposal which the UMass Amherst administration immediately rejected (see Section II, “Negotiations;” letter from the unions’ attorney, Dan O’Connor, to UMass Amherst’s attorneys.)
Instead, UMass administration informed the unions that they were going to change the so-called flow of funds for all donations: no longer would donor funds go to UMass Amherst via Advancement—they would all go through the private UMAF. In effect, this meant that no state worker could perform any fundraising function at UMass Amherst, for fear of risking their credible service and pension eligibility. The administration stated that all functions formerly performed by Advancement would become the sole responsibility of the private UMAF. The UMass Amherst administration and its private attorney claimed that a “clean break” between Advancement and the UMAF was the only way to protect state-worker pensions.
In response, PSU and USA have spent the last 18 months rallying support for public work. The Unions staged rallies, marches, demonstrations, and other actions. Several of these have appeared in media around the region and country (see the list of articles at the bottom of this page). The unions’ effort has even received the support of state and federal elected representatives.
First, U.S. Senators Elizabeth Warren and Ed Markey issued a statement on April 26, 2023 urging the UMass administration to continue working with the unions:
We stand with union workers at UMass Amherst fighting against the privatization of public sector jobs, which would put employees’ retirement benefits and job security at risk. We urge UMass to come together with its workers on a solution that protects good, union jobs in our public education system.
Only five days later, on May 1, 2023, International Workers Day, then-Chancellor Subbaswamy emailed the entire Advancement division that layoff notices were being prepared and announced that UMass would go through with “the transfer of fundraising, alumni relations, and related Advancement activities to the UMass Amherst Foundation.”
In response to UMass Amherst’s rush to privatize, U.S Congressman Jim McGovern, joined by Massachusetts state legislators Jo Commerford and Mindy Domb issued a statement on May 3, 2023, saying, in part:
Lives and careers dedicated to public service are at stake. UMass Amherst must immediately pause its rush to privatization. Any discussion of lay offs must be suspended. The University should convene a meeting with all stakeholders, including public officials, where disputed facts about its reorganization plan can come into the light and be affirmed or corrected. The University must re-engage with the union and rely on expert mediation rather than issuing ultimatums.
“A public university must have public accountability,” their joint statement concludes.
On May 11, 2023, Massachusetts State Auditor, Diana DiZoglio, sent a letter to Chancellor Subbaswamy asserting that the legal requirements for privatizing Advancement have not been met, and management must immediately stop the privatization process.
The effort to privatize the above-stated functions [advancement and fundraising] at the University does not appear to comply with the requirements of the Taxpayer Protection Act and Chapter 7, section 54….The University’s effort to privatize these functions may not proceed without analysis and determination from OSA [Office of the State Auditor], as required by law. If you believe OSA has received, reviewed, and approved the proposed privatization, or that the above does not apply to the University, please provide documentation to substantiate that position. Until such documentation is provided, however, it is our position that the proposed privatization violates Massachusetts General Law and cannot proceed.
On July 27, 2023 the state Department of Labor Relations (DLR) made 4 probable cause findings against management:
- Count I: Failure to bargain in good faith by implementing their most extreme reorganization plan without bargaining to resolution or impasse.
- Count II: Failure to bargain to resolution or impasse over the impacts of its decisions to reorganize Advancement and abolish all but six positions.
- Count III: Failure to bargain in good faith and surface bargaining by failing to meaningfully respond to the Unions’ counterproposal and implementing their most extreme reorganization plan.
- Count IV: Retaliation for contacting public officials, which is a concerted, protected activity.
In spite of the overwhelming political and legal insistence that UMass Amherst pause their privatization efforts, former chancellor Subbaswamy and the UMass administration proceeded to eliminate the entire Advancement division on May 1, 2023. Approximately 125 state jobs were eliminated. These employees’ lives were upended, and they were forced to either find a new job at the university, leave UMass altogether, or apply to work at the private UMAF. Any employee who left state service would no longer be eligible to participate in the state retirement system.
The fight to save public work continues
We, PSU and USA, believe that all public work should be done by public employees subject to public oversight and for the public good, and we continue to fight to bring these jobs back into the public fold.
On May 31, 2024, just over a year after the UMass Amherst administration liquidated Advancement and eliminated 125 state jobs, the Office of the State Auditor (OSA) issued its final determination that UMass Amherst violated the Taxpayer Protection Act (TPA) when it privatized and outsourced Advancement operations from UMass Amherst to the private UMAF.
The TPA, commonly known as “the Pacheco Law,” is intended to prevent private businesses from enriching themselves at the taxpayer’s expense. If any public institution intends to privatize any of its work, it must first prove that the private business can provide at least the same level of service, but at a cheaper price.
Additionally, the OSA found that:
- UMass Amherst was required by law to seek a determination from OSA prior to privatizing Advancement and failed to do so.
- When given a second opportunity, UMass Amherst could not demonstrate to the OSA that the privatization of Advancement produced financial savings at a higher quality of public service.
- The entire UMass system, including all other campuses, must comply with the TPA law “in all respects,” now and in the future.
The fight to save public work and bring these positions back to UMass Amherst isn’t over, and we continue to believe that all public work should be done by public employees subject to public oversight and for the public good. Stay tuned for more updates to this history as they become available.
Media Coverage
Please share these stories widely with your friends, family, co-workers, and social network.
- UMass Amherst privatizes jobs, removing some employees’ union status The Boston Globe (6/10/2023)
- UMass Ordered to Pause Privatization of Advancement Jobs for Legal Review The Shoestring (5/18/2023)
- State Auditor intervenes UMass Amherst privatization process WWLP 22News.com (5/16/2023)
- UMass Amherst plan to eliminate 100 jobs may violate state law, auditor says MassLive (5/16/2023)
- UMass Amherst plan to privatize 100 jobs may violate state law, auditor says Boston Business Journal (5/16/2023)
- State auditor will look at UMass jobs transfer to private foundation Daily Hampshire Gazette (5/15/2023)
- State Officials Criticize UMass Privatization Plan The Shoestring (4/6/23)
- UMass is on the defensive after pushback over its planned staffing change (Editorial) MassLive (4/4/23)
- Comerford, Domb weigh in against UMass move to privatize union jobs Daily Hampshire Gazette (3/30/2023)
- Privatization Push Prompts ‘Union Busting’ Charges Inside Higher Ed (3/16/2023)
- UMass unions speak out at rally against move to privatize jobs Amherst Bulletin (3/16/2023)
- UMass unions speak out at rally against move to privatize jobs Daily Hampshire Gazette (3/7/2023)
- UMass workers, staff unions protest University administration job privatization attempts Daily Collegian (3/7/2023)
- UMass Amherst Unions Fight Privatization Of Fundraising Jobs The Shoestring (3/10/2023)
- UMass Amherst unions question university plan to privatize more than 100 jobs NEPM (3/3/2023)
Press Releases and Information
- Press Release – UMass Amherst Privatization Plan Violates Labor Law – April 7 2023
- Press release – UMass Amherst Workers Fight Planned Job Cuts – March 1 2023
- Detailed legal analysis from PSU Attorney on why any “compliance concerns are without merit.” (3/13/2023)
Actions
- Take Action Here – Email UMass leadership to Stop the Privatization of Advancement
- To show solidarity, we encourage all PSU members and allies to include this language in your email signature:SAVE OUR STAFF: I stand with my Advancement colleagues against mass layoffs and forced privatization. Learn what’s at stake»
- Event: MSRB (Mass State Retirement Board)
The meeting agenda for 3/30 is not posted yet but you should be able to find it here when it is:
Details: https://www.mass.gov/service-details/massachusetts-state-retirement-board-meetings-msrb - Event: Save Our Staff: Speak Out
March 6, 12:45pm,
Whitmore Administration Building, UMass Amherst
https://fb.me/e/NMU1rU6W (Facebook Event) - Petition: Sign the petition to save Advancement members’ jobs.
Contacts
- Brad Turner, PSU Co-Chair: brad.turner@umass.edu
- Andrew Gorry, PSU Co-Chair: andrewgorry@umass.edu
- Mary Malinowski, USA President: mary.malinowski@umass.edu
- Sheila Gilmour, USA Vice President: sgilmour@umass.edu
Resources
- PSU on Facebook: PSUMTA
- Hashtags: #SaveOurStaff #Union @UMassAmherst @PSUMTA
- Stop Privatization Zoom Background image (PNG)
- Save Our Staff PNG file (1200px PNG)