TKW Consulting

Unions and Family Child Care: A Primer - July 2006

In the past few years there has been a remarkable development in the family child care
field: Unions are organizing family child care providers across the country. Even more surprising is that several unions are competing with each other in their organizing efforts. This new phenomenon has raised many questions by providers about what this means.

The concept of a union is unfamiliar to many providers, so this primer is an attempt to answer some of the basic questions providers have raised about unions.

Q: What is a union?
A: Traditionally, a union is an organization of workers who band together to negotiate with their employer for benefits that will improve their lives. Unions have been organizing in the U.S. for over a hundred and fifty years. Past union efforts have focused on reducing the number of hours in the work week, improving worker safety on the job, raising worker wages, and improving health, retirement, and other benefits. Although unions have organized a small number of child care centers and Head Start programs across the country, it was only in the last few years that family child care providers have been joining together in unions.

Q: Which unions are organizing family child care providers?
A: There are three:The American Federation of State, County, and Municipal Employees (AFSCME) has 1.4 million members who include nurses, clericals, "blue-collar" workers, professionals, corrections personnel, technicians and caregivers. AFSCME members work in offices, schools and universities, corrections facilities, hospitals, government facilities, and child care centers. For further information, contact AFSCME at www.afscme.org/childcare or call Denise Dowell, Coordinator, Child Care Providers Together, at 215-964-0984.

The American Federation of Teachers (AFT) has 1.3 million members who include teachers; local, state, and federal employees; higher education faculty and staff; nurses and other healthcare professionals. They have an associate organization, First Class Teachers, that organizers early childhood educators, including family child care providers. For further information, contact AFT at www.firstclassteachers.org or 202-662-8005.

The Service Employees International Union (SEIU) has 1.8 million members who include home health care workers, public school employees, nurses, doctors, hospital workers, workers in local government, state employees, security officers, janitors, and building service workers. For further information, contact SEIU at www.KidsFirstSEIU.org or 866-565-1465.

Q: How can unions organize providers who don't have an employer?
A: Unions cannot organize family child care providers in the same way they have organized in other industries because providers do not have an employer with whom to bargain. The vast majority of family child care providers operate as self-employed business owners. Unions are therefore using different approaches to bring providers together to increase their benefits and give them a voice in improving the quality of care.

Q: What are these different approaches?
A: Unions are approaching state governments that regulate providers and that pay providers as part of a state child care assistance program. Unions are fighting to increase the resources available to family child care providers. They are turning to states because most providers will never be able to significantly improve their financial well being by raising rates they charge to parents. Unions are lobbying states to allow providers to vote for a union that will represent them in collective bargaining with the state. Unions hope that by negotiating with the state on behalf of a large number of providers they can access public funding that will benefit providers as well as increase the quality of child care for the children they serve.

Unions have begun negotiations in some states to increase subsidy reimbursement rates, improve state child care regulations to keep children safe, and provide health insurance and other benefits. Some unions are working on local projects to support providers and with other advocacy organizations to improve the quality of child care, such as supporting statewide quality assurance programs. This is a new approach to union organizing, so union activities vary across the country and from one union to another.

Q: What is the general process for union organizing of providers?
A: The answer can vary from state to state, but here is how it might happen:A union begins talking with providers in a state about changes providers would like to see. A union then begins to gather signatures on union cards from providers who want to be represented by a union.

Based on this initial show of support for a union, the governor or state legislature gives approval allowing an election to be held so that providers can vote to have a union represent them. When there are competing unions, providers vote to determine which union will represent them. Another way this could happen is that the state could certify that a union is entitled to represent providers based on proof by the union that more than 50% of the providers have signed union cards of support. In this case no election would be held.

After the election, providers determine the goals and priorities of their union (increased subsidies, quality improvements, training, and other benefits).Members of the union then elect a bargaining committee made up of providers and begin negotiating an agreement with the state to use public funds to support the goals of the union.

Q: What are the tax consequences of joining a union?
A: Family child care providers who join a union will file their tax returns in the same way they have always done. This means that they will continue to operate as a self employed business. Those providers who currently operate as a corporation or partnership will also be unaffected. Any union dues paid by a provider are 100% tax deductible as a business expense.

Q: Will providers become an employee of their state?
A: In some states unions are investigating the possibility of providers being considered as employees (of their state, county, or other government entity) for purposes of collective bargaining, or to be eligible for health insurance and other benefits. Providers may be entitled to some of the same benefits as state employees because of the state regulations that providers must follow.

So far, unions are not advocating that providers change their self-employed status, and no states are planning to treat providers as employees. Redleaf National Institute has provided some consulting services to unions to help sort out this question. We do not yet know what will come of this activity, but we are monitoring it closely. We believe that most providers would prefer to remain as self-employed business owners unless they could see a significant financial benefit of becoming an employee.

Q: What are the benefits of joining a union?
A: In states where unions are active, providers have identified the following benefits they would like to obtain:

• Higher subsidy reimbursement rates from the state
• Access to affordable health care
• Increased access to affordable resources such as professional development programs, legal services, insurance, and other business services
• In addition, some providers see joining a union as a way to improve the overall quality of child care and increase their own professionalism.

A union is a democratic organization that is formed to promote the interests of its members. Therefore, providers who join a union have a say in determining what specific benefits they want to pursue. Although there might be common interests among provider on some issues, there can be significant differences in what providers want from one state to another.

Providers who join a union are not automatically entitled to new financial benefits. There is no guarantee that a union will be able to bring new benefits for its members. The likelihood of a union obtaining benefits for its members is dependent on the number of providers who join a union, the union's negotiating skills with government officials, and the union's ability to mobilize support for its goals from the public.

Q: What are the objections to unions?
A: Family child care providers have raised a variety of objections to union organizing efforts. Some providers dislike unions based on previous personal experiences with unions or because they object to the political positions taken by unions. Other providers support unions for the same reasons.

Here are some of the most common objections raised:

• "I don't want to be forced to join a union because I don't believe they are necessary."
• "I don't want to be forced to pay union dues because I don't have much money and because I am concerned that the union will use my dues for a purpose I don't approve."
• "I don't want a union to tell me how to run my business."

Some providers are mistrustful of unions. Some of this mistrust may come from the fact that providers are not familiar with unions, and some may come from a fear that a union will not act in the best interests of providers. Some union organizers may not understand providers and may put undue pressure on providers to join the union. Some unions may not closely cooperate with local family child care associations. Whatever the reason for this mistrust, providers are not helpless. They can (if they desire) take action to learn more about unions by asking questions of local union representatives. Some conflicts that providers have had with unions are caused by poor communication or misunderstandings.

Providers can always speak up and challenge whatever a union is doing in their area through their local family child care association.

A union cannot tell a provider how to run her business. Providers will always be free to set their own rates with parents and design their own policies. Let's say a union negotiates an agreement with a state to allow providers to access health insurance through the state, but only if the provider becomes an employee of the state. Providers will always have the choice not to participate in such a program if they do not want to give up their status as a self-employed business.

Q: How will I be sure that the union will represent my interests?
A: There is no guarantee providers will agree with every position taken by a union. For example, a union might seek to raise the licensing training requirements or include license-exempt providers in the pool of those eligible for new resources, and some providers may oppose this. In general, a union is a democracy run by its members. Each member of the union votes on what benefits the union will seek to obtain and will vote on whether to accept an agreement made with the state or county. In the end, providers who join a union will determine everything that the union does.

Because a union seeks to organize a large number of family child care providers on a state and national level, some providers may feel that they will lose control over what large union organizations will do. Providers who currently belong to family child care associations may feel more comfortable that their voice is heard by these usually smaller organizations. There are always trade-offs between the amount of influence providers can have and the degree to which any one person can control what the union will do. The ideal is that no matter what the size of the union, its members will be regularly informed and able to voice their opinion through voting on contracts and electing of representatives who will speak for the majority. As in any organization, large or small, there is the chance that some individuals will act against the interests of the majority. It is up to the members of any organization to see to it that represents their interests.

Q: Is paying regular dues to a union going to be worth it?
A: Some providers worry that if they join a union they will be forced to pay union dues that they cannot afford or that the dues will be used for something they do not support. In the end, each provider needs to make her own judgment about whether the cost of joining a union is worth it. You can measure the worth of a union using several different standards. You could look at how much better off you are financially as a member, or look at the impact the union has made in improving the quality of child care or increasing the professionalism of the family child care field. In the end, unions will not be successful if providers do not see how they are benefiting by their membership.

Before joining, providers should look closely at the goals of the union. Do you support these goals, and does the union have a strategy to achieve these goals that seems reasonable to you? Ask questions about how the dues are spent. Each year evaluate whether the work of the union is worth your continued support.

Some providers are concerned that they will be required to pay union dues even when they do not support the union. Providers will never be required to join a union. In some situations a union may be required by law to represent the interests of all providers, even if some of the providers have not joined the union. In cases where all providers would receive the benefits of any collective bargaining negotiations between the union and the state. all providers may be required to pay a "fair share fee" that goes towards the union's costs in the collective bargaining process. This fee is not union dues.

If you have questions about unions and their efforts to organize family child care providers, please contact us (rni@redleafinstitute.org or 651-641-6675) and we will respond to them in future articles. Redleaf National Institute does not endorse any union organizing family child care providers.

// posted by Tammy Wachter @ 7:21 PM