Ann Arbor Public Schools custodians are pursuing an alternative solution in an attempt to save their jobs as district officials consider outsourcing their work to a private company.

The custodians’ union, AFSCME Local 1128, voted Saturday to pursue forming a worker-owned cooperative, said President Rick Redding. School board President Deb Mexicotte said the board has not yet received a proposal from the union and had no knowledge of the vote.

The 114 union members learned about two and half weeks ago that district officials were seeking to privatize custodial services by a letter from Superintendent Jeanice Swift. Administrators stated the move would save the district about $1.8 million—the same figure officials used in 2010 during a previous privatization discussion.

Forming a co-op would allow the district to contract with the co-op for custodial work, but would mean the district would no longer have to pay into the Michigan Public School Employees Retirement System.

Each of the custodians would be a part-owner of the organization. They could receive their same rates of pay and health insurance.

“I think it’s an excellent idea, it’ll keep people in place where they are,” Redding said. “We’re here for the kids, just like anybody else.”

The co-op option was suggested to the union by two parents of students in the district—Rabindar Subbian and Roland Zullo, said union President Rick Redding.

Roland Zullo

Zullo is an assistant research scientist at the University of Michigan’s Institute of Labor and Industrial Relations. He said he’s proposed the co-op model to two other Michigan school districts in the past two years, but no districts have adopted it to date.

“We’re trying to sustain decent jobs in the community,” Zullo said. “The only way to do that is to not go the route of these big, private, for-profit firms.”

Subbian, an Ann Arbor entrepreneur and graduate student in information management systems at Harvard University, briefly communicated the plan to a Board of Education committee meeting Monday. He's created a website to promote the plan and has provided union workers with fliers to hand out.



Board President Mexicotte said Monday evening the body has not received a proposal or communication from the AFSCME union regarding a worker-owned co-op.

The district issued a request for proposals May 29 and closed bidding Monday. Bid results will first be discussed at the board’s planning committee 9 a.m. Wednesday, which meets at the Balas Administration Building, and a recommendation will be prepared for the regular meeting later Wednesday night.

During that meeting—which will be at the downtown branch of the Ann Arbor District Library—the board is scheduled to vote on the custodial services bid results. The meeting will start at 6 p.m.—a change from the board’s typical 7 p.m. start time.

Prior to the 6 p.m. regular session the board will meet in closed session at 5 p.m. for the purpose of negotiations, according to the posted meeting agenda.

At the meeting Wednesday the board will also consider changing its contract for food service providers from Chartwells to Aramark, and take its final vote on its proposed budget for the 2014-15 school year.

That proposed budget assumes the $1.8 million in savings from privatizing custodial services, as well as the hiring of 18 new teachers at a cost of $1.69 million to staff a number of new program initiatives district leaders are pursuing as a way to re-build enrollment.

The custodian’s union agreed to an 8 percent wage cut in 2010 as a way to keep its contract with the school district.

Maria Alfaro, 45, has worked for AAPS a custodian for 13 years—most recently in Scarlett Middle School. Four of her siblings also work as a custodian, as well as her sister-in-law.

As the main provider for a family of three children, Alfaro works two jobs. At AAPS, she earns about $14.37 an hour and works 40 hours a week—though most of the custodians in the union make $9 or $10 an hour, Redding said.

Alfaro has been told that should her job be outsourced, the private company would take away her benefits, her pay would be docked to minimum wage and her hours would be cut to half of what she’s working now, she said. Rather than lose her health insurance, Alfaro said she’d give up her paid time off.

Alfaro said there’s talk among many custodians that it’s not worth it to stay on in the district if the board chooses to privatize their jobs—most would rather file for unemployment and seek other work, she said.

Zullo, who has studied labor and employment issues for 25 years, said the formation of a co-op could save the district almost the full $1.8 million it is looking to save because the district would not have to pay the required contribution into each custodian’s pension. The MPSERS pensions would be frozen.

Under the co-op model, the district wouldn’t have to undergo a major turnover in personnel, as the district could keep its same custodians in its buildings. Zullo is working with the union pro bono.

The speed at which the district proposed outsourcing custodial services was intentional, in Zullo’s view.

“We think this was purposefully done to prevent any political opposition,” Zullo said.

Zullo said the issue needs to be tabled at the Wednesday school board meeting to allow the union time to work with administration to develop the co-op.

In a co-op model, Zullo said there are fewer layers of supervision.

“You create a structure where employees are engaged in self-directed work,” Zullo said. “They’ll all gain an account. Whatever small profits are accrued will be distributed, so they’ll all have a financial stake.”

The co-op would democratically elect a member to serve as a liaison to the district. Several committees would also be formed to handle certain issues. Major decisions—like purchasing equipment—would likely be delegated to the general assembly, Zullo said.

Though by forming a co-op the custodians would no longer be AFSCME members, the union has agreed to assist the co-op by handling functions like payroll, taxes and filing for health insurance, Redding said.

The custodians would be AFSCME co-op members—a designation that means they would all have to pay co-op member fees, regardless of Right-to-Work laws, Zullo said.

“The main step that has to take place that our political leaders at Ann Arbor schools have to allow us to work with the district to make this all happen,” Zullo said. “It’s a new model and we hope it appeals to people in Ann Arbor.”

Amy Biolchini is the K-12 education reporter for The Ann Arbor News. Reach her at amybiolchini@mlive.com, (734) 623-2552 or on Twitter. Find all Washtenaw County K-12 education stories on MLive.com.