The National Labor Relations Board Says Charter School Teachers Are Private Employees

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The National Labor Relations Board issued a pair of decisions in late August, which ruled that teachers at charter schools are private employees, therefore falling under the NLRB’s jurisdiction. The cases centered on two schools with teachers vying for union representation: PA Virtual Charter School, a statewide cyber charter in Pennsylvania, and Hyde Leadership Charter School, located in Brooklyn. In both cases, the NLRB concluded that the charters were “private corporation[s] whose governing board members are privately appointed and removed,” and were neither “created directly by the state” nor “administered by individuals who are responsible to public officials or the general electorate.” The NLRB determined that a charter’s relationship to the state resembled that of a government contractor, as governments provide the funding but do not originate or control the schools.

For Donna Novicki, a seventh grade science teacher at PA Virtual, the NLRB’s decision signaled that her long wait for a union had finally neared its end. Novicki and her colleagues voted to unionize in March of 2015, but her school challenged the NLRB’s jurisdiction, and the case has been under the board’s review ever since. The votes, which were impounded after PA Virtual challenged the election, were finally counted yesterday, and the teachers voted for unionization by a 57-to-15 margin.

Novicki has been teaching for 17 years, in both charters and traditional brick-and-mortar schools. This marks her 12th year at PA Virtual. “The teachers at PA Virtual are an amazingly dedicated force,” she says. “But we work longer hours, we work more days, we carry greater student case-loads, and after all that, we get paid less than our traditional counterparts. We’re hoping for a union to better meet that compromise with the end goal of greater student success.”

The NLRB’s decisions came amidst fierce ongoing debates over whether charters are truly public schools, or tools to privatize education. Unions and charter critics say charters are happy to be “public” when it affords them state and federal dollars, but claim they are private when seeking to hide from public oversight, or to opt out of rules applicable to those in the public sector. Advocates defend charters as public schools, saying they are open to all students, free to attend, and funded by taxpayers.

To understand the significance of these recent NLRB decisions, one has to go back a few years.

In 2010, charter teachers at the Chicago Mathematics & Science Academy (CMSA) filed for union representation with the Illinois Educational Labor Relations Board. CMSA responded by saying its teachers fell under the purview of the NLRB, because their school was a privately incorporated nonprofit, governed by a corporate board. While the regional NLRB director initially dismissed CSMA’s challenge, the national labor board agreed to review the case. The National Alliance of Public Charter Schools, the most prominent national charter advocacy organization, filed an amicus brief in support of CSMA’s position, arguing that “charter schools are intended to be and usually are run by corporate entities that are administered independently from the state and local governments in which they operate.”

In a 1971 Supreme Court case, NLRB v. Natural Gas Utility District of Hawkins County, the justices deemed Hawkins County a “political subdivision”—and therefore public—by looking to see if it was created directly by the state, or administered by individuals who are responsible to public officials or the general electorate. The NLRB applied this same “Hawkins test” to the CMSA charter, and concluded in 2012 that CMSA was not a political subdivision, and thus private. While advocates sometimes say that charters’ public nature is evidenced in part by their need to comply with various laws and regulations enacted by public officials, the NLRB concluded that most government contractors are “subject to exacting oversight in the form of statutes, regulations, and agreements.”

Since 2012, the landscape has remained fairly murky for charter teachers looking to organize; charter operators have challenged the jurisdiction of both public labor boards and the NLRB, depending on which their staff is petitioning for the right to unionize.

In April 2014, teachers at the Pennsylvania Cyber Charter School—a different, but similarly named virtual charter—voted for union representation. (This school has gained notoriety because its founder and former CEO was accused and finally pleaded guilty to $8 million in tax fraud.) While Pennsylvania Cyber challenged its staff’s attempt to unionize with the NLRB, the regional director dismissed management’s challenge, citing the 2012 CMSA case as precedent.

Two months later, though, the U.S. Supreme Court issued a ruling in National Labor Relations Board v. Noel Canning, saying that President Obama’s recess appointments of three members of the NLRB were unconstitutional. This ruling called into question hundreds of decisions the labor board had recently made, including their 2012 decision related to charter school employees.

A year later, when Novicki and her PA Virtual colleagues voted for union representation, the NLRB decided not to dismiss the employer’s challenge, as it had dismissed the Pennsylvania Cyber Charter School’s challenge in 2014. In New York City, another charter case was also being reviewed; this time the teachers had tried to unionize with New York’s public labor board, and their employer, Hyde Leadership Charter School, argued that the teachers should be covered under private labor law instead. With the board’s ruling in CMSA undercut by the Court’s decision in Noel Canning, the board was returning to the question of the status of charter schools.

“The NLRB really took its time on Hyde,” says Shaun Richman, a campaign consultant who writes on labor issues, and the director of the AFT’s charter organizing program from 2010-2015. “I think that's because the Chicago Mathematics & Science Academy precedent was vulnerable to procedural challenges and they wanted to be very clear about how they are going to rule on most charter cases. As an organizer that clarity is helpful."

The New York teachers union fought against classifying educators as private employees, but as organizing charter schools continues to grow as a priority, the NLRB’s recent decisions offer unions some advantages. In recent years, states with anti-union Republican legislators, like Wisconsin, have significantly weakened the power of public-sector workers to collectively bargain. Under federal labor law, as long as a Democrat remains in the White House, a teacher’s right to organize is more likely to be protected.

Richman says he loves the recent NLRB decisions because they force people to ask tough questions. “Charter schools were designed to be public but at a very fundamental level they are not public,” he says. “There are very critical errors in the way the laws are designed. They decided to make these things be nonprofit corporations, and almost all the problems with charter schools flow from that essential, unnecessary decision. You want a school with autonomy over its pedagogy and hiring? There's no reason to make it a separate corporation.”

Going forward, challenges to charter unions are likely to be resolved faster for two reasons: There are now additional NLRB precedents, meaning there is less ambiguity as to how charter teachers should be classified. (Employers can still challenge the NLRB’s jurisdiction at any point during the election process, but there’s a greater likelihood that their claims will now be dismissed.) And in April of 2015, the NLRB adopted new rules to expedite the time it takes to hold an election, while also reducing the number of ways an employer could challenge a union effort. Teachers at both Hyde and PA Virtual had voted for union representation prior to these rules going into effect, but teachers seeking unionization in future campaigns may look forward to having an easier time of it.

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