May 9, 2018

Dear Faculty Members,

Yesterday, after ten bargaining sessions with the Union Executive Committee representing AFT Local
2240, the Administration concluded negotiations. We believe our final proposal is fair, competitive and
respectful of our faculty and bring this background to you directly, as we urge ratification.

The current agreement expires on July 31, 2018 and covers approximately 200 faculty members at
Archbishop Riordan, Junipero Serra, Marin Catholic and Sacred Heart Cathedral high schools. The
parties have been negotiating since last October and we do appreciate the Union committee’s courtesy
throughout.

To date we have tentatively agreed to eight of the Union’s proposals (below) while the Union has yet to
agree to any Administration proposals, including our last wage offer. Our wage proposal is described
below and additional information is attached.

Agreed-upon Union proposals

• Relief from attending certain school functions or required supervisory services for teachers
writing multiple Student Letters of Recommendation
• Extending the Longevity Bonus for 25 senior teachers who received a Contract Extension MOU
in 2015
• Increases in the Supplemental Salary Schedule that incorporate increases in the GWI
• Provisions for new Catastrophic Leave benefits that permit teachers to donate sick leave to
colleagues experiencing prolonged illness or injury
• Tenure Guidelines – reduce some eligibility requirements
• Tenure Guidelines – clarify procedures in the event of a teacher reduction
• Medical Plan – Add new Kaiser High Deductible Plan with low premiums
• Voluntary Termination Package for Teachers choosing retirement.

The wage proposal includes a 3% general wage increase (GWI) during each of the next 3 years plus a
$750 bonus payment payable on June 30, 2018 and a $500 bonus payment payable on September 15,
2019. Combined with average step increases, this amounts to over a 15% increase in pay over 3 years, as
compared to a 12.3% increase during the last 3 years. Also, see attached.

At the Archdiocesan high schools, any wage increase must be covered by tuition revenues at that school.
Three guidelines play a large role in determining the ultimate GWI that the Archdiocese believes is
reasonable. First, the wage increase must be the same for each of the four schools. We do not want to
disadvantage any one of the four schools. Second, the higher the GWI is, the higher the tuition has to be
to cover the wage increase. Third, wage increases two or three years from now should be relatively
modest, because we cannot predict whether the economy will experience a downturn. These three factors
indicate that one has to maintain tuition at an affordable level for the foreseeable future and not impose a
financial burden that cannot be sustained by one or two schools but could be accommodated by the other
schools.

Also, you may recall that over the last several months we proposed a number of changes to the tenure
process, including 5-year renewable tenure. Our final proposal no longer includes renewable tenure and
maintains the current tenure process, except for restricting displacement rights within each school instead
of across the 4 schools. Additionally, while there are concerns and differences of opinion on both sides
about the application of the Tenure Agreement, we are hopeful that they can be resolved through a joint
committee that will meet during the 2018-19 school year.

What is abundantly clear through the negotiating sessions is that everyone involved is deeply committed
to Catholic education and wants the best for our schools. We appreciate the efforts of everyone involved.
Thank you for reviewing this information and for your continued dedication to Sacred Heart Cathedral
and our students.

Sincerely,

Br. Ron Gallagher, FSC

President
 Administration Fact Sheet on Wages
May 9, 2018

Pay Proposal’s

The Administration has offered a 3% general wage increase (GWI) for each of the next 3 years,
specifically:

GWI - 3% on August 1, 2018, 3% on August 1, 2019, and 3% on August 1, 2020

Bonus Payment – a $750 bonus payment payable on June 30, 2018 and a $500 bonus payment
payable on September 15, 2019. These proposed bonuses are contingent on the Union ratifying the
agreement by June 1.

Combined with average step increases, these GWI and bonus payments amount to over a 15%
average increase over the next 3 years (9% GWI, 4.8% step, and 1.5% bonus payment) compared
to a 12.3% increase (7.5% GWI, 4.8% step) over the last 3 years.

To illustrate the impact on total pay of the Administrations pay proposals and the impact of the step
increase over the life of the CBA, Here are 2 Examples:

• A current first-year teacher with a Bachelor’s Degree (A1) making $54,184 at June 1, 2018,
will average a 7.5% wage increase in each of the next three years with a total increase in pay
of 25% through July 31, 2021 (Life of the CBA)
• A current fifth-year teacher with a Master’s Degree or Teaching Credential (C5) making
$69,864 at June 1, 2018 will average 6.5% in each of the next three years with a total
increase in pay of 20% through July 31, 2021 (Life of the CBA)

In developing our wage and pay proposals the Administration considers the collective financial state
of all four schools, affordable tuition increases and financial prudence with respect to an uncertain
economy three years from now.

We have a fiduciary responsibility to offer wage increases that maintain the financial stability of our
4 schools. We shared each school’s financial projections with the Union Executive Committee that
show that our existing proposals puts one of our schools in a tenuous financial position.

We benchmark our teachers’ wages with other private schools. In some cases, local school districts
may pay public school teachers a higher wage rate than the Archdiocese of San Francisco. That’s
because Public School Districts can fund teacher salaries through increased taxes. For example, the
recent agreement between the San Francisco Board of Education and United Educators of San
Francisco included bonuses and add-ons that are subject to voter approval of a new parcel tax.
When we compare the difference between our existing salaries with local Bay Area public school
teacher salaries to the other 12 (Arch) diocesan High Schools in California, we are the closest to the
public school wage rates.