A controversial referendum by the Student Labor Action Coalition could increase students' segregated fees and up the price of services at the Union, according to Marc Kennedy, director of the Wisconsin Union.
The referendum threatens to take away the annual auxiliary budget of $17 million in segregated fees unless the university raises the salaries of its Limited Time Employees. LTEs are employed at Memorial Union, Union South, Recreational Sports and University Health Services.
The auxiliary budget is funded through the segregated fees every student has to pay. If the referendum passes, these segregated fees could very well increase, according to Kennedy.
He said to pay student employees and LTEs the required amount set by the referendum, the budget would skyrocket. The LTEs currently earn $7.25 an hour and the referendum would increase their salaries to $10 an hour. Kennedy said if the referendum passes, the Union would have to cover a $650,000 deficit within their budget.
He said this could have a direct effect on students, such as a $9-per-student increase in segregated fees, cuts in programs or increases in the price of services provided at the Union. \We'd have to charge more for the cost of a cup of coffee, or a cheeseburger or a bowl of soup,"" Kennedy said.
Kennedy was unsure how the referendum originated.
""For this to just suddenly appear is a bit confusing and that's why we're wondering about the legality and how this got legs,"" Kennedy said.
Eric Varney, Associated Students of Madison chair, said he was surprised by the new referendum. ""This is not an ASM-endorsed piece of legislature,"" Varney said. ""I am hoping that it fails. Not because I don't believe in the cause, but because of how it is worded, it's totally going to throw things off balance.""
SLAC member Ashok Kumar said the referendum would in no way raise student seg fees. He is standing firmly behind the proposal's legality.
""It's completely legal to change the ASM bylaws. The most democratic process by which to change any bylaw of any city, state, county, student bylaw, is through referendum. It takes it directly to the constituents and asks them a question,"" Kumar said. ""The student body should take a big offense at the fact that he [ASM chair Eric Varney] says ASM isn't for this. He doesn't represent 42,000 people. He represents Eric Varney.""
However, Varney said he is not completely opposed to the referendum. ""If people want to give [the LTEs] a living wage I don't oppose that,"" Varney said. ""I think it should go through the student council and the SSFC, and they should implement some kind of policy that works for them, because this policy doesn't benefit students.\
