IU trustees outsource bookstores

Barnes and Noble College Booksellers will take over for all bookstores on IU campuses beginning July 1. \nIU President Adam Herbert announced the decision Friday at the IU board of trustees meeting in Bloomington. \nThe outsourcing agreement between Barnes and Noble and IU will last for 10 years, according to the contract. \nHerbert accepted the staff recommendation made by a task force headed by Terry Clapacs, IU vice president and chief administrative officer. The task force, which included IU Student Association President Betsy Henke, reviewed and analyzed proposals from several potential bookstore operations. Proposals were also reviewed by external CPA and consulting firm Crowe Chizek of Indianapolis. \nClapacs made clear in his presentation that employees will be able to keep the same benefits and level of pay they currently receive from the University. \n“No one is hurt,” said Clapacs, who added that the contract requires that full-time bookstore employees be offered jobs with Barnes and Nobles College Booksellers. However, the pay and benefits agreement applies to current employees, but not future hires, according to the contract. \n“I don’t think the current staff could be protected better,” Clapacs said. \nHenke agreed with the decision, saying the option best serves students and employees. \nBased on proposals from companies including T.I.S. College Bookstore, Barnes and Noble, Follett and the internal IU bookstore operation, the task force chose two finalists – IU’s own bookstore operation and Barnes and Noble.\nIn the end, Barnes and Noble won the right to enter the outsourcing agreement with IU for all campus bookstores.\nWith the topic of cost, concerns were raised regarding textbook price increases. Officials said the contract prevents this price “gouging,” and Barnes and Noble agreed to stick with the current profit margin on textbooks. \nOfficials were vague regarding textbook costs, saying only that a 25 percent margin is how the pricing of textbooks will remain, and that “all current services will be kept in place.” \nThere are currently 16 bookstores on seven of the IU campuses, including Bloomington, with 93 full-time and 104 part-time and student employees – half residing in Bloomington. \nAccording to a presentation made by Clapacs, compiled financial analysis indicated that Barnes and Noble operations would provide a $5.5 million signing bonus to IU and a $2 million bonus in the eighth year.\nIn addition, Barnes and Noble estimates $850,000 to be provided to IU, money Herbert refers to as “show-me-the-love money.” Trustee president Steve Ferguson said money garnered from the outsourcing decision will allow for the University to pursue other necessary improvements on campus, such as renovations in Ballantine Hall.\nOutsourcing the IU campus bookstores to Barnes and Noble is the most recent decision concerning this topic since February of this year, when the board of trustees outsourced four of the 21 IU Motor Pool positions. \nTrustee Sue Talbot expressed some concerns for future bookstore employees.\n“I have no problem with Barnes and Noble coming in,” she said. “But I wonder even if they allow employees to continue (with the same benefits)... I wonder if they will still feel a part of IU. I wonder if people going to the bookstore will be greeted like they are now, (employees) having a personal pride in the IU name.” \nTalbot concluded that, as the transition to Barnes and Noble begins, it is important to be sensitive to the future of IU and take care of the dignity the employees have given to the life of the University.\n“Barnes and Noble... you will feel pride in IU and what it means to everyone,” Talbot said.\nTrustee Pat Shoulders expressed similar sentiments. He mentioned that there is no class that doesn’t require a text, and was wary of gaining profit from textbooks – a necessary service to students. \n“There are 200 jobs at risk and I don’t think this is the right thing for IU,” Shoulders said as he was met with applause from a section of the crowd. \nBarnes and Noble will begin the process of transitioning to IU bookstores, and Herbert announced he would sign the contract in place. \nWith the contract comes an investment on behalf of Barnes and Noble to build a facility that includes a varsity shop and coffee shop in the south parking lot of Assembly Hall. The location would also serve as a bus stop for students. The estimated cost of this project is $1.4 million. \nThere were some dissenters among the crowd present to hear the decision. \nMilton Fisk spoke on behalf of the 6,000 people who signed a petition against outsourcing, expressing opposition to the proposal. Fisk said the decision did not represent input from the staff and those working at the bookstores.\n“It did not represent the staff and those working... we’re equals on board,” he said. “This decision is a mistake.” \nAfter Fisk spoke, Herbert thanked him for his comments but declined to discuss the topic further.\n“I feel good about the matter,” Herbert said.