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January 2005
February 2005
March 2005
 
 
Hard Lessons

By Daniel Brook

Homesick and in debt, Indian teachers hired to fill gaps in the Philadelphia public schools are learning hard lessons about education and business in America.

Little India

On the night of Oct. 2, the Passage to India restaurant in Center City was closed for a private reception. Inside, nearly 50 teachers, decked out in suits and saris, filed past platters of samosas and trays of salmon tikka. The teachers had been brought from India to take unfilled math and science positions in some of America’s toughest classrooms.
After the guests were seated, Michael Vanjani, founder of Teachers Placement Group (TPG), the private firm that had recruited them, addressed the crowd of Indian teachers and American school administrators. “We hope the experiences gained from these teachers will help [students] understand the complex issues of the global economy,” Vanjani says.
It was a noble hope — and two months into the school year, it is clear that in addition to getting knowledgeable instructors, students are being exposed to a culture from halfway around the world. The irony, however, is that it’s the new Philadelphia teachers who’ve been exposed to the complex issues of the global economy. By finding them jobs, getting them visas and whisking them from South Asia to Southeastern Pennsylvania, TPG has exposed them to globalization’s unprecedented opportunities for travel and cultural exchange. But by giving the teachers inequitable pay and benefits that keep them separated from their families, the company has also exposed them to the global economy’s new opportunities for exploitation.
Bringing in teachers from abroad is the latest attempt by troubled school districts to fill teaching positions few Americans want. Between the lower pay and added difficulties of teaching in the inner city, many highly qualified teachers opt to work in the suburbs. The problem is particularly acute in math and science, where private industry offers lucrative opportunities for potential educators. As Maryann Greenfield, director of recruitment for the School District of Philadelphia says, “For the last three years we’ve really been stepping up our recruitment, [but] on any given day we do have some vacancies.” This year, Philadelphia schools opened with 85 vacancies, down from 180 last year.
When Philadelphia school officials heard last winter that the Chester Upland district was using teachers from India, they contacted its recruiter, Teachers Placement Group of Plainview, N.Y., and drew up a contract for the company to provide up to 30 instructors. TPG agreed to screen potential teaching candidates and send to India two representatives of the Philadelphia district on an all-expenses-paid trip to conduct interviews. Any teachers the district brought in would be direct employees of TPG. The district merely agreed to pay the company the salaries it would normally pay teachers coming in from outside the district. TPG’s profit would be derived from passing on only a portion of those salaries to the teachers. “None of [our arrangements with TPG] have cost the school district or the taxpayers money,” says Peter Bent, assistant director of recruitment for the Philadelphia schools.
While school districts in the U.S. were drawing up contracts with TPG, over in India, the selection process was already under way. During the winter, TPG placed ads in Indian newspapers offering the opportunity to teach in America. Many teachers jumped at the chance, sending resumÈs to one of TPG’s four Indian offices. Particularly well-qualified candidates were called in for a series of interviews, and those who made the cut were invited back for interviews with American school officials in March. Most of the finalists had master’s degrees and significant experience teaching in Indian schools. Some even held doctorates. (More than a dozen of the TPG’s 27 Indian teachers in the Philadelphia schools were interviewed for this article, but none would allow their names to be used.)
Looking back on the process, many of the teachers currently in Philadelphia thought the meetings with school district officials were strange. They were surprised that the representatives seemed so focused on issues of classroom management and discipline. Teachers were asked how they would deal with two boys talking during class and what they would do if the boys refused to listen to them. One teacher said he wasn’t asked a single question about his subject, only about discipline. For Indian teachers accustomed to having students rise when they enter the classroom, the questions were jarring.
Some seemed downright bizarre. One teacher says he was asked how he would deal with African-American students. “I told them ‘I’ve never met one. If you tell me what they’re like, I’ll tell you how I’d teach them.’”
Despite the strange questions, the teachers wanted to come. In India, having worked in the United States is very prestigious. As a superpower and the world’s largest economy, America looks like the promised land to middle-class Indians who see the U.S. beamed down to them on satellite TV. One teacher sums up the prevailing attitude: “When you get the opportunity to go to America, everyone says, ‘Take it!’”
“To my kids, coming to the U.S. is like going to outer space,” says another.
While some had reservations about the quality of America’s schools, having seen coverage of Columbine on CNN, others assumed that America’s schools would be the best in the world. One teacher says her image of America from TV was all “skyscrapers and brainy people.” Another explained the logic behind her idea of America. “I thought because it’s a developed country, it [must be] because its people are intelligent and hardworking.”
Of the teachers interviewed by Philadelphia district officials, 28 were hired. Each signed a contract with TPG agreeing to pay the company a roughly $7,000 placement fee. About two-thirds was paid up front; the rest would be due six months after arriving in the states. In America they were promised salaries of at least $34,500, varying based on education level and years of experience.
The teachers, nearly all of whom are married with children, hoped to use their American salaries to bring their families to America. Some hoped to use their teaching position as the first step toward a green card or American citizenship. Others planned to teach for a few years and move back to India with the experience of having been to the U.S., not to mention a healthy stash of cash. Most teachers had no concrete plans, but intended to weigh their options once they and their families arrived.
The extreme inequality between the First and Third worlds makes money matters between them seem almost surreal. In India, teachers are part of the urban middle class in a nation where the majority of the people are farmers and where the average income is roughly a dollar a day. Surrounded by rural poverty and urban shantytowns, teachers live in large, comfortable homes. They have been to college in a nation where most women and many men are illiterate in their own language, let alone English. Teachers can afford to travel throughout India and own consumer goods like phones and televisions. Yet if they were ever to leave India and travel to a developed country like Japan or the United States, they would be poorer than the poorest people. In fact, the plane ticket alone would cost several months’ salary. A teacher in India makes about $3,000 a year, which can be supplemented by tutoring on the side. This is nearly 10 times the income of the average Indian, but less than a tenth of a U.S. teacher’s salary. As one Indian teacher puts it, “We’re only here because of the currency gap.”
TPG’s initial fee of around $5,000 is nearly two years’ pay. To raise the money, teachers borrowed from friends and family members. Some took out loans from banks, putting up their houses as collateral. One teacher even mortgaged his father’s property. Still, they had faith in the currency gap. With a guaranteed salary of $34,500, surely the debts would be repaid. Still, some became suspicious when TPG’s Cleveland-bound teachers received letters from the district disclosing their salaries while the Philadelphia-bound teachers received nothing. One TPG teacher now in Philadelphia says he saw a Cleveland-bound teacher’s letter promising a salary of $44,000. When he asked a TPG representative in the company’s Hyderabad office if he would receive a similar salary in Philadelphia since he had similar qualifications, he says he was told, “Yes, very likely.” The educators arrived in America in late August. The Philadelphia teachers were housed in the Conshohocken Marriott where they underwent orientation. Two days before the start of the school year, each teacher signed a contract TPG had prepared specifying his or her salary. All were above $34,500 and below $40,000 with the possibility of bonuses. The pay scale for other teachers coming into the Philadelphia district ranges from $32,598 to $54,538. While many Indian teachers were unsatisfied with their pay, having assumed that their advanced degrees or years of experience would merit much higher pay as it did for their Cleveland-bound counterparts, they were hardly in a position to negotiate. Thousands of miles from home, in debt to banks and relatives, and without jobs to return to in India, there was nothing to do but, perhaps, complain for a moment and sign on the dotted line.
TPG’s Michael Vanjani defended his practice of not disclosing teachers’ salaries until their arrival in the U.S. It was not until “that time [that] we had their credentials evaluated,” he says.
On the first day of school, the teachers realized why discipline had been stressed in their interviews. Instead of two boys misbehaving, many found only two boys behaving. The rest of the class defied their authority. One Indian teacher quit that day. Colleagues believe she left because of the lack of classroom discipline. TPG, which refunded her placement fee and paid for her return plane ticket, says she left for family reasons. Regardless, it soon became clear to the remaining teachers that their primary classroom responsib-ility was simply maintaining order, not actually teaching their subjects. During interviews conducted in late October, many teachers expressed fear that they were forgetting their subject matter since they had to teach at such a low level.
Some said the discipline problems were so serious that they were afraid to go to work. A rumor that a student had thrown a stone at a teacher’s face spread through the Indian teachers, many of whom were quite shaken. As one teacher says, “We go [to school] with fear in our hearts.”
Despite the problems, the Indian teachers universally hailed their co-workers and administrators who they say have helped them deal with the culture gap and the challenges of teaching in the inner city.
The next big surprise came on payday. As the teachers stared at their pay stubs, they saw nearly a third of the salaries going to taxes of one sort or another. Philadelphians may be accustomed to paying high taxes, but the Indians, used to total tax rates of less than 10 percent, were unprepared. Many say they thought the $34,500 figure quoted by TPG was take-home pay. They claim taxes were never discussed.
Vanjani says he told his teachers back in India that taxes would range from 15 percent to 25 percent, depending on the district they were in. Assuming this is true, 15 percent is still a low figure. Even the teachers in low-tax South Carolina owe more than 15 percent, the minimum federal tax rate to which state and local taxes are added. Furthermore, all Philadelphia teachers pay more than 25 percent of their income in taxes.
The other shock was benefits. TPG’s Philadelphia teachers have full health and dental benefits, but unlike other Philadelphia teachers, their spouses and children are not covered.
In India, the subject of benefits was mentioned briefly on a “Frequently Asked Questions” sheet provided to the teachers by TPG. Under the question “What are the kinds of benefits that American schools normally allow a foreign teacher?” the response read, “American schools give health insurance. Other benefits offered may be life insurance and workman’s compensation.” The same FAQ sheet was given to all teachers regardless of where they were headed in the U.S. No extra information was provided to the Philadelphia-bound teachers, though their health insurance plans were less comprehensive than those of the other teachers.
The Indian teachers, now in Philadelphia, admit they didn’t think to ask whether the health benefits would cover their families. In India, teachers generally do not have health insurance and pay for health care out of pocket. Since doctor’s fees and medicine costs are low, this rarely presents a problem. The teachers say they did not realize how expensive health care would be in the U.S. and accordingly did not appreciate the importance of health insurance coverage.
Since the teachers planned to bring their families over, they now realize that their inadequate health insurance is a gravely serious problem. According to the terms of the teachers’ visas, spouses may enter the country but are not eligible to work, making it impossible for families to be covered through another employer. “We only said yes [to the job offers] because we thought we could bring our families by Christmas,” says one teacher. “We came for our kids,” says another, “but now we’re not sure they can come.”
When asked whether the lack of health benefits was deterring TPG employees from bringing over their families, Vanjani says, “We suggested that to bring the families right away is not to their advantage. They need time to settle into a new country.” Many teachers say Vanjani told them the same thing when they complained, insinuating that keeping the families split up was a matter of choice, not necessity.
But health insurance is not the only barrier to reuniting their families. Having seen Philadelphia’s public schools, teachers are wary of bringing their children over and enrolling them. “We’re scared of putting them in these schools, and we can’t afford Catholic schools,” said one teacher. Some have contemplated moving to the suburbs if their families ever came. Others have college-age children and realize that they would be unable to afford tuition.
The teachers now recognize that they face a very difficult decision: working alone in the U.S. and scraping some money together to wire home, or bringing over their families and living hand to mouth. Supporting a family on an after-tax income in the $20,000 range with no health insurance is hard enough. Factoring in $7,000 of debt and one-way plane tickets costing around $600 apiece, it is almost impossible.
Interviewing the Indian teachers in the apartments where they live in groups of up to nine, it is clear how little they understood about their jobs when they came over. Every few weeks they learn new details about their situation. Recently, they have heard that the teachers in Cleveland and Chester are unionized and are getting better pay. One TPG teacher in Philadelphia said he has tried to persuade an Indian teacher in Cleveland to send him a copy of his pay stub, but so far has been unsuccessful. Many teachers are only beginning to realize that the district pays TPG more than TPG pays them. Since they clearly agreed to pay TPG the $7,000 placement fee, many believed this was TPG’s total cut.
In two separate interviews, a teacher took out a copy of the current union contract and turned to the salary scales pointing to what their pay should be based on their education and experience. According to the union salary scale, the most experienced and highly educated teachers should be receiving nearly 40 percent more than TPG pays them. In their first few weeks of teaching, the instructors were so in the dark about their employment situation that during an Oct. 11 meeting with district officials, some actually asked whether they were in the union.
That the teachers’ problems are unique to Philadelphia shows just how preventable they are. Teachers Placement Group has recruited teachers for Cleveland; Baltimore; Cecil County, Md.; Englewood and Newark in New Jersey; and Chester, Pa., as well as schools in South Carolina. In each of these districts, TPG is solely a placement agency; teachers pay the company the placement fee and make additional payments during the year, but they are employed directly by the school districts. This means they are members of the local teachers union and receive the same pay and benefits as other teachers in their school districts. What they will be paid and how much they owe TPG is clearly spelled out before they arrive in the U.S.
Indian teachers in Cleveland are paid the same wages and benefits as other Cleveland teachers, earning between $32,863 to $43,426, based on education and experience. Those making more than $35,000 owe TPG an extra yearly fee, up to $6,000 for the best-paid teachers. By contrast, TPG takes more than twice that from the salaries of its most qualified employees in Philadelphia.
The Cleveland district provides a clear example of how a school system can use TPG to provide much-needed teachers while ensuring they are treated equitably. Carol Hauser, human resources director for the Cleveland school system, says that TPG initially sought to be the direct employer of the 40 teachers it was providing the district. Hauser describes that initial offer as Vanjani’s “standard procedure.” When the district refused, Vanjani agreed to allow the school board to hire the teachers. As part of the contract, the Cleveland schools agreed to pay TPG $180,000.
In late August, when the Cleveland Teachers Union raised questions about a clause in the Indian educators’ contracts, the district stopped payment on its six-figure check to TPG. The union said the teachers’ contracts bound them to pay TPG $15,000 if they wanted to return to India. Vanjani said that was a misreading of the contract, that teachers would owe TPG that fee only if they took a job in another U.S. school district. But with payment stopped, Vanjani quickly agreed to modify the contract to state clearly that no money would be owed by a teacher who decided to return to India and that TPG would be responsible for providing a return plane ticket. With the issue resolved, the district resumed payment, but on a quarterly basis, retaining the authority to monitor the contract.
In Philadelphia, the contracts have not been modified, though TPG did pay for the return ticket of the one teacher who returned to India and relieved her of her debts.
Richard DeColibus, president of the Cleveland Teachers Union, compared the employment situation in his district with the setup in Philadelphia: “[Our arrangement is] better for everyone — except maybe Mr. Vanjani,” he says.
Despite the more equitable setup in Cleveland, some teacher-exchange advocates consider any recruitment situation that forces applicants to go into debt to be exploitive. Trudy Herman, executive director of Amity Institute, says the San Diego-based nonprofit that organizes teacher exchanges charges its teachers only $1,800 and does not collect any money up front, though teachers are responsible for purchasing their own round-trip plane tickets. Herman says that after she learned that TPG demands fees up front, Amity, which had helped the company obtain visas, canceled all contracts with it. Herman says an Amity lawyer who saw a TPG labor contract described its terms as “near servitude.”
While vigilance on the part of the Philadelphia Federation of Teachers could have nipped problems in the bud, the groundwork for the Indian teachers’ predicament was laid long before the School District of Philadelphia had even heard of Teachers Placement Group. In the summer of 2000, Philadelphia teachers threatened to go on strike. At the last possible moment, the district and the union agreed on a new contract; the school year started on time. But over the next few months, little odds and ends of the contract were worked out between union officials and school district administrators through binding addenda to the contract called “side letters.”
In one such side letter, dated Sept. 27, 2000, Marjorie Adler, the district’s executive director of human resources, wrote Philadelphia Federation of Teachers President Ted Kirsch, “In the event the School District has been unable to recruit and/or hire a sufficient number of certified teachers to fill existing vacancies in areas of critical need through the normal hiring, posting and transfer processes by June 1, the School District may enter into contracts with outside providers to provide services which would otherwise be filled by bargaining unit members.” The district was asking for the right to subcontract, and the union, by tacking the letter onto the contract, indicated its agreement.
Subcontracting is usually fought tooth and nail by labor unions. The practice weakens the bargaining unit by creating a divisive two-tier wage structure in which employees with equal qualifications and experience get different wages and benefits for doing the same job. It also creates a group of employees who work in a unionized workplace without paying dues to the union. Because subcontracting hurts the union’s bottom line, union leaders tend to fight it hard.
But for some reason the teachers union rolled over. According to union spokeswoman Barbara Goodman, “We had 200 to 300 vacancies at the beginning of the school year. In a last-ditch effort to fill positions, that [subcontracting] language was agreed to.” Goodman insisted, however, that there is an “ongoing effort” to get the teachers into the bargaining unit, though she would not discuss specifics.
School district recruitment and examination director Maryann Greenfield says, “We have not received any grievances [regarding the Indian teachers].”
Despite the stated intentions of the Philadelphia Federation of Teachers, other unions, from Newark, N.J., to South Carolina — not exactly union territory—— were able to get their districts to hire their Indian teachers directly, making the workers eligible for union membership and equal pay and benefits. One district official was especially blunt. When Gregory King, spokesman for the Newark Public Schools, heard that in Philadelphia TPG is used as a subcontractor, he says, “We would really get reamed out royally [by the teachers union] for that.” King said that Indian teachers in Newark are paid the same as other Newark teachers. The starting salary is roughly $41,000 for a bachelor’s degree with no experience. Because of their education and experience, all of the Indian teachers make more than that.
Two districts, Cecil County, Md., and Chester, Pa., that had used TPG as a subcontractor last year now directly employ their Indian teachers. According to Joann Emerson, the Chester Upland district human resources director, the initial contract set up with TPG was hastily created “in the interests of time.” This year, because of “union considerations,” the district has become the direct employer and the teachers are part of the collective-bargaining unit.
Henry Shaffer, who handles human resources for the Cecil County Public Schools, also says “union concerns” were a factor in the change in his district.
Even if the Philadelphia Federation of Teachers could not secure equal wages and benefits for the Indian teachers, the federal government should have. TPG brings over Indian teachers on H-1B visas a temporary working visa for non-immigrant professionals. Employers who obtain such visas for their workers are required by law to pay them the prevailing wages and benefits for the job they are performing in the area where they are performing it. The stipulation is designed to keep American employ-ers from bringing in foreigners solely to save money, likewise protecting foreigners from inequitable situations. Clearly, the TPG teachers in Philadelphia are being paid less than other Philadelphia teachers and have worse benefits, but no one can say whether this is the result of a loophole in the visa law or a violation of that law.
To obtain H-1B visas, an employer must file a “labor condition agreement” with the federal Department of Labor. In that document, the potential employer must list the prevailing wage for the job. To discern the prevailing wage, employers may use any source they please or even their own calculations.
The information listed by the employer on the labor condition agreement is never verified unless a complaint arises. “If the union is not objecting, we’re going to accept it as legitimate,” says Stephen Stefanko of the Department of Labor’s Philadelphia office. “The Wage and Hour Division does enforcement based on complaint only.”
In discussing the union’s efforts on behalf of the Indian teachers, Philadelphia Federation of Teachers spokeswoman Barbara Goodman never mentioned having challenged TPG’s labor-condition agreement. When asked directly, Goodman would not reveal whether the union had done so. “We certainly have inquired about their salary and benefits,” she said, “but it takes a much deeper legal knowledge to understand what exactly prevailing wage is, and I’m not sure that we’re entirely sure.” The school district has not asked the Department of Labor to verify TPG’s prevailing-wage information either. District official Peter Bent, who initially provided some prevailing-wage data requested by the Department of Labor, said, “I’ve never seen [TPG’s] labor-condition agreement.”
Michael Vanjani says TPG’s attorneys handled all visa paperwork. He refused to provide the names of TPG’s attorneys or contact information for them.
The more the teachers learn about their situation, the more they feel that they are not solely responsible for their predicament. While they regret their naivete at taking jobs without knowing their precise salaries, benefits, tax rates or working conditions, they have come to believe that there is more than enough blame to go around. Some lies with Teachers Placement Group, for taking advantage of their desperation and naivete; some with the School District of Philadelphia, whose only interest was in staffing classrooms. Much blame lies with the Philadelphia Federation of Teachers, for failing to look out not only for the teachers’ interests, but even for its own narrow self-interests.
But sharing blame with faceless institutions offers little solace when teachers call home to tell their families that any plans for being reunited must be postponed indefinitely.
One science teacher has explained to his wife over the phone that the family cannot come to America because he cannot support them. When he talks to his teenage daughter, rather than break her heart, he lies. “How can I tell her?” he asks. Another teacher does not go into specifics. He says simply, “We had dreams.” Reprinted with permission from the City Paper, Philadelphia.


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