Dissent from students, faculty postpones bookstore decision

Since the middle of May when Seattle University announced to students and faculty that the bookstore was reviewing its business plan and considering outsourcing, community opinion has complicated the university's plans.


After receiving adamant objection from both staff and students, the university has decided to form a Bookstore Advisory Committee, pushing the final decision back to some time in fall quarter of the 2009-2010 school year. The decision was originally going to be made in June.

Committee members were unavailable to comment on the committee's summer activities.


In an e-mail to the campus community, Ron Smith, vice president for finance and business affairs, stated that the committee's purpose is to, "explore the best business model for our campus community based on the campus climate and the physical and financial constraints of the university."

The committee is meant to represent Seattle U's larger community, including professors, staff and students. As the bookstore's primary customers as well as university tuition payers, students play an important role in the committee as well as in independent opposition to the proposal.


Students Against Outsourcing SU Bookstore, or SASUB, began as a small Facebook group that quickly realized its actions had to breach from the Internet into campus life to make an impact. Before the Advisory Committee was formed, SASUB spent time sending e-mails to ASSU to let the university know they were against the proposition.

The next stage, according to group co-founder Seamus McKeon, is education.


"The university hasn't been very forthcoming with information on what a change like this would actually mean to the university," said McKeon, a sophomore political science and Spanish major. "But they've done a good job of communicating through mass e-mails, saying things like, 'We are reviewing the contract.'"

"We're trying to bring accurate information to the students," he added.




The group plans to orchestrate a post-card writing campaign over the summer, hoping to bring in parent support. McKeon said the group is, "not trying to be subversive. We just want to rally enough student support so we can be a part of the decision making process."


Gonzaga University, another Jesuit institution, underwent a similar decision-making process in 2008.

Despite the fact that 20 of the United State's 28 Jesuit universities now outsource their bookstores, Gonzaga found that it would be advantageous to remain in control of their store, the "Zagshop."

It is a common business practice to review a business model every so often, but all public information points to Seattle U's Bookstore as being successful. The National Association of College Stores and Independent College Bookstore Association rated Seattle U's store among the top financial performers in the country.

The industry average for independent bookstore profits, according to the ICBA, is around 6 percent annually. Seattle U's bookstore returns 11 percent.

With numbers like these, the caveat for universities is that outsourcing offers an attractive signing bonus. However, to return profits lost in this bonus and in commissions paid to the university, third-party bookstores often raise the cost of textbooks by as much as 25 percent above what independent bookstores charge.

Currently, all bookstore profit returns to the university, providing funds for miscellaneous aid as well as the bookstore's work-study program. The Seattle U Bookstore makes $500,000 to $600,000 a year for the university and contributes $400,000 of "in kind" services like discounts and scholarships.


This work-study program provides 10 permanent positions and 30 work-study positions at the university. The work-study contribution adds up to about $80,000 in financial aid, which includes a full textbook scholarship for every employee for each quarter spent studying at Seattle U.


Mario Mata, a sophomore nursing major and bookstore employee, emphasized the negative impacts of ending the program should a third party lease the store.

"I wouldn't have that extra income to help cover what scholarships and loans don't," Mata said. "So far, no one has really sat us [SU Bookstore employees] down and talked about what outsourcing would mean."

Until a final decision is made, employees will retain their jobs, and Smith said a contract with an outside company would include a stipulation that current employees keep their jobs.


Professor Gary Chamberlain wonders about the security of bookstore employment.

"Is there any evidence their [SU Bookstore employees] wages will stay the same or improve under new management?" Chamberlain asked. "Often, big companies come in and keep the staff for a year and then move on so they can bring in new employees with lower starting wages. I would like to see a guarantee for a period of three to five years for the staff."


The university has not yet begun to take bids from companies interested in leasing the store. A final decision will not be made until after the review period in fall quarter.


Frances can be reached at fdinger@su-spectator.com.