Group program creates dispute
April 10, 1989
A representative of an organization that lost the bid for Huskie Bus Line advertising is objecting to a “profit sharing” program mentioned in the winning organization’s presentation.
Dave Emerick, Student Association Mass Transit Board chairman, said a member of the Institute for Excellence in Selling contacted him Monday challenging an incentive program mentioned in the Pi Sigma Epsilon presentation.
IES is “questioning whether the board should enter in a contract agreement with a not-for-profit student organization with a profit sharing program,” Emerick said.
Emerick said both organizations had representatives present in the room during the other organization’s presentation. He said, however, that no one outside of the board was present during the 20-minute executive session when the board discussed the presentations.
Janet Palmeri, a PSE representative, said the profit sharing program is more like a point-incentive program. Members selling bus ads do not receive money, but rather they receive credit toward organizational items like sweatshirts or dances.
Palmeri said PSE’s primary objective is to gain selling experience, not to reward organizational members with money.
“The name profit sharing is misleading,” Emerick said. “The terminology needs to be addressed.”
The Mass Transit Board voted unanimously in favor of awarding the bus advertising contract to PSE after both organizations submitted bids and gave presentations last week.
Emerick said he will be meeting with someone from the Student’s Legal Assistance office this week to determine if there are any state or federal laws regarding this issue.
Emerick will issue a report to the Mass Transit Board at its April 17 meeting. “The determination to rebid (the bus advertising contract) will be up to the Mass Transit Board to decide,” Emerick said.
A representative from IES was not available for comment Monday.