Silicon Valley’s Welch Vows Nationwide Fight on Tenure

Silicon Valley’s Welch Vows Nationwide Fight on Tenure

The fight to end teacher tenure is just beginning, said David Welch, the Silicon Valley entrepreneur who backed a California lawsuit in which a state judge ruled the practice was unconstitutional.

Students Matter, a nonprofit group founded by Welch, is talking to other states about bringing similar lawsuits, he said, and he vowed to support the California case against appeals all the way to the Supreme Court if necessary.

“I will stay with this case all the way until it is effective in the classroom,” Welch said by telephone from Sunnyvale, California. “It’s about making sure children get access to quality teaching and that the system doesn’t create any impediment to their ability.”

Students Matter supported the suit brought by nine students against the state. California’s two biggest teacher unions intervened in defense of the job protection statutes. Superior Court Judge Rolf Treu on June 10 found that low-income and minority students are disproportionately stuck with ineffective teachers, leading him to conclude the tenure laws violate a fundamental right to equality of education.

“We are assuming that the defendants will follow through with an appeal,” said Welch, the president and co-founder of Sunnyvale-based Infinera Corp. (INFN), a maker of optical networking gear. If so, “we need to stick through this through the appellate process.”

Welch wouldn’t say which states his group plans to work with next. Only three — Florida, North Carolina and Kansas — have chosen to repeal tenure outright, phase out tenure, or remove due process provisions, according to the Education Commission of the States.

‘Copycat Cases’

“We’re certainly talking to other states,” Welch said. “There will be copycat cases. There will be replications of what we’ve done. I’m excited about that as a strategy for people going forward.”

Sixteen states use performance ratings to decide on tenure, the ECS reports. There are 10 states where seniority is the sole factor in determining whether a teacher is kept on during layoffs, according to the ruling.

Welch declined to comment on how the efforts would be funded going forward, calling the question a “distraction from the point of the case. To date, public education has failed the system by not making a child’s outcome the priority of this education,” he said. “That’s what this case is about.”

Billionaires including Microsoft Corp. (MSFT) co-founder and former Chairman Bill Gates, homebuilding and insurance entrepreneur Eli Broad, and Wal-Mart Stores Inc. (WMT)’s Walton family have all been pushing for public schools to be run more like businesses. Charter schools, independent of local school districts and typically free of unionized teachers, have been one of their favorite causes.

Teacher Appeal

Dean E. Vogel, the president of the California Teachers Association which opposed the lawsuit, said his group will appeal the decision.

“This lawsuit has nothing to do with what’s best for kids, but was manufactured by a Silicon Valley millionaire and a corporate PR firm to undermine the teaching profession and push their agenda on our schools,” Vogel said in a statement.

The CTA and the California Federation of Teachers, which intervened to defend the legality of the statutes on behalf of their 445,000 members, have said the case was part of a broader effort to undermine organized labor. They contend smaller classrooms and adequate resources were more relevant to improving public education than attacking teachers.

The decision is tentative, giving the unions 10 days to respond, after which the judge has another 15 days to finalize it, said Jim Finberg, a lawyer for the unions, in a telephone interview. Most judges don’t change their mind in their final rulings, he said.

Other States

Michelle Rhee, former chancellor of Washington’s public schools and head of the nonprofit organization StudentsFirst, said she expects individuals in other states to follow Welch’s lead in challenging local tenure laws.

“A lot of states across the country, people are saying ‘Is this something we could do?’” she said in a telephone interview. “It’s going to force governors and legislators to take notice and hopefully address the issues.”

“Dave and his organization have been a huge catalyst to all of this happening, and the fact that they’ve garnered national attention to this,” Rhee said. “It’s not just California.”

U.S. Secretary of Education Arne Duncan called the ruling a mandate to fix inequities in public education.

“The students who brought this lawsuit are, unfortunately, just nine out of millions of young people in America who are disadvantaged by laws, practices and systems that fail to identify and support our best teachers and match them with our neediest students,” Duncan said in a statement.

Low-Paid Jobs

The state of California, which defended the statutes’ constitutionality separately from the teacher unions, said during the trial that tenure helps attract people to low-paid jobs in often-difficult work conditions and protects teachers from pressure by school boards when they teach controversial subjects such as evolution.

“Attracting, training and nurturing talented and dedicated educators are among the most important tasks facing every school district,” California Superintendent of Public Instruction Tom Torlakson said in a statement. “Today’s ruling may inadvertently make this critical work even more challenging than it already is.”

It’s unclear what the impact of removing tenure laws would be, said Kathy Christie, vice president at the Education Commission of the States, in a telephone interview. “There’s no track record yet.”

To contact the reporter on this story: Sonali Basak in New York at


About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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