Several important issues relating to teachers and labor relations stood out in 1977-78. By the end of the year, a proposed merger between the two major teacher unions appeared remote. The National Education Association (NEA) added 100,000 members in 1977. The NEA lobbied in favor of legislation creating a separate Department of Education but the American Federation of Teachers (AFT) opposed it, and the bill died before congressional adjournment. The AFT fought against tax credits for private school tuition and proposed several options for dealing with reduction in force. Heading the list of developments in bargaining was the continuing pressure for citizen involvement. It was revealed that teacher salaries in states that have no public employee bargaining law on the books have risen faster than those in states with such laws. Economic issues remain number one on the minds of most teachers, followed by the issues of proper class assignment and class size. The tenure system was given a boost by two U.S. courts of appeals decisions. New federal legislation clarified pregnancy disability benefits. There were four major legislative actions affecting the relationship between public employers and teachers, including the Tennessee Education Professions Act and Wisconsin's limited right to strike amendment. Also included in the document are examples of union promotional material. (Author/JM)