Financial ultimatum limited university’s autonomy: union
The provincial government compromised the University of Saskatchewan’s autonomy by issuing a “financial ultimatum” that is expected to result in wage freezes for unionized and non-unionized employees, voluntary buyouts and, possibly, layoffs, according to the head of the association representing more than 1,100 university faculty members.
That “ultimatum” is contained in a Jan. 30 letter from Advanced Education Minister Bronwyn Eyre to Lee Ahenakew, chair of the university’s board of governors, instructing the U of S to ensure its total expenditures on salaries and benefits for the 2017-18 fiscal year do not rise above the $294 million total it spent last year.
The letter, a copy of which was obtained this week by The StarPhoenix, also states the government wants employers and unions “to consider options that could reduce compensation costs, both in the immediate term and on a more long-term basis, in order to lessen the need for actions that reduce expenses.”
University of Saskatchewan Faculty Association (USFA) chair Len Findlay praised the university’s “measured response” to the government’s 2017-18 budget — which slashed five per cent from its $312 million operating grant — while condemning Eyre’s “ministerial intervention” in its financial affairs.
“Such bullying tactics are a recipe for trouble and needless damage,” Findlay said in an email, referring to Eyre’s suggestion that there “may be a need for” wage freezes and other cost-cutting measures. “They constitute an attempt to off-load responsibility for deepening debt onto the U of S while micromanaging how the cuts should be handled.”
Eyre sent the letter to Ahenakew — U of S president Peter Stoicheff also received a copy — almost two months before the government released its austerity budget, which led the university to respond by slashing $12.2 million from colleges and departments and asking some of its unionized employees to consider voluntary buyouts.
In a written statement, Eyre said while the government has “asked all publicly funded institutions to consider ways in which they might reduce their costs, including controlling compensation costs, (it) respects the autonomy of our postsecondary institutions in decisionmaking.”
Eyre said in the statement that she appreciated Ahenakew’s response. In the Feb. 9 letter, a copy of which was provided to The StarPhoenix by government officials, Ahenakew states the board’s direction to the university will be to ensure compensation is appropriate “within the provincial context,” reduce costs wherever possible and ensure the institution remains competitive.
U of S provost Michael Atkinson said the institution understands the government’s motivations, but factors such as the increased cost associated with buyout packages mean it is not clear if the university will be able to meet the target. Atkinson said he was not authorized to discuss plans to address wages paid to unionized and non-unionized employees.
“We haven’t received any further direction (from government), whereas other groups have. I take that as a positive sign, a recognition that we are managing things as best we can, that we’ve been set a very, very difficult fiscal challenge by this province and we are trying our best to come to grips with it.”