PROPOSAL FOR A TEMPORARY PAY REDUCTION FOR

FY2010

Prepared by the Faculty Senate Committees on Faculty Status & Economic Welfare and Retirement

Faculty Senate Economic Welfare & Retirement

and Faculty Status Committees

• Tony Wilcox, Nutrition and Exercise Sciences, Chair, Faculty Status• Moira Dempsey, Academic Success Center• Lani Roberts, Philosophy • Cheryl Middleton, OSU Libraries • Shirley Dodsworth, Psychology• Wendy Hein, Youth Development Education• Cindy Alexis, Arts & Science Business Center • Justin Fleming, Motor Pool • Pat Ketcham, Student Health Services

• Nell O'Malley, Education, Chair, FEWRC• James Miller, Admissions • Alan Bakalinsky, Food Science & Technology • John Lee (Emer.), Mathematics• Demaris Garceau, English • Beth Wasylow, Counseling & Psychological Services • LeeAnn Baker, University Honors College • Ken Krane (Emer.), Physics• Henry Sayre, Art/OSU Cascades

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PROPOSAL FOR A TEMPORARY PAY REDUCTION FOR FY2010 Forwarded by the Faculty Senate’s Faculty Status and Faculty Economic Welfare & Retirement committees A Temporary Pay Reduction would:

1. Address the $13.2 million reduction in E&G funding for the current biennium2. Acknowledge the classified staff who have accepted a tiered furlough for the biennium3. Retain as many faculty positions as possible in an uncertain economic climate4. Give faculty more control over their work/leave choices than a furlough MOTION: OSU faculty support a Temporary Pay Reduction for FY2010 that adheres to the following principles:For all faculty (grant-supported salary excepted)Leave days are provided in exchange for the salary reduction (see table below)*Salary savings to be retained by the University to preserve faculty positions; priority placed on the salary savings offsetting budget reductions in faculty members’ units Tiered (see table below)Pay reductions are distributed evenly in monthly paychecks over the academic or fiscal year (9-mo or 12-mo employees, respectively) Other than for the temporary pay reduction, all other terms of employment remain unchanged (e.g., FTE; health insurance coverage eligibility)University administration is directed to advocate to the State to amend PERS regulations to permit preserving at their pre-salary-reduction level faculty and staff’s retirement contributions for the duration of the temporary pay reduction University administration is directed to explore the possibility of using a holiday closure and other mechanisms of cost savings to minimize reliance on temporary pay reductions to offset budget reductionsThe temporary pay reduction is to begin January 1, 2010 and end on June 30, 2010; before the end of this academic year, University administration will consult with the Faculty Senate to assess the financial circumstances projected for the second year of the biennium.  

 

 

A Temporary Pay Reduction would:

1. Address the 13.2 million reduction in E&G funding for the current biennium

2. Retain as many faculty positions as possible in an uncertain economic climate

A Temporary Pay Reduction would:

3. Acknowledge the classified staff who have accepted a tiered furlough for the biennium

A Temporary Pay Reduction would:

4. Give faculty more control over their work/leave choices than a furlough

A furlough (from Dutch: "verlof") is a temporary leave of absence from employment, duty in the armed services, or from a prison term. It may be voluntary or involuntary.en.wikipedia.org/wiki/Furlough

The temporary release of an inmate from a correctional institution for a brief period, usually one to three days. www.larsonfoundation.com/SurvivorGlossary3.html

The placement of an employee in a temporary status without duties and pay because of lack of work or funds or other non-disciplinary reasons.law.justia.com/us/cfr/title05/5-3.0.54.11.1.1.98.3.html

Furlough - Defined

Why not a Furlough?(from CSU Q & A)Can I work on a furlough day? Technically no. Prior to

starting your assignment for any term between July 1, 2009 and June 30, 2010, you will have to certify in writing that you will not work on furlough days and that you will not work beyond the duties assigned for weeks with one or more furlough days. Obviously, however, no one is able to monitor what an individual faculty member does on any particular day.

Why are faculty asked to sign the non-work agreement? It is our understanding that the CSU administration wants to guard against later claims for payment for work performed.

Can I refuse to certify that I will not be working on furlough days? I will have to work on furlough days and do not want to lie. CFA does not recommend this. Refusal to do so could potentially subject you to discipline. Instead, you should reduce (rather than just reshuffle) your workload so that you do not have to work on furlough days.

MOTION: OSU faculty support a Temporary Pay Reduction for FY2010 that adheres to

the following principles:

•For all faculty (grant-supported salary excepted)

MOTION: OSU faculty support a Temporary Pay Reduction for FY2010 that adheres to

the following principles:•Tiered

•Leave days are provided in exchange for the salary reduction*

Monthly Base Salary

Leave Days per Fiscal Year

Leave Days per Academic Year

% impact on salary

(12-mo employees) (9-mo employees)

$2,450 or less 4 3 1.53%

$2,450 to $3,105 6 4.5 2.30%

 $3,106 to $5,733 7 5.25 2.68%

$5,734 to $8,333 8 6 3.07%

$8,334 to $10,934 10 7.5 3.83%

$10,935 and over 12 9 4.60%

Annual Base Salary Leave

Annual Base Salary Leave % impact $ impact

(12-mo employees)

Days (9-mo employees)

Days on salary on salaryper month

$29.4K or less 4 $22K or less 3 1.53% $37.50 or less

$29.4K - $37.3K 6 $22K - $28K 4.5 2.30% $56.35 - $71.42

$37.3K - $68.8K 7 $28K - $51.6 5.25 2.68% $83.24 - $153.64

$68.8K - $100K 8 $51.6 - $75K 6 3.07% $176.03 - $255.82

$100K - $131.2K 10 $75K - $98.4K 7.5 3.83% $319.19 - $418.77

$131.2K and over 12 $98.4K and over 9 4.60% $503.01 or more

* leave days are to be scheduled following procedures for scheduling vacation days as described in: Leave Administration Policies, Procedures, and Guidelines, OSU Office of Human Resources

excerpt:

“Vacation leaves are scheduled with the approval of the unclassified employee’s supervisor and should be planned cooperatively with the employee, in such a manner as to minimize disruption to the organization. Supervisors must be reasonable in allowing the use of vacation leave and may not unreasonably deny vacation requests where the result would be the forfeiture of accrued vacation.”

Projected Savings

$1.5 - $1.8M28-33% of the $5.4M

Year 1 budget reduction

MOTION: OSU faculty support a Temporary Pay Reduction for FY2010 that adheres to

the following principles:

•Salary savings to be retained by the University to preserve faculty positions; priority placed on the salary savings offsetting budget reductions in faculty members’ units

MOTION: OSU faculty support a Temporary Pay Reduction for FY2010 that adheres to

the following principles:

• Pay reductions are distributed evenly in monthly paychecks over the academic or fiscal year (9-mo or 12-mo employees, respectively)

• Other than for the temporary pay reduction, all other terms of employment remain unchanged (e.g., FTE; health insurance coverage eligibility)

MOTION: OSU faculty support a Temporary Pay Reduction for FY2010 that adheres to

the following principles:

•University administration is directed to advocate to the State to amend PERS regulations to permit preserving at their pre-salary-reduction level faculty and staff’s retirement contributions for the duration of the temporary pay reduction

• University administration is directed to explore the possibility of using a holiday closure and other mechanisms of cost savings to minimize reliance on temporary pay reductions to offset budget reductions

MOTION: OSU faculty support a Temporary Pay Reduction for FY2010 that adheres to

the following principles:•The temporary pay reduction is to

begin January 1, 2010 and end June 30, 2010; before the end of this academic year, University administration will consult with the Faculty Senate to assess the financial circumstances projected for the second year of the biennium.