Thursday, July 8, 1993

SHUTDOWN IS POSSIBLE:  Closing UW for the week of August 16-20 is one 
of the possibilities as part of UW's plans for dealing with the Social 
Contract and cutting some $11.5 million from its payroll. 

Provost Jim Kalbfleisch told a meeting of department heads yesterday 
that the five days would be an unpaid layoff for all faculty and 
staff, except those earning less than $30,000 (the "Low Income Cut 
Off" under the government's Social Contract rules).  Those people 
would have to take the five days as a week of their vacation time.

If worse comes to worst, staff and faculty will have to take 12 unpaid
days between now and next April 30.  In addition to the five days in
August, there could be two shutdown days February 21-22.  The rest of the
days would be "flexible", taken at a time that suits individuals.  The
lost pay would be deducted from paycheques at a uniform rate for the
nine months left in this fiscal year (September through April) -- about
6.1 per cent off each paycheque.

Under the Social Contract Act (passed by the Ontario legislature at
supper time yesterday) and the government's other cuts, UW needs to 
trim $11 million from the payroll, with another $0.5 million cut facing
the church colleges.  But a "discount" of $1.4 million is possible if
employers and employee groups can reach a written agreement by August 1
on how the cuts should be made.  Otherwise, management will go ahead
with pay freezes, unpaid days and "additional budget cuts" to reach the
$11 million total.

The 12 unpaid days would save UW about $4.9 million.  Another $4.8 million
would be saved by permanently cancelling the salary increases that had
been promised for last May, but were suspended as the Social Contract
loomed on the horizon.  Add those numbers up and you get $9.7 million, 
which will be more than enough if an employer-employee "agreement" is
reached. 

Kalbfleisch said even more savings would be possible through a temporary 
reduction in the premiums UW pays to the pension plan. He noted that
the pension fund currently has a surplus, and said he'll ask the pensions
and benefits committee to consider what changes could be made without
jeopardizing the security of pensions for UW retirees. 

The result: he's hoping for significantly fewer than 12 unpaid days,
and pay deductions of less than 6.1 per cent.

There are many, many questions to which the answers aren't yet known,
as became clear in yesterday morning's meeting of department heads and
a noon-hour "information session" sponsored by the staff association,
which drew hundreds of people to the Arts Lecture Hall.  There will
obviously be need for all sorts of local arrangements and exceptions 
if the university as a whole is to be closed for an August week on such
short notice.

Detailed negotiations between UW and its employee groups -- the faculty
association, the staff association, and Canadian Union of Public Employees
local 793 -- are expected to start early next week. UW president James Downey, 
speaking to the department heads, said the administration's priorities
in those talks are "equity and fairness, and protecting those who most
need protecting", and "the quality and the reputation" of UW and the
services it offers.  "Beyond that, everything is open for discussion."
He and Kalbfleisch have said repeatedly that they think job losses would 
be undesirable and should be unnecessary.

Chris Redmond
Information and Public Affairs
credmond@watserv1    ext. 3004