Friday, June 18, 1993

PRESIDENT'S LETTER:  Here is the text of a letter from UW president
James Downey that is being distributed on campus this morning.

	Dear Colleagues:

	We have all been watching the progress of the Ontario
	government's proposed "Social Contract" with nervous
	interest over the past few weeks.  The purpose of the Social
	Contract is to save $2 billion a year for the next three
	fiscal years through reduced compensation costs in the
	broader public sector. Three-way negotiations involving
	representatives of government, employers and employee groups
	failed to produce a Social Contract agreement by the
	government's June 4th deadline.

	Several members of the UW community participated in these
	negotiations, and throughout this period leaders of the
	staff, faculty, students, and colleges have been meeting
	regularly with the Provost and myself to share information
	and advice.

	On June 14th, the government introduced legislation that
	forces the $2 billion reduction and the implementation of
	many of its Social Contract proposals.  We have been given
	until August 1st to negotiate both a sectoral framework
	agreement covering all Ontario universities and a local
	agreement or plan for UW.  As incentive, the government has
	promised lower cuts and access to a Job Security Fund if
	these negotiations succeed.  If they do not succeed, each
	employer is required to implement a "failsafe program" to
	achieve the necessary expenditure reductions through a
	salary freeze, unpaid leaves of absence, and possible other
	measures. The legislation is complex, and we will be seeking
	clarification on a number of points over the next few days.

	At UW we face the necessity of reducing expenditures by up
	to $9 million for the Social Contract cuts, in addition to
	about $3.4 million that we have lost through the
	government's Expenditure Control Plan and tax increases in
	the provincial budget.  The difficulty is increased by the
	fact that we are already well into our fiscal year and our
	transfer payments will be reduced starting July 1st.  The
	August 1st deadline makes it impossible to follow our normal
	procedures for salary negotiations and budget development
	and approval.

	While we are distressed at having to reduce expenditures
	again after the cuts and difficulties already experienced,
	we take some comfort from the fact that decisions about what
	to do will be made here at UW, by people who know the
	University's needs and strengths.  We will continue to meet
	as a group with leaders of the staff, faculty, students and
	church colleges to obtain their advice and assistance in
	developing expenditure reduction plans.

	We are determined that the solution to our financial
	problems shall be fair to all of our employee groups, and
	that we must maintain the University's ability to do its
	work for our students and the people of Ontario through
	teaching, research and service.  We will do our best to
	avoid job losses which would hurt individuals and damage the
	quality of work and life for those who remain.  With
	everyone's involvement and cooperation, we should be able to
	share the pain and give ourselves new cause for pride in
	Waterloo.

	It is important that, as we cope with these unfortunate
	circumstances, we not lose perspective.  This University has
	faced serious challenges before and has come through them
	with its sense of purpose and community strengthened.  There
	is always opportunity in adversity, and I have no doubt
	that, if we can mobilize the ingenuity and goodwill that have
	gained the enviable reputation we have, we can find and
	seize opportunities for the University of Waterloo.

	For our part, we in the senior administration are open to
	any suggestions and initiatives which will help us to deal
	fairly and creatively with this situation, and we shall
	actively seek ways of garnering those suggestions and
	keeping people informed as events unfold.  In the meantime,
	I would be pleased to hear, directly or through the Faculty
	Association, the Staff Association, or CUPE Local 793, from
	anyone in the University community who has ideas to share.

	Yours sincerely,

	James Downey
	President

SUMMER WEEKEND:  The Waterloo Classic road race takes place Sunday
morning; Seagram Drive and part of University Avenue will be closed
to make room for the runners.

Happy birthday tomorrow (Saturday) to Bob Norman, dean of applied
health sciences.

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