August 10, 1993


	             LOCAL AGREEMENT BETWEEN
	            THE UNIVERSITY OF WATERLOO
	                     AND
         THE FACULTY ASSOCIATION OF THE UNIVERSITY OF WATERLOO



The Faculty Association of the University of Waterloo represents all regular
faculty members in regard to faculty salaries adn benefit
programs and to policies governing terms and conditions of employment.
Regular faculty members include lecturers and those holding professorial
ranks on full-time or fractional load, definite term, probationary term,
or tenured appointments.  The Faculty Association of the University of
Waterloo has been designated by the Minister of Finance as a bargaining
agent for purposes of the Ontario Social Contract Act, 1993.

The Minister of Finance has designated a sectoral framework for the
University of Waterloo Subsector, adn this Agreement is consistent with
the sectoral framework.

1)	This agreement is in force during the period that the Social
	Contract Act, 1993 is in force, but in any event not later than
	April 30, 1996.  Negotiations under the Memorandum of Agreement will
	next take place during 1995/96 for increases effective May 1, 1996,
	unless the Social Contract Act, 1993 is terminated earlier.

2)	The Social Contract expenditure reduction target will be met by a
	combination of wage freezes and/or deferrals, days without pay, 
	replacing leaving employees by new employees at lower wages, not
	replacing employees who leave the employ of the University of
	Waterloo, improvements in efficiency, elimination of waste,
	changes in employer obligations for benefit payments, etc.

3)	Implementation of the selective (PTR) increases portion of the May
	1, 1993 faculty salary increase shall be deferred to September 1,
	1993, with no retroactivity.

4)	There shall be no scale increase for faculty for 1994/95 and
	1995/96.

5)	Full or partial selective increases will be awarded on May 1, 1994
	and on May 1, 1995, depending upon improvements in the University's
	operating income.  In determining the funds to be allocated for
	selective increases in 1994/95 and 1995/96, the following will be
	compared:

	(A)	Estimated total 1993/94 operating income as of the July 26,
		1993, Board meeting;
	
	(B)	Estimated total 1994/95 operating income at April 30, 1994,
		exclusive of one-time funds and targeted funds requiring
		additional budget encumbrance.

	(C)	Estimated total 1995/96 operating income at April 30, 1995,
		exclusive of one-time funds and targeted funds requiring
		additional budget encumbrance.

6)	If (B) exceeds (A) by 2% or more, the full amount specified in
	Policy 11 will be allocated for 1994/95 selective increases.  If (B)
	does not exceed (A) by more than 1%, one-half of the normal
	selective increase pool will be provided.  If (B) exceeds (A) by
	more than 1% but less than 2%, the amount allocated for selective
	increases will be pro-rated.  For example, if (B) exceeds (A) by 
	1.5%, then three-quarters of the normal selective increase pool will
	be allocated.

7)	For the case where (B) does not exceed (A) by more than 1%, and (C)
	exceeds (A) by 2% or more, the full amount specified in Policy 11
	will be allocated for 1995/96 selective increases.  If (C) does not
	exceed (A) by more than 1%, one-half of the normal selective
	increase pool will be provided.  If (C) exceeds (A) by more than 1%
	but less than 2%, the amount allocated for selective increases will
	be pro-rated.

	For the case where (B) exceeds (A) by more than 1%, and (C) exceeds
	(B) by 2% or more, the full amount specified in Policy 11 will be
	allocated for 1995/96 selective increases.  If (C) does not exceed
	(B) by more than 1%, one-half of the normal selective increase pool
	will be provided.  If (C) exceeds (B) by more than 1% but less than
	2%, the amount allocated for selective increases will be pro-rated.

8)	If (C) exceeds the greater of (A) or (B) by 4% or more, then the
	scale portion of the May 1, 1993 faculty salary increase shall be
	implemented effective April 1, 1996, with no retroactivity.  If (C)
	exceeds the greater of (A) or (B) by more than 2%, but less than 4%,
	the amount of the deferred scale increase will be pro-rated.  For
	example, if (C) exceeds the greater of (A) or (B) by 3%, then one-
	half of the deferred scale increase (a 1% endrate scale increase
	with no retroactivity) will be implemented.

9)	There will be five unpaid days for faculty in 1993/94 and up to
	eight unpaid days in each of 1994/95 and 1995/96.  The number of
	unpaid days will be converted into a percentage salary reduction
	which will be applied uniformly over eight months (September to
	April) in 1993/94, and over the full twelve months in 1994/95 and
	1995/96.  The University will close on Monday, February 21, 1994,
	and one closing day may be specified in each of 1994/95 and 1995/96.  
	Other unpaid days will be mutually agreed upon by the faculty
	members and their Chairs, and may be carried forward within the
	Social Contract period.  Unpaid days will not reduce anyone's annual		salary below $30,000.  Employer and employee pension contributions,
	employee pension entitlements, and other UW insured benefits will
	not be affected by these unpaid days.

10)	Item 2.d.ii of the April 4, 1992 Memorandum of Settlement between
	the University of Waterloo and the Faculty Association of the
	University of Waterloo is revised by replacing the words "in effect
	until May 1, 1995" with the words "in effect until May 1, 1997".

11)	The University shall provide the FAUW, where possible, the financial
	records relevant to this agreement.  All documentation provided to
	the University Stakeholders Group also shall be provided to the
	Faculty Relations Committee.

12)	This agreement may be revised by mutual agreement of the University
	and FAUW.

By these signatures the University of Waterloo and the Faculty
Association of the University of Waterloo indicate acceptance of this
agreement.