We are writing to update you on the distribution of fiscal year 2020 (FY20) merit raises, including retroactive salary owed. Raises are retroactive to February 1, 2020 for 9-month employees and to January 1, 2020 for 12-month employees.
When we first announced agreement on our inaugural contract, we shared with you this information from the contract: “The Employer will notify the individual [faculty member] of the retroactive salary owed prior to the end of the 2019-2020 fiscal year and will make every effort to disperse that salary by the end of the 2019-2020 fiscal year.” The 2019-2020 fiscal year ends today, June 30, 2020, and the administration has informed us that they will not be able to meet this deadline. Instead, bargaining unit members will be provided notice of retroactive salary owed to them by next Monday, July 6, 2020. Bargaining unit members (excluding those on academic wage appointments) should expect to receive payment of retroactive salary owed in their July 31 checks. Bargaining unit members on academic wage appointments were initially erroneously excluded from consideration for merit increases. We worked to correct this problem, and these bargaining unit members will receive merit raises, but the mistake delayed the process. Bargaining unit members on academic wage appointments should expect to receive payment for retroactive salary owed in their August 31 check.
In short, the revised timeline for fiscal year 2020 merit raises is:
July 6: bargaining unit members receive notice of retroactive salary owed (excluding academic wage employees)
July 31: bargaining unit members receive payment of retroactive salary (excluding academic wage employees)
August 31: academic wage employees receive payment of retroactive salary
We also want to let you know that we have a meeting with the Administration scheduled for Thursday, July 16 to determine the precise level of salary reductions to be implemented beginning August 1, 2020. When we negotiated salary reductions, we stipulated that the reductions would be tied to actual revenue shortfalls in E&G funds (basically tuition revenue & state funding) but initially implemented based on the best available projections of that shortfall, with no reductions implemented if the E&G shortfall was anticipated to be less than $35M. When we settled the contract, the expected E&G revenue shortfall was $49M. We are meeting on the 16th to revisit this projection in light of updated enrollment figures and our best understanding of what’s likely to happen with state funding. We will update the bargaining unit of the outcome of that meeting shortly after it is held.
In the meantime, we’ve put together a salary calculator (click to download the calculator) that can be used as to calculate the impact of merit raises and potential salary reductions to your gross salary. You can input your existing salary and anticipated merit raise, then see how your salary would be impacted for revenue shortfalls between $35M and 63M. The default on the calculator is the $49M shortfall level that was the best projection when we settled our contract in May.
We were able to achieve retroactive merit raises for 2019-2020 and a truly transparent and accountable salary reduction program because of the strength of our union membership. If you are not already a member we encourage you to join UAOSU here.