Members of the Athabasca University Faculty Association (AUFA) claim that a lack of financial transparency is hindering their ability to make meaningful suggestions on how to make up a projected $1.5 million shortfall moving into the next financial year.
The association remains unconvinced that the deficit reduction measures espoused by VP Finance Estelle Lo will be enough to bring the institution back into the black come the next financial year.
AUFA president Travis Burwash said that the open university has not been so open when it comes to giving a clear picture of its finances.
“The biggest thing we need to know is what the financial reality is, even before we have a game plan,” he said, adding that they had to set up a working group to aid the process of communication with the executive.
“Going forward, our story is we don’t know what the story is, and we’d like to know more,” he said.
He referred to a structural deficit in place at the university, whereby the institution is spending more money than it’s making and not recognizing the reality of lower enrolment numbers and a flat line of grants from the government.
At a special meeting of AUFA on Dec. 8 a presentation was made by professors David Annand and Michael Mauws, both from the faculty of business.
The presentation, made to “describe the current situation and its implications for the future,” concluded “the budgets for future years imply layoffs and/or wage concessions” and “a structural adjustment will be required for long-term sustainability.
Without a significant increase in revenue from provincial grants and more students, they “expect significant annual reductions in our workforce through hiring freezes, retirement incentives and the departure of those who have other options.”
In an article published in the Dec. 6 issue of the Advocate, Lo maintained that cutting costs would be focused on non-staff related measures for the second half of the financial year ending March 31, 2012.
She cited a number of mitigation strategies designed to make up the funds, but did not rule out staff cuts moving into next year’s financial period.
She said the poor financial climate and an unbudgeted two per cent increase in wages after a collective bargaining agreement with AUFA were two reasons behind the deficit.
The latter comment drew the ire of former AUFA vice-president and professor of labour relations Bob Barnetson, who questioned the ability of an institution that does not plan for wage increases that fall in line with inflation.
“It’s unrealistic to expect employees to subsidize operations of an institution with substandard wage increases,” he said, a particularly pertinent point since AUFA will be heading into another round of contract negotiations come February.
“Certainly they’ve made a number of requests for cost savings,” he said, citing options for using up accumulated paid vacation days as unpaid furlough days. “What’s unclear is why that’s necessary and what that money will be used for.”
He added that administration might be stirring up fears of cuts to pad their position for upcoming contracts talks, saying it is a “fairly common tactic for an employer to plead poverty.”
In a communiqué sent to staff last week, Lo said “all members of the executive are acutely aware of our financial situation and have been working closely with all funding agencies to determine resolutions.”
Although she would not answer directly to the charge that administration was being less than forthcoming with the financial picture, she maintained that she welcomes any and all questions from staff.
“I will continue to make myself available to staff on their concerns,” she said, adding that she has met with the unions and will continue to do so.
She felt it was inappropriate to comment on the upcoming contract negotiations but hopes to continue to build good relationships with all staff.
She emphasized that she did not want to engage in public debate and would handle financial challenges in a professional way.
A budget committee made up of representatives from throughout the university will continue to meet and plan for next year’s budget, which begins April 1, 2012.
