Dear colleagues,

Earlier today, Provost Bean announced a new multi-year program that will provide cost of living adjustments along with the possibility of merit/equity increases. I am writing to provide you with implementation details for this plan.

Multi-Year Salary Adjustment Program (FY13 and FY14)

FY13 Program

• 1.5 percent cost of living adjustment (COLA) retroactive to Jan. 1, 2013 for all officers of instruction and officers of research.
• Employees who began employment on or before June 30, 2012 are eligible.

FY14 Program

• 1.5 percent cost of living adjustment with the possibility of an additional merit/equity increase for all unclassified faculty and staff (officers of instruction, officers of administration and officers of research).  The merit/equity pool available is equal to 2 percent of salary for all eligible employees.
• Effective date:  July 1, 2013
• Employees who began employment on or before Dec. 31, 2012 are eligible.

Staff excluded from increases include: 

• Employees on F Contracts (unless extenuating circumstances)
• Coaches on multi-year custom contracts (unless extenuating circumstances)

Timeline for program implementation (FY14 Increases)

• March 4 – salary program announced
• March 22 – schools, colleges and departments submit memos to appropriate vice president or senior vice provost outlining proposed process and criteria for awarding merit/equity funds
• March 25 to June 15 – schools, colleges and departments conduct equity/merit reviews
• May 15 – templates for salary increase proposals distributed to schools, colleges and departments
• June 15 – schools, colleges and departments submit proposed equity/merit increases to appropriate vice president or senior vice provost
• June 30 – vice presidents and senior vice provost complete review of proposed salary increases
• FY14 salary increases will be effective as of July 1, 2013

Timeline for program implementation (FY13 increases)

• April 1 – schools, colleges and departments will receive lists of eligible employees
• April 19 – schools, colleges and departments submit confirmed list of eligible employees to appropriate vice president or senior vice provost
• May 3 – vice presidents and senior vice provost approve confirmed lists
• FY13 salary increases implemented retroactively to January 1, 2013

Merit/equity increases

Recommendations regarding merit/equity increases will be made at the department level based on performance and current compensation structures. The senior vice provost or appropriate vice president must approve all increases. Merit/equity increases can only be awarded based on performance reviews completed within the last year. Total proposed FY14 increases for any individual employee cannot exceed 10 percent without provost approval.

Impact on union-represented faculty members

The University of Oregon and United Academics, which represents the faculty bargaining unit, are currently negotiating the initial contract. Those negotiations will include bargaining over salary. Typically, salary adjustments for the bargaining unit members would not be implemented until the university and United Academics completed negotiations and reached agreement on the full contract. Given that it could be some time before an agreement is in place, the university has decided to offer the same cost of living increases and merit/equity increase programs to United Academics. If United Academics accepts the offer, the university will implement the same increase programs for bargaining unit faculty now so that all university faculty can realize these increases immediately. Although this action on the part of the university is somewhat extraordinary, the university believes that this implementation plan is to the benefit of all involved.

Impact on SEIU-represented staff

Wage increases for classified staff represented by the Service Employees International Union (SEIU) will be bargained for through the contract negotiation process, which is currently underway. The union bargains a two-year contract each biennium with the Oregon University System, which negotiates on behalf of all seven public universities. The University of Oregon does not bargain directly with SEIU. 

Funding for the program

Those departments that operate with general fund budgets will receive budget augments to fund these increases (e.g., schools and colleges and central administrative units). Auxiliary operations such as Housing and Athletics, as well as service centers, designated operations and grant-funded operations will fund these increases from their own projected income. 

Best regards,

Jamie Moffitt, vice president for finance and administration & CFO