The Ontario Provincial Budget, which was passed on June 18, included some revisions that have implications for all of you. The very good news is that your April 1, ATB still stands.

The less good news is that the regular merit pool for 2012 must be equal to the absolute amount we spent on merit in 2011. This has two effects.

First, although we can continue to increase your pay based on annual merit assessments, the percentage increases will fall very slightly as a result of compounding. While that effect is small, a more frustrating effect is that the new law does not permit us to proceed with the planned increases to the merit pool of 0.5% for July 1 2012 and July 1, 2013. We will therefore be processing the 2012 merit payments based on the size of the 2011 pool, and the relevant amounts will be in your July pay.

Needless to say, the President, Provost and I are distressed that the Provincial Compensation Restraint legislation continues to have a disproportionate impact on each of you in comparison to your unionized colleagues as well as UTFA colleagues. We have made that distress very clear to Queen’s Park.

You have our personal commitment that we will actively search for (legal) ways to mitigate the disproportionate impact of Bill 55 on all of you. We are already developing some options, and I will be pleased to hear from you about ideas you may have.

Thank you for your outstanding commitment to the University of Toronto.