(2012-2013 HR#27) Compensation Update

Date: June 14, 2013
To: Professional & Managerial Staff; Confidential Staff; Advancement Professionals
From: Angela Hildyard, Vice-President, Human Resources & Equity
Cc: Principals, Deans, Academic Directors & Chairs
Re: Compensation Update

Last year the Senior Appointments and Compensation Committee (SACC) recommended, and Business Board approved, a Compensation Plan for Professional & Managerial and Confidential Staff as well as the Advancement Professionals (referred to here as the PMACAP group). The plan covered 2012-13 and 2013-14, and was developed in light of increases that had been negotiated for the same time period with the faculty association and our larger bargaining units. We were also mindful of the fact that a timing issue had resulted in none of you receiving any across-the-board (“ATB”) increase in 2009-10. You were, of course, also under the Compensation Restraint legislation for 2010-11 and 2011-12 and did not receive ATB increases during that period. The ATB increases for 2012-13 were implemented last year.

For 2013-14 the plan included Performance Based Merit and ATB, effective July 1, 2013, along with employee pension contribution increases on July 1 2013 and June 30 2014. We delayed implementation while the Provincial Budget process unfolded. A compensation freeze remains in effect for those members of the PMACAP group who are included within the “designated executives” category specified in the legislation. For all others in the PMACAP group, the Ministry of Finance has indicated that compensation must be managed within fiscal constraints that provide for no additional funding for compensation increases. One way to address this constraint is to identify financial offsets to proposed increases.

Last evening, Business Board approved a plan that includes such a financial offset. Specifically, the University will reduce the payment that is provided to employees who, when they cease employment, have accumulated (that is, earned but not taken) approved vacation. The reduction will be as follows: for those with 3 weeks annual vacation entitlement, a reduction in the payment upon cessation of employment of 4 days; for those with 4 weeks annual vacation entitlement, a reduction of 5 days; and for those with 5 weeks annual vacation entitlement, a reduction of 6 days.

In addition, as previously approved, the first of two increases in member pension contributions will come into effect on July 1.

We are hopeful that the Across the Board Increase of 2.3 % will be reflected in your July pay. We will initiate the Performance Review process immediately and expect that the performance based merit increases will occur in October, retroactive to July 1. The merit compensation pool is not being increased from previous years. Further information on the initiation of the Review Process will be issued the week of June 24th.