Impasse PresentationBefore Tom Young, Special Magistrate

Sumi Helal, Professor of Computer & Information Science & EngineeringUFF-UF Chief Negotiator and

Candi Churchill, UFF Service Unit Director

John Biro, Professor of Philosophy, bargaining team member and former UFF-UF PresidentAgnes Leslie, Senior Lecturer in the Center for African Studies, bargaining team member

Raúl Sánchez, Associate Professor of English, bargaining team member &

Susan Hegeman, Professor of English, UFF-UF President

For more information, UFF can be reached at:bargaining@uff-uf.org

tel 352.519.4130 www.uff-uf.org

Nov 18, 2015

Issues at Impasse

1. Effective Date 2. Promotion Increases3. General Salary Increases4. Salary Increases for P.K. Yonge Faculty5. Starting Salary

Issue 1: Arbitrary Effective DateSince 2010 (date of first local CBA) salary increases have been effective at beginning of a faculty member’s annual appointment.

• Article 24.2 of 2013-16 CBA: All salary increases and adjustments referenced in this Article shall become effective retroactive to the beginning of the faculty member’s annual appointment, unless otherwise specified below.

• 12-month employees’ appointments begin July 1; 10-month employees appointments begin August 10; 9-month employees’ appointments begin August 16.

• Only one exception has been made since 2010: in 2013, both parties agreed to hold raises until October 1, to coincide with dispersal of monies for a State-mandated (non-BOT) raise.

BOT has insisted on an exception, showed no movement, and refused to negotiate their position that 2015 raises begin January 1, 2016.

Issue 1: Arbitrary Effective Date

• A January 1, 2016 effective date will devalue the net 2015-2016 raises by up to 50%.

• Despite repeated requests, no reasons were provided by the BOT as to the choice of this delayed effective date.

Unit Base Salary: $146,609,894

UF proposal (2.5%)

Total cost of 2015-2016 raises if effective mid-Aug 2015*

$3,665,247

Total cost of 2015-2016 raises if effective Jan 1, 2016*

$1,832,623

Difference (raise money taken away from faculty)

$1,832,624

* Assuming 9-month employees -- the majority of the faculty.

Effectively only a 1.25% raise

for 2015-2016.

Issue 2: Low Promotion Increases• UF promotion raises are among the lowest in the State

University System.• Promotions are awarded after rigorous peer review

process. Raises awarded upon promotion are therefore merit increases.

• Promotion increase proposals have been rejected by the BOT without explanation for at least two rounds of negotiations.

• The BOT also claims that promotion increases are not a legitimate subject of bargaining in the currently open salary article.

Issue 2: Low Promotion IncreasesUF FSU UNF USF FIU UWF FGCU FAU UCF

Full Professor

9% 15% 12.5% 9% + $7000

12% 13% 12% 12% 9%

Associate Professor

9% 12.% 12.5% 9% + $5000

10% 9% 9% 9% 9%

NTT (non-tenure-track

9% for NTT

9% for PKY

12.5% 1st promotion

15%2nd promotion

12.5% 1st promotion

12.5% 2nd promotion

6% 10% 1st promotion

12% 2nd Promotion

9% 9% 1st promotion

12% 2nd promotion

9% 1st promotion

12% 2nd promotion

9%

Issue 3: Non-Competitive SalariesQuestionable Salary Rates and Procedures

Salary

Issues

No inflation & cost of living adjustments

Violations of merit raise

procedures One of the

lowest salaries among

national peers

Issue 3: Salary No Cost of Living Adjustments

• The need for cost-of-living adjustments has been ignored by the UF-BOT for over 5 years. – Except for a 2013 increase--provided by the state,

not by UF--nothing has been done to help faculty cope with a 5-year cumulative inflation of 9% in the State of Florida (worse, when you factor in the 3% state-mandated employee retirement contribution).

– This while raises for administrators have far exceeded the inflation rate.

Faculty Cost-of-Living Raises Compared to Inflation Rate

2011 2012 2013 20140123456789

10

% inflation% across the board

Inflation Percent Change: Figures taken from Table A, South Region CPI-U, all items 12-month changes for October 2011 (3.7%), 2012 (2.1%), 2013 (1.3%), and 2014 (1.6%) (US Bureau of Labor Statistics, South Region). Increases compounded to show cumulative effects.

Faculty Salary Percent Change: Figures from salary agreements 2011-2014. No cost of living increases given, except for 2013, when the state allocated $1000/$1400 across-the-board increases (average: 1.75%). Increases compounded to show cumulative effects.

Inflation Rate as Compared with Raises: Upper Administrators

2011 2012 2013 201402468

10121416

% inflation% raise upper admin

Upper Administration Salary Percent Change: 20 upper administrators from all colleges and schools across the university, ranked Associate Dean to Provost, were selected based on their having remained in their position at UF during the period 2010-2014. The selection is comprised of 11 Associate Deans, 4 Deans, 1 Dean and ASO VP, 2 ASO Provost, 1 Sr. VP, and 1 Provost and Sr. VP. Units represented are: Arts (2), Business (3), CLAS (2), COE (1), DCP (2), Engineering (2), Grad School (1), Health Affairs (1), HHP (1), Medicine (2), Provost (3). Their salaries were identified using public records available through the UF Office of Institutional Planning and Research. If they received salary under multiple appointments, those salaries were added together to account for 1.0 FTE salary. The percent change in salary per year was calculated, as well as the percent change from 2010-2014. These figures include the state-allocated $1000/$1400 across the board increases. Increases compounded to show cumulative effects.

Issue 3: Salary Unenforced Merit Raise Procedures

• UFF-UF encourages a balanced mix of merit and Cost-of-Living adjustment raise.

• UFF-UF is opposed to so-called Merit Raises that lack the required process as per Article 24.

• UFF-UF requested that the BOT ensure that merit raise distribution procedures are in place as required by the CBA.

• The UFBOT ignored UFF-UF’s requests to work together in good faith to resolve these matters.

Exhibit

Merit Pay Procedures as Agreed to in the 2013-16 CBA

Merit pay criteria must be established in the unit Bylaws, approved by a secret faculty vote.

9.2 Development and Approval of Bylaws (c) Faculty Proposal. The faculty members in each unit, in conjunction with the chair, shall develop and maintain bylaws. Provisions in the bylaws relating to tenure, promotion, merit salary increases, market equity salary increases, and performance evaluations must be approved in a secret-ballot vote by a majority of all affected faculty in the relevant unit who are eligible to vote on the matter under consideration. The proposed bylaws shall be forwarded for approval to the dean. If the chair and the other faculty are unable to reach agreement on an issue, both the chair’s proposal on that issue and the proposal approved by a majority of the faculty shall be submitted to the dean.

24.4 (g)(3) Qualifying Criteria for Merit Increases. Merit increases must be determined using existing criteria which have been established by the faculty, chair, and dean of each unit, consistent with the terms and provisions of this Agreement.

The Chair or Director must consult with a faculty committee on merit pay decisions.

24.4 (g)(3) (a) Merit salary increases shall be distributed to faculty members who qualify under the unit’s criteria. In determining who receives a merit increase, the chair or equivalent supervisor shall consult with the unit’s committee responsible for merit pay considerations.

Tenure-track and non-tenure track faculty must be eligible under the merit pay criteria. 18.6 (a)1 & 18.6 (a)2

Unit Compliance with CBA-mandated Merit Pay Procedures

compliant: 33not compliant: 18

Source: Information supplied by UF as a grievance resolution along with research by UFF through individual unit administrators (Fall 2015)

35%

65%

$1,795,230 of “merit” raise funds were distributed to 503 faculty in 18 non-compliant departments in 2014-15.

Exhibit

Comparison of SUS SalariesUniversity

Carnegie Classification Professors ASO Prof ASST Prof

Instructors/ Lecturers

UF RU/VH $126,072 $84,969 $78,237 $59,202 USF Main Campus RU/VH $108,522 $78,525 $65,826 $47,439

UCF RU/VH $119,223 $81,918 $69,741 $54,432

FSU RU/VH $112,329 $79,281 $81,495 $36,900

FIU RU/H $119,898 $89,955 $80,901 $75,825

FAU RU/H $97,218 $71,100 $68,661 $48,159

UWF DRU $93,078 $67,086 $63,675 $47,331

FAMU DRU $89,685 $74,763 $59,364 $54,144

FGCU Masters L $97,335 $71,379 $62,964 $46,764

UNF Masters L $94,365 $69,192 $60,660 $46,485 USF St. Petersburg Masters M $121,194 $79,605 $59,958 $57,159 USF Sarasota/ Manatee Masters M $116,955 $85,428 $70,335 $51,795

KEY: RU/VH=Research University, Very High Research Output; RU/H=Research University High Output; DRU=Doctoral Research University; Masters L=Large MA University; Masters M=Medium MA University Source: 2013-14 AAUP Faculty Salary Survey Chronicle of higher Education, April 7, 2014.

UF Salaries Compared with Other State Universities

• In-state comparisons are misleading.

• UF competes nationally—even globally—not locally or regionally.

• The Florida Legislature and UF are committed to UF’s achieving “top ten” status among all public universities in the nation.

We’re taking what we’re great at and making it world-class. We’re extending the reach of our efforts, so we can help even more people in even more places. And by transforming the state’s flagship university into a truly global university, we’re showing the world that the Gator Good is the greater good. http://ufpreeminence.org/

• UF is the only university in Florida that belongs to the prestigious, 62-member Association of American Universities (AAU).

• Even within the SUS, salaries are higher at other Florida universities at ranks below professor.

Issue 3: SalaryFaculty Salaries Lag Behind Peer Institutions*

* “Peers” as designated by the Office of Institutional Planning and Research, University of Florida: http://ir.aa.ufl.edu

University of California, BerkeleyUniversity of Illinois, Urbana-Champaign

Indiana University, BloomingtonUniversity of Michigan, Ann Arbor

University of North Carolina, Chapel HillOhio State University, Columbus

Pennsylvania State UniversityTexas A & M University

University of Texas, AustinUniversity of Wisconsin, Madison

Full ProfessorsInstitution Average salary, 2014

U California, Berkeley 165,400

U Michigan, Ann Arbor 156,900

UNC, Chapel Hill 146,700

U Texas, Austin 145,400

U Illinois, Urbana-Champaign 145,000

Pennsylvania State U 140,600

Ohio State U 139,200

Indiana U, Bloomington 132,600

U Florida 128,300

Texas A & M 128,200

U Wisconsin, Madison 123,500

Source: 2013-14 AAUP Faculty Salary Survey Chronicle of Higher Education, April 7, 2014. http://chronicle.com/article/2013-14-AAUP-Faculty-Salary/145679/#id=table

Associate ProfessorsInstitution Average salary, 2014

U California, Berkeley 110,200

U Michigan, Ann Arbor 103,900

UNC, Chapel Hill 98,100

Pennsylvania State U 96,900

U Illinois, Urbana-Champaign 96,200

U Texas, Austin 94,400

Ohio State U 94,100

U Wisconsin, Madison 93,300

Indiana U, Bloomington 90,700

Texas A & M 88,100

U Florida 85,100

Source: 2013-14 AAUP Faculty Salary Survey Chronicle of Higher Education, April 7, 2014. http://chronicle.com/article/2013-14-AAUP-Faculty-Salary/145679/#id=table

Assistant ProfessorsInstitution Average salary, 2014

U California, Berkeley 99,200

U Illinois, Urbana-Champaign 90,200

U Michigan, Ann Arbor 89,600

U Texas, Austin 88,500

Pennsylvania State U 85,000

Ohio State U 84,800

Indiana U, Bloomington 83,000

U Wisconsin, Madison 81,600

UNC, Chapel Hill 81,100

Texas A & M 80,400

U Florida 76,200

Source: 2013-14 AAUP Faculty Salary Survey Chronicle of higher Education, April 7, 2014. http://chronicle.com/article/2013-14-AAUP-Faculty-Salary/145679/#id=table

UF Cost of Living Compared to Peers $78,200 in Gainesville is equivalent to at109,170 U. California, Berkeley 83,9155 U. Wisconsin, Madison80,523 U. Michigan, Ann Arbor80,368 Pennsylvania State U.78,200 U. Florida77,271 Texas A and M U.74,251 U. Illinois, Urbana-Champagne72,083 U. Texas, Austin71,232 U. North Carolina 69,606 Indiana U., Bloomington68,135 Ohio State U.

Source: Cost of Living Calculator, https://www.nerdwallet.com. Accessed 11/11/15

Peers Ranked by Cost of Living with Salary Comparisons

$78,200 = Assistant* Associate* Full*U. Ca. Berkeley 109,170 97,600 108,300 162,500U. Wisconsin 83,9155 77,300 84,600 113,300U. Michigan 80,523 87,900 102,500 154,700Penn State U. 80,368 70,900 92,000 138,200U. Florida 78,200 78,200 85,000 125,900Texas A and M 77,271 76,200 87,600 129,300UIUC 74,251 86,700 95,000 140,700U. Texas 72,083 88,100 92,900 137,900UNC 71,232 82,800 95,400 143,700Indiana U. 69,606 79,000 90,900 132,200Ohio State U. 68,135 78,200 87,700 129,400

Figures marked in green are salaries that are HIGHER than UF’s at rank, even where cost of living is LOWER than UF’s.

Officially-Announced BOT PositionOur highest priority is securing the funds for raises for our excellent faculty and staff.

This is important in part to make up lost ground in rewarding employees for their performance – performance that remained at a high level during the prolonged economic downturn despite years without raises and added workloads due to attrition and hiring freezes.

Boosting our employee compensation will also help ensure that we pay salaries that are more competitive with our peer universities nationally. This is key as we emphasize attracting accomplished faculty as part of our Preeminence Plan to rise among the nation's top public universities.

President Bernie Machen, March 18, 2014, http://info.uff.ufl.edu/UFAA/President/GatorsForHigherEd_20140317.htm

Officially-Announced BOT Position

• We also appreciate that competitive salaries and support are critical in attracting and retaining the world’s best faculty and graduate students. We are committed to achieving employee compensation and graduate student stipends that match our peers.

President Kent Fuchs, “An Opportunity to Lead,” State of the University Address to the Faculty Senate, Sept. 24, 2015

Actual BOT Position on Salary Issues

• BOT refuses to:– provide cost-of-living adjustment increases for

faculty, despite inflation – limit merit raises to those units with established

merit criteria and procedures as required by Article 24

– act on the fact that UF faculty salaries are in general trailing peer institutions (according to the BOT’s own list)

– consider the ill effects of salary compression and inversion on retention and faculty morale

Faculty Morale is Low

Strongly Agree

Somewhat Agree

Neutral

Somewhat Disagree

Strongly Disagree

Unable to Judge

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

Unable to judge

Strongly Disagree

Somewhat Disagree

Neutral Somewhat Agree

Strongly Agree

Total responses

1.60% 31.67% 16.90% 15.48% 22.78% 11.57% 562

Question 17 from the 2015 UFF-UF Faculty Climate Survey:The administration gives clear indication that it values my success and respects my work:

49% strongly or somewhat disagree

Faculty Morale is Low

Unable to judge

Strongly Disagree

Somewhat Disagree

Neutral Somewhat Agree

Strongly Agree

Total responses

1.60% 9.61% 9.96% 17.08% 21.88% 39.86% 562

Question 19 from the 2015 UFF-UF Faculty Climate Survey:I would leave UF if I were offered a comparable job elsewhere and personal factors did not keep me here:

Strongly Agree

Somewhat Agree

Neutral

Somewhat Disagree

Strongly Disagree

Unable to Judge

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%

62% strongly or somewhat agree

UF’s Ability to Pay

2013-2014: UF’s Ability to PayPresident Bernie Machen

2013-2014 Annual Financial Report, University of Florida, p. 4 (http://www.fa.ufl.edu/wp-content/uploads/AFR/UF_AFR_2014_indexed_4.pdf)

Exhibit

2013-2014: UF’s Ability to PayVice President & Chief Financial Officer

2013-2014 Annual Financial Report, University of Florida, p. 4 (http://www.fa.ufl.edu/wp-content/uploads/AFR/UF_AFR_2014_indexed_4.pdf)

ExhibitFrom MANAGEMENT’S DISCUSSION AND ANALYSIS:• Page 12The University’s assets totaled $3.2 billion at June 30, 2014. This balance reflects a $201.5 million, or 6.6%, increase from the 2012-13 fiscal year.

• Page 17[The State of Florida’s]…favorable economic outlooks are echoed in the State budget for the coming fiscal year which includes more than $100 million in new funding for the University of Florida.

This reflects an extraordinary level of support from the Legislature and the Governor for the University of Florida and the goal to become one of the nation’s top ten public research universities.

The budget for the 2014-15 fiscal year includes an additional $25.9 million in recurring dollars for meeting the performance metrics developed by the Board of Governors. An additional $5 million was added to the preeminence initiative, bringing the total to $20 million per year.

2003-2014: UF’s Growing Ability to Pay

Capita

l Asse

ts

Restrict

ed Non-Expendab

le

Restrict

ed Expendab

le

Unrestrict

ed

Total Net P

osition

$0 $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000 $5,000,000,000 $6,000,000,000

30-Jun-0330-Jun-14

Total Reporting Entity: University, Direct Support Organizations, Health Science Center Affiliates, Shands Hospital & Others

Source: Florida Auditor General: http://www.myflorida.com/audgen/pages/subjects/financial.htm

Exhibit

2003-2014: UF’s Growing Ability to Pay

Capita

l Asse

ts

Restrict

ed Non-Expendab

le

Restrict

ed Expendab

le

Unrestrict

ed

Total Net P

osition

$0

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

30-Jun-0330-Jun-14

Reporting Entity: University

Source: Florida Auditor General: http://www.myflorida.com/audgen/pages/subjects/financial.htm

Ability to Pay: Unrestricted Net Assets

2015: UF’s Continued Ability to PayPresident Kent Fuchs

Our financials are solid. Legislative leaders this spring provided UF with a new $19 million for meeting performance goals, allowing us to invest in our people, including $1 million in raising the minimum wage from $10 to $12 per hour. The state added a new $5 million in preeminence dollars, enabling us to add new faculty to our recent hires across campus.

Faculty set a research funding record of $707 million this past year.

Alumni and friends for the first time gave over $300 million, for a new record of $315 million in gifts and commitments.

-- President Kent Fuchs, “An Opportunity to Lead,” State of the University Address to the Faculty Senate, Sept. 24, 2015

UF’s Ability to Pay Continues to Grow From the UF 2014-15 Financial Report received Monday Nov 16th:

• Referring to the chart titled “Statement of Revenues, Expenses and Changes in Net Position,” one sees an increase in Net Position of $261,988,000 for fiscal year 2014-2015, much larger than the increase for 2013-2014 of $119,831,000 or any other year dating back to 2002-2003.

• “The modest economic conditions are reflected in the State budget for the coming fiscal year which increased overall by $37.7 million. The budget for the 2015-2016 fiscal year includes $39.8 in performance funding allocation and a reduction of $7.1 million in other non-recurring items. An additional $5 million was added to the preeminence initiative enabling the University to add new faculty.” (page 8)

UFF-UF’s proposed raise rate of 5.25% amounts to 20.4% of the $37.7 million overall budget increase, while the BOT’s proposed rate of 2.5% amounts to 9.7% of the overall budget increase. BOT is equally able to allocate 20.4% or 9.7% of additional money for raises, if faculty salaries are truly a priority as current and former UF presidents claim.

Exhibit

2015: UF’s Continued Ability to PayUnrestricted Net Assets

Florida Statutes Section 1011.40(2) requires that: If at any time the unencumbered balance in the education and general fund of the university board of trustees approved operating budget goes below 5 percent, the president shall provide written notification to the Board of Governors.

• The 5% threshold for UF’s “unencumbered balance” (unrestricted net assets) would be an ending fund balance of $34.7 million.

• Yet the 2015 unrestricted net assets (reserves or fund balance) is $1,474,510,000 ($1.5 billion) including all reporting entities.– The 2015 unrestricted net assets for the “University” entity is $112 million.

• In total 2015-16 UF operating budget, UF has an ending fund balance of 29.2% of total revenues.

Sources: September 2-3, 2015 Board of Governors Meeting 2015 UF Financial StatementCalculations by UFF’s

UFF’s Position is in the Public Interest

UFF’s Position is in the Public Interest

UF’s mission is to offer the best possible training for the children of Florida’s citizens and those who will make Florida their home. Attracting, developing, and retaining the best possible faculty serves this mission and the public good.

UFF’s Position is in the Public Interest

Because UF is a public institution, it should conduct its negotiations in an open and transparent manner. A large portion of UF’s assets, which number in the billions of dollars, come from public funds. We have asked the BOT for clear reasons why it will not address UF’s finances as they relate to faculty salaries, but they have refused.

Proposed SettlementEffective DateAll salary raises and promotional increases are effective beginning of faculty members’ annual appointment.

Promotion Increases

Upon promotion, faculty at all ranks (incl. NTT and P.K. Yonge) shall receive a salary increase of 15% of their base salary.

Cost of LivingAdjustment

2.75% cost-of-living adjustment.

Merit Raise2.5% raise pool to units that comply with merit procedures in the CBA. Monies distributed to non-complying units on an across-the-board basis.

P.K. Yonge Salary Increases

5.25% of PKY salary base paid across-the-board (incl. annual performance adjustment as per Appendix E).

Starting SalaryContributions to further compression or inversion by new hires shall be matched by contributions to unit-specific compression-equity-fund.

Remove Waivers: 24.5 Administrative Discretionary Salary Adjustments. 24.11 Grievability.

Exhibit