Eastern Michigan University’s administration and faculty have reached tentative agreements on some contract issues and will turn to salary and benefits discussions on Monday.
The current faculty contract will expire at midnight Sept. 1.
The faculty is represented by the American Association of University Professors. EMU-AAUP president Susan Moeller said the union and the administration have met throughout the summer to discuss a new contract, and have reached tentative agreements on a number of issues.
“We are encouraged by the discussions to this point, and optimistic.” Moeller said.
Donald Ritzenhein, assistant vice president for academic personnel and contract administration, echoed Moeller’s statement.
“There is a genuine feeling of optimism on both sides that we can complete a contract,” he said.
Tentative agreements between the two parties include: Procedures for evaluating department heads and faculty members, the provost’s role on the Faculty Senate, how the Faculty Senate interacts with university policy committees, changes to departmental input documents, including “teaching overload policies,” addition of a facilities committee consisting of eight administration and eight faculty members, and emeritus will get free Rec-IM memberships.
Salary and benefits will next be discussed on Monday, when the administration will present its proposal package to the union.
The administration said that it is concerned about the unknown amount of funds EMU would receive from the state legislature in the future, as the senate has suggested a 3.1 percent decrease in funding to public universities in the next year, according to Ritzenhein.
Ritzenhein and Vice President of Communications Walter Kraft said the University projects around a 3 percent increase in enrollment from fall 2009 to fall 2010. The administration officials went on to caution that these numbers won’t be known for sure until a week after classes begin on September 8.
“There is a fair amount of caution in figuring out where all the revenue will come from,” said Ritzenhein when asked about state funds and possible adjustments to faculty compensation in a new contract. “It is our challenge to decide what is mutually acceptable.”
Treasurer for the AAUP and EMU professor of accounting and finance Howard Bunsis has said the possible 3.1 percent decrease is a “worst case scenario,” and doesn’t significantly affect the university’s bottom line.
Bunsis said, “EMU is in a strong financial position,” and “the State appropriation is relatively stable.”
Bunsis conducted a study on EMU’s financial situation in 2009, and he found that state appropriations accounted for 25 percent of revenue, while tuition and fees accounted for 49 percent.
He said a 3-percent drop in appropriations is more than made up for by a 3-percent increase in enrollment.
Bunsis also pointed out that a 3 percent enrollment increase would result in an additional $5 million in revenue from tuition, while the 3.1 percent decrease in state appropriations would take away about $2.4 million.
The study goes on to say that EMU has $247.8 million in net assets with $74 million in total expendable reserves.
“We think the university can afford significant increases in faculty salary,” Bunsis said. “The university can’t claim poverty as a defense.”
Faculty benefits will also be considered when deciding the financial impact of a new contract to the university and the faculty.
Under the current contract, faculty members receive health coverage through a preferred provider organization. Faculty pay a fee per month for the PPO determined by whether they opt for individual or family coverage. Children over 18-years-old cost an additional fee to continue coverage.
New federal health care laws have raised questions on both sides of negotiations on how to address health care in the future.
“Trying to figure health care costs is our No. 1 concern,” Ritzenhein said.
Moeller said the union was concerned that the amount faculty pay per month may be raised, and they may have added co-pays.
The AAUP has scheduled possible voting meetings for all members on Aug. 18, 25 and 31 to respond to new proposals from the administration, with the possibility of voting to permit negotiators to use the term “strike” at the meeting on Aug. 25, according to Moeller.
The AAUP voted to go on strike in September 2006 while negotiating its last contract. Both administration and union officials have stressed that all steps are being taken to avoid a similar situation in current negotiations.