AMHERST — University of Massachusetts employees in three bargaining units will be required to take five unpaid days off from work by June 20 as a result of the financial repercussions caused by the COVID-19 pandemic.
The university announced late Monday that the 3,000 workers in the Professional Staff Union, the University Staff Association and the American Federation of State, County and Municipal Employees Local 1776 have agreed to the furloughs for campus staff over five consecutive days between May 31 and June 20.
The furlough plan reduces expenses by about $4.5 million and will go toward dealing with a $40 million reduction in net revenue in fiscal year 2020, which ends June 30. Furloughs also apply to an additional 400 non-union administrative staff, but not to any members of the faculty.
The unions have also agreed to a plan, known as the Voluntary Separation Incentive Program, in which financial incentives are offered to any employee, faculty or staff, who resigns or retires this summer.
“The administration deeply appreciates the collaborative and constructive approach of the unions involved,” a posting on the university’s human resources website states.
UMass spokesman Edward Blaguszewski said the five-day furlough was needed to balance the current year’s budget due to the loss of revenue caused by the spring 2020 operational ramp-down, when the campus closed and students and professors transitioned to online learning, along with student reimbursements.
Blaguszewski said other budget reduction measures have included a staff hiring freeze and cost-cutting in non-academic administrative areas. The university also received $18.4 million in federal CARES Act funding through a federal formula, with half of this going to students for financial relief.
Blaguszewski added that Athletic Director Ryan Bamford will be working with head and assistant coaches of sports teams over the next few weeks to initiate a voluntary salary reduction program for the new fiscal year. Already, voluntary pay cuts are in place for senior administration officials, including Chancellor Kumble Subbaswamy and Bamford.
William Brady, vice chancellor and chief human resources officer, wrote in a letter to university employees that the furloughs and incentive program are actions that are “hard and painful,” but ones that will hopefully provide a path forward to recovery.
“These actions are part of a series of measures taken in recent weeks to address a budget shortfall that has been caused by the COVID-19 pandemic. They include a hiring freeze for non-academic staff, a reduction in nonessential spending for the rest of this fiscal year and voluntary pay cuts through FY21 for senior administration officials,” he wrote.
The Voluntary Separation Incentive Program provides a cash incentive to employees who resign or retire between July 1 and Aug. 28, with applications accepted through June 12. Each person will receive between $5,000 and $25,000, depending on the length of service to UMass. Blaguszewski said the voluntary separation program is designed to reduce costs beyond the current budget year.
University officials indicated that this could just be the beginning of cuts to university staffing given uncertainty about the state budget, the pandemic’s impact on university enrollment and stock market volatility, and on the university’s endowment and gift income.
“We do not yet know what personnel actions may be necessary in the coming year,” Brady wrote.
Scott Merzbach can be reached at smerzbach@gazettenet.com.