AU slashes nurses' pay during a pandemic

Last week, AUFA’s membership engagement committee (MEC) hosted a meeting with AUFA members in the Faculty of Health Disciplines. This was the latest in a series of meetings designed to address topics of interest to various departments or sub-groups within AU. These smaller meetings allow for a looser, more open dialogue than is possible in larger and more structured general membership meetings.

There was some discussion of the significant impact that a work stoppage will have on FHD programs and students. Most of the meeting, however, was spent discussing AU’s handling of market supplements and its efforts to reduce the pay of AUFA members who are also Registered Nurses during a pandemic.

Market Supplements

A letter of agreement (originally negotiated in 2002) allows AU to provide up to $15,000 in additional pay in the form of a market supplement to attract and retain AUFA members. Essentially, market supplements make up for AU’s uncompetitive salaries in certain fields and professions. The maximum value of the market supplement has not risen since at least 2006.

AU must consult with AUFA about each market supplement that it awards. Typically, this “consultation” is little more than a pro forma email (“We’re gonna do X; here’s why.”). The value of a market supplement, and whether or not it’s issued and renewed, is entirely within the discretion of the executive officer (most often, the Vice-President Academic).

Approximately 60 AUFA members (~14% of AUFA’s total membership) presently have market supplements. The majority of market supplements at AU are paid to academics in the Faculty of Health Disciplines and the Faculty of Business. Most are for the full $15,000. Historically, when market supplements reach the end of their term (often 5 years), they are automatically renewed.

Recent Changes in FHD

A number of faculty members in FHD have recently had their market supplements discontinued, often with no notification. Many other FHD members have market supplements that will expire over the next few months. They have been told to await a market analysis from HR. (Some new hires have also not received market supplements when all of their peers have).

FHD members have been told there are no plans to cancel or otherwise remove the availability of market supplements. It is important to parse this statement very carefully: there is a difference between market supplements being available and market supplements being awarded. Further, it is not possible to confirm market supplements will remain available because AU has said (1) it wishes to open the market supplement letter for negotiation but (2) has, so far, refused to tell AUFA what changes it wants to the letter.

Finally, it is also unclear under what conditions and at what value market supplements will be awarded or renewed. Discussion with AUFA members in FHD suggests that AUFA members who are Registered Nurses could see significant increases in wages if (1) they returned to clinical practice or (2) sought employment at other PSE institutions (there is presently a shortage of trained nursing instructors). The loss of any significant number of Registered Nurses to better paying jobs elsewhere will negatively affect AU’s ability to retain accreditation of its nursing program.

Over in the Faculty of Business, many market supplement renewals have recently occurred, but for a very short term (e.g., until March 31, 2022). This suggests AU is lining up market supplement renewals with the annual budget cycle. Shorter terms for market supplements aligned with the fiscal year may mean AU is seeking to increase its ability to discontinue market supplements on short notice (e.g., if the budget pinches).

Analysis

The termination of market supplements in FHD appears to reflect a change in AU’s approach to market supplements. It is unclear what AU’s intentions are, but the effect seems to be fewer and less secure market supplements.

The lack of transparency around this change is both disrespectful and distressing to affected members. Some AUFA members are facing a 15% loss in income with no notice. A number of members are openly discussing whether they wish to remain at AU after a 15% pay cut.

It is also distressing that AU is seeking changes to the market supplement letter at the bargaining table but has, thus far, not bothered to tell AUFA what those changes are. All AUFA members deserve wage stability free from what can only be described as arbitrary wage cuts with little or no notice.

David Powell, President