University of Delaware employees to take 5% pay cut for remainder of fiscal year
From Delaware Online
University of Delaware’s non-union employees will all take a 5% pay cut for the remainder of the fiscal year, the latest in a string of efforts to shore up the school’s projected $250 million financial deficit brought on by the COVID-19 pandemic.
The pay cut will come in the form of nine furloughed days: three days before Thanksgiving, three before Christmas, and three at employees’ discretion.
The salary reduction will be evenly spread through paychecks, starting Nov. 1 until the end of June 2021.
Two weeks ago, the university announced that it was facing a budget deficit of about $250 million, as significant revenue loss and increased expenses from the pandemic strained finances.
At the time, employees were offered a voluntary retirement option. Since then, 138 employees have expressed interest in early retirement, and will receive final approval tomorrow.
Over the summer, senior administrators at the university took a 10% pay cut. Thursday’s cut will be in addition to that.
Some units may face a salary reduction greater than 5%, the university said in a message to faculty and staff on Thursday. Future workforce reductions, restructuring and other cost-saving measures could be announced down the line.
The pay cut does not apply to student employees, postdoctoral fellows or anyone on an H-1B visa. The university continues to negotiate with faculty and other unions.