Thursday, July 8, 1993 SHUTDOWN IS POSSIBLE: Closing UW for the week of August 16-20 is one of the possibilities as part of UW's plans for dealing with the Social Contract and cutting some $11.5 million from its payroll. Provost Jim Kalbfleisch told a meeting of department heads yesterday that the five days would be an unpaid layoff for all faculty and staff, except those earning less than $30,000 (the "Low Income Cut Off" under the government's Social Contract rules). Those people would have to take the five days as a week of their vacation time. If worse comes to worst, staff and faculty will have to take 12 unpaid days between now and next April 30. In addition to the five days in August, there could be two shutdown days February 21-22. The rest of the days would be "flexible", taken at a time that suits individuals. The lost pay would be deducted from paycheques at a uniform rate for the nine months left in this fiscal year (September through April) -- about 6.1 per cent off each paycheque. Under the Social Contract Act (passed by the Ontario legislature at supper time yesterday) and the government's other cuts, UW needs to trim $11 million from the payroll, with another $0.5 million cut facing the church colleges. But a "discount" of $1.4 million is possible if employers and employee groups can reach a written agreement by August 1 on how the cuts should be made. Otherwise, management will go ahead with pay freezes, unpaid days and "additional budget cuts" to reach the $11 million total. The 12 unpaid days would save UW about $4.9 million. Another $4.8 million would be saved by permanently cancelling the salary increases that had been promised for last May, but were suspended as the Social Contract loomed on the horizon. Add those numbers up and you get $9.7 million, which will be more than enough if an employer-employee "agreement" is reached. Kalbfleisch said even more savings would be possible through a temporary reduction in the premiums UW pays to the pension plan. He noted that the pension fund currently has a surplus, and said he'll ask the pensions and benefits committee to consider what changes could be made without jeopardizing the security of pensions for UW retirees. The result: he's hoping for significantly fewer than 12 unpaid days, and pay deductions of less than 6.1 per cent. There are many, many questions to which the answers aren't yet known, as became clear in yesterday morning's meeting of department heads and a noon-hour "information session" sponsored by the staff association, which drew hundreds of people to the Arts Lecture Hall. There will obviously be need for all sorts of local arrangements and exceptions if the university as a whole is to be closed for an August week on such short notice. Detailed negotiations between UW and its employee groups -- the faculty association, the staff association, and Canadian Union of Public Employees local 793 -- are expected to start early next week. UW president James Downey, speaking to the department heads, said the administration's priorities in those talks are "equity and fairness, and protecting those who most need protecting", and "the quality and the reputation" of UW and the services it offers. "Beyond that, everything is open for discussion." He and Kalbfleisch have said repeatedly that they think job losses would be undesirable and should be unnecessary. Chris Redmond Information and Public Affairs credmond@watserv1 ext. 3004