August 10, 1993 LOCAL AGREEMENT BETWEEN THE UNIVERSITY OF WATERLOO AND THE FACULTY ASSOCIATION OF THE UNIVERSITY OF WATERLOO The Faculty Association of the University of Waterloo represents all regular faculty members in regard to faculty salaries adn benefit programs and to policies governing terms and conditions of employment. Regular faculty members include lecturers and those holding professorial ranks on full-time or fractional load, definite term, probationary term, or tenured appointments. The Faculty Association of the University of Waterloo has been designated by the Minister of Finance as a bargaining agent for purposes of the Ontario Social Contract Act, 1993. The Minister of Finance has designated a sectoral framework for the University of Waterloo Subsector, adn this Agreement is consistent with the sectoral framework. 1) This agreement is in force during the period that the Social Contract Act, 1993 is in force, but in any event not later than April 30, 1996. Negotiations under the Memorandum of Agreement will next take place during 1995/96 for increases effective May 1, 1996, unless the Social Contract Act, 1993 is terminated earlier. 2) The Social Contract expenditure reduction target will be met by a combination of wage freezes and/or deferrals, days without pay, replacing leaving employees by new employees at lower wages, not replacing employees who leave the employ of the University of Waterloo, improvements in efficiency, elimination of waste, changes in employer obligations for benefit payments, etc. 3) Implementation of the selective (PTR) increases portion of the May 1, 1993 faculty salary increase shall be deferred to September 1, 1993, with no retroactivity. 4) There shall be no scale increase for faculty for 1994/95 and 1995/96. 5) Full or partial selective increases will be awarded on May 1, 1994 and on May 1, 1995, depending upon improvements in the University's operating income. In determining the funds to be allocated for selective increases in 1994/95 and 1995/96, the following will be compared: (A) Estimated total 1993/94 operating income as of the July 26, 1993, Board meeting; (B) Estimated total 1994/95 operating income at April 30, 1994, exclusive of one-time funds and targeted funds requiring additional budget encumbrance. (C) Estimated total 1995/96 operating income at April 30, 1995, exclusive of one-time funds and targeted funds requiring additional budget encumbrance. 6) If (B) exceeds (A) by 2% or more, the full amount specified in Policy 11 will be allocated for 1994/95 selective increases. If (B) does not exceed (A) by more than 1%, one-half of the normal selective increase pool will be provided. If (B) exceeds (A) by more than 1% but less than 2%, the amount allocated for selective increases will be pro-rated. For example, if (B) exceeds (A) by 1.5%, then three-quarters of the normal selective increase pool will be allocated. 7) For the case where (B) does not exceed (A) by more than 1%, and (C) exceeds (A) by 2% or more, the full amount specified in Policy 11 will be allocated for 1995/96 selective increases. If (C) does not exceed (A) by more than 1%, one-half of the normal selective increase pool will be provided. If (C) exceeds (A) by more than 1% but less than 2%, the amount allocated for selective increases will be pro-rated. For the case where (B) exceeds (A) by more than 1%, and (C) exceeds (B) by 2% or more, the full amount specified in Policy 11 will be allocated for 1995/96 selective increases. If (C) does not exceed (B) by more than 1%, one-half of the normal selective increase pool will be provided. If (C) exceeds (B) by more than 1% but less than 2%, the amount allocated for selective increases will be pro-rated. 8) If (C) exceeds the greater of (A) or (B) by 4% or more, then the scale portion of the May 1, 1993 faculty salary increase shall be implemented effective April 1, 1996, with no retroactivity. If (C) exceeds the greater of (A) or (B) by more than 2%, but less than 4%, the amount of the deferred scale increase will be pro-rated. For example, if (C) exceeds the greater of (A) or (B) by 3%, then one- half of the deferred scale increase (a 1% endrate scale increase with no retroactivity) will be implemented. 9) There will be five unpaid days for faculty in 1993/94 and up to eight unpaid days in each of 1994/95 and 1995/96. The number of unpaid days will be converted into a percentage salary reduction which will be applied uniformly over eight months (September to April) in 1993/94, and over the full twelve months in 1994/95 and 1995/96. The University will close on Monday, February 21, 1994, and one closing day may be specified in each of 1994/95 and 1995/96. Other unpaid days will be mutually agreed upon by the faculty members and their Chairs, and may be carried forward within the Social Contract period. Unpaid days will not reduce anyone's annual salary below $30,000. Employer and employee pension contributions, employee pension entitlements, and other UW insured benefits will not be affected by these unpaid days. 10) Item 2.d.ii of the April 4, 1992 Memorandum of Settlement between the University of Waterloo and the Faculty Association of the University of Waterloo is revised by replacing the words "in effect until May 1, 1995" with the words "in effect until May 1, 1997". 11) The University shall provide the FAUW, where possible, the financial records relevant to this agreement. All documentation provided to the University Stakeholders Group also shall be provided to the Faculty Relations Committee. 12) This agreement may be revised by mutual agreement of the University and FAUW. By these signatures the University of Waterloo and the Faculty Association of the University of Waterloo indicate acceptance of this agreement.