Dismissals, demotions coming as UWindsor grapples with $30M deficit

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Cash-strapped University of Windsor has stepped up the spending cuts with dismissals, pay reductions, and demotions as administration tries to rein in a projected $30-million budget deficit. 

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President Robert Gordon advised staff in a Nov. 26 letter that the university “made difficult but necessary decisions affecting 26 non-union staff members.” 

“Changes include restructuring, new responsibilities, title/salary adjustments, and position eliminations,” Gordon stated in the letter, a copy of which was obtained by the Star.

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“Some vacant positions have also been eliminated, with others to follow after retirements. Additionally, all non-union staff will be officially notified that their salaries will be frozen.” 

UWindsor did not acknowledge the Star’s request for an interview with Gordon, who was Essex County’s second-highest paid provincial public sector employee last year with a $372,257 salary and $14,741 in taxable benefits. But in an email to the Star, the university stated it is not the only institution facing such a dire financial situation.

“Like many universities across Ontario, the University of Windsor is responding to sector-wide budget challenges by taking steps to maximize efficiencies and secure its long-term viability,” UWindsor stated.

“As part of this effort, we have restructured and eliminated some non-union positions, primarily in administrative units. While difficult, these actions are among many that the University must take to ensure its financial sustainability.

“Decisions were made with careful consideration of the University’s core mission, strategic priorities, and fiscal health, while maintaining a focus on student success.”

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UWindsor also did not provide the Star with more details about the breakdown of the most recently announced cuts.

But in a budget FAQ link sent to staff with Gordon’s letter, the university states that eight non-union employees lost their jobs on Nov. 26. Five vacant positions were eliminated, with at least two more to go following retirements.  

There were also title and salary “adjustments” including demotions from executive director to director, for example, and director to manager. 

All remaining non-union staff have been notified that their salaries are frozen. Some people were reassigned to different departments. 

“Budget managers, including deans, should expect an entire recast of their operating budgets with the aim of reducing the structural deficit and helping the university work toward a balanced budget,” UWindsor states on the FAQ website. 

UWindsor has hired several external consultants to review operations and help identify potential cuts with “an objective perspective.”

The university states on the website that about 78 per cent of its operating budget goes to employee salaries and benefits.  

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Most of those salaries are governed by collective agreements, many of which will expire in 2025. Negotiations with several unions are expected to start in the spring. 

The Star was first to report in October that the projected deficit for the university’s operating budget for the 2025/2026 fiscal year is at least $30 million. The university has blamed plummeting international student enrolment. 

A report to the university’s board of governors in October stated that a “complete reboot” of spending is necessary. The projected deficit is at least double the current shortfall. 

Over the summer, UWindsor projected its deficit for the current fiscal year was $5.6 million. But that has since spiked to between $10 million and $15 million. 

UWindsor introduced hiring restrictions this fall that will remain in place for the foreseeable future. It also made the controversial announcement in June that it would permanently shut down the University Players theatre program after 65 years of operation, for an annual savings of about $580,000. 

The university said at the time that it was part of a 1.5-per-cent cut in spending levied across all departments in hopes of balancing the current year’s budget. 

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In his Nov. 26 letter, Gordon hinted at more cuts to come.  

“These actions are among many that the University will take to ensure its financial sustainability in light of a projected $30 million shortfall for fiscal 2025-2026,” he stated.

“Decisions were made with careful consideration of the University’s core mission, strategic priorities, and fiscal health, while maintaining a focus on student success.” 

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