YUFA
Collective Agreement
2001-2003
Article 24
Lay-off for Reason of
Financial Necessity
24.01
The parties acknowledge their joint responsibilities to work together in maintaining the University in a financially sound position. The Employer recognizes that full-time faculty members and professional librarians constitute the University's major academic strength, and that it has a responsibility to take all reasonable measures to forestall and prevent financial circumstances that would require the lay-off of employees. Employees, in turn, have a responsibility to show reasonable flexibility in assisting the Employer to meet the changing needs of the University and its changing financial circumstances.
24.02
The Employer undertakes that lay-off of employees will occur only in the event of, and only to the extent required by, a bona fide case of financial necessity which, by its gravity and the likelihood of its long-term continuation, threatens the fulfilment of the University's academic purpose, and which can be alleviated only by lay-offs. Specifically, it is agreed by the parties that lay-offs for reason of financial necessity will not be proposed if the bargaining-unit salaries and fringe benefits budget, as defined in Appendix B, does not exceed 39.46% of the University's expenditures listed in Appendix B. A declaration of financial necessity and such lay-offs as may follow shall be subject to the procedures specified below in clauses 24.03 to 24.24 inclusive.
Declaration of Financial Necessity
24.03
These procedures shall be initiated by a report from the President to the Board of Governors, the Senate, and the Association, to the effect that a state of financial necessity requiring the lay-off of employees is impending.
Such a report shall be made by the President, only following consultation with the Joint Committee on the Administration of the Agreement and its Financial Information Subcommittee.
24.04
Until the decision is made by the Board of Governors concerning whether or not a declaration of financial necessity is to be made, and until this decision has been implemented (i.e., until all the procedures up to and including clause 24.17 have been carried out), the President shall not, from the date of his/her report as specified in clause 24.03, recommend any new appointments to the bargaining unit. Furthermore, during this specified time-period, the Employer agrees to inform the Joint Committee of any proposals for the establishment of additional Professional/Managerial or Senior Administrative Staff positions for either a short or a long term.
24.05
The Employer and the Association shall establish, within two (2) weeks of the President's report, an independent financial commission of three (3) members, of which the Chairperson shall be from outside the York University community. In the event that the parties cannot agree upon three (3) persons to serve on the commission, each party shall name one member, and the two (2) so named shall choose a third, from outside the York University community, who shall serve as Chairperson of the commission.
24.06
Within two (2) weeks of its establishment, the commission shall hold its first meeting to consider the extent to which the University's financial situation requires or will require the lay-off of employees. The commission shall complete its deliberations and report its findings to the Board of Governors within ninety (90) days of its first meeting.
24.07
The commission shall have access to any and all financial data deemed by it to be relevant to its study, and shall have the power to call for submissions from any individuals or groups it chooses.
24.08
The commission shall invite and consider submissions on the University's financial situation and possible remedies therefor from the President, the Senate, and the Association. It shall consider, inter alia,
(a) whether all reasonable reductions have been made in areas of the University's expenditures other than bargaining-unit salaries, bearing in mind the primacy of the University's academic purpose;
(b) whether maximum appropriate advantage has been taken of the reduction of salary commitments through normal attrition;
(c) whether appropriate means of increasing University revenue have been adequately explored;
(d) whether interim deficit-financing is a realistic avenue for the solution of the financial problems;
(e) whether every effort has been made to secure further assistance from the Provincial Government;
(f) any other matter it deems relevant to its study of the University's financial circumstances.
24.09
The commission shall report to the Board its findings as to whether the University's financial circumstances constitute a problem sufficiently grave that the University's academic well-being will be endangered unless bargaining-unit salary commitments are reduced, and, if so, shall recommend the amount of reduction in bargaining-unit salary commitments that would have to be effected for alleviation of the financial problem, if other means of alleviation cannot be found.
24.10
Following consideration of the commission's report, the Board of Governors may act to declare the necessity of lay-offs for reason of financial necessity, and shall indicate the amount of bargaining-unit salary reduction to be achieved by lay-offs, which amount shall not be greater than an amount that would reduce the bargaining-unit salaries and fringe benefits budget, as defined in Appendix B, below 39.46% of the reduced level of the University expenditures as listed in Appendix B.
24.11
The Board's declaration shall be made to the President, Senate, and Association. Upon receipt of the declaration, the Association and the Employer shall enter into negotiations to determine whether the lay-offs can be avoided by altering the terms and conditions of the Collective Agreement. The parties shall meet within one (1) week of the declaration of the Board, and their negotiations and ratification of any changes to the Agreement shall be concluded within thirty (30) days of the Board's declaration.
Order of Lay-off
24.12
The order of lay-off of employees shall be as detailed in clause 24.13, with the provision that no Faculty or the Library shall have its bargaining-unit salary budget reduced by a percentage that is more than 1.25 times the percentage reduction in the University's total bargaining-unit salary budget.
A similar proviso shall apply to the bargaining-unit salary budgets of Departments within Faculties and, for the term of this Agreement only, the bargaining-unit salary budgets of the Alternate Stream sub-units within Departments/Faculties, where such exist.
24.13
The order of lay-off of employees shall be as follows:
(a) contractually limited employees;
(b) probationary employees without tenure/continuing appointment;
(i) The order of lay-off of probationary employees without tenure/continuing appointment shall be determined in the first instance by the date of full-time appointment to York University, those most recently appointed being the first to be laid off.
(ii) When the date of full-time appointment to York University is the same for two (2) or more employees, the order of lay-off shall be determined by the date of first full-time academic appointment anywhere, those most recently appointed being the first to be laid off.
(iii) When the dates specified in (i) and (ii), above, are the same for two (2) or more employees, the order of lay-off shall be determined by the date of first degree or equivalent qualification, those with the most recent first degree or equivalent qualification being the first to be laid off.
(iv) When the dates specified in (i), (ii), and (iii), above, are the same for two (2) or more employees, the order of lay-off shall be determined by random selection.
(c) employees with tenure/continuing appointment;
The order of lay-off of employees with tenure/continuing appointment shall be determined in the first instance by the date of tenure/continuing appointment at York University, those most recently granted tenure/continuing appointment being the first to be laid off. Thereafter, the order of lay-off shall be determined by the criteria and procedures specified in (b) above.
(d) No employee with tenure/continuing appointment over the age of fifty (50) years shall be laid off for reason of financial necessity.
The parties agree that for purposes of calculating seniority, there shall be no difference between years of service in the bargaining unit and years of service in positions excluded from the bargaining unit, as per Appendix A, defining the bargaining unit.
24.14
Except as specified in clause 24.15 below, all funds available for appointments to the bargaining unit after existing commitments to employees who have not been laid off have been met shall be applied to the recall of laid-off employees until such time as all laid-off employees have been provided with an opportunity to exercise their recall rights as specified in clause 24.18.
24.15
The President may, at his/her discretion, recommend to the Board of Governors appointments, including new appointments, in those cases in which the bargaining-unit salary budget of a unit, through means in addition to lay-off, has been reduced by more than 1.25 times the percentage reduction of the bargaining unit's salary budget specified in the Board's declaration of financial necessity. In exercising his/her discretion in this instance, the President shall, inter alia, take into account the academic priorities of the University prior to the declaration of financial necessity, and long-term enrolment trends as these are relevant to the academic unit in question.
Each and every such appointment shall, in the first instance, be offered to the laid-off employee qualified in the relevant field, notwithstanding his/her order of lay-off. Should more than one laid-off employee be qualified, the order in which the appointment is offered shall be the reverse order of the employees' lay-off. Should no laid-off employee be qualified, or should all qualified employees refuse the offer, the President may recommend a new appointment to the Board of Governors. Such appointments shall not increase the bargaining-unit salary budget of the affected unit above the amount to which such budget could be reduced if the maximum reduction as specified in clause 24.12 were applied.
Terms and Conditions of Lay-off
24.16
The President shall write to each employee designated for lay-off, indicating his/her intention to recommend to the Board of Governors that the employee be laid off, and stating that the lay-off is for reason of financial necessity alone. The President's letter shall be delivered to the employee by registered mail with receipted delivery, to reach such employee by 30 June, and shall serve as notice by the Employer of its intention to lay off the employee twelve (12) months hence effective 1 July of the next academic year (unless the Employer is providing salary in lieu of notice).
24.17
An employee who has been laid off for reason of financial necessity shall receive:
(a) twelve (12) months' notice as specified in clause 24.16 above, or twelve (12) months' salary in lieu of notice, plus
(b) one (1) month's salary for each year since the employee's appointment as a full-time faculty member or professional librarian at York University, to a maximum of twelve (12) months' salary, subject to the following proviso:
The financial settlement pursuant to the foregoing shall be paid automatically up to a maximum of six (6) months' salary in instalments of one month's salary per month following the date of lay-off.
The monthly salary shall be computed on the basis of the employee's monthly salary during his/her final year of employment. If the employee so chooses, the first six (6) months' salary shall be paid in a lump sum. Employees entitled to more than six (6) months' salary by virtue of their years of service shall receive the additional instalments to which they are entitled beginning in the (7) seventh month, only if they have not obtained alternative full-time employment.
24.18
Recall rights of laid-off employees shall be limited to a period of six (6) years from the date of their lay-off, as follows: For a period of three (3) years from the date of lay-off, employees shall be recalled in the reverse order of lay-off, except as specified in clause 24.15, above. For the fourth, fifth and sixth years, a laid-off employee shall have the right of first refusal of each and every available position in his/her field. Should more than one laid-off employee be eligible for recall in the same field, the order of recall shall be the reverse of the order of lay-off.
24.19
Employees to be recalled shall be notified by registered mail at their last known address. A laid-off employee shall be given two (2) months in which to decide whether he/she wishes to accept the recall, and shall be entitled to a reasonable period of time to fulfil other employment commitments before resuming his/her duties.
24.20
A recalled employee shall return to the seniority, tenure / continuing appointment status, and rank from which he/she was laid off. Years of service toward consideration for tenure/continuing appointment and toward sabbatical leave shall be as at time of the lay-off. The salary shall be the salary at time of lay-off, increased by any applicable across-the-board or standard increments awarded during the period of lay-off.
24.21
For the six (6) year period during which the employee is eligible for recall, he/she shall continue to have full access to library facilities on the same basis as on-site members of the employee's Department/Faculty and the Library. In addition, Departments/Faculties and the Library shall endeavour to maintain a full range of collegial contacts with laid-off employees, and to provide them with full access to computer and laboratory facilities, so that laid-off employees may maintain their professional skills; and laid-off employees shall endeavour to make use of same in order to keep up with on-going work in their fields. An employee returning after three (3) years or more of lay-off may be required to affirm that such expertise has been maintained, and to submit documentation in support thereof.
24.22
Any laid-off employee and his/her spouse and/or dependents eligible for tuition waiver at the time of lay-off shall continue to be so eligible during the period of lay-off.
24.23
A laid-off employee shall, until termination of laid-off status, be entitled but not required to maintain, at his/her own expense, membership in any or all of the University's benefit plans from time to time in force. Laid-off employees shall also be entitled to participate in the University's Group Life Insurance coverage, and to maintain membership in the University Dental Plan on the same basis as on-site employees, until the termination of laid-off status. In addition, a laid-off employee shall be entitled to retain, until termination of laid-off status, a Guaranteed Housing Loan, provided that such loan has been negotiated prior to the declaration of the state of financial necessity by the Board of Governors.
24.24
Termination of laid-off status shall occur:
(a) six (6) years following the date of lay-off, if the employee is not recalled;
(b) when the employee is recalled;
(c) when the employee indicates in writing to the Employer that he/she no longer wishes to retain his/her recall rights, or when the employee does not accept a recall.