The University of Hawaii said today it will cut salaries of most professors by 6.6 percent starting Jan. 1.

The following is a letter UH President MRC Greenwood sent to faculty members:

As we informed you last week, despite more than 15 months of negotiations, the university administration has been unable to reach a settlement with the University of Hawai'i Professional Assembly (UHPA) on a new collective bargaining agreement. With no new proposals forthcoming from either party and the spring semester beginning shortly, it is imperative that we address the university's current budget deficit now if the university is to sustain operations through the rest of this fiscal year and next. Accordingly, with no other viable options, we regret having to inform you that we have notified UHPA today of our decision to proceed with the implementation of the final formal offer effective Jan. 1, 2010.

The key details of the implemented final formal offer are as follows:

• Establishment of minimum annual salaries for all faculty by rank:
Rank 2 - $45,000
Rank 3 - $55,008
Rank 4 - $65,004
Rank 5 - $75,000

• Faculty members hired on or before Dec. 31, 2009 and paid with appropriated funds (e.g. general, special, revolving or appropriated federal funds) will have their base salaries temporarily reduced by 6.667 percent effective Jan. 1, 2010. The salary reduction will be applied after the adjustment to the minimum annual rates indicated above, if applicable.

• Faculty members hired on or after Jan. 1, 2010 and paid with appropriated funds, will have their established base salaries temporarily reduced by 5 percent effective Jan. 1, 2010 or upon appointment.

• Base salaries of faculty members subject to the temporary salary reductions indicated above will be restored to their full salary rates (subject to rounding) effective at the close of business on June 30, 2011, plus any subsequent promotions or special salary adjustments and subject to the minimum annual salary rates described above.

• Faculty members paid entirely from non-appropriated funds (e.g. trust, agency or extramural funds) will not be subject to the temporary salary reductions described above.

• Faculty members who retire from service on or before June 30, 2010 will not be subject to the temporary salary reduction described above.

• Effective Jan. 1, 2010 through the close of business on June 30, 2011, the lecturer fee schedule, the non-credit fee schedule and the additional compensation fee schedule rates will be temporarily reduced by 5 percent.

• Beginning Jan. 1, 2010, all pay adjustments will result in monthly salaries that are rounded to the nearest whole dollar.

All faculty members will receive a Payroll Notification Form (PNF) in early January with the details of any salary adjustment, which will be reflected in the Jan. 15, 2010 paychecks.

Although we are proceeding with implementation of the final formal offer, including the modification to the salary article made on Dec. 16, 2009, we remain committed to working with the leadership of the University of Hawai'i Professional Assembly and the faculty to reach a mutually acceptable joint settlement that addresses the university's critical economic challenges and the longer term need for competitive faculty salaries.

Sincerely,
M.R.C. Greenwood

In response to UH’s action today, University of Hawai‘i Professional Assembly executive director and chief negotiator J.N. Musto issued a four-paragraph statement:

“Today’s action is without precedent in the history of the State of Hawaii. Never has the State repudiated a collective bargaining agreement that they signed and attempted to nullify its provisions. In July 2009, Arbitrator Mario Ramil made it clear in a final, binding decision that the current contract remains in full force and effect until a new contract is in place.

"Today’s action is a not only a breach of contract, but also shows blatant disrespect for the negotiated agreement and the faculty. UHPA is notifying other public sector unions about this because it sends a chilling message to all unions that at any time the State can renege on its negotiated agreements. This mocks the collective bargaining process and puts every agreement in jeopardy.

"President Greenwood's action and letter to faculty today creates further distance with the faculty and undermines trust in her and her leadership.

"UHPA has attempted to reach out to the general counsel of the UH to discuss next steps, but the UH has been shut down over the holidays as directed by UH President Greenwood. We are poised to take the necessary and deliberate action needed to ensure the UH keeps its word by honoring the contract. UHPA will take action to protect the rights of the faculty and to preserve a legitimate collective bargaining agreement in whatever court or venue is necessary."