ST. LOUIS — The University of Missouri-St. Louis this week announced a plan to cut pay for more than half of its workforce in a move it said provides more time to executive longer-term strategies.
The temporary cuts, which take effect June 1 and could last as long as a year, could produce up to $4.3 million in savings, which the university said aligns with the $4.7 million in funding the state is projected to withhold from the campus' budget for fiscal 2021.
"Our university community has worked diligently to ensure a sustainable approach to financial planning – an approach that has realized a balanced budget for the last three consecutive years," Tanika Busch, interim vice chancellor and chief financial officer, and James Hertel, UMSL's executive director for human resources, said in a letter sent to faculty and staff Tuesday afternoon. "Now, in this time of crisis, our university must again take bold actions to sustain its critical mission to transform lives through education, research, service and economic development."
The cuts cover 52% of the university's faculty and staff, but the majority — the 31% who earn between $50,000 and $74,999 — will receive the lowest pay cut of 2.5%.
Here's how the cuts break down:
- Employees who earn less than $50,000 – 48% of the workforce – are excluded from pay reductions.
- Employees who earn between $50,000 and $74,999 – 31% of the workforce – will take a 2.5% pay reduction.
- Employees who earn between $75,000 and $99,999 – 11% of the workforce – will take a 5% pay reduction.
- Employees who earn between $100,000 and $124,999 – 5% of the workforce – will take a 7.5% pay reduction.
- Employees who earn $125,000 or more – 5% of the workforce – will take a 10% pay reduction.
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