July 16, 2024

Financial update provided to bargaining teams during latest session

Oakland University’s Vice President for Finance and Administration presented a budget and economic update to a joint session of the two bargaining teams during their latest session on July 16, detailing the financial impacts of the economic proposals presented by each party over the past two weeks and answering questions from the union bargaining team.

The update provided key financial information about OU, including the revenue challenges in light of state aid and enrollment trends, as well as future budget projections. It showed the administration’s original economic offer leaves OU with a somewhat sustainable budget picture after the proposed five-year contract but still with a projected deficit in the fifth year. An analysis of the union’s economic proposal revealed OU would face significant deficits each year of the union’s proposed three-year contract.

In its effort to pursue a reasonable and sustainable agreement, OU did increase its overall economic offering to a 12.95% raise over five years. The new offer again reflects the administration’s commitment to reaching a fair contract, consistent with its available financial resources, that plans for the future and keeps OU on a successful path moving forward amid uncertainty in higher education.

The bargaining teams continued to discuss language proposals on several remaining articles, making continued progress in some areas. The next bargaining session is set for July 18.