Cape Breton University cost-cutting has faculty worried about layoffs

It's too early to know how far an early retirement incentive program will go toward meeting the Cape Breton University's budget shortfall, or whether layoffs will be necessary, the university's president says.

David Wheeler said the university is looking to cut 10 per cent of its $50 million budget, and three quarters of the university's costs are related to staffing.

In total, 37 faculty and staff have volunteered to retire under the incentive program, he said. To date, 18 offers have been accepted, and some are still being reviewed.

"Certainly we've made a good start with the voluntary retirement incentive scheme," said Wheeler. "But we will need to do more."

CBU sent letters to all of its 360 faculty and staff in August. Anyone with more than 10 years service — about a third of the workforce — could apply for a package.

The university reserved the right to refuse offers that would not result in savings.

Faculty association president Scott Stewart argued that was unfair. The union has since filed a complaint against the university with the Nova Scotia Labour Relations Board.

Stewart said seven faculty association members have applied for early retirement, but only three of those offers have been accepted.

He said, given that low number, and the fact that CBU didn't meet its enrolment projections this year, he's worried. "In a private conversation with the president last week, he suggested that, unless something unforeseen happens in [the] next short while, they would be opening up our layoff clause, probably in early January," Stewart said.

Still, Wheeler said it's premature to talk about layoffs. 

"It's our intention to reduce our salary bill through voluntary means. And so that remains our absolute focus," he said.

Wheeler said the university is reviewing its financial situation, and hopes to have an update to present to the board of governors in December. 

"We will know in coming weeks exactly how we're going to have to shape and reshape the organization to remain a strong and sustainable university for Cape Breton Island," Wheeler said.