The University of Vermont and its full-time faculty union, United Academics, have finalized an unprecedented 4-year labor contract that values the faculty and their contributions to the university, and recognizes the need for ongoing fiscal prudence.

Although the university’s finances are generally stable, UVM continues to face multi-milliondollar revenue shortfalls. With state support amounting to only six percent of the university’s operating budget, UVM’s long-term success and stability requires the university to continue to restrain spending, increase value through innovation, and keep tuition affordable for students and their families.

The new contract recognizes this imperative by including a zero salary increase for the current fiscal year (FY21), a 1% increase in FY22, a 2% increase in FY23, and a 2.5% increase in FY24. A portion of the 2.5% increase in the final year is earmarked for meritorious performers. The new terms also include a modest adjustment in tuition remission benefits to encourage students using this benefit to complete their studies within five years rather than seven, renewed commitments to professional development, and support for faculty to develop and submit grant and contract proposals for funding their scholarship and that of their students.

“Throughout this bargaining process we have affirmed that attracting and retaining outstanding faculty is essential to UVM’s success,” said UVM President Suresh Garimella. “We also have been clear about our strong commitment to students and their families to provide a highquality educational experience that is financially accessible and affordable. I appreciate the diligence and respectful exchange between bargaining teams on both sides regarding these important issues.”    UVM faculty receive compensation packages that are competitive in comparison to peer institutions. The average base pay for a full professor’s 9-month appointment is $127,380. This does not include summer pay and other sources of additional compensation received by faculty. Last year these additional sources of pay totaled more than $6.9 million. Faculty with 9- month appointments also receive a comprehensive 12-month benefits package. “We are glad the parties were able to come to terms and reach final settlement on this 4-year contract,” said Mary Brodsky, associate chief human resource officer at UVM. “These are very challenging times for the university and for higher education in general. This contract continues our commitment to market-based salaries and benefits for faculty and to ensuring the longterm financial viability of the university.” The need for fiscal prudence has also led the university to reduce the operating budgets of its administrative units by $11.5 million this year. Moreover, these administrative units have had to reduce their budgets in 12 of the past 13 years. The university has also deliberately constrained the size of its administration, now among the leanest in the nation. The university has only 5.6 administrators per 1000 students, compared to an average of 9.8 at our public research university peers. The university made clear during bargaining that constraining salary increases is necessary in order to restrain the university’s spending. That’s because employee salary and benefits account for nearly 70% of the general fund budget, and a large variety of creative expensereduction strategies have already been implemented. Tuition—which accounts for threequarters of general fund revenues and is the fourth-highest among public higher education institutions—cannot be increased to bridge budget gaps. Likewise, the university’s endowment—made up of over 800 individual gifts, most of which specify a single, restricted way the proceeds off a gift may be used—cannot be tapped as a revenue source.