ASHLAND – A communication from Ashland University President Dr. Carlos Campo was sent out to AU faculty and staff Thursday afternoon informing them of incremental pay cuts at the University.
“As we are all aware, COVID-19 is posing challenges for universities and many other industries across the country," Campo stated. "We firmly believe that only those institutions who take financially responsible and proactive steps now will be in a position to thrive long-term.
“To that end, we have asked the executive team and faculty leadership to review all business goals, objectives and processes in order to find ways to decrease expenses, increase revenue and protect the future well-being of Ashland University. As a result of this analysis and in an effort to manage University resources, it has been deemed necessary to reduce the wages of salaried employees, both administrative and faculty.”
The reduction in salaries will be on a graduated scale according to compensation levels. The salary reduction affects just under 400 employees. For administrative employees, these changes will go into effect at the beginning of the new fiscal year, June 1, 2020. For faculty, their new rate of pay will become effective at the beginning of their next contract term, which for most, is fall.
“This decision was extremely difficult, but necessary, as we address significant budget challenges,” Campo stated. “Announcements will be made in the coming weeks as to how COVID-19 will impact other aspects of our administration, staff, athletics and faculty. We are committed to sharing information with the AU family and the Ashland community as soon as it is practical.”
Campo added that university has been negatively impacted by the COVID-19 virus, but is financially stable.
“We are making these reductions in response to a health crisis, but we are not declaring financial exigency,” he said, “And, of course, we are not alone.”