PSU-AAUP and the University deferred the determination of the methodology and appropriate peer comparators for the internal and external based salary increases in Article 30 Section 4 to the labor management committee. In Fall, 2016 that process was referred to an ad hoc Faculty Equity Workgroup comprised of the following:
PSU-AAUP: David Hansen, VP Bargaining; Jose Padin, President; Shafiqur Rahman, Professor of Finance; Leanne Serbulo, Negotiating Team; Phil Lesch, Executive Director
Admin: Shelly Chabon, Vice Provost Academic Personnel; Julia Getchell, Director Academic Employee Labor Relations; Pam Hutchins, Director HR Payroll; Nina De Lange, Sr. HR Analyst; Adis Sehovic, Compensation Analyst.
In November, 2016 the ad hoc committee approved the engagement of Arthur J. Gallagher (AJG) to develop a methodology for determining its comparator institutions (the market) and to develop processes and procedures to determine pay compression, inversion and identify if and where equity adjustments may be appropriate for the AAUP represented faculty. The study involved both tenure track and non-tenure track faculty.
1. Weekly 2 hour meetings began on December 1, 2016. Approximately 13 meetings have been held.
2. The Workgroup has:
a. Selected a group of 31 peer institutions that consist of public, urban or suburban, 4 year, doctoral granting institutions, in the high, higher and moderate research category, and where faculty salary data is available.
b. Determined that the amounts available for pay adjustments are approximately
i. Tenure track = $385,000
ii. Non-tenure track – Instructional = $125,000
iii. Non-tenure track – Research = $57,000
3. The Workgroup reviewed three different models for the tenure track faculty:
a. A model put forth by the faculty which is derived from an AAUP chapter at the University of Washington. It measures compression and inversion by comparison to PSU peer institutions with respect to rank and discipline and factors in length of service.
b. A similar model put forth by HR that is based on a more limited comparison to the market.
c. A compa-derived model that allocated salary increases to faculty based on years of service to PSU. This model did not receive significant interest.
4. The Workgroup reviewed three models for the non-tenure track faculty, which were designed to adjust salaries so that pay is comparable when taking into account discipline, rank, years of service and degree qualifications.
a. Two models are based on a compa-ratio assessment of what a comparable salary should be based on years of service, rank and qualifications. The models differ on the aggressiveness of the compa-ratio.
i. One model affects approximately 59 Instructional faculty and 11 Research faculty and pro-rates the adjustment amount.
ii. A modified model applies caps on the increase amount, affecting approximately 59 Instructional faculty and 11 Research faculty.
b. A third model introduces the market as a regulator of the increases and would cap equity increases at the median of the market.
i. These results affect approximately 22 Instructional faculty and 3 Research faculty.
5. On or about April 15, 2017 the consultant was asked to compare the models and make a recommendation on how to proceed. That opinion was received on May 22, 2017. The consultant’s recommendations were as follows:
a. Tenure Track Faculty Salary Models: Gallagher believed that neither of the tenure track models completely addressed all the issues regarding compression or inversion. They developed a third model for the tenure track faculty that is based on the AAUP and HR model algorithms that puts the population of compressed and inverted faculty members into separate groups.
b. Non-Tenure Track Faculty Salary Models: Gallagher recommends the adoption of the last, modified model with pay adjustments pro-rated so as not to exceed the funds available.
The Workgroup met with Gallagher on May 25th to review the their recommendations. The group is working diligently to finalize model review and come to agreement by the end of the fiscal year. If the work is finished after June 15, 2017 when many nine month employees are off contract, PSU-AAUP will advocate that separate checks be cut and mailed to faculty home addresses as soon as possible for the retroactive wages due.