Mandatory retirement decision will cost UPEI in excess of $1 million to implement
In October 2009, I wrote about the PEI Human Rights Commission hearing on mandatory retirement at the University of PEI. The complaint had been brought by three former faculty members at the university. The mandatory retirement policy in question forms part of the collective agreement between the university and the faculty association.
I can now update this case, although it's a few months after the fact.
The university's VP Finance & Facilities, Gary Bradshaw, issued the following statement on the university's website on June 6, 2010:
Update on Mandatory Retirement: Message from VP Finance & Facilities
Mandatory retirement by age 65 has been an integral part of the University of Prince Edward Island's terms of employment since 1995.
Since that time, mandatory retirement has benefitted the overall
University community by facilitating workforce renewal, and providing an
effective tool for human resources and financial planning.
Following official complaints by three UPEI employees, the PEI Human
Rights Commission conducted seven days of hearings in October 2009. The
Commission released a ruling in February 2010 that our mandatory
retirement policy is discriminatory. As anticipated, the Commission has
now issued an Order to the University on the issues of remedies,
damages, and costs. This Order was received by UPEI on June 4, 2010. See
details on the Order here.
UPEI intends to fully comply with the Order. The three employees will
be reinstated immediately and will be compensated for lost income, as
outlined in the Order.
The total cost to the University to implement the Order will be in excess of
$1 million. For comparison purposes, this is double the increase to our
government operating grant for Main Campus in 2010-11. In addition, the
University will incur an estimated $325,000 a year in ongoing salary and
benefit costs associated with reinstatement. These costs are
substantial, and will need to be accommodated in this year's budget.
The UPEI Senior Management Group will be meeting early this week to
consider the measures that will be necessary to address this financial
challenge. Restrictions on hiring and on discretionary expenditures are
anticipated.
An ongoing issue raised by the University throughout the mandatory
retirement debate has been the need for a more robust system of
performance review for all faculty and staff. In light of the Order, it
is imperative that this issue be addressed.
As the full implications of this new reality become clearer, we will
keep the campus community informed through this website. This will
include periodic updates on the judicial review that was requested by
the University following the PEI Human Rights Commission's February
ruling.
Sincerely,
Gary Bradshaw
VP Finance & Facilities