New Faculty Contract Saves HFCC $25M

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DEARBORN — The Henry Ford Community College faculty union, the American Federation of Teachers Local 1650, recently opened and renegotiated its five-year contract to provide the institution greater help in resolving the financial issues facing the organization. 

AFT Local 1650 agreed to reopen their contract two years before it ended in an effort to help the college provide a balanced budget for the 2013-2014 fiscal year.

“The willingness of our faculty to come to the table and work with the board to examine additional ways we can work through our financial issues speaks volumes about their leadership, and most importantly, about how much they care for the college and the students who study at HFCC,” said Stan Jensen, HFCC president.

Key provisions to the new contract include the following:

  • As a result of opening their contract early, faculty will pay a portion of their health care insurance per state law, which will save the college $2.4 million over the next two years
  • Rates for Extra-Contractual Teaching are reduced 30 percent, thereby saving the college more than $7.5 million over the life of the contract
  • A Voluntary Employee Separation Agreement is now available for faculty, which could potentially save the college more than $15 million over the life of the contract through retirements
  • HFCC, which currently pays full-time employees once per month, will begin paying salaries through 26 pay periods in the year, which aids in cash flow for the entire institution
  • The new contract includes re-openers for both AFT and the college.

In total, this new contract will save the college $24.9 million by 2017-2018. 

In addition to this new contract, HFCC has enacted a number of cost savings measures to help the institution develop a solid financial foundation from which to serve students. These include a reduction in the leadership cabinet and administrative assistant total budget of 21.57 percent, which equates to $552,958 a year. Also, recent administrative layoffs will reduce salary and insurance costs $2.2 million a year. The college is also embarking on a new financial services process that will help with internal financial reporting and metrics and create standardization across all college functions.

“I thank the faculty and staff for their ongoing efforts and collaboration. Everyone at HFCC is dedicated to ensuring that the college provides the services students need to lead productive lives,” Jensen said.

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