UIHC officials negotiating with employees on how to absorb losses

Hunter
06/24/20

University of Iowa Health Care workers have rejected a request from administrative officials to surrender a negotiated pay raise to absorb $120 million in losses due to the COVID-19 pandemic. An alternative proposal on the table keeps the 2.1 percent pay raise that goes into effect July 1, but workers would have to take unpaid time off or give back vacation hours.

The Gazette reports that during a series of town hall meetings with faculty and staff this week, officials said that the lower-wage earners will carry less of the burden of budget cuts.

UIHC CEO Suresh Gunasekaran and UI Vice President for Medical Affairs and Dean of the Carver College of Medicine, Brooks Jackson, will each take a ten percent cut in pay for the first quarter of the upcoming fiscal year. Other executives at the hospital will get no raise, take a five percent pay cut for the first quarter, and have to take either two weeks unpaid time off or lose 100 vacation hours.

Department heads face a four percent pay cut for the year, while UIHC faculty take a 2.5 percent pay cut.

Additionally, a hiring freeze will go into effect July 1st and last between 60 and 90 days.

Gunasekaran told the Gazette that losses may be offset even further by increased patient volumes at a faster rate than anticipated, but that’s assuming no COVID resurgence.

Going forward, Gunasekaran says that the focus will be on growth and improved efficiency