Human Resources
FY 2010 Budget Reduction Plan
February 5, 2009
UW Human Resources (HR) serves the entire institution including two (2) hospitals, the School of
Medicine and three (3) campuses. HR is currently understaffed for an institution of this size and
complexity. Any reduction will have an adverse impact on all aspects of Human Resources’ services.
As compared to industry standards, UW’s current staff-to-client ratio is well below average; reducing it
further will significantly impair customer service and risk noncompliance with federal, state and local
laws, deterioration in union relations, and challenges in monitoring employee eligibility for benefits and
retirement.
COMPLIANCE
In addition to customer service impacts, a reduction at any level will be felt most strongly in the area of
compliance with federal, state and local laws, labor contracts and UW policies. For example, HR is
responsible for implementing and assuring compliance with the Federal and State Minimum Wage Act
and Fair Labor Standards Act (FLSA); Family and Medical Leave Act (FMLA); Internal Revenue Code
(IRC); Washington Administrative Code (WAC) and Revised Code of Washington (RCW); Washington
State Health Care Authority (HCA) and Department of Retirement Systems (DRS); collective bargaining
agreements; and the Professional Staff Program compensation policies and procedures.
Noncompliance in these areas might result in an increase in:
• Employment-related liability and lawsuits;
• Labor contract violations resulting in litigation, fines and unfair labor practices;
• Grievances, mediations and arbitrations and an increased risk of censure by the Public
Employment Relations Commission (PERC) because of our inability to respond to information
requests submitted by the unions;
• Legal action, grievances and penalties under the revamped HCA eligibility rules;
• Risk for penalties under IRC for noncompliance with 403(b) rules (UWRP, VIP);
• Service credit audit requests from DRS and appeals regarding retirement eligibility;
• Claims and complaints regarding noncompliance with federal and state labor laws.
HR is also responsible for assuring compliance with salary setting; administration of benefits and
retirement packages; recruitment and workforce planning; performance management and development;
disability accommodation; leave administration; dispute and conflict resolution; planning for
reorganization or layoffs; workplace violence prevention and response; corrective action; and employee
separations.
HR works closely with all UW departments to assist them in managing in these critical areas. Without
HR’s partnership at every level, the potential for compliance issues will increase as each department
interprets the laws and independently takes action which will put UW at risk.
Managers from across the University expect HR to provide advice and counsel that ensures consistent
practice in applying federal, state and local laws, collective bargaining agreements and UW policies and
procedures. Inconsistent and/or preferential treatment opens the door to lawsuits for any number of
issues from employment selection, pay, leave administration, etc. Without a strong HR team, UW
managers and supervisors are left on their own to plan reorganizations, layoffs and to deal with issues
such as claims of discrimination or harassment.
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Several HR units, including Benefits, Disability Services and Violence Prevention and Response
Program (VPRP), serve the entire campus community. Any reductions in these areas would impact
those services and would be detrimental to UW.
UNION RELATIONS
UW is a highly unionized employer with unions representing 16,737 employees in 23 bargaining units.
Union relations are of utmost importance in the smooth and efficient day-to-day running of the
University. Reductions of this scope would impair HR’s ability to provide timely guidance to UW
departments in interpreting and administering the terms of the collective bargaining agreements
covering the UW’s employees. Without adequate staffing, resolution of issues through the joint
labor/management process would be delayed with the potential to cause harm to the UW’s relationship
with the unions. Additionally, contractual timelines for processing grievances, mediations, and
arbitrations require that meetings and hearings are scheduled promptly and that union requests for
information as well as public records requests are handled expeditiously. Failure to do so could result
in a PERC decision finding that UW committed an unfair labor practice.
OPERATIONS
Employee relations’ positions are critical to support the University through these budget reductions and
ensuing volatile times. Therefore, as much as possible, we plan to retain the current FTE of those
positions. Two current vacancies in our employment area combined with a projected decrease in
employment activity will allow us to absorb a reduction in that area. However, it should be noted that
challenges will arise when activity increases again if UW does not have the employment staff to keep
up with demand. Delays in the employment process will result in slower turnarounds during the critical
hiring process and missed opportunities to hire the most talented person for the job.
ADMINISTRATIVE SYSTEMS
The administrative systems UW relies upon to monitor compliance for benefits and retirement eligibility,
salary administration, etc. is antiquated or nonexistent. Instead we rely on manual and locally
developed technological workarounds. Reducing HR staff would further jeopardize the effectiveness of
such monitoring making it possible for errors that could result in lawsuits.
SUMMARY
UW Human Resources is the binding force between the University’s departments/campuses and the
individuals it employs. Remaining a world-class University depends on the ability to recruit, retain and
develop world-class staff and faculty. Additionally, we must continue to create a culture of respect and
excellence in everything we do, while ensuring policies, practices, and legal requirements are being
implemented and consistently followed across the institution. This is the role of UW Human Resources.
To reduce the number of FTE’s, even by a small number given we are already understaffed, will
jeopardize our ability to fulfill that role.
The potential reduction in FTE for Human Resources is as follows:
FTE 8% 10% 12%
Reductions .80 .40 .90
Eliminations 7.70 9.70 11.70
TOTAL 8.50 10.10 12.60
In addition to reductions in FTE, at these levels, we would also need to reduce our operations funds.
Therefore, our day-to-day expenses will need to be reduced and our ability to move forward on strategic
initiatives would be limited.
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