ANN ARBOR, MI — The University of Michigan announced Monday that it will freeze hiring and employees’ base salaries will not increase through the end of the 2020-21 budget year as the university works to preserve financial resources during the coronavirus pandemic.

In an email to faculty and staff, UM President Mark Schlissel said all three campuses — including Michigan Medicine — estimate anticipated losses of $400 million to $1 billion through the end of the 2020 calendar year.

As a result, Schlissel said he and the chancellors of UM-Dearborn and UM-Flint will reduce their monthly salaries by 10% through the end of the year. The university’s remaining executive officers, chief diversity officer and athletic director will reduce their salaries by 5%, Schlissel said.

“I’ve previously mentioned the uncertainties we face from the pandemic,” Schlissel’s message said. “Like everyone across our nation, we don’t know how long it will last, nor can we precisely predict what the short- and long-term financial effects will be although recent indications are of grave concern.”

Regarding the hiring freeze, Schlissel said all hiring is frozen with the possible exception of staff or faculty in roles considered critical and those fully funded by federal grants. Units may still hire student employees as appropriate, he said, and the university will honor outstanding offers extended to staff or faculty.

Michigan Medicine will continue to apply its own criteria based on patient-care needs, including temporary staff positions, Schlissel said.

Schlissel said the only salary increases that will happen are those that have already been approved, are part of the faculty tenure and promotion process, or are contractual adjustments prescribed by collective bargaining agreements.

Along with the hiring and salary freezes, Schlissel announced a number of actions UM is taking to address the financial gap and other challenges during the COVID-19 pandemic, starting with four principles:

Deliver the mission of the University of Michigan

Value, protect and support our people

Preserve the University of Michigan’s long-term excellence

Communicate effectively and thoughtfully with our community.

More on the principles and Schlissel’s full message can be viewed here.

Schlissel announced the elimination of non-essential expenditures, which includes travel, conferences and use of consultants. He said research projects that are fully funded by federal sponsors can continue operations and spending as needed.

UM is also implementing two voluntary programs to give staff an unpair furlough during the COVID-19 pandemic or to temporarily reduce their work hours. Schlissel said in both cases, employees would be able to return to their regular position and hours at the end of the approved period, which can range from 60 to 120 days. More information can be found here.

Schlissel said that contractors have paused construction on campus and the university will reevaluate its financial ability in deciding when to resume projects already in construction and how long to delay projects that are proposed for design.

Schlissel said the university is uncertain about demand for classes, its ability to safely bring students to campus and the nationwide economic slowdown.

“In the months ahead, we may have to take additional measures to address growing consequences of the pandemic,” Schlissel said. “For instance, work that is available now under the current conditions may not be available in future months. We also must keep in mind the operational and resource needs when we are able to ramp back up. This will depend on state orders and federal guidelines, and it’s important to note that it won’t be like flipping a switch.”

Schlissel said the university is already working to plan for a “more gradual return to normal activity” informed by strong public health guidance. He said he is “cautiously optimistic” that UM can deliver a public health-informed fall semester on all three campuses.

PREVENTION TIPS

In addition to washing hands regularly and not touching your face, officials recommend practicing social distancing, assuming anyone may be carrying the virus.

Health officials say you should be staying at least 6 feet away from others and working from home, if possible.

Carry hand sanitizer with you, and use disinfecting wipes or disinfecting spray cleaners on frequently-touched surfaces in your home (door handles, faucets, countertops) and when you go into places like stores.

READ MORE:

Complete coverage at mlive.com/coronavirus

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