Fabrice Colin, President of the Laurentian University Faculty Association (LUFA), discusses the financial crisis at Laurentian University — the first publicly funded university in Canada to seek protection under the Companies’ Creditors Arrangement Act (CCAA).
How has the financial crisis at Laurentian University evolved since 2021?
On February 1st, 2021, the faculty learned that the university was applying for CCAA protection. This was followed by intensive mediation, a new collective agreement, an academic restructuring plan, and the elimination of 110 faculty positions in April 2021. Of those who lost their jobs, about twenty chose to retire rather than to be laid off — this to ensure that other colleagues kept their jobs. Another twenty or so professors resigned or took their retirement after the wave of lay offs.
The academic restructuring was deep. Certain faculties, including health and education, were combined. Several departments disappeared, while others were amalgamated. All these changes led to significant overwork for [remaining] academic staff. Uncertainties surrounding the CCAA process weigh heavily not only on faculty, but also on students and the community. Morale is at its lowest point on campus.
What has been LUFA’s position on the University administration?
A non-confidence vote in the senior administration took place at the same time as the ratification of the collective agreement. LUFA members called for the resignation of the people who led us to this debacle.
As LUFA has argued since the start of the crisis, the preliminary report of the Auditor General of Ontario established that using the CCAA was inappropriate. Our collective agreement includes clauses concerning critical financial situations that should have been invoked. According to the Auditor General’s report, the university never seriously considered these clauses.
The administration had a considerable length of time to plan [before invoking] the CCAA, but nevertheless neglected to give advance notice to LUFA. The Auditor General’s report provides a counterweight to the University’s President blaming the high salaries of faculty members, the large number of courses with low student enrolment, and numerous union grievances. The Auditor General is of the view that ill-advised real estate investments in 2009 were the first cause of the crisis. In addition, administrative expenses have grown by 75% in the last decade, causing the university to incur further debt.
The bill for the administration’s team of lawyers and legal counsel already amounts to $24 million. While our legal bills are much more modest than those of the administration, we have had the good fortune of obtaining the financial assistance and unconditional support of CAUT. Our association would have been left in a vulnerable and precarious position without CAUT’s intervention. We would also like to thank all the unions that sent donations to LUFA; all this solidarity has been a balm for the heart of our members.
What lessons have you taken from this financial debacle?
The situation at Laurentian University illustrates the failure and limitations of a corporate-style approach to managing a university. Given the nature and importance of the university’s mission, in the context of democratic societies, it is vital for the voice of faculty members to be heard and for there to be collegial governance.
If there had been true collegial management, if there had not been any decisions made by the administration behind closed doors, if the government had carried out its oversight duties through its representatives on the Board of Governors, if there had been true transparency regarding the university’s finances and operations, all of this would not have happened.
When do you think the Laurentian community can close this dark chapter?
There is no question about the substantial losses we have suffered since this crisis began — a crisis created by irresponsible university leadership and abetted by a provincial government who initially refused to support the university community. By its very nature, the CCAA restricts workers’ rights and requires substantial concessions from employees. LUFA’s members and the other university staff have been in an incredibly challenging position: at the mercy of a relentless legal process in which our rights have been severely limited. Still, we have managed to secure some important gains in the final Plan of Arrangement. We have fought tooth and nail for these improvements; we believe they are the best we could hope for given the severe restrictions of the CCAA.
What would you say to academic staff associations that are negotiating collective agreements?
Bargaining committees should require transparency regarding budgets; as well as call for funds to be earmarked and made available for fulfilling obligations towards members of their associations. We also recommend that bargaining committees strengthen clauses concerning critical financial situations and redundant positions.