Sunday, July 12, 2009

Furloughs and Layoffs: the Numbers

The information below is extracted from staff answers to questions from chapters:

General Payroll Information

  • As of March 31, 2009, our total numbers are 16,052 (headcount) or 14,455 (Full Time Equivalent or FTE).
    • So, FTE is approximately 90% of the headcount.
  • Average annual salary for a CSUEU represented employee as of March 31, 2009: $45,405
  • Cost of a 1% salary increase for CSUEU-represented employees as of March 31, 2009: $6,563,393

Furlough v. Layoff Savings and Impact

  • CSUEU's share of the payroll savings resulting from 2-days of furloughs would be approximately $65.6 million plus benefits.
  • On June 9, 2009, Chancellor's Office representatives told CSUEU that if we rejected furloughs and the CSU had to initiate layoffs, we would be looking at approximately 2,000 layoffs of permanent employees, in addition to the non-reappointment of all temporary employees in BU 2, 7 and 9, and 77% of the temporary employees in BU 5. That equates to approximately 3,200 temporary employees (headcount) or approximately 2,800 temporary employees (FTE).
  • The annual savings resulting from 2,000 layoffs and the non-appointment of 2,800 temporary employees would be approximately $217,000,000. That is about 33% of the employees we represent.
  • In terms of sheer numbers, the impact of layoffs would be far greater than the impact of furloughs for several reasons:
    • Historically, campus presidents have laid off support staff disproportionally greater than faculty and MPP.
    • The CSU is aware of this and thinks furloughs would equalize the pain in a fairer and more equitable manner.
    • Under Article 24, there are notice requirements to both the union and to individual employees that could delay the implementation of layoffs to October or November 2009. Therefore, a higher number of layoffs would be needed.
    • Campuses have historically overestimated layoff targets to make sure they generate enough savings. With numbers of this magnitude, it would be hard to accurately estimate the impact of seniority and its associated bumping rights.
  • In rough numbers, therefore, layoffs would represent a savings of 33% of CSUEU payroll costs, while furloughs represent a savings of approximately 10% of CSUEU payroll costs.


  • Each union must make its decision on furloughs on July 20th, the day before the next CSU Board of Trustees (BOT) meeting. The Chancellor and the campus presidents will be announcing their plans for reducing costs after the July 21st BOT meeting.


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