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IU to Raise Salaries Three Percent

Indiana University employees are set to receive a salary hike if a proposal before the school’s trustees finds approval Friday.

Effective November 1, all IU employees would receive a three percent pay increase, effective for the last eight months of the fiscal year.  IU Chief Financial Officer Neil Theobald says the majority of the $26 million cost is offset by the university moving to a bulk purchasing systems for all its campuses…

“Purchasing appears to be saving us about two million dollars a month initially,” Theobald said.  “In the first five months, we were able to save $10 million.”

Still, Theobald says his office only has enough savings on hand for a 2% raise, which is why the increase wouldn’t take effect for three months.  To come up with the remaining one percent going forward, the University will look to streamline its student services and human resources departments.  Union leaders on campus say they’re happy with the extra cash, but more can still be done.

“We’re happy to hear the news," said Communication Workers of America Local 4730 President Bryce Smedley.  "A lot of support staff are suffering and this kind of money, this raise, will help out to an extent…”

Smedley says the raise only partially offsets increases in health care and parking costs, adding he’d like an open forum where support staff can offer views on how to make pay and benefits more equitable.

“ IU’s in a tough spot, so we have to be creative.  But we have to allow everyone to have a seat at the table,” he said.

The Board of Trustees will vote on the raises Friday and could still make changes to the numbers.  Theobald says uncertainty in the economy means decisions about any future pay hikes are still up in the air.

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