On August 28, Cornell and the United Auto Workers (UAW) reached a tentative settlement of their dispute. The agreement will be put to a ratification vote by dining, custodian, grounds and maintenance workers on September 1 and 2 with the goal of resuming work on Tuesday, September 3.
The UAW members had been out on strike since August 19. While out on strike, the workers were not paid by Cornell, but instead received $500 per week in strike benefits from the UAW.
Background
In general, Cornell’s budgeting and finances have been very tight since losing money during the COVID-19 pandemic. Pay increases for staff and faculty have failed to keep up with inflation. However, by controlling costs, Cornell has been able to keep tuition and other costs below inflation, while improving the financial aid packages for students in need. This is challenging because 61.9% of the Cornell budget goes toward salaries and benefits, which tends to increase with inflation. However, Cornell’s affordability depends on both the overall tuition level and the financial aid budget where the scholarship endowment payouts and designated donations have not kept up with inflation. So, it is mathematically impossible both to protect salaries from inflation while protecting the quality of financial aid packages.
The UAW historically agreed to “share the pain” with other salary pools. Based on this the Cornell Trustees approved a 4.9% tuition increase in March 2024 for 2024-25. The cost of a meal plan increased by only $191, with financial aid packages fully funding both increases. The Trustees set those rates without protest from the UAW.
On April 22, the UAW began negotiating their new contract to take effect July 1. The UAW presented a list of 40 demands, including a sizable initial pay increase and a cost-of-living adjustment. Cornell was prepared to offer an overall 9% increase in pay to the union members at a time when the faculty salary pool was increasing only 4.1%.
Given that Cornell had already announced its tuition levels and meal plan prices, there was little flexibility to meet the UAW’s aggressive demands, and a strike became inevitable.
The Strike
During the strike UAW members have been picketing at varying locations on campus. In one case, they broke the Interim Expressive Activity Policy by blocking traffic at the corner of Tower Road and Feeney Way. On August 26, UAW Region Nine President Daniel Vicente criticized Cornell for its support for Israel — which he called the “Zionist state.” Because that speech used amplified sound at a rally held inside the Klarman Hall atrium, it also violated the policy.
One of the issues negotiated was whether the Interim Expressive Activity Policy would apply to UAW members.
On August 26, the UAW filed a complaint with the National Labor Relations Board alleging that Cornell failed to negotiate in good faith in violation of Section 8(a)(5) of the National Labor Relations Act.
During the strike, Cornell reduced the hours of the cafeterias and limited lunch to “grab and go” food. The mowing of grass and other non-essential tasks have been greatly reduced.
The Proposed Agreement
Cornell’s announcement of the settlement summarized:
In addition to significant wage increases, the tentative agreement contains a Cost-of-Living Adjustment (“COLA”) to protect employee wages against inflation as well as increased flexibility in the use of health and personal time; floating holidays; greater vacation benefits for employees with less than five years of service; and greater access to University-provided clothing and shoe allowances. The parties have also agreed to compensate peer-to-peer training and solidify our collaborative approach to health and safety.
The UAW’s website reported that the settlement provides for a 21%-25% wage increase over the four years of the contract. One factor in making the agreement possible was to move some of the costs from the 2024-25 school year to the following year.
Until the workers ratify the agreement, the UAW members will continue to strike and to protest.