The first Governing Council meeting of the year was dominated by talk of U of T’s finances. Senior administration officials expect turbulent times for 2010–2011.

“Prepare for choppy waters, it’s going to be exciting,” said U of T President David Naylor in his opening address to Council after a lengthy report in which he reviewed the university’s financial situation in the context of the ongoing arbitration with the faculty association, budgetary pressures imposed by the province, and the deficit in U of T’s pension plan, among other items.

Naylor also discussed the current talks around the restructuring of the Faculty of Arts and Science. “You can imagine from some of the coverage this summer that as colleagues in Arts and Sciences contemplate how to balance their budget that this is very difficult terrain to navigate,” he told ouncil. He added that the university would be consulting with members within the faculty throughout the fall.

However, the administration is facing a growing chorus of criticism over its handling of the academic planning process in its early stages. Pressure has been mounting since early August when a letter addressed to Dean Meric Gertler, signed by 42 professors and heads of departments, criticized the administration for implementing parts of its plan without consulting stakeholders. Since that time, the faculty association has also expressed its concern and written an open letter to Provost Cheryl Misak. In the letter, the association states that it plans on filing a formal grievance over the “disrespectful” tone of Gertler’s response to certain proposals, and an overall “breakdown in collegial governance” at U of T.

“We’ve seen a lot of concern expressed by colleagues within the Faculty of Arts and Science,” Naylor told The Varsity after the meeting on Monday. “There are always going to be pressures and strains when any restructuring occurs but consultation is imperative. I think the faculty association rightly highlights the importance of consultation in moving any restructuring process forward.”

UTFA has stated that the aim of its grievance will be to “establish rigorous and clear protocols governing academic planning at the university.”

“I think we would probably be obliged to respond to the grievance and argue that the current course of consultations is addressing and remedying many of their concerns,” replied Naylor when asked whether he felt the association had grounds for a formal protest.

Naylor also told Council that the Provost was getting involved in the planning process. “The provost has been working her usual magic behind the scenes to try to make sure that this particular 747 lands quietly and safely,” he said.

Kent Kuran, a full-time undergraduate student on Governing Council and a member of The Varsity’s Board of Directors, said he thought the restructuring of the Faculty of Arts and Science was a positive development overall. “Having to have so many different administrative levels for the same thing doesn’t necessarily make sense,” he said. “If you think about it, do I want to go to a university where I get maybe a slight more amount of course selection in some languages or do I need to go to a university that’s going to be around in ten years that’s not bankrupt?”

Others were similarly approving of the university’s efforts. “I think it’s a step in the right direction the way the provost’s office and the dean’s office is having further consultation and I’m really happy to see that,” said Greg West, a graduate student on Council who said he was in the process of hearing from students in his constituency about the restructuring. “I think like every year since the financial collapse it’s going to be a tough year, but I think we’ll get through it.”

Naylor also addressed U of T’s pension deficit, one of the largest among Canadian universities. In his opening address, he drew attention to the pension contribution rates at U of T in comparison with the Ontario Teachers’ Pension Plan, where contribution rates, he said, are 11 per cent for both employers and employees. Naylor said that rates at U of T, which were 11 per cent for employers and 5.5 per cent for employees, were unsustainable.

However, another recent report from the faculty association attributes many of the problems with the pension plan to mismanagement as opposed to contribution rates, and criticizes the administration’s handling of the pension fund. It also submits that UTFA is categorically opposed to the 2.7 per cent rate increase sought by the administration in bargaining talks and contemplates taking the university to court over pension governance.

“It’s going to be an interesting year,” concluded Naylor in his opening remarks to Council. “I anticipate that there will be some turbulence simply because the concatenation of reasonable expectations of employees, a stuttering economy, and a chronically underfunded sector means there will be some flashpoints.”

This article originally quoted Naylor as saying “the province has been doing their magic behind the scenes…,” when he in fact said “the Provost.” The Varsity regrets the error.