Members of the PSU American Association of University Professors faculty union picket over faculty cuts outside a Board of Trustees meeting on Jan. 24, 2025.
Tiffany Camhi / OPB
Portland State University and its local chapter of the American Association of University Professors, PSU-AAUP, are still at odds over whether the university followed its labor contract with the union when it laid off several faculty members last school year.
But in a Nov. 6 labor grievance decision, an independent arbitrator has made her position clear: “I find the union has met its burden of proof and established that the university failed to adhere to contractual terms in laying off 10 of its non-tenure track faculty.”
As part of the award, the 10 faculty members in the complaint are to have their previous jobs restored and “made whole.” Impacted faculty said they are ecstatic about the decision.
“I have had the pleasure to work in the classroom at Portland State for almost 25 years, and I love the work that I do,” said Jennifer Kerns, a PSU associate history professor who was laid off in June. “I want to serve my students, and I’m happy to be able to get back in the classroom.”
The layoffs in question were part of PSU’s yearlong plan to close an $18 million budget deficit before the end of last school year.
The effort itself was successful. But it was also extremely controversial among the university’s faculty, staff and students. Faculty protested the cuts and said they weren’t privy to the administration’s budget streamlining process. And when PSU sent out pink slips to 17 non-tenure-track faculty last December, PSU-AAUP responded with a labor grievance.
The union alleged PSU did not follow layoff procedures in its collective bargaining agreement. The arbitrator agreed.
“These were all folks who had full classes. They were great contributors to PSU in all kinds of ways: research, teaching and service,” said PSU-AAUP President Bill Knight. “To see them restored to their positions — it feels like justice.”
Reinstating these 10 jobs will no doubt eat into the savings PSU accumulated from faculty cuts last school year. The university saved over $12.3 million, the equivalent of about 88 full-time positions, in its academic affairs division, according to recent financial plan documents.
The union’s argument hinges on two contract clauses that outline specific processes the university must take when reducing PSU-AAUP members from its workforce. One clause offers PSU a quick route to layoffs, provided the university includes detailed justification for eliminating programs and classes. The other clause is a much more lengthy procedure intended to be used by the university when it’s experiencing an economic downturn.
Last school year, Portland State administrators chose the swifter path. The arbitration decision noted that the university thought the longer layoff process was not appropriate “because there has been no Presidential declaration that the university has insufficient funds to pay its bills.”
But the arbitrator said the university chose the wrong contract clause in which to make faculty cuts, writing that “budgetary concerns are ‘stamped’ on virtually every piece of evidence in this case.” She also said the university failed to provide sufficient reasoning for each of the 10 layoffs in the grievance case.
In a statement, a PSU spokesperson said the decision is based on a misguided interpretation of the contract agreement.
“PSU is facing the challenge of continuing to offer an excellent and affordable education despite reduced enrollment and other economic headwinds,” said the university spokesperson. “We greatly value every member of our faculty and staff and are striving to work together toward a sustainable and vibrant future for the university.”
The arbitration decision is binding, but Portland State is considering an appeal. This is PSU’s second labor violation in as many months. Last month, the Oregon Employment Relations Board found the university violated state labor law when it withheld certain funds meant for Portland State University Faculty Association members.
These labor tiffs come as PSU readies for future rounds of budget cuts in the coming years. Earlier this year, the university announced a new plan to cut $35 million from its operating budget by 2027.
PSU-AAUP’s members know that more faculty cuts are inevitable. But they are hopeful that last week’s arbitration decision will mean the university will engage faculty in the layoff process in a more thoughtful way.
“[The decision] forces the university to respect the concept of shared governance,” said Knight. “It’s a reminder to the university that they can’t simply make arbitrary administrative decisions without involving the faculty.”
