University of Western Ontario Staff Association

As has been widely reported, UWO President Paul Davenport will receive a lucrative retiring allowance when he departs Western on June 30. He will, under this allowance, continue to be paid for two years after he leaves Western. The value of this allowance is in excess of $700,000. This is in addition to the generous pension he will receive (a pension which is significantly more generous than the ones enjoyed by staff or faculty). UWOSA believes this type of "golden handshake" is inappropriate at the best of times, and repugnant at a time when jobs are threatened.

What will this allowance cost UWOSA members? The value of the allowance (approximately $350,000 a year) is equal to 7 UWOSA jobs (at the current average bargaining unit salary and including the cost of benefits) for the two years it will be paid. UWOSA asks: How can a retiring allowance that costs 7 jobs be justified?

This allowance was not part of the President's re-appointment contract when renewed in 2004 - it was added in March 2007. UWOSA members will recall that Western was, at that time, engaged in difficult negotiations with UWOSA (and other groups) regarding health benefits and was claiming that the escalating cost of those benefits were a financial problem for the University. It appears odd to UWOSA that money was available for this incentive at a time money for benefits was said to be at a premium.

This allowance is, sadly, legal. The contract signed by the Board of Governors in March 2007 is binding, and the UWO must now pay President Davenport this allowance. Unless, of course, the President agrees otherwise. UWOSA calls on President Davenport to stand up and say that he will not accept the allowance; that he will put people's jobs and the University first and renounce it. That would truly leave a legacy to be proud of.

UWOSA has taken two steps to prevent another such "golden handshake" at the University of Western Ontario. First, we have written the Chair of the Board, asking her to ensure that no such arrangement is contemplated for the new UWO President, Amit Chakma, who takes office on July 1. Second, we have written the Premier of Ontario and Minister of Colleges, Training and Universities, asking for legislation to prevent Universities from entering into such contracts in the future.

This is a public institution funded with public money. The taxpayers of Ontario want to fund education for their children, not lucrative retirement allowances. We should all be outraged.

President Davenport's entire contract can be downloaded here.

For further information, please contact:

David Empey, President
Email or Phone: (519) 661-2111 x85041