OAKLAND UNIVERSITY 
BOARD OF TRUSTEES 
WORKING SESSION AGENDUM ITEM 
NOVEMBER 5, 2003

PROPOSED AMENDMENTS TO THE PERSONNEL MANUAL TO COMBINE ALL ADMINISTRATIVE PROFESSIONAL AND INDIVIDUAL CONTRACT EMPLOYEES INTO A SINGLE EMPLOYEE GROUP

Division/Department:  Finance and Administration

Summary:
At the November 6, 2002 Board of Trustees Working Session, the Board was presented with a proposal to combine the Administrative Professional and Individual Contract employees into a single group. As discussed at that time, there are currently two main groups of employees at Oakland University who perform administrative, professional and managerial functions, Administrative Professional (AP) and Individual Contract (IC) employees.

The existence of two separate groups performing similar functions has created confusion, frustration, and a perception that one or the other group is treated more favorably depending on the issue. Both groups have expressed a desire to combine into a single group. With the implementation of a single compensation structure in 2001 that includes both groups, the University is now ready to address other differences between AP's and IC's in an effort to combine administrative, professional and managerial employees into a single employee group.

At the November 6, 2002 Working Session, Jean Ann Miller, President of the Administrative Professional/Individual Contract Association requested that the Board of Trustees delay final approval of the changes to the personnel policy manual to allow the Executive Board of the AP/IC Association time for review. Since the November 2002 Working Session, the AP/IC Association Executive Board and a representative from University Human Resources have worked together to review and update the personnel policy manual.   The AP/IC Association Executive Board is currently reviewing the final version of the personnel policy manual, and substantive changes to the manual are not expected.

The following are the major changes resulting from combining the AP's and IC's:

•	IC's will become AP's and AP’s will no longer be given term contracts, but, rather will either be hired as “just cause” or “at will” employees, without a fixed end date.  Intercollegiate athletics managers and coaches, Lowry Center teaching staff and persons whose positions are funded by short-term external funds will become a separate employee group and will continue to have term contracts.  The employees in this group will receive most of the benefits AP’s currently receive. 

Proposed Amendments to the Personnel Manual to Combine All Administrative Professional and Individual Contract Employees into a Single Employee Group Board of Trustees Working Session
November 5, 2003
Page 2

•	All newly hired AP's will serve a one-year probationary period during which they will be "at will" employees. "At will" employees may be discharged at any time with or without cause and with or without prior notice.

•	All AP's in salary bands S and above, and in University Human Resources, Office of the General Counsel, University Diversity and Compliance, the Golf Course and development officers will be "at will" employees. Other AP's will be "just cause" employees. "Just cause" employees may be terminated for various pre-determined reasons, including but not limited to misconduct, as set forth in the employment manual.

•	All current AP's who have completed probation will become "just cause" employees, even if they hold a position that otherwise would be “at will.”  They carry this “just cause” status with them to any AP position they obtain before January 1, 2009.  Current IC’s, however, assume the employment status of the position they hold and never carry "just cause" status with them into "at will" positions.

•	AP's who are "at will" are eligible for severance pay if terminated after one year of service for reasons other than misconduct. Severance pay will be one month of salary per year of service, up to a maximum of six months.

Action to be Requested at Next Formal Board Meeting:
The Board of Trustees will be asked to approve the implementation of a combined group of AP's and IC's effective January 1, 2004. The Board of Trustees will be asked to approve the Administrative Professional Personnel Policy Manual, which revises the current Personnel Policy Manual for Administrative Professional Employees and Administrative Professional Employees with Individual Contracts that was last modified September 1, 2001.

Previous Board Action:
The Board adopted the Personnel Policy Manual for Administrative Professional
Employees and Administrative Professional Employees with Individual Contracts on July 29, 1999. In August 2001, the Board amended the Personnel Policy Manual for Administrative Professional Employees and Administrative Professional Employees with Individual Contracts to reflect the new compensation structure that now covers both AP and IC employees.    The Board also approved that vacation accruals for AP employees be calculated based on length of service at Oakland University rather than grade level assignment. The effective date for those changes was September 1, 2001.

Proposed Amendments to the Personnel Manual to Combine All Administrative Professional and Individual Contract Employees into a Single Employee Group Board of Trustees Working Session
November 5, 2003
Page 3

Personnel Implications:
By eliminating the term contract system and providing more consistent benefits for employees in this group, the employment system will be simplified and reduce perceptions of disparity in benefits. Certain sensitive and senior level leadership positions will be "at will"; consistent with how these positions are treated at like educational institutions and in the private sector. Most AP’s will be "just cause" employees.

Attachment:
	1. Summary of Proposed Benefits

Budgetary Implications:
It is estimated that the net cost of implementation of the proposed changes to combine all administrative professional and individual contract employees into a single employee group will be approximately $15,400.

Reviewed by Secretary Victor A. Zambardi:				         __________
										              (Please Initial)

Reviewed by President Gary D. Russi:				         __________
										              (Please Initial)

ATTACHMENT 1

SUMMARY OF PROPOSED BENEFITS

AP	IC	Proposed	
Sick time
After 1st year 13 days
After 2nd year 26 days
After 3rd year 39 days
After 4th year 52 days
After 5th year 65 days
After 6th year 130 days	Sick time
14.67 hours per month
22 days per year.
Unused
hours are carried over
until maximum of 130
days	Implement Current AP
Plan	
Vacation Accrual
1-6 Months 8 hours per month
After 6 months 14.67 hours/Mo.

	Vacation Accrual
1st mo. 14.67 hours/Mo.

	Implement Current AP
Plan

	
			
Leaves of Absence
Available after 6 month probationary period

	Leaves of Absence
Not available

	Implement Current AP
Plan 
Increase probationary period from 6 to 12 months

Tuition for Dependents
Tuition Only

	Tuition for 
Dependents
Not Available

	Implement Current AP
Plan with modifications to both employee and dependent benefits.

Retirement
Available for employees who work 20 or more hours a week.
	Retirement
Available to full-time employees

	Implement Current AP Plan

	

Longevity-Bumping-AP employees hired prior to 08/01/99 will continue to be eligible for longevity pay (Section VI) and have reassignment through bumping (Section IV) as described in the current Personnel Manual.