SCHENECTADY – Union College is cutting staff after two years of failing to meet enrollment goals.
On February 2, a memo was sent to college employees encouraging early retirement for those who have worked at the college for at least 10 years and are over 60 years old.
The college also announced it would lay off all dining staff. The company has about 40 employees, according to a source who requested anonymity because he was not authorized to speak to the media.
The union needs to cut staff “to achieve necessary savings,” the memo said.
Retirees will receive two weeks of pay for each year of service at the college, up to a maximum of 78 weeks (meaning the employee has worked at Union for 39 years).
The memo said catering employees will “have the opportunity” to apply for jobs with Bon Appetit, the contractor that operates the catering operations.
Employees can also apply for other union jobs or, if eligible, retire early. Those who leave the league without retiring will receive severance pay, the memo said.
Employees who leave will lose one of the major benefits offered by the alliance: the college pays most of their children’s tuition. They can go to Alliance University or get a scholarship to go to another university.
Those who retire early will retain their tuition assistance benefits as union retirees, spokesman Phil Wajda said.
“For those dining employees who are not eligible for early retirement, the college will continue to provide tuition benefits to students currently enrolled in college or high school students who have applied to college,” he said.
He said Union is still using its $600 million endowment to make ends meet.
Last May, the college president said the alliance draws $27 million annually from its endowment for operations and will draw an additional $5.5 million this academic year. At the time, he said the college’s endowment was $525 million.
Vajda said the current donation amount is $600 million.
“As noted in the memo, while we are seeing positive signs in terms of applications and deposits in the fall, we do have several smaller classes that impact our budget,” Vajda said. “Union is fortunate to have a $600 million endowment that helps cover our costs, but we need to manage it and preserve it for future generations.”
He declined to say how much Union College paid new president Elizabeth Keith, who took office July 1. He said the college never disclosed the salary.
The college will be required to include it in the IRS 990 filing, but this year’s 990 will cover the 2024-2025 academic year, which ends on June 30. Because Kiss didn’t start her job until July 1, her starting salary won’t be made public until next year’s 990 filing.
The league paid David Harris $782,595 in the most recent 990 filing to serve as president in 2023-2024, along with $115,266 in “other compensation.”
This article was originally published on Union College lays off dozens of employees, offers early retirement.
