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Home » Hamilton » Projecting $50M deficit, Mohawk College president warns of layoffs, blames government policies
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Projecting $50M deficit, Mohawk College president warns of layoffs, blames government policies

November 11, 20247 Mins Read
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Projecting $50M deficit, Mohawk College president warns of layoffs, blames government policies
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The president of Mohawk Faculty says a drop in worldwide scholar enrolment means the college is dealing with a projected $50-million deficit within the 2025-2026 college 12 months.

That is going to imply layoffs, he instructed staff in an Oct. 30 memo.

Mohawk’s president Paul Armstrong instructed CBC Hamilton he already deliberate a “deep assessment” of faculty programming when he began his function in July, however that authorities coverage modifications pressured an excellent deeper look.

“What we have been seeing is a dramatic discount within the degree of worldwide enrolments that we are able to anticipate,” he mentioned, including that can lead to a niche between income and bills. 

Heather Giardine-Tuck, president of Native 240 of the Ontario Public Sector Worker Union (OPSEU), mentioned “persons are very anxious about their packages, about their college students.” She represents about 1,000 college, librarians and counsellors at Mohawk.

Susan Lau represents about 1,000 assist employees in OPSEU Native 241 — a gaggle together with individuals who work in data expertise, amenities companies and campus shops. She mentioned the state of affairs has brought about “quite a lot of anxiousness, quite a lot of stress and quite a lot of fear.”

A “feeling of understaffing and excessive workloads,” has been a problem for the previous 5 years, she mentioned, and members fear about that getting worse.

WATCH | Provincial underfunding, federal modifications blamed for troubles, president says: 

Mohawk Faculty’s president explains why the faculty is dealing with a $50M deficit

Mohawk Faculty’s president says the faculty is dealing with a $50 million deficit principally attributable to dropping worldwide scholar enrolment.

Faculty sees drop in worldwide enrolments, functions

In an e mail, Mohawk spokesperson Invoice Steinburg instructed CBC Hamilton that in fall 2023 the faculty had 7,309 worldwide enrolments. This previous fall, it had 6,166. Enrolment represents the variety of sections college students are taking, not the variety of college students. 

As of final week, the faculty had obtained 3,065 worldwide functions. On the identical time final 12 months, it had obtained 5,691.

“Our monetary problem will lead to impacts in each single space of the faculty,” Armstrong mentioned. “There can be program reductions. There can be service reductions. There can be staffing place eradicated inside all of our three worker teams: administrative, assist employees and college.”

Mohawk says it has 1,200 full-time staff and as much as 1,250 part-time staff, although that quantity modifications every semester. There are 14,694 college students enrolled in packages this semester. 

President would not say how many individuals face layoffs

“We are going to do all the pieces we are able to to remove wage prices appropriately earlier than we get to the purpose that we would be issuing layoff notices to anybody,” Armstrong mentioned. 

He mentioned it is too early to know what number of layoffs there can be, partly as a result of the faculty has supplied up early retirement packages with a Nov. 15 deadline and would not understand how many individuals will take them.

Neither union blames the administration for the monetary strife. “The state of affairs that we’re in is the results of persistent underfunding from the provincial authorities,” Giardine-Tuck mentioned.

“Selecting to not fund schooling in a healthful and complete method has led to establishments being pressured to seek out income elsewhere. And that ended up being worldwide college students,” Lau mentioned. “Now that ranges of presidency are turning off the faucet on that, all the system is in a state of getting to take drastic actions to make up the loss.” 

Feds declare it is defending program’s ‘integrity’ 

Over the previous 12 months, the provincial and federal governments have made quite a few coverage modifications successfully limiting the variety of worldwide college students in Ontario schools and universities. This got here in response to critics linking immigration to the housing disaster, in addition to considerations relating to an absence of assist for worldwide college students, and companies described as “unscrupulous non-public operators.” 

In an announcement to CBC Hamilton, Minister of Immigration, Refugees and Citizenship Marc Miller’s workplace mentioned the worldwide scholar visa program “had develop into overheated and misused in sure areas, together with Ontario.”

“Our message to the provinces and the post-secondary establishments is evident: the times of doing enterprise by placing revenue above the schooling and well-being of scholars is over. For our half, we’re taking steps to make sure and restore the integrity of the worldwide scholar program,” Miller’s workplace mentioned, including he warned the ministry “would intervene and defend this system, together with using blunt coverage devices below federal jurisdiction, if college students continued being inadequately supported” final fall.

Armstrong mentioned Mohawk’s objective with worldwide schooling has been to “internationalize and convey range to our school group,” in addition to to align enrolments with native labour-market wants.

When requested if the faculty erred in turning to worldwide college students the best way it did, Armstrong mentioned he thinks Mohawk has been “accountable” and “measured” in comparison with different establishments.

“I do not assume we have made an error in judgment in any respect and I do not assume wanting again we might have performed something otherwise up till this level.”

Authorities modifications criticized

Armstrong can be essential of the federal government’s modifications. For instance, he mentioned, reductions within the variety of packages for which worldwide college students can get hold of post-graduate work permits do not make sense to him. 

Mohawk at present presents 158 packages. Final 12 months, there have been 130 eligible for post-graduate work permits. Now, 41 are eligible, that means there’s much less incentive for college students who need to keep in Canada to return in. Of these he mentioned, some packages he considers essential to the labour market, equivalent to early childhood schooling have been excluded.

Miller’s workplace mentioned it plans to yearly “refresh” the record of eligible fields it considers for permits, taking suggestions into consideration. It added that modifications to the post-graduate work permits don’t stop grads from accessing work permits below Canada’s Momentary International Employee Program or the Worldwide Mobility Program.

The workplace didn’t particularly handle why it excluded schools’ early-childhood teaching programs.

In an e mail, Dayna Smockum, a spokesperson for Ontario Minister of Schools and Universities Nolan Quinn mentioned “funding for post-secondary establishments is larger than it is ever been,” including the province invested $1.3 billion to “stabilize the sector” earlier this 12 months.

“The federal authorities unilaterally made the choice to limit the variety of worldwide scholar visas, and we’re persevering with to work with the sector to make sure the long-term vitality of our post-secondary establishments.”

WATCH | President says school didn’t err in strategy to worldwide college students: 1731297488 763 default

Mohawk Faculty president says Hamilton college’s strategy to worldwide college students was accountable

Mohawk Faculty president Paul Armstrong says the Hamilton college’s strategy to worldwide college students was accountable.

Nevertheless, Steve Orsini, president of the Council of Ontario Universities, says public funding has been declining since 2006 on a per-student foundation, resulting in “a decade of monetary constraints.” His group represents 20 publicly funded universities.

In 2023, an knowledgeable panel beneficial rising per-student funding and ending a tuition freeze. Orsini mentioned the province has not enacted these suggestions.

The consequence, he mentioned, is that 10 universities had deficits of greater than $300 million final 12 months. And now due to the worldwide scholar modifications, his group has warned, Ontario universities are projecting losses of greater than $300 million within the 2024-2025 college 12 months, and greater than $600 million the next 12 months.

Orsini describes the federal modifications as “blunt.”

“The federal authorities wanted to focus on the dangerous actors. The strategy they took focused the great performers,” he mentioned.

CBC Hamilton requested an interview from Schools Ontario, which represents schools, however didn’t obtain a response previous to publication.

Cuts wanted to guard school long-term: Armstrong

Armstrong mentioned layoffs at Mohawk can be evenly felt and that managers won’t be spared on the expense of staff.

Giardine-Tuck mentioned the union is trusting them on that. She and Lau mentioned they will be working to make sure members perceive the rights of their collective agreements. 

It is higher for Mohawk to make modifications now to keep away from worse ache in a while, Armstrong mentioned, however the short-term impacts can be “very critical.”

“There can be issues that we are able to now not do at Mohawk which are going to be seen as doubtlessly a takeaway from our college students, and from our group extra typically.” 



50M blames College deficit Government Hamilton News layoffs Mohawk policies president Projecting warns
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