In a major ruling, an independent arbitrator found that Portland State University violated its collective bargaining agreement when it laid off ten non-tenure-track faculty members at the end of the 2024–25 academic year.
The university had been trying to close an $18 million budget deficit, but the arbitrator determined it used the wrong contractual clause for the layoffs and failed to provide required justification.
PSU has been ordered to reinstate the ten faculty members and make them “whole.”
Why This Is a Big Deal
- The faculty union, Portland State University American Association of University Professors (PSU-AAUP), filed a grievance after 17 non-tenure-track faculty were laid off; the arbitrator found for the union on 10 of those cases.
- PSU saved more than $12.3 million, the equivalent of about 88 full-time positions, in its academic affairs division as part of the cuts.
- The decision declares that PSU must restore the jobs and likely compensate the affected faculty for lost wages and benefits.
- It reinforces that universities must follow shared governance and adhere to contractualprocesses when making layoffs.
Key Details of the Case
| Item | Detail |
|---|---|
| Budget Deficit | Approximately $18 million for the 2024-25 academic year |
| Number of Layoffs | 17 non-tenure-track faculty laid off |
| Faculty Reinstated | 10 faculty members ordered to be reinstated |
| Savings from Cuts | Over $12.3 million saved, equivalent to about 88 full-time jobs |
| Contract Violation | PSU used the “quick layoff” clause instead of the “economic downturn” clause, and did not provide required program justification |
| University Response | PSU says the decision is based on a “misguided interpretation” and is considering appeal |
| Future Cuts Planned | PSU has announced plans to cut another $35 million by 2027 |
Why the Union Won
- The arbitrator found PSU failed to show which specific programs or classes would be eliminated as required by the contract.
- Because the layoffs were clearly tied to budget problems, the union argued the university should have used the longer, more protective clause for economic downturns — a point the arbitrator agreed with.
- Many of the laid-off faculty had full classes, strong evaluations, and contributed to research and service, which strengthened the case that the cuts were not managed as the contract required.
- The ruling emphasizes that procedural fairness and faculty input matter, even in times of financial strain.
What It Means for PSU, the Faculty & Students
- For the ten faculty members: It means getting their jobs back, likely back pay, and restoration of benefits.
- For faculty as a whole: It sends a message that the university cannot bypass its contract simply because of financial stress.
- For PSU: It will affect the savings it had counted on from the layoffs and may complicate future budget-cut planning. The planned $35 million cuts loom large.
- For students: Class size, course offerings, and faculty continuity may be impacted if cuts are delayed or scaled differently. It also raises concerns about morale and trust within the institution’s governance.
The ruling against Portland State University marks a significant win for faculty rights and contractual oversight in higher education.
The university’s attempt to navigate an $18 million budget shortfall by eliminating non-tenure-track positions without following the correct procedure has now been reversed.
Ten laid-off faculty members will be reinstated, and PSU must account for the financial and procedural implications moving forward.
While the institution faces ongoing financial pressures and future budget cuts, this case underscores that financial exigency does not nullify contractual governance.
For students, faculty and administrators alike, the message is clear: even in lean times, process matters.
