COVID-19 crisis forces Seattle U to cut pay and furlough staffers

Seattle University, one of the Capitol Hill area’s largest employers, will furlough 79 staffers and begin “mandatory and voluntary pay reductions of up to 20%” due to the economic impact of the COVID-19 crisis, the Seattle Times reports.

In a letter to faculty and staff, Seattle University President Stephen Sundborg said the private school’s Cabinet and deans will take mandatory pay reductions of 10%, and will be asked to consider voluntary reductions of up to 20%. Upper-level administrators have been asked to take a voluntary reduction of 5 to 20%, and full-time faculty “have been invited to consider a voluntary reduction of 5 to 10%,” Sundborg wrote.

Seattle U says it has lost $7 million due to the costs of remote instruction and closing its residence halls, and is planning a $9.1 million budget cut for the next fiscal year.

Seattle Central and its public Seattle community college system, has also transitioned to remote learning. The colleges have not announced furloughs or cuts at this time. CHS reported on Seattle Central’s struggles to keep up with changes brought on by the crisis in the early stages of the outbreak.

Record levels of unemployment claims are being filed in Washington. The federal CARES act has expanded eligibility for unemployment assistance to include the self-employed, increased the weekly benefit amount by $600, and extended the time available for unemployment assistance by 13 weeks.

Seattle U employs more than 500 full-time and another 200 or so part-time faculty and maintains an enrollment around 8,000 students. Most experts predict enrollment at private colleges will be hard hit by the long term economic impact of the crisis.

Washington unemployment claims ‘highest on record’

Washington totals have reached nearly 600,000 in need of unemployment benefits, the state reports:

During the week of April 5-11, there were 143,241 initial and 585,983 total claims for unemployment benefits, according to the Employment Security Department (ESD). While initial claims declined 16% from the previous week, it was still the third highest weekly number on record and five times more claims than the peak week during the Great Recession. Total weekly claims are now the highest on record.

Washington’s Employment Security Department says it paid out $125.9 million to 265,798 unemployed workers the week of April 5th, a $45.6 million increase from the previous week. “Since the start of COVID-19 job losses the week ending March 7th, the department has paid out nearly $272 million in benefits to Washingtonians,” the update reads. Continue reading