Penn State forced to make employee paycuts

UNIVERSITY PARK, Pa. (WTAJ) — Penn State announced Thursday that employees in the office of Physical Plant and Auxiliary Services, which includes employees that work at University hotels, conference centers, and events at the Bryce Jordan Center — will be receiving a 50 percent pay cut in their salary.

This change will be effective starting May 4th through the end of June.

We’re told this impacts teamsters local union employees. The university says they’ve reached a tentative agreement with union reps, which will be finalized in the near future. The University adds they are planning to direct federal stimulus funds received by the University intended for institutional support, separate from student support, to help make this possible.

Despite the cutback in salary, these employees will continue to receive benefits, and most of these employees should be eligible for unemployment and stimulus support. Benefits will be based on their adjusted salary. 

There is currently no word on what will happen to employees down the road, nor is their a number listed as to how many employees will be affected by these changes.

Penn State projects about $260 million in losses so far due to the COVID-19 pandemic.

For more information on the pay cuts, click here.