Note: A few hours after this story published, Oakland City University announced it would suspend undergraduate programs next school year and layoff an unknown number of employees.
EARLIER:
EVANSVILLE – Oakland City University employees are now entering their third week without paychecks, and there’s no indication when their money may arrive.
A source at the school who asked not to be identified told the Courier & Press Monday morning that workers had received no pay and no recent communication from the university. At least one OCU employee asked for an update from school administration, only to get silence in return.
They said at least four people in “important positions” have left or plan to leave, while others are taking interviews.
Todd Mosby – OCU’s associate vice president for development, marketing and communications – said last week that the school was “still working on” paying employees.
“That is the best information I have for you,” he said.
The delay persists five days after OCU made a pair of startling announcements. On May 13, officials reportedly told members of the athletic staff during a 9 a.m. gaggle that the school planned to close at the end of the month. At a larger meeting less than two hours later, however, they reversed course, saying a “strategic partnership” with an unknown benefactor would allow them not only to stay open, but potentially expand their offerings on campus.
“(It) looks like we’re going to be able to continue operating as normal and excelling in sports and academics,” Mosby told media outlets afterwards.
He declined to divulge any specifics about the partnership, including who it’s with and what it entails.
Whatever it is, so far it hasn’t resulted in employees getting paid. Paychecks were supposed to arrive on May 8, but have been delayed due to what school officials claim is a series of undisclosed banking issues.
According to emails to faculty and staff from President Ron Dempsey that were later obtained by the Courier & Press, the school set several self-imposed deadlines, only to miss them again and again.
On May 7, Dempsey wrote that OCU had to secure an outside source of cash just to make payroll. Employees were told to expect their money by Friday. When that didn’t happen, the bullseye moved to Monday, then Tuesday, then Wednesday. Now it’s up in the air.
OCU has been battling serious financial issues, so much so that on April 1 it issued a warn notice to Indiana’s Department of Workforce Development saying it planned to lay off all of its 167 employees by June 1.
Officials later denied they planned layoffs at all, despite the clear language of the WARN notice. While speaking with media last week, Mosby claimed the school now had multiple sources for payroll, and that once those came in, the school should be able to fulfill its backpay obligations and issue checks on time going forward.
That hadn’t happened as of Monday. And last week, OCU put two university-owned buildings on Morton Street up for sale.
This article originally appeared on Evansville Courier & Press: OCU employees still working without pay; some workers looking to leave
Reporting by Jon Webb, Evansville Courier & Press / Evansville Courier & Press
USA TODAY Network via Reuters Connect
