THAT: The Board of Regents approves the Tentative Agreement with Montana State University-Billings Faculty Association.

EXPLANATION: The tentative agreement has been ratified by the Montana State University-Billings Faculty Association. It covers a one-year period only (FY 1999) and provides for an average salary increase during FY 1999 of 2.75% plus an additional .43% for promotions. The tentative agreement also establishes a 2% pool of money to be distributed based on performance criteria agreed upon by the faculty association and the administration. The 2% performance pool is a one-time commitment of funds and increases awarded from this pool are not added to a faculty member's base salary.

The tentative agreement also increases the frequency of evaluations of tenured faculty from once every four years to once every three years. Faculty were put on notice that faculty salary increases may exacerbate difficulties in maintaining the current levels of faculty FTE, operating budgets, travel and academic support. A memorandum of understanding acknowledges that the compensation package for FY 99 falls short of the target which was previously agreed upon.

ATTACHMENT: See attached tentative agreement.