Humber Polytechnic Offers Voluntary Exit Packages Amid Financial Pressures

What Humber Polytechnic's Voluntary Exit Packages Mean for Staff and Students

Humber Polytechnic, one of Canada's largest post-secondary institutions with approximately 76,000 students, has recently announced voluntary exit packages for all full-time employees amid escalating financial pressures. 98 9 This move reflects a broader crisis gripping Ontario's college sector, where declining revenues have forced institutions to implement drastic cost-saving measures. As the federal government tightens restrictions on international student visas, colleges like Humber are grappling with enrollment shortfalls that threaten their operational sustainability.

The announcement, detailed in a letter from President Ann Marie Vaughan, signals a shift from previous strategies of operational efficiencies to more profound structural changes. With about 4,500 full-time staff potentially eligible, the implications extend beyond immediate payroll reductions to long-term effects on teaching quality, student support, and institutional innovation. 98

Details of the Voluntary Exit Package Offer

A Voluntary Exit Package (VEP), also known as a voluntary severance or separation incentive, is a financial offer from an employer to encourage eligible employees to leave voluntarily, typically to avoid or minimize forced layoffs during restructuring. At Humber Polytechnic, the package is open to every full-time employee, from support staff to executives, marking a comprehensive approach to workforce adjustment. 98

Key components include:

• A one-time payment equivalent to 20 to 45 weeks of base salary, scaled according to years of service. For example, an employee with 5 years might receive closer to 20 weeks, while long-term staff with 25+ years could get up to 45 weeks.
• An additional lump-sum bonus of 10 percent of base salary.
• Continued benefits during the notice period, though specifics on extended health coverage or pension bridging depend on individual contracts and collective agreements.

Employees have a tight two-week window to accept, with the deadline set for March 9, 2026, aligning with the fiscal year-end. This urgency underscores the institution's need for rapid fiscal stabilization. 98 Unlike earlier programs, such as the February 2025 voluntary retirement incentive limited to faculty meeting CAAT Pension Plan criteria (e.g., age + service = 85), this VEP is broader and more inclusive. 87

Acceptance rates remain unknown, but union leaders anticipate significant uptake given the package's generosity compared to standard severance under Ontario's Employment Standards Act, which mandates only one week per year of service up to 26 weeks.

Humber Polytechnic's Financial Challenges: Enrollment and Revenue Crunch

Humber Polytechnic's troubles stem from a perfect storm of external factors. In 2023, international students numbered 27,540, comprising a substantial revenue portion as they pay full tuition without subsidies—often 3-5 times domestic rates. However, the federal government's 2024 cap on study permits (initially 35% reduction for 2025, extended into 2026) led to a sharp enrollment drop this fall, below budgeted figures. 98 37

Ontario colleges, heavily reliant on international tuition (up to 50% in some cases), have seen collective losses exceeding $2 billion. Humber, despite prudent management avoiding public-private partnerships (now restricted by the province), faces ongoing deficits. Last spring, it laid off eight full-time faculty supporting accessibility needs, and since 2023, 44 programs have been suspended or closed per union data. 98 President Vaughan noted a 12-18 month 'runway' from fiscal prudence, now exhausted amid inflation and stagnant per-student funding.

Provincially, Colleges Ontario projects a $1.5 billion sector-wide deficit by 2027-28, with over 10,000 jobs cut and 600 programs eliminated in the past year alone. 68 15

The Federal International Student Cap: Timeline and Mechanics

The cap originated in January 2024 when Immigration, Refugees and Citizenship Canada (IRCC) announced a 35% reduction in new study permits for 2025 (from 606,000 in 2023 to ~360,000), targeting housing pressures. Provincial allocations followed, with Ontario colleges hit hardest due to high international reliance. By fall 2025, new arrivals plummeted 52-97% year-over-year in some metrics. 60

1. 2024 Announcement: Cap introduced, exemptions for masters/PhDs.
2. 2025 Intake: Enrollments drop 47% nationally.
3. 2026 Extension: Further curbs, prompting colleges to diversify recruitment to graduate programs or domestic upskilling.

This policy, while addressing affordability crises, has unintended consequences for post-secondary funding models built on international revenue cross-subsidizing domestic education. 40

Leadership's Rationale and Strategic Response

President Vaughan emphasized 'mindful stewardship'—reducing discretionary spending, launching 45 new high-demand programs—but deemed deeper cuts essential: "We have arrived at the time when we must make more fundamental choices." Post-deadline, involuntary reductions loom if uptake is insufficient. 98

Humber's polytechnic status (achieved recently, emphasizing applied learning) positions it for industry partnerships, yet short-term survival demands agility. Strategies include program realignment to domestic needs like skilled trades and AI-related fields.

Stakeholder Perspectives: Unions, Staff, and Students

Faculty union president Miloš Vasić views the VEP positively for generosity but warns of 'reorganization and consolidation,' increasing workloads: "Way more things... by way fewer people." Echoing 2025 retirement program concerns, where retirees risked irreplaceable expertise loss. 98 87

Support staff under OPSEU face similar uncertainties, with past collective agreements referencing voluntary exits. Students may experience service disruptions, larger classes, though Humber prioritizes core academic delivery.

Comparisons Across Ontario Colleges

• Fanshawe College: Expanded retirement incentives to all staff in Dec 2025.
• Conestoga: Offered VEPs to over half full-time staff amid counselor layoffs.
• Sheridan: Up to 30% workforce reduction via VEPs and layoffs.
• Centennial: Suspended 49 programs due to intl declines.

Systemic issue: Ontario's per-student funding lags national averages by 25-30%. 72

Government Interventions and Their Limitations

Ontario's Feb 2026 budget lifted the tuition freeze, injected $6.4B over years, reformed OSAP for sustainability. Yet, Colleges Ontario calls it insufficient against $5,200 structural gap per student. Federal-provincial tensions persist over cap allocations. 70

Implications for Higher Education Quality and Access

Staff reductions risk diluting hands-on learning, a polytechnic hallmark. Fewer counselors, accessibility experts impact vulnerable students. However, realignments could enhance efficiency, focusing on employability.

For job seekers, opportunities arise in growing areas. Check higher ed jobs or Canadian academic positions for transitions.

Photo by Caio Silva on Unsplash

Future Outlook: Recovery Paths and Actionable Insights

Optimistic signs: Domestic enrollment stabilization, industry MOUs. Staff considering VEP should consult unions, financial advisors—assess pensions (CAAT for academics), job market. Institutions advocate for funding formula reforms.

Explore higher ed career advice for resume tips amid changes. Institutions like Humber remain vital for Ontario's workforce pipeline.

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