The Financial Crisis in Higher Education Deepens The financial strain facing higher education institutions is now among the most severe in recent memory. In Canada, Dalhousie University, Nova Scotia’s flagship institution and a member of the U15 (Canada’s top research-intensive universities), typically attracts more than C$200 million in research funding annually, ranking #1 in Atlantic Canada. The institution now finds itself at the center of a major labour dispute. Dalhousie University (Halifax, NS – Est. 1818) In a historic and unprecedented step for a U15 university, Dalhousie’s Board of Governors locked out nearly 1,000 members of the Dalhousie Faculty Association (DFA) on the morning of August 20, 2025. The lockout comes after a breakdown in contract negotiations, with both sides far apart on compensation. Dalhousie only recently lifted a full hiring freeze, its first in 30 years, and is currently projecting a C$20.6 million deficit for the year. Over the next three years, the university plans to cut C$75 million from its operating budget. Dalhousie’s total annual budget is just under C$500 million, with 72%, approximately C$360 million, allocated to salaries and benefits. Compensation Standoff DFA Proposal: 7% / 4% / 4% over three years Dalhousie Offer: 2% / 2% / 2% The DFA proposal would raise compensation costs by C$40.8 million over three years, pushing the university’s total required cuts to C$115.8 million (C$75M in planned cuts plus C$40.8M in new payroll costs). By contrast, Dalhousie’s offer would increase payroll by C$20.3 million over 3 years, requiring C$95.3 million in total budget reductions over three years to meet their stated targets. These are serious, structural financial pressures. Context: Salaries, Cost of Living & Pensions The average professor salary at Dalhousie is C$164,750, above the Canadian national average but below the U15 median. The cost of living in Halifax is approximately 11% lower than Toronto, offering some relative affordability. Under the university’s defined benefit pension plan, a professor earning C$164,750 for 35 years would retire with an annual pension of approximately C$115,500 for life. Why It Matters The Fall 2025 academic term is at risk, with significant uncertainty facing students and faculty alike. On a personal note: Dalhousie is my grad school alma mater. My daughter is set to begin her Bachelor of Medical Sciences (BSc) this September. Like many, I’m hopeful cooler heads will prevail! As is increasingly common across North America, universities are turning to adjunct and term faculty, with estimates suggesting up to 40% of teaching positions are now filled by non-tenure-track roles that cost considerably less than a permanent position. This model, while cost-effective, raises long-term questions about sustainability and academic quality. JCG