Defined Benefit

Representatives of the UK’s universities have written an open letter to staff asking them to reconsider strikes over issues including pensions, planned to begin next week.

Universities UK, which acts on behalf of academic institutions in pensions negotiations, sought to remind employees of the concessions it has made over funding of the £63bn Universities Superannuation Scheme, in a letter co-written with the lead body on pay, the University and Colleges Employers’ Association.

The University and College Union said it is prepared to engage in talks to resolve the impending crisis, but called on employers to drop pre-conditions to the negotiations.

I note that you request we suspend the notified strike action as a gesture towards constructive talks. UCU would be prepared to actively consider such a request if we had something meaningful to put to members in regards to the issues of dispute

Dr Jo Grady, University and College Union

A Joint Expert Panel convened to find agreement between UUK and the UCU in response to a previous round of strikes led to a fresh valuation successfully reducing the USS deficit to £3.6bn in 2018. However, the two sides have been unable to reach an agreement on how to share the remaining increase in required contributions, with UUK blaming UCU’s “no detriment” stance for the deadlock.

UUK claims contribution share is ‘reasonable’

In the letter, UUK pointed to the extra £250m a year it will contribute to the USS under its offer to pay 21.1 per cent of salary instead of the previous 18 per cent, and argued that it is “reasonable” for employees to share one-third of the increase, paying 9.6 per cent instead of 8 per cent.

“Unfortunately, UCU has been unwilling to move from its interpretation of a ‘no detriment’ position, which opposes any member contributions to maintain benefits above the 8 per cent level that applied prior to April 2019, despite the economic challenges and the legal necessity of higher total contributions,” the letter read.

UUK president Professor Julia Buckingham said: “In recent months, employers have taken significant steps to protect the value of both pensions and pay because we care about our dedicated and talented staff.

“Universities will do all they can to minimise the impact of any strike action on students, their other staff and the wider community, and they know that their colleagues contemplating strike action will want this too. We sincerely hope UCU will see the merit in working with employers on joint and fair solutions.”

Talks must be free of conditions

Strike action is due to begin on Monday November 25 for eight days, including non-strike action such as refusing to cover for absent colleagues, after 79 per cent of UCU members who voted in ballots supported striking over pensions. Seventy-four per cent supported action over pay, equality, casualisation and workloads.

The UCU has said that contribution increases will mean a typical member will pay in £40,000 more over his or her employment but receive £200,000 less in retirement. In a blog published last week, University of Essex vice-chancellor Professor Anthony Forster added grist to the union’s mill, saying that while he believes USS trustees are still being too prudent, the university is prepared to increase its contributions.

Responding to the letter, the UCU accused employers of “game-playing” by attempting to separate the issues of pay and pensions, and by asking for strikes to be called off to facilitate talks.

General secretary Dr Jo Grady wrote: “I note that you request we suspend the notified strike action as a gesture towards constructive talks. UCU would be prepared to actively consider such a request if we had something meaningful to put to members in regards to the issues of dispute.

“Therefore, I strongly suggest we arrange to meet soon as possible, without pre-conditions, to seek to resolve the dispute.”