Defined Benefit

Staff at 52 UK universities are to strike over pensions for 14 days during February and March, despite recent talks between employers, trade unionists and the trustees of the Universities Superannuation Scheme.

The University and College Union announced on Monday a pattern of escalating strike action, beginning with partially disrupted weeks and ending with a full week of strike days. The walkouts are also a response to a dispute on pay and working conditions, and will involve a total of 72 institutions across both issues.

The pensions dispute centres around increased contributions to the £68bn USS, put in place as a result of the scheme’s 2018 valuation. Employers argue that they have already voluntarily borne the majority of cost increases, while UCU and its members dispute the methodology used to calculate contributions and argue that universities can afford to pay more.

If universities want to avoid further disruption they need to deal with rising pension costs, and address the problems over pay and conditions

Dr Jo Grady, University and College Union

The third set of strikes in as many years has been called despite ongoing talks on these issues, and just days after Joanne Segars, chair of the Joint Expert Panel appointed to scrutinise valuation methods and recommend improvements, said the tripartite group “continued to hold productive discussions”.

Re-risking commitment not enough

Pensions Expert understands that the UCU’s higher education committee, which has ultimate power over strike action, was not satisfied with the progress of the meetings, leaving employers until the beginning of the action on February 20 to improve their offer.

A report of Thursday’s meeting of the HEC, by the UCU Left caucus, stated: “There is some promising news from the USS negotiations, which if confirmed and followed through could represent an historic win for the union.

“Universities UK has finally conceded that Test 1 [a risk-monitoring arrangement requiring agreement between trustees and employers on the difference between the technical provisions and self-sufficiency deficits] and derisking has to end. But USS and the Pension Regulator both have to agree to this.”

The post continued: “Were derisking abandoned, USS contributions should fall and the scheme should return to its historic long-term stability. But nothing is confirmed yet. USS managers have resisted this argument, and the second JEP report proposals will take much longer to reach a conclusion.

“There is plenty of opportunity for USS to block fundamental change, so we are some way to go.”

In a statement, UCU general secretary Jo Grady, who does not sit on the HEC, said: “We have seen more members back strikes since the winter walkouts and this next wave of action will affect even more universities and students.

“If universities want to avoid further disruption they need to deal with rising pension costs, and address the problems over pay and conditions.”

Employers urge co-operation

Meanwhile, employers expressed their dismay at the timing of the strike action.

A spokesperson for UUK, the body that represents USS employers, said: “We regret that UCU is planning further strike action at a time when positive talks on the future of the scheme are making significant progress and are ongoing. Despite this, UCU continues to request that employers pay still higher contributions at unaffordable levels.”

The spokesperson said that increased contributions were required by law, and that collaboration was the best way to find a solution that makes USS more affordable.

“The current tripartite talks between UCU, USS, and UUK – that are set to continue at least until March – are building a shared understanding on the future of the scheme, jointly developing governance reforms and considering alternative pathways for the 2020 valuation,” the spokesperson said. 

“Universities will put in place a series of measures to minimise the impact of industrial action on students, other staff and the wider community.”

The full schedule of strikes is as follows:

Week one – February 20, 21

Week two – February 24, 25, 26

Week three – March 2, 3, 4, 5

Week four – March 9, 10, 11, 12, 13.