Strike ballot set for October in ongoing USS row

Pensions Expert reported earlier in September on the USS trustee’s decision to push ahead with an alternative reform package drawn up by Universities UK, the employer group representing 340 USS employers, despite threats of industrial action from UCU.

A 20-year moratorium on the scheme exists and a pledge of greater covenant support formed part of the employers’ proposal, which was intended to head off “ruinous” contribution rate hikes.

In response, UCU accused the other parties to the negotiation of agreeing to a “package of cuts”, and emailed 40,000 of its members in USS institutions calling them to a mass meeting where preparations for industrial action would be discussed.

UCU confirmed on Tuesday that a ballot would be held on October 18 in the context of what it called “pensions and pay, unsafe workloads, casualisation and equality failings”.

Eighty-three of the 152 institutions will be balloted over pay and conditions, with a further 63 institutions balloted both on pay and the USS decision.

The union reiterated its position that the deal struck between USS and UUK amounted to “an annual guaranteed pension cut of 35 per cent for a typical member”, based on “a flawed valuation of the USS scheme conducted at the beginning of the pandemic as markets were crashing”.

It argued that its own alternative proposals, which it put before the Joint Negotiating Committee, were not treated equitably, with employers refusing to pledge the same level of covenant support to the UCU proposals as they had for their own — while employers also refused to agree “a range of delay options to allow more time to negotiate”.

UCU general secretary Jo Grady said: “University staff propped up the entire sector during the pandemic, but they are now being thanked with huge cuts to their pensions, unbearably high workloads, and another below-inflation pay offer — all while universities continue to generate a handsome income from tuition fees.

“Our members across the UK know that working in a university does not have to be like this and are clear that they are ready to take action to stand up for their dignity, defend pensions, and win long overdue improvements to their pay and working conditions,” she continued.

“There is still time for university chiefs to resolve a situation which is entirely of their own making, but they must return to negotiations and make credible offers.”

The decision to ballot members for industrial action was supported by the National Union of Students.

Responding to the news, a UUK spokesperson said: “We are disappointed UCU is campaigning for industrial action over reforms to USS, as they have not proposed a viable solution of their own.

“The USS trustee’s assessment of the scheme’s costs means reforms are needed — no change is not an option. The employers’ reform proposal will prevent harmful and unaffordable rises in contributions.

“UCU may not like the legal and regulatory constraints pensions operate under, but it is irresponsible to make students and staff suffer as a result,” they added.

The USS trustee’s assessment of the 2020 valuation has not escaped criticism, however. As Pensions Expert reported in April, Aon warned that the methodology and assumptions underlying the trustee’s response to the USS valuation was overly prudent, and failed to properly justify several of its assumptions.

The UUK spokesperson continued: “The reforms voted for by the Joint Negotiating Committee ensure good benefits can be provided for affordable contributions, but employers will still consider alternative solutions. Employers have asked UCU to put forward alternative proposals, but as yet, none have been forthcoming.

“By proceeding with ballots, the union appears unconcerned by higher contributions, pay cuts, job losses, damage to the student experience, and financial hardship for their members, which will all result if employers are forced to pay more into pensions.”

The spokesperson added that UCU has been “formally invited” to “work with employers to develop lower-cost options for members, consider alternative scheme designs — including conditional indexation — and review the scheme’s governance. These are issues where employers and scheme members share a common desire for change”.

“Universities are regrettably well prepared to mitigate the impact of any industrial action on students’ learning, and minimise disruption for those staff choosing not to take part,” they said.