University and College Union members have backed industrial action over cuts proposed by the Universities Superannuation Scheme trustee and Universities UK, the group representing 340 USS employers.
As Pensions Expert has reported previously, the USS has been in a protracted battle between its trustee, UUK and the UCU over the assumptions underlying its 2020 valuation.
The results of its latest valuation saw the scheme’s deficit quadrupling to more than £14bn, requiring that contributions be raised to between 30.7 per cent and 42.1 per cent of payroll under the most favourable scenarios. However, unless employers agree to a series of conditions, the rates could be increased to as much as 56.2 per cent of payroll.
UUK has been consulting on alternative proposals, which include stronger covenant support measures and a 20-year moratorium on scheme exits, that it hopes will produce a more favourable outcome than the hiked contribution rates that employers and unions have branded “unaffordable”.
These results are a clear mandate for strike action over pension cuts and should be heard loud and clear by university employers
Jo Grady, UCU
The union has been threatening strike action for some time, arguing that the UUK proposals amount to benefit cuts of as much as 35 per cent, and on Tuesday UCU general secretary Jo Grady wrote to USS chief executive Bill Galvin threatening legal action and calling for the 2020 valuation to be paused.
Now, 76 per cent of UCU members voting in a ballot have backed strike action, while 88 per cent backed action short of a strike. The ballot saw a 53 per cent turnout, above the minimum 50 per cent threshold set in law.
“UUK voted to push through pension cuts in August after refusing to join UCU in fighting a flawed valuation by USS trustees, which was carried out at the start of the pandemic when global markets were crashing,” the union said.
“Employers continue to insist on imposing the cuts despite markets recovering, and the pension scheme’s assets growing to unprecedented levels.
“In negotiations, employers refused to agree a small increase in their own contributions or to underwrite UCU’s alternative proposals to the same level as their own,” it continued, adding that universities “now need to urgently revoke the pension cuts and return to the negotiating table to avoid strike action”.
The results of a separate ballot on pay and conditions are expected tomorrow, after which the union’s higher education committee will meet, on November 12, to decide on the next steps. It will also consider whether and when to “re-ballot some branches”.
Grady said: “These results are a clear mandate for strike action over pension cuts and should be heard loud and clear by university employers.
“Staff in universities have given their all to support students during the pandemic, but management have responded by trying to slash their guaranteed pensions by 35 per cent. In a ballot window of just three weeks, our members have made it abundantly clear that they will not accept these vindictive attacks on their retirement,” she continued.
“It is now in the gift of employers to avoid strike action, which is the outcome staff want as well. All management needs to do is withdraw their needless cuts and return to negotiations. If they fail to do so, any disruption will be entirely their responsibility.”
Support for strikes ‘is limited’
In a statement, UUK cast doubt on the legitimacy of the proposed strike, arguing that those voting in its favour represent a minority of members drawn from barely half of the institutions in which the ballot took place.
“While it is disappointing to see some UCU members think industrial action over pensions is justified, the union has failed to secure a mandate for industrial action in 31 of the 68 institutions where ballots took place on USS, meaning fewer branches have reached the threshold than in previous ballots,” a UUK spokesperson said.
“Union members voting ‘yes’ to strike action at eligible branches account for less than 7 per cent of the scheme’s total active membership.
“These results suggest that support for industrial action is limited. In most places where the threshold was reached, it was the votes of those saying ‘no’ to action that carried the numbers over the 50 per cent legal threshold,” they continued.
UCU considers legal action against USS and calls for valuation pause
The University and College Union’s general secretary has written to the Universities Superannuation Scheme’s chief executive outlining the potential for legal action against the scheme’s trustees and has called for a pause in the 2020 valuation process.
The spokesperson reiterated the line taken by both UUK and the USS trustee, arguing that the status quo is unsustainable and the employers’ reform proposals “are the only viable plans under current regulations that will keep the scheme affordable for members and universities, and keep the defined benefit section of the scheme open”.
“Discussions with UCU will continue, and the consultation is currently taking place with the scheme’s wider membership,” they said.
“Universities facing the prospect of industrial action are well prepared to mitigate the impact on students’ learning and minimise disruption for those staff choosing not to take part. The majority of university staff are not members of UCU.”
