On the go: Support staff at the University of Manchester have voted overwhelmingly to take strike action over plans to cut and close their pension scheme.
Eighty-nine per cent of staff voted for industrial action in a consultative ballot organised by Unison. A formal strike ballot opens on Friday and strike action could take place in December.
Cleaners, catering staff, security staff and administrators are among those threatened with changes that Unison claim would cut their retirement incomes by 20 per cent.
Over 3,000 current University of Manchester Superannuation Scheme members stand to lose out, along with future employees of the university who would no longer be able to join the defined benefit scheme.
They would be wholly justified in taking strike action to stop this raid on their pensions
Neelam Bhambra, Unison North West
Unison calculates that a security guard earning £22,000 would lose £1,375 a year in retirement, while a cleaner on £14,000 would lose £875 each year.
The planned pension change has been criticised by local MPs. Angela Rayner, Labour MP for Ashton-under-Lyne, said: “Support staff are every bit as important as other educators. It is especially worrying if the lowest-paid staff, mostly women, are being targeted for the worst cuts, and I want to be clear that we stand with them in demanding fair treatment at work and security in retirement.”
There was strike action at universities across the country earlier this year as lecturers walked out over proposed cuts to their national scheme.
Neelam Bhambra, Unison north west area organiser said: “The work that these staff do is vital to the smooth running of the university and for students’ experiences of academic life and living in Manchester. They are the lowest paid staff in the university and they deserve to have a decent income when they retire.
“We have seen the lecturing staff go on strike recently to protect their pensions. Support staff are angry and upset about these swingeing cuts to their retirement incomes, and they would be wholly justified in taking strike action to stop this raid on their pensions.”
New DC scheme proposed
In a letter to staff announcing the changes, Karen Heaton, University of Manchester director of human resources, said: “The University will continue to contribute 19.75 per cent of pensionable salary and is also making separate contributions to address the £207m UMSS deficit.
“When these additional contributions are added, the University’s contribution rate rises to 27 per cent, which compares favourably with similar university pension schemes and extremely favourably with many private pension arrangements.”
From January 1 2019, existing UMSS members will still receive DB provision, but this will be in a new 1/100th career average section.
They will also have the choice of joining a new defined contribution arrangement from January 1 2019 or later.
All new employees from January 1 2019 will join a new DC arrangement, starting with a personal contribution rate of 4 per cent and a 13.5 per cent contribution from the employer. Members can contribute between 0 per cent to 7 per cent of pensionable salary and the University will contribute between 9.5 per cent and 16.5 per cent dependent on the level of member contribution.
