The Universities and College Union has secured a mandate to strike in 150 universities over member benefit cuts in the Universities Superannuation Scheme.
The union claimed it now has a mandate to “deliver strike action at practically every university in the UK” after two national ballots, one on pay and working and another on pensions.
On the former, the Yes vote for strike action was 81.1 per cent and the turnout was 57.8 per cent. In the latter, the Yes vote for strike action was 84.9 per cent and the turnout was 60.2 per cent. Staff also voted Yes overwhelmingly for action short of a strike in both ballots, the union said.
UCU is now calling “on vice-chancellors to enter negotiations immediately and make improved offers in order to avoid disruption”.
Should UCU decide to take industrial action, unfortunately this is likely to impede joint working on the next valuation, and delay much-needed changes such as governance reform of the scheme and the introduction of lower-cost options for members
USS spokesperson
On the pensions ballot, the union demands that “employers revoke the 35 per cent cut they made earlier this year to the guaranteed retirement income of the average member”.
This figure was produced by the UCU’s “benefits modeller”, a figure disputed by UUK, citing figures produced by a USS “contributions calculator” published in September 2021.
Scheme reached surplus in June
At the heart of the dispute is the USS 2020 valuation, which resulted in a £14bn deficit and the need for increased pension contributions.
Unions are unhappy with reform proposals agreed between the USS trustee and Universities UK, the group that represents USS employers, which pledged greater covenant support and a moratorium on scheme exits in exchange for a comprehensive governance review.
UCU, which has long been arguing that cuts to pensions were unnecessary and should be reversed, has held several rounds of strike action.
The union previously pointedto the June 2022 monitoring report, which showed that the deficit had been completely wiped out, with the scheme in fact enjoying a £1.8bn surplus.
The position of UUK and the USS trustee has consistently been that monitoring reports at best provide an indication of performance, but not a sound evidential basis for making interim changes to benefit structures in advance of the 2023 valuation.
The UCU’s higher education committee will meet on November 3 to decide the next steps it will take “to pressure employers to begin meaningful negotiations”.
UCU general secretary Jo Grady said: “Today, history has been made by our members in universities, who in huge numbers have delivered an unprecedented mandate for strike action.
“The vice-chancellors who run universities have repeatedly and in a co-ordinated fashion come after our members. Now it’s 150 bosses against 70,000 university workers who are ready and willing to bring the entire sector to a standstill, if serious negotiations don’t start very soon.
“University staff are crucial workers in communities up and down the UK. They are sending a clear message that they will not accept falling pay, insecure employment and attacks on pensions. They know their power and are ready to take back what is theirs from a sector raking in tens of billions of pounds.”
Strike could delay next valuation
In response to the ballot results, a UUK spokesperson noted that “employer contributions to USS pensions, which rose to 21.6 per cent of salary in April, are among the highest in the country and at the very limit of affordability”.
“This contribution rise, together with the significant covenant commitments made by employers, lessened the benefit reforms and avoided huge cost increases for both employers and staff in the last scheme valuation.
“This support from employers, alongside the effects of rising interest rates on the scheme, explains why USS now appears to be in better financial shape.”
University employers stick to USS cuts despite strike threat
Universities Superannuation Scheme employers have rebuffed renewed calls by the University and College Union to restore benefit cuts in response to the scheme’s controversial 2020 valuation, arguing there is “no solid evidence” to make benefit changes before the 2023 valuation.
The spokesperson noted that the scheme’s trustee will conduct a full valuation in March 2023, “at which point stakeholders will be able to consider any improvements to the scheme which could be made in a sustainable way”.
“However, at this time and in the current volatile economic climate, the USS trustee insists that there is no solid evidence or basis to establish a long-term view of any substantive improvement in the scheme’s funding position.”
The spokesperson added that UUK continues to meet “union and USS representatives regularly”, and should the strike go ahead, “unfortunately this is likely to impede joint working on the next valuation, and delay much-needed changes such as governance reform of the scheme and the introduction of lower-cost options for members”.
