UCU calls for staff welfare inquiry as two-thirds consider quitting

UCU members are currently in their third round of strikes over pensions and pay, the former triggered by a deal struck between the Universities Superannuation Scheme trustee and the employer group Universities UK.

UUK said its deal, which pledged greater covenant support, a moratorium on scheme exits, and a host of other measures, was necessary in order to stave off “ruinous” contribution rate hikes following the scheme’s 2020 valuation, which saw its deficit quadruple to more than £14bn.

The UCU, however, said the deal amounts to a cut to the guaranteed retirement income of a “typical lecturer” of as much as 35 per cent, a figure UUK disputes.

The union has repeatedly called for a new valuation, which it said would account for substantial improvements in scheme finances since the 2020 valuation was conducted, though the USS trustee has cautioned that the recovery seen in assets is likely to have been offset by increased costs in other areas.

The union has threatened to ballot members again, seeking a mandate for strike action to continue for the rest of the academic year.

The UCU released a new report on March 25 that it claims shows the damage to staff morale brought about by deteriorating pay, pensions and working conditions.

The UCU’s ‘UK Higher Education — a workforce in crisis’ report surveyed almost 7,000 staff across 100 institutions, and found that 57 per cent of respondents are unhappy at the idea of spending their careers in higher education, and 88 per cent have no optimism about the future of the sector.

Almost two-thirds (60 per cent) of respondents said they were likely or very likely to leave the sector in the next five years, rising to 61 per cent in light of the pensions agreement struck between employers and the USS trustee.

Respondents aged over 60 (71 per cent) and those between 18 and 29 (67 per cent) were the most likely to say they could leave over pension cuts, with the UCU arguing that cuts to pensions have averaged £240,000 since 2011.

It argued that, in the short to medium term, employers should use the sector’s resources to address issues such as deteriorating working conditions, falling pay, pension cuts and increased casualisation, pointing to figures showing total income across the sector at around £41.9bn, with reserves of £46.8bn.

The UCU called on the Education Select Committee to establish an inquiry into staff welfare that considers the extent to which employers’ policies are damaging sector performance.

UCU general secretary Jo Grady said: “Staff are sounding the alarm about a crisis of morale and faith in UK universities that threatens the future of the entire sector. A decade of decline in working conditions, pay and pensions has left staff feeling totally demoralised and preparing to leave the sector in their thousands.

“This report should shock employers and government ministers into getting a grip of the situation before it’s too late. These findings, which include harrowing testimony from university staff, should mark a turning point in higher education,” she continued.

“Right now, vice-chancellors should be breaking down the doors of staff to address their concerns over low pay, dangerous workloads, precarious contracts, equality failings and pension cuts, rather than refusing to negotiate better conditions. That is how they can future-proof their institutions and protect standards.”

Grady also called on the government to follow Scotland’s lead “and put forward legislation that will properly democratise decision-making at universities, putting staff on boards and ensuring that decisions made in the future are for the benefit of the workforce and students”.

A UUK spokesperson said: “The excellence of our staff is central to UK universities’ global reputation for teaching and research. We want UCU and employers to work closely and positively together on issues of common interest to ensure that our highly respected university sector offers a high quality and positive experience for both students and staff.

"UUK looks forward to assisting the work of [Universities and Colleges Employers' Association], UCU and individual universities to ensure higher education institutions offer supportive working environments in which staff can thrive, alongside attractive renumeration and benefits."

They added that the changes to USS pensions about to take effect from April 1 2022 "will see staff continuing to receive very good pensions at affordable contribution levels - USS will remain one of the most attractive pension schemes in the country". 

"Without changes to the scheme, the USS trustee would have had to impose steep contribution increases, unaffordable for employers and scheme members alike. 

“UCU’s use of a 35 per cent reduction in benefits is misleading and irresponsible. This figure does not take into account of benefits built up to date, which will not change, and ignores the defined contributions element of the scheme.

"This misleading information could lead to staff making life changing decisions to opt out of a scheme which will shortly see employers paying 21.6 per cent towards their retirement. We strongly refute the use of this figure.”