Southampton Solent University has been accused of an “unprecedented” attempt to move staff on to “inferior” pension schemes, with those not complying facing losing their jobs.
The University and College Union (UCU) branch at the university has begun a formal trade dispute in opposition to the plans to move existing employees on to a subsidiary firm.
Professional services staff hired since 2018 have been employed by the firm, Solent University Services Limited, and are already enrolled in the university’s defined-contribution scheme.
But older staff currently entitled to the more lucrative Local Government Pension Scheme will join them from December, losing their access in favour of what the union called a “second-rate” pension.
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Staff can either move on to the subsidiary or choose to resign, which UCU claimed amounted to a “fire and rehire” scheme. The union said any staff that do depart have been told they will not be entitled to a notice period or redundancy pay.
The union said that if the move goes ahead it “sets a deeply concerning precedent for the wider sector”.
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“If Solent University can use a sham subsidiary arrangement to sidestep its statutory obligation to provide defined-benefit public-sector pensions, other institutions may feel emboldened to follow suit in cutting costs at the expense of staff rights and long-term security,” UCU added.?
While the university said that no plans have been made to move academic staff on to the subsidiary firm as well, it could not rule this out in the future.
These staff members are entitled to the Teachers’ Pension Scheme – which has an employer contribution rate of 28.68 per cent – and has long been labelled “unaffordable” by vice-chancellors.
In its recent skills White Paper, the government indicated it was prepared to look at the possibility of loosening the rules surrounding post-92 universities’ mandatory participation in such pension schemes.
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In the meantime, several other institutions have been accused of?moving staff on to subsidiary firms in order to save costs.
UCU general secretary Jo Grady said that Southampton Solent’s plans are “shameful and unprecedented”, and criticised the use of “opaque subsidiary companies” to force staff on to “inferior” pension schemes.???
She added: “Solent is undermining standards across the entire sector. Unless Solent abandons these plans, it could face serious industrial disruption and long-term damage to its reputation.
“Senior management are cutting their noses off to spite their faces. Who would go to work at an institution that shows such brazen disregard for staff and, by extension, its students?”
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A Southampton Solent spokesperson said:?“Like many universities across the sector, Southampton Solent University is carefully considering a range of measures to ensure our continued financial sustainability and ability to deliver a high-quality education.?
“As part of this, and importantly to secure jobs within the university, we are currently carrying out a comprehensive consultation around the proposed transfer of professional services staff?from the Local Government Pension Scheme to a defined-contribution scheme, already available to?professional service colleagues since 2018. A final decision on this matter has not been made at this time.”?
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