Message from Alison Ross-Green, Director of HR and Organisational Development
I am writing to update you on where we are with proposals for a pay freeze ahead of a poll of all staff on its introduction. This is absolutely critical to weathering the severe financial impact of the Coronavirus pandemic, and without it further redundancies will be necessary. However, I also know this is not an easy ask to make, and for many staff in professional services who are also anticipating consultation around new structures with attendant worries about job security, this is an additional burden to lay upon you at what is already an anxious time. I am hugely grateful to all of you for your forbearance and understanding as we respond to what are truly unprecedented challenges for the sector.
Risks of failing to pursue pay freeze
Feedback from staff was discussed at this week’s JSNCC, which, unfortunately, led to no clear consensus. While most attendees ultimately acknowledge the need for these additional measures, this is not currently the case for our UCU colleagues who have confirmed that they are balloting their members with a recommendation that they reject both the proposed pay freeze and the Reward Strategy.
This puts us at a point of enormous risk to the University. Failing to pursue either or both of these initiatives will significantly worsen our financial position, along with the confidence of our lenders, and require a further estimated 80 – 120 redundancies to address the additional shortfall. I am very sorry to set out the position so bluntly, but given the seriousness of our situation, I wanted to make sure everybody was fully aware of these realities. There is further information on the component parts of our response to the severe financial impact of Coronavirus in our updated finance presentation. Put bluntly, unless we agree savings to address these one-off losses, we will run out of money to meet our commitments.
All staff poll on pay measures
Given the huge implications of this, it is very important to understand the preferences and position of as many staff as possible before committing to any course of action. I urge you to complete this confidential poll on both measures to ensure that your views can be directly received by the University and considered. I cannot stress too strongly the importance of as many staff as possible responding to this poll within the timescales that we have. The poll will be open until 5pm on 7 July, before we reconvene discussions with Staff and Trades Union Representatives on 8 July. At that meeting we will remain ready to discuss any further constructive proposals that are brought forward but noting that time is now very short to explore any further adjustments to our proposals, assuming viable ideas could be brought forward at this late stage.
Ahead of this meeting, we have looked at what we can do to adjust the pay freeze proposals to respond to the strongest of the concerns raised via JSNCC. While our room for manoeuvre is very limited, and all staff will be affected by a deferral of the national pay award, we have committed to the following in exchange for concluding a local collective agreement:
- PSD Promotions will be taken out of scope of additional pay constraints in order to avoid any double impact of both the Reward Strategy and Pay Freeze on staff currently affected by restructuring, and to ensure that key new PSD positions can be filled from existing staff (who may otherwise opt for redundancy);
- Extra Responsibility Allowances will be permitted to continue, where appropriate and in accordance with existing HR policy;
- A Recognition for Staff Support Scheme will be established, dividing a £1.7m budget equally among staff affected by the pay freeze at the point in future where key indicators show we have reached a position of financial sustainability. This would be in the form of a one-off payment to staff affected by the pay freeze and still employed by the University once this point is reached. Executive Group will not be eligible for any performance-related payments until these payments have been made; given their exclusion from the proposed pay freeze, promoted PSD staff will also not qualify for the scheme;
- In acknowledgement of concerns around the equality impact of the proposal, an Equal Pay Audit will be completed within the next 3-5 years, in collaboration with the Staff and Trade Union members of the JSNCC.
Making your views heard
I very much hope that these adjustments, and the consequences of a failure to reach an agreement, will be sufficient for most of you to feel you can support both measures. Your Staff and Trades Union Representatives are empowered to reach an agreement on your behalf so do advise them of your views on the proposals should you wish to discuss further.