Southampton Solent University has been accused of an \u201cunprecedented\u201d attempt to move staff on to \u201cinferior\u201d pension schemes, with those not complying facing losing their jobs.<\/p>\n
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.<\/p>\n
Professional services staff hired since 2018 have been employed by the firm, Solent University Services Limited, and are already enrolled in the university\u2019s defined-contribution scheme.<\/p>\n
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 \u201csecond-rate\u201d pension.<\/p>\n
Staff can either move on to the subsidiary or choose to resign, which UCU claimed amounted to a \u201cfire and rehire\u201d scheme. The union said any staff that do depart have been told they will not be entitled to a notice period or redundancy pay.<\/p>\n
The union said that if the move goes ahead it \u201csets a deeply concerning precedent for the wider sector\u201d. <\/p>\n
\u201cIf 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,\u201d UCU added.\u00a0<\/p>\n
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.<\/p>\n
These staff members are entitled to the Teachers\u2019 Pension Scheme \u2013 which has an employer contribution rate of 28.68 per cent \u2013 and has long been labelled \u201cunaffordable\u201d by vice-chancellors.<\/p>\n
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\u2019 mandatory participation in such pension schemes.<\/p>\n