Strictly Confidential – Addressee Only
Mike Sheaff – UCU
Steve Monk – Unison
Martin Cairns – GMB
17 September 2008
Dear Mike/Steve/Martin
REDUNDANCY CONSULTATION
I am writing to you in accordance with section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 to inform you of our proposals to reduce staff numbers through a redundancy exercise.
Reasons for the proposed redundancies
As you will be aware from the consultation that has been ongoing since June, the university has been operating at a financial loss for a number of years, with expenditure running in excess of income and with an over-reliance upon the block teaching grant from HEFCE. The deficit budget position is a result of a number of changes affecting all universities across the sector, but it is also the case that the university has not capitalised on its leading reputation in key areas through the development of other income streams.
Increased staffing costs and utilities bills necessarily impact on our operating costs. The so-called ‘credit crunch’ may increase the cost of borrowing money and servicing our loans and, because of its effect on the property market, will impact on our estate planning. Our detailed financial analysis shows that our staffing costs as a percentage of income are significantly higher than those at similar institutions.
Clearly this is not a sustainable situation and we have to take steps to address it. To move to a position where the university can cover its costs and look to invest in key areas, which are vital to the university’s future success, we must reduce the University’s total pay budget by £10 million. You were provided with a detailed financial analysis in July.
Numbers and descriptions of staff it is proposed to make redundant
In order to achieve the necessary reduction in the university’s pay bill it is estimated that we will need to reduce headcount by the following numbers:
Academic (including research) Staff by 101
Professional Services Staff 122
The total numbers of employees in the above staff categories currently employed at the university (excluding the Peninsula College of Medicine and Dentistry) is as follows:
Academic (including research) Staff = 877 (Plus 757 Associate Lecturers and
Demonstrators)
Professional Services Staff = 1509
The proposal is that redundancies will be made potentially across all university areas. Staff in the Peninsula School of Medicine and Dentistry are unaffected by this proposal.
Because of the need to complete detailed reviews before finalising our proposals for staff reductions, the numbers disclosed above are estimates at this stage, but reflect the level of staff reductions that will be required to achieve the financial targets identified. We will keep you fully informed as things develop.
Proposals for how the redundancies will be carried out
You are already aware of the proposals to restructure the Faculties, which are currently subject to consultation. The Deans are in the process of conducting a review of our academic activities with a view to achieving savings and enhancing the alignment of activities with the University’s future strategic plans. We are aiming to be in a position to release details of these proposals during October. This will be followed by a review of professional services staff based in faculties.
As has been made clear in our communications to date, savings will also need to be achieved within the Directorates, and accordingly managers will be asked to develop their business and financial plans with a view to identifying where savings can be made. They will be doing this in the context of the emerging faculty structures, by reviewing service provision and conducting workload and process reviews.
The outcomes of these reviews are likely to lead to changes to structures and posts across the university. Some posts may no longer be required, and others may require changes in content and responsibilities. Once these reviews have been completed there will be consultation with the staff groups affected and their representatives detailing the reasons for proposals, how the redundancies will be carried out and the selection criteria to be used.
Minimum periods of notice
It is anticipated that any formal notices of redundancy will be issued during the period between January 2009 and 30 April 2009. In the majority of cases the date of termination of employment will be 31 July 2009, but there may be specific redundancies that take effect earlier than this date.
We will honour statutory and contractual notice requirements (whichever is the greater) in all cases
Proposed methods of selection
The university is committed to a fair, consistent, objective and non-discriminatory selection procedure. We will seek agreement with the relevant recognised Trade Union(s) about the selection criteria to be used.
The university will select for redundancy so as to ensure that its future operational needs are met with a workforce having the optimum balance of expertise and proficiency and with regard to equal opportunities considerations. In order to achieve this, selection criteria may vary in different parts of the University to meet the needs of different circumstances.
Specific selection criteria as they relate to particular posts and redundancy situations will be subject to consultation with our recognised Trade Unions
Ways of avoiding or reducing the need for redundancies
We will seek to achieve the required cost reductions before making compulsory redundancy selections, through voluntary and other non-compulsory means where possible; however we anticipate that there will be a need for some compulsory redundancies in order to achieve the savings required. All redundancies will be carried out in line with the university’s Redundancy Policy.
Action to mitigate the effects of redundancy
In order to support staff through this process we have appointed professional outplacement consultants, Penna. This dedicated service will provide support to staff who may be considering voluntary redundancy at appropriate times during the process. They will also support any staff who are made redundant.
We are also in the process of appointing a provider of an Employee Assistance Programme which will be available to all staff as a source of support during the period of the review, complementing and enhancing the provision that is already available within the university (e.g. staff counselling).
Principles by which severance pay will be calculated
It is proposed that redundancy pay will be awarded using the statutory calculation, based on actual salary, and multiplied by a factor of 1.2.
I look forward to continuing to work in partnership with you as we proceed with this consultation. Please raise with me any questions you have arising out of the contents of this letter.
Yours sincerely
Roland Buckley
Director of HR
Direct : 01752-588200
Email :
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