Increasingly less often during term time.
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Our new Vice-Chancellor was clearly trying to strike a Churchillian note when drafting his 10 June email to all staff.
I am encouraged, he noted,
by the resilience and dedication I have seen in Lancaster since my arrival, and with that spirit, we will face whatever may come as a united and collegial team. Very inspirational, for sure, but if it achieved anything it was to cement the fear that Lancaster University’s position is about as secure as the British Expeditionary Force in Dunkirk.
Whilst we’ve saved maybe £3–5m through furloughing, the announcement that the University Council is seeking to reduce spending by £66m over the coming financial year makes this belt-tightening seem relatively minor. This figure is based on the Council’s
middle risk scenario, which supposes that around 20% of incoming EU and overseas students will not appear in October, leading to corresponding reductions in fee and accommodation income. Our cash flow is not great, with reportedly less than 2 months of cash in hand for paying salaries. Interest payments on £65m of private debt can’t be helping either.
The £66m in savings are to be split three ways: £22m saved by deferring our capital expenditure; £22m saved by making non-payroll budget savings; and £22m saved from payroll, hopefully to be achieved through
options formed the main topic of conversation at an anxious informal meeting of Lancaster UCU, held on 11 June with 54 members present. Senior management had reportedly agreed to take a 10% cut in their salaries for the 3 month period beginning on 1 August; less, proportionately, than the amount that striking staff have already lost this year. Those opting for a voluntary pay cut will, officially, take their full normal salary but donate a portion of it back to the University through Payroll Giving, so preserving their pension contributions. Why the arbitrary division of £66m into three equal parts? UCU members were unsure. A more formal meeting of Lancaster UCU on 18 June was so popular that some members were unable to get in, as numbers had reached the Zoom-imposed maximum of 100.
On 16 June all staff received another email, from the Vice-Chancellor and the Pro-Chancellor, offering some ideas:
making a contribution of your salary, delaying the financial reward element of promotions, purchasing additional annual leave, temporarily reducing your working hours, career breaks, flexible furloughing etc. Everyone is invited
to participate in a survey to opt-in to a range of voluntary options which will help reduce the overall pay bill in the short term. The Vice-Chancellor will give up 20% of his salary.
The FAQ for the survey tries to reassure everyone that,
there will be no direct consequences as a result of this survey or impact to you if you decide not to participate — what about indirect consequences, then? — but adds, in a way that can’t help coming across as slightly menacing, that
the more staff who are able to participate then the stronger the University’s response to this financial situation will be.
Are we overreacting? Undergraduate recruitment figures are very good (our total number of
firm accepts for 2020–21 entry now exceeds the corresponding figure for 2019–20 entry, which makes this year one of our best ever) although postgraduate taught figures are not quite as rosy. An email from the Director of HR to line managers, sent on 16 June, notes that the measures are designed
to help protect the cash flow of the University over the three month period from 1 August to 31 October because
there is a need for immediate cash preservation. Are we finding it more difficult to obtain credit at the moment? How are Leipzig and UA92 looking these days? Letters and thoughts to the usual address, please.