Unite understand workers could be left thousands of pounds ‘worse-off’ every year in retirement despite £100m university pension surplus
Unite Scotland has today (16 January) confirmed that around 350 members at the University of Strathclyde are to be balloted on industrial action in reaction to the threat of detrimental pension changes.
The workers are part of the Strathclyde Pension Fund (SPF) and are at risk of losing thousands of pounds a year due to the University of Strathclyde proposing to move existing and future workers into an inferior superannuation scheme because the university wants to access a pension surplus of nearly £100m.
Unite is highlighting that the University of Strathclyde is proposing to make around 1,100 workers ‘worse off’ in retirement using the drop in overseas students as the pretext for an attack on the pension scheme. Unite is aware of no other education institution that is part of the wider SPF proposing a similar detrimental move for staff.
Unite general secretary Sharon Graham said: “The decision by the University of Strathclyde to force through pension cuts will be resisted. Strike action in defence of our members’ pensions is now firmly on the cards, and make no mistake Unite will do everything to get this disgraceful decision binned. We make no apologies for standing up for our members.”
If these detrimental changes were to go through it would come in addition to average pay also having gone down by £7,400 in real terms since 2019. In contrast, the principal and vice-chancellor professor Sir Jim McDonald made £401,000 in 2023, with a further £13 million divided up between the university executive team.
The industrial action ballot opens today (16 January) and closes Monday 10 February.
The workers involved in the ballot include technicians, cleaners, security and estates staff such as plumbers, joiners and electricians.
Unite contends there is no need for the University of Strathclyde to make the pension changes because it made an overall surplus of £46.8 million in 2023 from an income of £487.4 million. The university has substantial reserves holding net assets of £402.9m in 2023, up from £304.6m in 2019 and an additional £142.7m in cash.
The university also has strong financial liquidity with £360.7m of its net assets being ‘unrestricted’ which means they are not ‘locked up’ and can be used in the event of any temporary financial downturn.
Alison MacLean, Unite regional coordinating officer, said: “The University of Strathclyde is attempting to force through detrimental pension changes despite having a significant pension surplus of £100m. The pension changes could leave some workers thousands of pounds worse off every year.”
“It is a reckless cash grab on a pension surplus that our members have funded to allow the university to improve its short term financial position. Instead, there are a range of options available including assessing the university property portfolio and tackling eye-watering executive pay.”
“Unite will fight this inch by inch and through prolonged industrial action if necessary. ”
