University jobs under threat as income falls
JOB losses are expected at Cardiff University as it grapples with a potential £168m fall in income caused by the Covid-19 pandemic.
Laying out the situation in a grim message to the 7,000 staff, Vice Chancellor Professor Colin Riordan said his aim is to protect jobs and avoid job cuts.
But he could not rule out job cuts. Professor Riordan said: “However unwelcome any cost-saving measures may be, we must deal with the reality that faces us.”
The university is talking to unions about possible voluntary reductions in salary or a collective agreement to reduce salary levels on a temporary basis.
“Unfortunately, the alternative to this may be even more unpalatable and so it is important that we consider all possibilities,” the VC’s message to staff warned,
“The principle we are adopting at this stage is that we need to conserve cash and preserve jobs.
“It is too soon to be making irrevocable decisions on staffing numbers, and we are conducting intensive discussions with the campus unions on how to go about preserving jobs as far as we possibly can.”
Before the pandemic and lockdown struck, the university was expecting a small rise in income this year. That is hugely unlikely now. Universities across the UK have been hit by what is expected to be a fall in international students – who pay higher fees – as a result of the pandemic.
There are also fears that home students will ask to defer studies, with universities continuing to teach online next term, although there will be some face-to-face teaching.
Professor Riordan will hold a webinar meeting with staff today to discuss the situation at Cardiff University and take questions.
As well as the income loss, the university needs to make savings of £50m next year.
To save money, a recruitment freeze “for all but the most essential, business-critical posts” has been imposed and all capital projects which the university is not yet committed to have been paused.
Professor Riordan has taken a 20% voluntary salary cut and other senior staff a 10% cut.
Without taking action, the university’s cash reserves would dwindle by more than £250m by July 2021, Professor Riordan said.
A Cardiff University spokesman said: “The Vice Chancellor wrote to all staff on June 4 setting out the financial position, and is holding an all-staff briefing this week to discuss this and to allow staff to ask questions.
“We are also conducting intensive discussions with our campus unions. Whilst we cannot rule anything out, our main objective is to do everything we can to protect jobs. Any future decisions will be communicated directly to staff.”
The situation will be reviewed on a monthly basis, and although the situation may not prove as bad as feared “it is entirely possible that they may be worse” and action must be taken, he said.
On a more positive note, he said the university – which currently has 30,000 students and 8,620 international students – is attractive.
“Cardiff is an attractive city where it is not necessary to use public transport to get into the university, and we have an outstanding range of expertise in-house.
“Wales is not densely populated and the Welsh Government has handled the pandemic with a commendable degree of caution. The months and years ahead will be difficult, but we have shown that we can manage difficulty well and will do so again.”
The Cardiff University branch of University College Union (UCU) said it could not comment as negotiations are continuing. It would comment after further talks are held with Cardiff University management.