University bidding to cut staffing costs

DUNDEE University has asked all 3,000 of its staff to consider unpaid career breaks, reduced working hours and early retirement to prevent pay cuts.

Pressures brought on from the ongoing pandemic means the institution, which is one of the city’s biggest employers, is facing a £15.6 million black hole next year.

It hopes a significant shift to part-time working, full or flexible retirement and career breaks of up to two years will offset some of the lost revenue.

Bosses say the biggest impact on revenue is a significant drop in the number of fee-paying international students signing up for courses – expected to be less than half that predicted pre-pandemic.

More drastic measures, such as pay cuts, may need to be introduced in October once student enrolment figures are finalised and if not enough staff apply for the new “flexible working” arrangements.

It is understood cuts would not apply to those on the lowest pay and decision-makers have insisted no redundancies are planned “at this time”.

The university had already been facing financial difficulty with six consecutive years of losses totalling £36m.

The university, which has furloughed 600 of its staff, is also considering selling surplus buildings to add to its current cash balance of £12m, as well as putting a pause on pay rises.

A spokesman for the university said: “We have already put several cash savings measures into place and severely restricted our capital expenditure programme.

“These actions still result in a very significant deficit for next year, and we are currently working to a forecast of £15.6m.

“We have now invited staff to think about flexible working options such as moving to a part-time contract, considering flexible retirement or retiring completely.

“All of these options would make a contribution to reducing our costs.”