The University and College Union (UCU) Scotland has warned the principal of the University of Edinburgh that strikes and other forms of industrial action are a real possibility if senior management don’t roll back on threats of £140million cuts and take compulsory redundancies off the table.
UCU members at the university were asked in a consultative ballot if they would be willing to take strike action if the university didn’t rule out compulsory redundancies. In a turnout of 59%, easily beating the anti-trade union threshold, 75% of members voting said that they would be willing to strike.
85% said that they would also take part in action short of strike which could include working to contract and refusing to cover for absent colleagues or undertake voluntary duties. If the same vote was repeated in a statutory ballot, which could open in the coming weeks, then the university will face the possibility of strikes and other action on campus.
The consultative ballot result follows the announcement on 25 February by the university principal, Professor Sir Peter Mathieson, that the university was looking to make cuts of £140million, and that cuts of this scale could not be made by voluntary redundancy alone.
The announcement, sent by email, left university workers fearful that senior management are planning to sack staff using compulsory redundancies.
The union said that cuts of this size are unknown in Scottish higher education and questioned the role of management and the decision making at the university given there is currently no deficit, and to date, unions have not been shown any evidence that there is the prospect of one.
The union cast doubt* on the necessity of the cuts, and said that, instead, the university should look to using some of its reserves to mitigate job cuts, as well as cutting back on capital expenditure. Recent accounts for the university show net assets of over £3billion.
Jo Grady, UCU general secretary, said: “Edinburgh University management need to listen to their staff. The consultative ballot results show a clear willingness to take action against cuts and to defend jobs.
“Instead of pressing on with plans to make the biggest cuts ever seen in Scottish higher education, Peter Mathieson needs to work with UCU, use the university’s reserves and rule out compulsory redundancies.
“Politicians need to up their game as well and make clear that cuts of this scale are completely unacceptable, unnecessary and will cause lasting harm to one of Scotland’s most respected universities.”
Branch president, Sophia Woodman, said: “This is a strong vote for industrial action by members in this consultative ballot. Senior managers at the university should be under no illusion about the strength of feeling of staff.
“Instead of manufacturing a crisis, senior managers should be sitting down with the union for talks and looking to resolve this dispute before it escalates further. Members have been clear that they strongly oppose compulsory redundancies and we expect the principal to heed that message.”
Further £10 million for Scottish Funding Council to support the university sector
Additional support is to be made available through the Scottish Funding Council (SFC) to support universities facing financial challenges.
Education Secretary Jenny Gilruth said an additional £10 million will be provided to the SFC to support higher education institutions such as the University of Dundee as they navigate current financial challenges.
It brings total additional support for the sector from the Scottish Government to £25 million, on top of the £1.1 billion in the 2025-26 budget for university teaching and research.
The Scottish Government will convene a range of expertise from across the higher education sector, government, and Dundee City Region to support the University of Dundee while it develops its Financial Recovery Plan. This is in addition to work already underway by the SFC, which engages closely with universities on financial sustainability.
The @ScotGov budget 2025-26 provided £4.3 billion for education and skills, including £186.5 million for councils to increase teacher numbers and £28 million for councils for ASN.
Ms Gilruth said: “The Scottish Government is providing an additional £10 million support package to assist universities such as Dundee with navigating immediate financial challenges. This is on top of the £15 million of extra support previously announced for the sector in February.
“Ministers have held further meetings with the University of Dundee, unions and the Scottish Funding Council this week, building on the extensive engagement that has already taken place with the institution since financial issues came to light.
“Both the Higher Education Minister and I have conveyed our deep concern at the level of job losses currently being discussed at the University. While the University is an autonomous institution, it is our clear expectation that the University’s leadership works with us, and engages fully with staff and trade unions, to explore all options to protect jobs.
“Work will continue in the coming days to convene the right range of expertise from across government, the sector, and the wider city region to support the institution as it continues to develop its Financial Recovery Plan.
“Scotland’s universities play a pivotal role in the economy and wider society, and they must be supported to thrive into the future. This support package is another clear sign of the Scottish Government’s commitment to support the sector with financial challenges – challenges which have been compounded by UK Government policies on migration and employer National Insurance contributions.”
Chief Executive of Scottish Funding Council Francesca Osowska said: “We welcome Scottish Ministers’ continued commitment to the tertiary sector and confirmation of this additional funding.
“Recognising the particular challenges facing the University of Dundee, we look forward to engaging with a wide range of partners to secure its continued success as a world-renowned University delivering excellent outcomes for learners and researchers and contributing to economic growth and social wellbeing.”
The additional £10 million capital funding has been identified from within the education portfolio.
EDINBURGH INTEGRATION JOINT BOARD PLANS TO END £4.5 million GRANTS TO 63 COMUNITY PROJECTS
SCOTTISH COUNCIL of VOLUNTARY ORGANIATIONS (SCVO)
SCVO response to proposal by Edinburgh Integrated Joint Board to remove grant-funding from voluntary organisations:
Letter to Councillor Cammy Day, Leader of City of Edinburgh Council,
Professor John Connaghan OBE, Chair of NHS Lothian
cc Pat Togher, Chief Officer EIJB
Proposal by Edinburgh Integrated Joint Board to remove grant-funding from voluntary organisations
I am writing to add SCVO’s voice to the protests regarding the IJB’s proposal to withdraw funding in-year from charities and community groups. 37 of our members are impacted by this decision.
The intention outlined in the board paper to take a more strategic and collaborative approach in the future has been totally undermined by the impact of reneging on this year’s grant funding.
Trust is a fragile thing, and it will take a long time to rebuild any sense that the council and the health board have an understanding of, or respect for, the voluntary organisations that do so much to support our communities.
When you look to build your strategic partnership in 2025, many of them simply won’t be there because they will have gone out of business.
Far from saving money, this will generate significant costs to public services as people fall through the cracks, and the additional millions of pounds voluntary organisations bring in from trusts and foundations or the private sector through match funding and other fundraising activities will disappear. A truly strategic approach would be looking to maximise that income-generation, not cut it off.
It appears that over 100 people who were already in a precarious enough position will lose their jobs. And the discretionary effort of hundreds more volunteers will be lost.
It is evident that when money is tight, which I recognise it is, the council and the health board have retrenched and focused on short-term savings rather than the public good.
The table in the board paper which illustrates where the money could be “better spent” says it all – to the IJB, acute services matter more than prevention or early intervention. As well as being short-sighted ethically and financially, it flies in the face of all the evidence around what communities need and the rhetoric around person-centred services and prevention.
I would urge you to intervene and stop the IJB making a decision everyone involved will regret.
Yours sincerely,
Anna Fowlie Chief Executive, SCVO
BIG HEARTS: “The value the charity sector brings to our local communities should never be in doubt.”
VOLUNTARY HEALTH SCOTLAND:
VHS Chief Executive @MistryTej has commented on the recent cuts being proposed by Edinburgh IJB.
What will it take for recognition of the crucial work the third sector are doing to reduce health inequalities?
Along with the rest of the sector we are extremely concerned by the proposed early cessation of EIJB grant funding to 64 voluntary sector organisations. As well as the loss of important services and the associated job losses, this will impact volunteering.
Volunteers are at the heart of the affected organisations, contributing 206,000 hours of support to people in the community worth over £2m. These volunteering opportunities are not only a lifeline to people they help support.
They also enable local people to be active in their communities, build confidence, develop skills, reduce isolation – all of which contribute to better health outcomes for volunteers themselves.
The impact of the loss of these volunteering opportunities cannot be understated.
LIVING RENT:
64 charities are at the risk of closure due to £4.5 million worth of proposed cuts. This will have devastating effects for tenants, for workers and for communities across Edinburgh.
Let’s defend our community centres, services & jobs.
Join us to say NO to Labour-led cuts!
SCOTT ARTHUR MP:
I have today (Wednesday) written to the Cheif (sic) Officer of the EIJB opposing the proposed cuts to the third sector in my constituency – I expressed my concerns in the strongest possible terms.
I support @cllrcammyday fully in his call for fair funding for Edinburgh.
Edinburgh Integration Joint Board meets TOMORROW (Friday 1 December) in the Dean of Guilds Room at The City Chambers at 10am.
The following organisations will make their case against the cuts at the meeting:
Postal workers union CWU has responded defiantly to an announcement by Royal Mail’s parent company International Distribution Services PLC’s that they plan to slash up to SIX THOUSAND jobs due to mounting losses.
The union says Royal Mail’s announcement is nothing more than ‘their latest misjudged scare tactic to threaten members into submission’.
CWU said: ‘We (CWU) will meet Royal Mail Group today because we continue to act in good faith. We will also bring you a fuller update from the unions leadership later as well.’
CWU General Secretary Dave Ward said: “The announcement is the result of gross mismanagement and a failed business agenda of ending daily deliveries, a wholesale levelling-down of the terms, pay and conditions of postal workers, and turning Royal Mail into a gig economy style parcel courier.
“What the company should be doing is abandoning its asset-stripping strategy and building the future based on utilising the competitive edge it already has in its deliveries to 32 million addresses across the country.
“The CWU is calling for an urgent meeting with the Board and will put forward an alternative business plan at that meeting.
“This announcement is holding postal workers to ransom for taking legal industrial action against a business approach that is not in the interests of workers, customers or the future of Royal Mail. This is no way to build a company.”
Think tank Resolution Foundation economist Daniel Tomlinson says the UK Government is NOT paying nine million people’s wages. He says the number of workers currently furloughed is half this amount …
From today, employers will start contributing towards the wage costs of furloughed employees (writes RESULTION FOUNDATION’s DANIEL TOMLINSON).
This significant first step in the phasing-out of the Coronavirus Job Retention Scheme (JRS) carries real risks of increased redundancies – particularly for those in the hardest-hit sectors – and so attention should also focus on the important question of just how many people are furloughed today.
Despite significant easing of the lockdown and attention rightly focused on the large number of redundancies announced of late, it’s still common to hear the claim that nine million employees are being paid right now through the scheme. However, this is simply not true. Although it is true to say that in total nine million people have been furloughed for at least one three-week period since March, this cumulative figure does not reflect what’s happening right now. Rather, all the evidence suggests that the number of people furloughed today – as employer contributions towards furlough pay kick in – is likely to be at most half, and maybe even as low as one-third, of this nine million total.
For the millions of workers who have returned to active employment over the past three months, the JRS has served its purpose well. But it may be the case that more than one million employees in the hardest-hit hospitality and leisure industries are still furloughed.
It’s in this context that the impact of the across-the-board increases to employer contributions in August, September and October are a concern. Delaying future increases in JRS contributions for the hardest-hit sectors would help reduce the rise in unemployment forecast in the autumn.
There are not nine million people on the Coronavirus Job Retention Scheme today
The Coronavirus Job Retention Scheme (JRS) has been a very successful and well-implemented policy intervention. It has supported household incomes in the face of an unprecedented shock, and maintained the crucial attachment between employees and their employer.
However, for many firms and employees it will have only ever been used on a temporary basis at the height of the economic shutdown. Many furloughed employees have since returned to work (some on ‘flexible furlough’ for part of their working hours), and a smaller group will have been made redundant already, even before today’s introduction of employer contributions.
But you wouldn’t know this from listening to our politicians and broadcasters. The Prime Minister, claimed on 24 July 2020 that his Government was “supporting the livelihoods of 9 million people now through furlough”. Similarly, the BBC reported on 28 July 2020 that “9.5 million people are using the scheme, the same as a week ago”.
This is wrong. Although the cumulative take-up of the scheme since its launch is in excess of nine million, the actual number of people using the scheme right now – on the day that employers are now required to start contributing to the payroll costs of furloughed employees – is undoubtedly much lower.
Figure 1 shows the increase in cumulative JRS take-up over time, as published by HM Revenue and Customs. These cumulative figures are now entirely meaningless when it comes to understanding the path of the economic recovery or the numbers of people who have been furloughed for a prolonged period of time.
Figure 1: Nine million people have been on the JRS at some point since its launch
All the evidence suggests that the number of people currently furloughed is at most half the nine million total, and could even be one-third of this level
In the absence of official statistics on furlough numbers over time, we can turn to other estimates of furloughing and coronavirus labour market effects from various Office for National Statistics (ONS) surveys, in order to get a sense of when take-up peaked and just how fast it has fallen.
Across the three available data sets stretching back to the announcement of lockdown on 23 March 2020, the consistent finding is that the number of people furloughed or away from work is likely to have peaked in late April at somewhere between seven and eight million employees (Figure 2). The upper end of this range is based on the ONS’s Business Impacts of Coronavirus Survey (BICS), which reported that 31 per cent of the private-sector workforce was furloughed in late April.
Figure 2: The number of people now furloughed is much lower than in late April
Since late April, the number of people furloughed or away from work looks to have fallen considerably. This is unsurprising given restrictions on non-essential retail were lifted on 15 June, and on many parts of hospitality and leisure on 4 July (in England).
The opening up of these parts of the economy, and the general increase in economic activity since the depths of lockdown, will have led to millions of employees returning to work.
For example, the number of people temporarily away from work above and beyond the usual level of temporary work absences (the red line in Figure 2) fell by 40 per cent between late April and late May. This will have been driven primarily by people coming off furlough, but also by reductions in the number of people away from work for other reasons such as shielding, self-isolating or for childcare.
Some of this decline will also be driven by moves off the JRS and into unemployment, although this is likely to be a relatively small part of the story to date as in May, June and July employers had not yet been asked to contribute anything towards the costs of furloughing their employees.
More up-to-date estimates come from the BICS for early July, which suggests that 16 per cent of the private-sector workforce was furloughed at this time. We estimate this equates to around five million people still on furlough at the start of the month.
At the other end of the range, the Opinions and Lifestyle Survey (OLS) shows that the proportion of those who report that they are employed but furloughed fell from 13 per cent of all workers in the period 18-21 June, to 8 per cent of all workers in the period 8-12 July.
This figure, which equates to three million employees, is at the lower end of the range we’d expect, and will have been affected by the introduction of flexible furloughing from 1 July. Many employees who returned to work part-time in July will not have been counted as furloughed in these OLS estimates, but may well have still have the majority of their pay provided through the JRS (and will appear in some of the other series shown in Figure 2).
It would be unwise to lean too heavily on this or any other estimate from one particular survey in drawing conclusions as to the number of people furloughed today. The use of flexible furlough in July could mean that the pace of decline in take-up slowed last month as employees moved from full to flexible furlough, rather than off the scheme altogether. To date there is little evidence on the impact of flexible furlough on business behaviour, but it’s likely that usage of this component of the scheme will be high.
Overall, it is reasonable to draw the conclusion that the number of people furloughed right now, as employers begin making contributions to furloughed employees’ wage costs, is certainly below 4.5 million (half of the commonly cited nine million total) – and may be as low as one-third of this level.
Employer contributions will disproportionately affect workers in hospitality and leisure, so a sectorally differentiated wind-down of the scheme is desirable
Although the number of people furloughed right now is lower than many claim, it is still a large proportion of the workforce – particularly in some sectors. For this reason, the impact of the introduction of employer contributions towards furloughed employees’ wage costs from 1 August should not be taken lightly.
This big change to the scheme will mean that employers will now start paying employer National Insurance contributions and minimum auto-enrolment pension costs for furloughed employees, at an average of £70 a month (equivalent to 5 per cent of the average employee’s wages pre-coronavirus).
This shift will be followed by increases in contributions in September and October and then the ending of the scheme in November, changes which will have large effects on employer costs in sectors where furloughing rates are higher, such as hospitality and retail. We estimate that in these two sectors as many as one million employees (38 per cent) may still have been furloughed in late July (Figure 3).
Figure 3: Four-in-ten hospitality and leisure workers could still be furloughed
The fact that furloughing rates, and therefore the cost of employer contributions, are concentrated in particularly hard-hit sectors strengthens the case for treating these parts of the economy differently from the rest in the months ahead. Employees in these sectors are now at heightened risk of entering unemployment this autumn as employer contributions are introduced today and then increased throughout September and October.
We have previously called for the phasing in of employer contributions to take place on a slower timetable in the hardest-hit sectors for just this reason. The Government could still take this approach with the planned September and October employer contribution increases (to an estimated 15 and 25 per cent of pre-coronavirus wage costs), in order to limit redundancies in sectors like hospitality and leisure.
Further, the imposition of local lockdowns and the very real risk of a broader second wave means that Government must also be clear about what policy will do in these circumstances. In time, flipping the JRS so it subsidises work being done in these hardest-hit sectors, rather than provides payments when work isn’t done, would be more effective way of maximising the amount of work carried out and would be a more sustainable way of providing support to parts of the economy heavily affected by ongoing social distancing.
To date, the JRS has been a clear policy success. However, the challenges of phasing it out, calibrating it to the path of the virus and the return of economic activity mean that the hard work of designing and implementing policy that protects jobs and incomes in this crisis is far from over.
A consolidation plan to ensure that Edinburgh Airport remains open and operational during the coronavirus outbreak has been put into action. The news comes as the airport management enter talks with staff with a view to shedding at least 100 jobs.
Enforced travel bans across the world have resulted in airlines dramatically reducing their schedules to and from Scotland, directly impacting on passenger numbers at the airport.
There was a small drop in passengers in February with 935,455 passengers passing through the airport, which was 0.4% behind February 2019. However, the airport is predicting a period of zero or close to zero passenger demand.
To protect as many jobs possible and ensure the airport is open throughout, the airport will implement a ‘consolidation’ programme which will also form part of a recovery plan to ensure the airport is ready to return to full operations at the end of the outbreak. This plan includes:
Terminal consolidation with certain areas closed and the centralisation of operations
Deferring expenditure on some capital projects
Powering down high consuming energy items like elements of the baggage system and heating and cooling systems on parts of the airport that are closed
A number of retailers and food and beverage outlets suspending operations
Gordon Dewar, Chief Executive of Edinburgh Airport said: “This is an unprecedented time not only for the aviation industry but for everyone as we all do what we can to ensure the health of ourselves and of those around us.
“For us, that includes the health of our airport. Our plan is based on keeping the airport open throughout and being there for those people who are still travelling and those staff members who are making that travel possible.
“We’re in a situation which is ever changing and as more countries enforce travel bans or special measures then it stands to reason that airlines will feel that impact and airports then feel that pain too.
“Unfortunately, that is happening now and we are trying to mitigate as best as we can and steer the airport through this situation in preparation for what comes next – and that is the biggest unknown in all of this.
“The airport is a facilitator of many things, that is our main role. Yes, we transport people around the world but it’s what those people bring that is the true value – they are our inward and outward tourists, they are our business leaders, they are our students and lecturers, they are our scientists and researchers. All of these things are important in the wider Scottish economy and we are doing what we can to ensure we are ready to return towards normal when the time comes.”
The airport has welcomed announcements by the UK and Scottish Governments on financial support for the sector through this situation.
Gordon Dewar added: “We welcome the collaboration there has been with both governments at this critical time but we will need continued support to ensure that the aviation industry is able to play its part in the country’s economic recovery.
“Along with other UK airports, we ask both governments to come together and show unity and support with the industry to help us weather this storm and come out of it still standing and ready to move forward again.”
‘Our mandate from our members remains. Industrial action remains a real possibility in the event of compulsory redundancies.’ – UNISON lead negotiator Tom Connolly
UNISON has postponed its lobby of Edinburgh Council’s Finance and Resources Committee tomorrow following assurances from senior councillors that privatisation plans will be dropped and redundancies delayed for further talks.
Amanda Kerr, Edinburgh UNISON branch secretary, said: “Following concerted UNISON pressure, we welcome this re-think and the dropping of privatisation plans. We also welcome the delay on redundancies, however we still have a long way to go and we will be building for a lobby of the next Finance and Resources Committee on 29 October.
“Our campaign has brought this to the public eye and that campaign will continue. We warned that the level of cuts envisaged would be devastating for services. After years and years of cut after cut, no council can sustain even more massive cuts.”
Lead negotiator Tom Connolly added: “This is an important victory. The damage privatisation would have caused cannot be overestimated. The union will focus on protecting jobs and conditions, engaging with our members and building towards the lobby on 29 October. Our mandate from our members remains. Industrial action remains a real possibility in the event of compulsory redundancies.”
Last week, UNISON warned that up to 3000 jobs could be lost as the council aims to balance it’s books, and councillors are set to consider a number of key proposals to address a £126m budget shortfall over the next four years at tomorrow’s meeting.
Councillor Alasdair Rankin, Finance Convener, said: “We are very clear about the scale of the financial challenge that the Council is facing. The Council is experiencing greater demand for services than ever before, with a growing population in Edinburgh and increasing numbers of older people and younger people, while our overall budget remains the same.
“We need to take action in order to achieve the necessary savings to meet this demand, and we are making every effort to do this in a way that will safeguard frontline services for the people of Edinburgh.
“We want to invest in the services that are important to the public but must also look to rationalise our spending where appropriate. We recognise that some of these proposals may involve tough decisions, including a reduction in Council jobs, particularly in middle management. But while this won’t to be easy, savings will allow us to prioritise the things that matter most to people.
“Our aim, as ever, is to improve and enhance the city for residents, and this package of measures is the next step to achieving this. Councillors will consider these proposals and we are looking forward to the discussions. ”
