More than 600 jobs face axe at University of Dundee to tackle £35m deficit
The University and College Union described the news as a ‘hammer blow’ for staff.
More than 600 staff are set to lose their jobs at the University of Dundee as its deficit is set to hit £35 million this year.
Plans outlined by university management will see 632 posts go across all schools and directorates, with it understood to be “very unlikely” that compulsory redundancies can be avoided.
However, the university does not currently have the required funds for redundancy packages, meaning it will have to look to the Scottish Funding Council (SFC), Scottish Government, or even banks for the cash.
Universities minister Graeme Dey said any plea for more funding would be “carefully considered”.
Parts of the university estate, as well as intellectual property rights, are also likely to be sold off as the university seeks to downsize.
The university has also pledged its support for an external investigation “into what went wrong”, with interim principal Professor Shane O’Neill committing to enact its findings.
He said: “The current financial crisis has challenged us to ask some very fundamental questions about the size, shape, balance and structure of the university.
“The measures we are now proposing would make an essential contribution in our becoming a more appropriately balanced and restructured institution.
“Getting there will not be easy and we are determined to take on board all relevant lessons from the past and the various factors that contributed to the current position.
“We are committed to an external investigation into what went wrong, which will be co-sponsored with the Scottish Funding Council (SFC), and we will accept and act on the findings of that investigation.”
Cuts have already yielded £17 million in savings, Prof O’Neill said, but more will be required.
“The measures we are proposing would make an essential contribution in our becoming a more appropriately balanced and financially sustainable institution,” he added.
Prof O’Neill said getting to that position will “not be easy”, but he pledged to act quickly, adding the university has adopted an approach of “frank realism and honest self-criticism”.
A consultation period has been opened on potential redundancies.
Jo Grady, general secretary of the University and College Union, described the news as a “hammer blow” for staff who are “being made to pay the price for egregious management failure”.
She added: “It’s four months since workers first learned that there was a problem, and it feels that very little has happened in the intervening period to turn the university around.
“We are clear that there is an alternative to sacking staff and cutting courses, student support and vital educational provision in this city, and we’ll continue to do all we can to save jobs and to preserve education in Dundee.”
The plans will restructure the university from eight separate schools into three faculties and reduce the number of modules delivered by 20%, while also downsizing its research wing, and reviewing leadership.
According to the university, it was hit by inflation and cost increases, which were compounded by a failure of financial controls and poor capital planning, which led to the crisis.
Mr Dey acknowledged it is a “deeply concerning” time for staff and students, adding: “Whilst Dundee is an autonomous institution, it is my expectation that the university engages fully with staff and makes every effort to protect jobs.
“Compulsory redundancies should only ever be considered as a last resort, after all other cost-saving measures have been fully explored.
“The Scottish Government, through the Scottish Funding Council, has been actively engaging with the institution and has been clear of the need for a comprehensive financial recovery plan.
“The funding council will closely scrutinise this plan and will continue to offer Dundee support as they secure a sustainable future.
“Our universities play a pivotal role in Scotland’s economy and wider society, and the University of Dundee is significant in that respect.
“It is vital that Dundee recovers so that it can thrive into the future and continue to make a positive impact on Scottish higher education.
“The Scottish Government recently announced an additional £15 million for the Scottish Funding Council to support universities such as Dundee.
“If there is a further financial ask to be made of Government in relation to the immediate challenges faced by the university, then this will be carefully considered.”
Scottish Conservative education spokesman Miles Briggs said the situation in Dundee is just an “extreme example” of the crisis in higher and further education across the country.
Scottish Labour MSP Michael Marra – who represents the region – said Dundee will be in a “state of shock” at the announcement of job cuts, as he urged the Government to make sure similar situations do not arise in other cities.
“These are the consequences of a leadership that lost control of the university’s finances,” he added.
“The impact on the people they were supposed to lead and the community they were supposed to serve will be incredibly painful and will be felt for years to come.
“My thoughts are with all staff today reeling from this news.”
Scottish Liberal Democrat education spokesman Willie Rennie said the news is “devastating” to staff and the wider Tayside economy, as he said there have been “reckless decisions” made by management.
Unison Scotland regional organiser Mo Dickson said: “Persistent underfunding has left many institutions in financial crisis, but essential support staff shouldn’t be bearing the brunt of budget woes.
“The scale of the cuts and their impact on employees and students highlight serious leadership failings at Dundee University.
“Staff are still in the dark about what the university will do to save cash. The priority should be finding savings without a reduction in roles that give a safe, secure and supportive experience for students.”
