Jon Richards

1
UNISON
Bargaining in a Recession

• Jon Richards
• Head of HE
• Education and Childrens Services

2
The economy
UNISON

• UK National Debt 824.8 billion (ONS)
• This is around 60 of Gross Domestic Product
  ( but note USA has over 70, Italy
  100 and Japan nearly 200)
• Increase from 2002 when 29 of GDP
• - increased public spending, recession ( lower
  tax receipts, increased unemployment benefits etc
  and bailout of banks
• Tories claim it is 2.2 trillion
• (they include 1.1 trillion pensions, 139 billion
  on PFI etc but this is not actual current
  spending - is a future liability)
• Green shoots ONS growth stats released today
• Long term economic debt - next government will
  be looking to make savings

3
The Forces of Darkness gather
UNISON

• Cuts almost inevitable
• Difference seems to be between a government who
  are sad when they cut compared to a possible
  Tory administration that will do it with glee and
  go further
• Calls for cuts in public spending - aided and
  abetted by the Centre for Policy Studies, the
  Taxpayers Alliance, the Institute of directors,
  CBI, IPPR etc.
• But is there an argument for increased HE funding?

4
HE Funding
UNISON

• UK HE funding 1.4 of GDP (US 2.9)
• Government remains main funder
• Total UK HE funding (2006-7) 21,289
• - England 17,567 mill, Scotland 2,258, Wales
  1,005, NI 459
• Direct government funding - England 54 (HEFCE
  37) Scottish Government 55 (SFC 42) Wales 55
  (HEFCW 43), Northern Ireland DEL 55 (estimate).
  
• Research councils account for between 5-7,
  other sources account for between 30 Wales 39
  Eng and Scotland
• Government funding crucial. Increased external
  funding (especially during a recession)? Harvard
  and Yale lost 18 billion dollars (30) on their
  investments. Harvard shed 275 jobs and halted
  building programme.

5
HE Funding issues
UNISON

• UK research councils 1.2 reduction in
  2010/11funding due to low inflation rates
• Scotland 3.4 increase in 2009
• However also 2 efficiency savings. Recent review
  of funding formula likely to favour maths,
  science creative arts good for old HEIs,
  Additional 3,000 students funded
• Wales 1.66 increase in funding in 2009.
• Assembly sponsored report June 09 highlighted
  funding gap with England and Scotland

6
HE Funding issues
UNISON

• England 3.5 increase in 2009 undermined by
  proposed 180 Million efficiency savings
  
• - 65 million in 2009-20 (which has been
  applied as a 1.36 reduction in the teaching
  grant the rest in 2010/11.
• Also allowed for additional 10,000 increase in
  F/T STEM students (not funded) this year.

7
Effects on HEIs
UNISON

• Increase in students less funding
• Cuts tied to contestability (outsourcing).
• Protection of quality of teaching and learning
• Student funding (fees, grants etc) review soon
  (Eng) - take off or increase fees cap, means
  testing loans, graduate tax
• Mandelson speech to CBI (20th October)
• HE and FE as a closely integrated single agenda
• Strategic ambition constraints in FE and HE
  policy
• Business to be more engaged

8
Consequences for Staff
UNISON

• Cost pressures Pay, TCs, pensions
• Negative impact on Staff ratios and workload
• Shared services (HEFCE pilots in NE and E.Mids)
• Outsourcing
• Redundancies
• Effects on Health or restructuring
• Management/admin vs Academic - increased tension?
  - plus academic freedom debate

9
Our response
UNISON

• This seminar we need to review and develop our
  strategies
• HESGE started process need to build
• Strong National response re funding and students
• HE as driver of economy - provides a way out of
  recession
• Leading world institutions (4 out of top 10 in
  world rankings)
• foreign students contribution to economy
• already efficient, high quality, low wastage
  rates,
• Student funding note NUS new position
• National pay campaign Joint 2010/11

10
Our response
UNISON

• Review and develop our strategies
• Re-focus - hone our defence strategies
  - Salami slice cuts versus chunks of
  work
• Redundancies and outsourcing - imperative that
  services are mapped and plans drawn up (eg
  student experience)
• Protect equal opportunities gains
• Occupational Health bullying, stress
• Not a time to hide recruit, retain and organise
• 5 Unions 1 Demand - Defend HE

11
j.richards_at_unison.co.uk