Get organised to defend USS and pay

Take the fight to Boris – Defend Higher Education!

What is at stake

This is what is happening to our USS Defined Benefit pension. If we were to accept UUK’s offer, USS will pay us a pension worth less, pound-for-pound, than three quarters of the value (72.22%) of the 2011 CARE scheme.

And that scheme was a huge cut from the Final Salary scheme that had existed for years.

Graph: The incredible shrinking USS CARE scheme. Pound for pound value of USS member contributions.

This is a deliberate policy by the employers, working in concert with those in USS and the City who would like to see the back of Defined Benefit. In 2018 UUK used their majority on the Board (and the casting vote of the Chair) to impose Defined Contribution.

The entire case for increasing contributions is predicated on a ‘deficit’ that has been widely debunked. The simple fact is that if the pension scheme were not ‘de-risked’ there would be no projected deficit. ‘De-risking’ (selling off investment assets and buying gilts) began after the employers demanded it in 2014.

This attack is not a one-off. It won’t be stopped by negotiations — however clever the negotiators. Sally Hunt knew that. That’s why in 2017, she used her influence on the HEC to build the strike. She silenced the right wing of the HEC, openly campaigned for strikes and allied with the Left to make sure they took place.

Members took up the call and responded brilliantly. 14 days of strikes stopped USS and UUK wrecking the Defined Benefit scheme altogether.

We could have fought and won to commit UUK to No Detriment. Had we done that, we would not have to fight now.

But two years on, USS and UUK are turning their backs on the Joint Expert Panel, the result of the 2018 dispute, ignoring UCU, and demanding 20% more from members — all for the same pension benefits.

With the employers imposing 1.8% on pay, USS members will have an effective 0.2% pay increase (CPI, meanwhile, is at 2% and RPI 2.8%). This is a huge pay cut. 

Worse, increased employer contributions will inevitably provoke the university employers. Trinity College Cambridge has left the scheme. As costs on them rise, universities will demand 100% DC. And every cut in DB pension value means less for members to defend.

We cannot leave it to the Joint Expert Panel to rescue us. USS is being undermined by market greed.

Record profits, winners and losers — staff and students lose

Our pension is the victim of Higher Education marketisation.

It is no accident that 2011 marks the beginning of the decline for USS, a scheme that survived stock market crashes and paid 1/80th Final Salary for decades. Before 2011 members paid 6.35% employer contributions. After UCU lost that round, contributions were forced up to 7.5%, and Final Salary was closed to new members.

Before 2011 the employers’ surpluses (profits) were small. Universities were not expected to turn a profit. For example, in 2003, HESA reported a sector surplus (both pre- and post- 92) of £65 million.

But by 2016 the sector surplus was £1.5 billion (on stricter reporting standards)!

The mad competitive scramble to recruit undergraduate students and bank £9,000+ tuition fees has set university against university, college against college. It has encouraged them to borrow over £10 billion in capital projects, and it has created winners and losers.

Graph: Winners and losers. Surpluses as a percentage of total income by institution (2016-17), HEFCE.
Graph: Winners and losers. Surpluses as a percentage of total income by institution (2016-17), HEFCE. Total surpluses in 2017 were reported to be £1.1 billion.

The premise of USS’s stability is mutuality — that the sector works together to provide pensions and the employers together contribute stability to the investment strategy by underwriting the portfolio. This is known as the ‘employer’s covenant’.

But Higher Education competition is destroying mutuality and trust. Why would UCL loan to USS to underwrite the risk of King’s, its competitor down the road? Why would King’s underwrite UCL?

Anyone who thinks that accepting this offer will ‘tide over’ USS has not been paying attention.

Members struck for 14 days in 2018 because they knew that our fight to defend USS was also a fight to defend the future of Higher Education. We had to resist the war of all against all that the sector had become locked into.

Made in Westminster

In 2016, HE Minister Jo Johnson drove through the Higher Education and Research Act. This allowed universities to declare bankruptcy, as Greenwich School of Management (aka ‘GSM London’) did in July.

No wonder employers are concerned about carrying each other’s risk!

The Tory Government is divided over Brexit. A snap General Election is likely. We have a tremendous opportunity to put Higher Education on the map and put the responsibility for this crisis back where it belongs — in Government. The demand for a Government Guarantee to underwrite USS makes total sense. But we need one now, not when USS is frittered away to nothing.

Since our strikes in HE, Further Education members struck over pay and marched on Parliament against cuts in funding. Our members’ action put FE on the political map and extracted £400 million from a right-wing government led by public school boys!

Taking action in own defence gives members confidence to stand shoulder to shoulder with our EU colleagues and students over Brexit, and stand up to any attempt to divide us in a snap election.

Get organised for Round 2

We have to fight to defend our pensions and pay, and we have to organise the fightback now.

As well as pay cuts, the other symptoms of HE marketisation are rising inequality, casualisation and workload.

We have a fantastic opportunity to bring all of these fights together in the two ballots, uniting both sectors.

Balloting begins next week.

The only way to defend our pensions is through strike action beginning in the Autumn Term. We need to approach Get the Vote Out with military seriousness in branch after branch.

We won the first battle, but if we don’t fight now, we will lose the war. We need to mobilise everyone who stood on the picket line in 2018 to organise meetings in department after department — it is time to unite to win the ballot to defend USS, defend pay and defend Higher Education for future generations.

Get organised to Get the Vote Out

Build the ballot over pay, equality, workload and casualisation

Get the vote out flyer

UCU has called a five-week ballot for industrial action over pay this term. It opens on Tuesday 15 January and closes on Friday 22 February. It is timed for the maximum duration while still allowing members to take hard-hitting strike action this term and hit exams next term. So if we win the ballot we can take serious action.

We need to get organised.

First and foremost, this ballot is an organising challenge for every branch. Thanks to the Tory anti-union Trade Union Act, more than 50% of members eligible to vote must participate. Even if 100% vote YES, if only 49% vote, the vote does not count.

The main reason members do not vote is simply that they forget. Paper ballot envelopes and forms are put aside and forgotten about. We have to set up the type of grassroots organisation that makes sure that everyone is asked to vote, encouraged and reminded right up to the deadline.

We know that when we get this right, we get a high turnout.

We know how to do this, but we are all shockingly busy. We know workload – one of the key demands of the campaign – is ridiculous in our sector.

We must make a conscious effort to get organised. We have to treat the organisation of getting the vote out with exactly the same seriousness and care as when we organised the strike over pensions last year, and when we fought local campaigns over redundancies in the past.

The evidence shows it can be done, but we have to make a decisive shift to get the turnout.This is the second ballot we have had over the same pay round.

In the Autumn, the overall turnout was 42%. It was a ‘disaggregated’ ballot: each branch was counted separately. 7 institutions got over 50% turnout. One branch, Herriot-Watt, got a 64% turnout, many of the big branches got between 40 and 50%. The votes for strikes and ASOS were overwhelming, but they could not be actioned.

What we need to do

Every branch needs to

  • call organising meetings to kick off the ballot;
  • then organise a series of meetings in departments and buildings to explain the issues, and encourage debate;
  • organise members to systematically remind colleagues in each department, just as we would if organising a picket line rota.

The 50% threshold is a deliberate anti-democratic burden, designed to prevent unions from striking even when votes in favour are overwhelming.

But it is also a challenge to every member. What is the point of voting if your vote is wasted? The message has to be

Step 1: vote yourself, and Step 2: ask your colleagues to vote. Generations fought for the right to vote. Don’t let passivity undermine democracy.

We need to set up action committees to carry this out. We cannot leave it to a few branch reps. Every member has a stake in this fight.

This is a political fight as well as an organisational challenge. In the autumn, the high YES votes indicate members were convinced by the arguments.

  • Pay. Our pay has been cut by at least 15% since 2008. UCU’s latest figures put the drop by as much as 21%. Every teaching assistant struggling to get by, every teaching fellow on a part -time contract, every researcher on fixed funding stuck near the bottom of the pay spine, each one is 15-20% poorer than they would have been a decade ago. Cuts in the rate for the job mean everyone is devalued. The pay offer of 2% this year is still a pay cut. Members in USS branches can expect their pay cut further.
  • Inequality. One result of low pay is that staff try to increase their pay by other means. We are seeing more individual bargaining and consequentially greater pay inequality. Individual bargaining (threatening to move and demanding a pay rise or moving and negotiating) tends to favour white male staff over women and BAME staff, and increases gender and ethnicity pay gaps. The shocking stories published by the BBC last week are a symptom of this.
  • Workload and casualisation. High workload and low pay are two sides of the same coin. The employers have used the fear factor of redundancies and casualisation to force up workload in our sector. If we do not fight to secure the casualised, the employers will casualise the secure. As the USS dispute showed, strike action allows us to push back against the workload tide we all struggle with. This ballot helps us put the issue on the map and demand action to cut excessive workload or increase paid hours.

New arguments

But the situation has developed in two important respects. What follows is a sketch of the new arguments we are likely to face, and some suggested counter-arguments to make. In USS branches, a strong YES vote also puts us in the best position to ballot over USS cuts.

Objection 1. Brexit

The argument goes something like this.

The future of the UK, and UK universities, is uncertain because of Brexit. Universities don’t know what will happen to student recruitment. We don’t even know whether UK universities will be able to bid for EU research funds, or if they can, on what basis. Now is the wrong time to fight. We should ‘wait and see’.

This is a perfectly understandable argument, but the conclusions are wrong. Instead of waiting, we need a big YES vote to give the union and members a voice. A strong YES vote with a high turnout gives the union the mandate with the employers and government to be taken seriously. It puts the union in a position to negotiate with the employers over pay and jobs precisely at the time when the employers may be looking for job cuts and pay cuts to pay for the mess they have got themselves into.

We can decide what we do with that mandate once we have it. But first we have to get the votes.

The USS dispute taught members two important lessons: we have power when we strike and hit lessons and threaten exams, and – with a credible threat of strike action – ‘impossible’ demands become possible. In the middle of the strike, the Chinese Embassy relayed a threat from the PRC Government to Universities UK: if strikes hit exams, Chinese students will not come to the UK next year.

Crucially, we need to put the universities on the political radar as a sector to be strategically defended in the aftermath of Brexit.

This means members standing up to be counted, voting YES in large numbers and taking action to defend themselves and the sector. A strong strike/ASOS vote over pay is the best protection against threats to jobs. A well-organised Get the Vote Out operation can be repeated for a local ballot over redundancies. Brighton University had a strong GTVO campaign over redundancies. Despite being a post-92, they got over 50% turnout in the autumn.

Objection 2. The HE funding ‘crisis’

If one crisis were not bad enough, the Tories are flirting with the idea of creating another. Whereas the Brexit timetable appears to be outside their control, this ‘crisis’ is entirely of their making.

As we know, in 2011 the ConDem government jacked up undergraduate ‘home’ university fees from £6,500 (£3,000 paid by the student) to up to £9,000 per student. The universities charged the maximum, £9,000. At the same time, the Government set up a complex new loan system covering fees and maintenance grants, and partially abolished the block grant payable to each department.

The Government racked up a mountain of debt to pay for these loans, which the Treasury projected as £90bn by 2021, of which only half will probably be repaid. This is the first – and by far the largest – debt crisis, one they have mainly kept secret.

Meanwhile, in 2014 the Government took the next step in the ‘Willets Plan’ and abolished limits on student numbers (except for a small number of subjects like medicine).

These changes created a situation where universities realised they might make vast amounts of money by expanding in competition with other universities. The new motto of the sector, including of the posh universities, was ‘Pile ’em high and teach ’em cheap’.

Competition creates winners and losers, and the winners gambled in a building and borrowing boom. Universities that reckoned they could grow have borrowed huge sums. According to the Times newspaper, the sector has £10.8bn in debts. UCL tripled their undergraduate recruitment and are building a new campus in East London, where they will be joined by the University of the Arts. Both are borrowing hundreds of millions of pounds.

Meanwhile, other universities, particularly those traditionally recruiting working class or mature students (post-92s, Open and Birkbeck), are seeing student numbers fall. High fees and the opening of spaces in ‘big name’ colleges is hitting them first. The HE funding crisis started at colleges like London Met, and spread across post-92. It is now hitting pre-92 universities through restructuring and redundancies. The employers want to pass the risk and cuts on to staff, as the USS pension fight shows.

No-one is immune.

But the Tories are considering turning a chronic crisis into an acute one. They are leaking proposals from the Augur review of Higher Education funding they commissioned last year. This report seems likely to propose a cut in undergraduate ‘home’ tuition fees to £6,500 at exactly the same time as new EU students are reclassified as ‘overseas’.

Behind the scenes the universities are frantically lobbying the Government to stop the cut unless the Government makes good the difference. At least three prominent Tory ex-ministers have now spoken out publicly. There is no particular need for the Tories to press this button now. But it is a stark reminder that we have battles ahead.

We must not misunderstand the weakness on the Government side. Macho talk from the ‘Office for Students’ that ‘no university is too big to fail’ misses the obvious point that if even one small university closes, several thousands of students will be out on the street with debts and no degree – and the OfS has no Plan B. A spate of college and course closures triggered by Government incompetence would create a massive political crisis. US scandals like Corinthian Colleges and Trump University will be a tea party by comparison.

What does this mean for our ballot? Just like the arguments about Brexit, we have to argue that if we don’t fight, we will lose. A strong YES vote puts us in the best possible position to defend pay and resist job cuts, whether they be triggered by Brexit uncertainty, university restructuring or college closures. It also emphasises the point we made throughout previous strikes on every issue: we ask students to defend staff on strike, because through our strikes, staff are defending Higher Education.

The splits in the Tories show that we have everything to fight for.

In conclusion

The truth is that the collective ability of staff to shape the direction of Higher Education ultimately depends on our ability to win industrial action ballots.

We need to get organised. The stakes could not be higher.

Every member, every activist and every rep must be mobilised.

We have five weeks to defend our sector and win the turnout we need.