Stark Realities Face Staff at Surrey University – Redundancies Offered

Published on: 2 Mar, 2019
Updated on: 2 Mar, 2019

Professor Max Lu, the vice chancellor of the University of Surrey.

Professor Max Lu, president and vice-chancellor at the University of Surrey (UoS), has warned that a threatened £15 million shortfall in income has meant all staff are being offered redundancy.

He said: “Some of the main financial challenges include reduced income due to Brexit and an ever more competitive student recruitment environment, significantly increasing pension costs and a national review of tuition fee levels. Our university also faces the not inconsiderable impact of a fall in our national league table positions.”

A government-commissioned review, led by Philip Augar, is expected to recommend a reduction in tuition fees to £7,500 which leaked reports (from November 2018) indicate could result in a loss of 4% of the UoS’s income, a much lower percentage than most other universities listed.

One lecturer described the atmosphere among staff as deeply disturbed. He told The Dragon: “This is really a national university problem, not just Surrey’s. The negative uncertainty caused by Brexit cannot be underestimated.

“The UK relies very heavily on European research partnerships (and funding), one community that pools expertise from 28 countries. We also rely on recruiting EU students and staff.

“This contributes to the recruitment problem as much as the UK demographics of declining population in the age group. If fees are reduced, it’s nice for our kids at uni, but the government isn’t replacing any of that shortfall. Universities will close, the sector could face terminal decline.

“To be fair, Prof Lu is doing a very good job as vice-chancellor, a much more human approach than that of Prof Chris Snowden [his predecessor]. Max is being cautious, pre-empting a potential financial disaster. With a totally ineffective government and opposition, universities cannot now plan with any degree of certainty.

“At least, this time we have transparency from the university’s senior management. Last time, in the operational review of 2015, job cuts were simply announced with specific post reductions in areas across campus. This time, there is an enhanced voluntary severance scheme and a policy of not filling vacant posts.

“Staff are also being asked to consider reducing their hours. Compulsory redundancies seem unlikely at this stage, unlike last time. Unless we get a no-deal Brexit or a hard Brexit in combination with fee reductions this should not loom.

“If I thought I’d get enhanced voluntary severance I would apply. But very few who do apply will get it. It’s an attractive package, but the university will grant it only in the cases of people they think aren’t pulling their weight. Last time, we had to apply or face potential compulsory redundancy. This time, it’s a belt-tightening exercise.”

Responses to Stark Realities Face Staff at Surrey University – Redundancies Offered

Colin Cross Reply

March 3, 2019 at 12:22 am

Does it amount to “Redundancy Lite”? Surely staff numbers are only a part of the problem? Prof Lu is showing wisdom and humanity in his approach and should be supported. We need to stand by our university in their time of need, in the clear expectation that they stand by their student accommodation commitments to Guildford.

Can we therefore agree that there is a mutually beneficial way forward that limits the collateral damage of redundancy and improves town centre housing availability?

Colin Cross is the Independent borough councillor for Lovelace (Ripley, Wisley and Ockham)
Jim Allen Reply

March 3, 2019 at 1:52 pm

I think it is too glib to blame events on our expected departure from the EU on the 29th March. One basic principle of percentages is that when you reach 100% you simply cannot go any further. Too rapid expansion and too much expectation of continued growth cause problems.

Expansion is finite and at some stage it reaches capacity. In a complex system such as a town, even if growth is possible and agreed, expansion in one area must be underpinned by commensurate expansion in other supporting parts.

We will see if this principle is observed in future years under the Local Plan. Let us hope errors are not realised too late.
Dave Cole Reply

March 30, 2019 at 1:59 pm

As the person in charge, Prof Lu (and his team) should take responsibility for the situation they have created.

Any exit-EU stuff had a three-year lead so they cannot blame that. The over-enthusiastic University of Surrey’s expansion, bad decisions related to the ill-fated – non-existant – “Medical School” and the reduction in student numbers also being cited could easily be foreseen as causing extra costs and reduction of income.

One of the issues is having academics, who have never had a real job and never been managers in the real world, being given positions by other academics who have also never had a real job. The University of Surrey appears to be a “charity” having its income guaranteed for three+ years plus the rental income from student accommodation. Very few companies enjoy those conditions.

I assume Prof Lu (and his team) have offered themselves redundancy and will get the other academics + paying students (being saddled with large debts) to decide their remuneration. I believe Prof Lu takes £350,000 in salary while the students are saddled with debt.