Squeezed budgets in wake of pandemic could see staff pay frozen
Leaders at King’s College London and the University of Manchester are taking pay cuts, and KCL staff could see salary freezes to ease financial pressure from the pandemic. Elsewhere, Durham University has dropped plans to cull modules if teaching is still online-only in September.
University of Manchester vice-chancellor Nancy Rothwell revealed the university is “preparing for a reduction in our total annual income of between 15 and 25 per cent” as the coronavirus forces students to stay at home. It represents a loss of £270 million for the UK institution with the most students, after the Open University.
Rothwell said Manchester, a member of the research-intensive Russell Group of 24 universities, was “already taking actions to mitigate such potential losses, but we will probably need to make rapid and radical changes to our university and the way we operate”, which could “persist into the following years”.
“In recognition of these challenges, I and all members of the senior leadership team will take a voluntary 20 per cent pay cut (to be reviewed periodically), ahead of likely wider measures to reduce pay costs across the university,” Rothwell said in a statement on 23 April.
At KCL, chairman Christopher Geidt warned that while the Russell Group university “can be very confident of getting through this [coronavirus] crisis”, inevitably “it may not be possible to shield us completely from some of the consequences that will confront every university in the country”.
In an email to staff on 23 April, seen by Research Professional News, Geidt revealed that KCL principal Ed Byrne will take a 30 per cent pay cut, senior leaders will take a 10 per cent pay cut, and staff pay could be frozen for six months from 1 August, with the option to review and extend the conditions for a further six months.
A spokesperson for KCL said unions and employees would be consulted on the proposal to freeze pay for staff. “This has not been an easy decision to make, but it is needed, along with other measures, if we are to minimise the need to consider more difficult actions in the future.”
The spokesperson added that KCL had “already made prudent decisions” to reduce non-essential and non-salary costs, and to delay capital expenditure during the next academic year. “These are uncertain times and we are yet to understand the full impact the pandemic will have on the university.
“We acknowledge that we are not immune to the uncertain consequences the pandemic brings. We are actively and thoroughly planning for a range of scenarios to mitigate the impact, particularly in light of further extended restrictions and potential threats to student enrolments and research income.”
Elsewhere, Durham University – which has also warned it is facing a loss of up to 25 per cent of its income as a result of a loss of international students – has dropped a proposal to allow staff to reduce the number of modules by 25 per cent if teaching can only be carried out digitally by the start of next term, after consultation with staff.
Vice-chancellor Stuart Corbridge said Durham “continues to plan for a full residential teaching offer in October while also ensuring that teaching can go online if there is a lockdown later in the year or in 2021”.
Jo Grady, general secretary of the University and College Union, said she was “pleased” Durham had changed its plans. “Any changes should be led by staff, not imposed from above, and we want to work with Durham University and other institutions to deal with the impact and fallout from Covid19,” she said.