Cumbria University accused of ‘fire and rehire’ over pensions
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The University of Cumbria is threatening to ‘fire and rehire’ employees that do not agree to leave the Local Government Pension Scheme for a defined contribution arrangement, the University and College Union has said.
Staff were told they should sign a new contract until 7 September that would move them to a DC scheme by Scottish Widows for compensation of £8,000, according to UCU, or be forced onto new contracts.
"It is truly outrageous that staff should have to face the prospect of losing their existing pension arrangements simply because they refuse to accept a worse deal,” said UCU general secretary Jo Grady.
"A pension is deferred pay and is therefore a fundamental part of the terms and conditions that staff have worked under for years. The university should think again about the reputational consequences of unleashing the draconian threat of fire and rehire, and work with staff and trade unions to rebuild the morale which has taken a big hit through the actions that the university has taken during this whole process."
UCU warned that staff should not be forced into a less secure retirement.
More post-92 universities have started offering DC schemes by employing people through a corporate subsidiary; UCU has been in dispute with a number of modern universities over such moves. To date, only Sheffield Hallam has agreed to withdraw a proposal to move academics into a sub-co that would have meant they would no longer be in the Teachers’ Pension Scheme. As a reason for the change of heart it pointed to the discount rate used for the TPS, 'superannuation contributions adjusted for past experience'. This was recently increased by 0.3 percentage points, making it less financially onerous to keep staff in TPS.
