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Oxford Brookes UCU – Financial Analysis Summary

Introduction:

As discussed in recent Branch meetings, we have compiled a summary of the financial analysis conducted by the UCU Negotiating Committee during the recent formal consultation process on compulsory redundancies to share with our Branch members.

To this end, we have shared the following headlines at recent Branch meetings under 6 key points which are articulated in more detail below.

Key findings:

• Oxford Brookes is heavily indebted and is in the midst of an ambitious capital development programme that drives the redundancy proposals coming from management – and the current voluntary severance scheme.

Oxford Brookes’ capital development programme and financial strategy has left the University in a precarious position in terms of debt-to-income ratio.  In the most recent publicly available data on the University’s financial performance returned to HESA in 2021/22, the University had the highest ratio of ‘External borrowing as a % of total income’ in the UK at a rate of 92.3% (https://www.hesa.ac.uk/data-and-analysis/finances/kfi).

This in effect means that the University has exhausted its capacity in terms of borrowing to fund its capital development programme, and in turn, left itself in a precarious position as there is no capacity to restructure its borrowing commitments and covenants at a time where interest rates have increased significantly. It has therefore turned its attention to making cost-savings to shore up the University’s finances in the short and medium term.

• A recent decision to bring forward work on the Clive Booth Student Village leads to a massive drain on cash this year, which required a new overdraft / revolving credit facility being put in place to cover cash “troughs” in the current and future financial years.

Brookes was offered a deal to bring forward the commencement of construction work at Clive Booth Student Village. In return, they would get additional work included in the originally planned price, with the Board of Governors approving a change to the project that would deliver an additional building for the same approved budget, with the additional building being left as a shell construction.  

However, this decision required a significant outlay of cash in the 2023/24 financial year in return for this change to the project, resulting in increased financial pressures as the University’s cash balances were deployed at an earlier point in light of this.

• Management plans do not explicitly recognise the trouble associated with such low cash positions, but the logic of their plans is clear: find savings to rebuild cash more quickly and to allow further capital work to go ahead.

It has become abundantly clear to us that the urgency of the cost-saving measures sought by the end of the 2023/24 financial year was clearly linked to concerns with the University’s cash-flow situation and the debt-to-income ratio.  

When pressed upon this within our negotiation meetings throughout the consultation process, the University management initially refused to move their position regarding the capital investment plan – with a central argument that they would not consider reducing capital investment whereby these investments would be ‘income-generating’. We have continued to express our opposition to ongoing capital investment when jobs are at risk.

• The “external forces” that management evoke are seriously exacerbated by decisions they themselves have taken.

Given the University management’s refusal to acknowledge the impact of internal strategic and investment decisions, it has become apparent that the VCG and Board of Governors has sought to externalise the problems the University faces through its constant reference to increased inflation, pension costs, real-terms decreases in the value of UK/Home tuition fees, and a downturn in international recruitment.

However, whilst all of these external factors are affecting Brookes as it has the entire higher education sector, all of these external factors were entirely predictable. The proposed job losses at Brookes are due to the fact that the University’s level of indebtedness and requirements to generate large surpluses on a regular basis leave the University with no capacity to deal with any short-term financial headwinds.

• Brookes now has: (i) debts three times higher than the sector average and (ii) cash lower than all but a few institutions. If we were looking at a benign period in English HE funding, it would be concerning. As it is, it looks reckless.

As outlined above, the level of indebtedness of the University is one of the central drivers of the urgency of cost-saving measures. The University’s lending covenants require urgent reductions in the level of debt-to-income ratios in the 2024/25 financial year due to the strategic mismanagement of the University’s finances, with the challenging financial circumstances in the HE sector and increased interest rates leaving no room for further renegotiation of its lending commitments in any way which would not be highly detrimental.

• Staff will bear the brunt and this is unlikely to be the only round of cuts in the next year or two.

The UCU Negotiating Team provided an extensive list of non-pay saving suggestions to the University during the consultation process – and has continued to do so alongside Unison colleagues during the current discussions on the more recent cost-saving measures which included the recent voluntary severance scheme.

However, it appears that the University’s financial peril, and the lack of scope left for significant non-pay cost-saving measures given that most of these have been exhausted, means that the recent move towards reductions of 5% in staffing costs is a direct consequence of the University’s financial mismanagement. Notwithstanding a shift in the University’s position on the planned capital investment, the urgency of the timescale for the savings required in the 2024/25 financial year means the blame for this lies at VCG’s door.

To find out more about our campaigns and how to join and support UCU, see: 

https://oxfordbrookes.web.ucu.org.uk/

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The Save Our Lecturers campaign held another protest on 15 February. Sadly, compulsory redundancies are still threatening members of staff.

There will be a branch meeting on 5 March, 4-5pm to update UCU members on the latest developments.

UCU’s ReclaimHE campaign will officially launch on 28 February, and more information can be found here.

Speech from a member of staff who, after 20 years of work at Oxford Brookes, has taken voluntary redundancy.

Update from our campaigns organiser. While the threat of industrial action did achieve some results, compulsary redundancies are still on the table.

This is the Brookes UCU exec team’s response to VCG’s announcement sent to members on Thursday 1 February 2024

THIS IS NOT THE END! WE’VE ACHIEVED SOME THINGS, BUT THE FIGHT CONTINUES.

We are writing to give you an initial response to the VCG’s announcement on the ‘Outcome of consultation on University cost savings measures’ on Friday 26 January. We held exec and branch meetings on Wednesday 31 January to discuss and clarify this announcement and its various implications. Apologies for the long message but there are several issues we need to report and clarify our position on.

To restate our official position, we are officially in dispute with the university, and we held a consultative e-ballot mid-December 2023. We asked the membership two questions:

• Do you support taking strike action in response to proposed compulsory redundancies and suspension of staff progression and promotion?
• Do you support taking industrial action short of striking (ASOS) (excluding a marking and assessment boycott (MAB)) in response to proposed compulsory redundancies and suspension of staff progression and promotion?

On both questions members who voted did so affirmatively by more than 86%, with a majority of our membership participating in the e-ballot. We decided then to wait until the end of the consultation period scheduled for 17 January 2024, at which point we submitted a 22 page report to VCG including a variety of cost-saving alternatives and arguments for why the VCG’s process had been highly inadequate and unfair. Individual departments also submitted their own reports and proposals.

Following the latest announcement, we believe important progress has been achieved thanks to the threat of industrial action and detailed negotiation. There is no doubt that the stronger we are, the more we can achieve. History and Anthropology, thanks to significant sacrifices from staff, have been declared safe, for the time being, and their VS pools are being closed. The VCG has agreed to open the VS scheme to other departments, which is a way to try and mitigate the threat of compulsory redundancies.

However, these new measures will also cause a range of further problems for staff and students. Crucially, 2 people remain at threat of Compulsory Redundancy (CR) in Music, and this is simply unacceptable to us. Several departments (English, Architecture and Film), where pools of VS schemes remain open, are still on hold as to whether they are safe or not from CR. Their situation is dependent on the outcome of the new VS scheme. Music and Maths are still to be closed.

There also remains significant problems and questions regarding policies and procedures for cuts and redundancies, and regarding impact on remaining staff. Information shared with us reveals that in some cases, such as English, staff’s workloads could increase by 50%, and this was calculated before even the new round of VS.

Regarding impact on students, PhD, MA, and UG students are losing their supervisors and advisors with very little to no extra support. Students remain confused by the situation and are having modules closed at very short notice.

The full impact of VS on staff and students this semester remains very unclear and unsettling, and we are still collecting information from you about this, so please get in touch with any updates.

The response from VCG of concerns raised by the Students’ Brookes Union remains particularly unsatisfactory to us, especially in relation to 1) MA and PhD research students losing supervisors, 2) the vague promise of more wellbeing support, and 3) the need for much clearer and more accessible communication to students about the cuts.

Another important decision made by VCG regarding students (and linked to proposals for savings) is the announcement that the University will be charging students for any modules they have to repeat, even when they have received a disregard based on exceptional circumstances. We are very concerned about this change of policy and how it will negatively impact students awarded disregards and students with disabilities, caring commitments, and health issues.

To recap, this is where we think things stand:

Achievements: 

• Reduction of CR from 28 to 2 full time staff members
• Broadening of VS scheme (though this comes at significant cost and is still being done on a questionable basis regarding the selection of departments)
• Progression from L to SL for those at the top of the scale
• More inclusion of UCU/staff in negotiations as we believe our involvement has been central to the progress achieved

Ongoing (and new) problems:

• No one is safe: We have been given no guarantees that there will not be the need for CR in the future; in fact, we have been explicitly told that in the current ‘environment’ no such assurances can be given.
• 2 people still at risk of immediate CR.
• Closure of Music and hence CR of remaining staff (3.5 FTE) during and at the end of the teachout.
• Closure of Maths.
• Impact of VS on staff and departments and on students – in terms of workload, continued uncertainty, and student experience.
• The rationale and implications of the broadening of VS
• PhD students, MA students, UG dissertation students losing supervisors and potential risk of ‘fire and rehire’ if supervisors rehired as ALs

In sum, this process has shown that no one is safe, both from financial decisions being made by VCG – which we continue to question and ask for more information on –  and from a range of external problems, which most universities in the UK are suffering from as well. We need a strong union to be able to push the VCG on all of these issues, as they are likely to continue and even get worse. We disagree with the VCG’s narrative that this is a problem caused only by external problems. 

We believe that the redundancy proposals are driven first and foremost by the university’s ambitious capital development project which, as indicated in the HESA report, has led to Brookes being the second most indebted university in the UK with anticipated cash flow problems. We believe it is this that is driving the sudden need for redundancies after assurances (just in October) that the university was in strong financial health with a rosy future ahead. In other words, yes, we are in a challenging, post-92, sector-wide environment, but the ‘external factors’ that university management keeps pointing to were not only foreseeable, their impacts have also been exacerbated by decisions by Brookes management to invest in buildings in the belief that this would solve the university’s financial problems.

We now understand that the University is extending the VS scheme to programmes where the SSRs are deemed inappropriate (this is a rapidly evolving situation, and we are seeking clarity on how and why departments have been included). If this concerns you, you should already have received a letter setting this out from the VCG. The VCG has stressed to us that this does not mean that those programmes are at particular risk; and currently there are no plans for further job cuts, but these are not being ruled out. There will be a series of meetings over the next few months between the employer and the unions to discuss and propose further savings, in the hope that these can be achieved without going down the CR route, which of course we would oppose vigorously.

To conclude on our response, following discussions yesterday, the Branch Exec thinks that at this stage, considering various factors including the ongoing uncertainty about the exact number of CRs, and the extension of VS, it is not in our best interests to trigger an industrial ballot at this point in time. However, this remains a very significant threat, especially as we continue building and reacting to the increasing workloads and problems faced by staff and students as Semester Two teaching begins.

We believe that this branch needs to continue campaigning on the following fronts, and we NEED YOUR HELP! Please contribute any way you can to maintain this campaign, which is undoubtedly going to continue for a while. #stoptheSHAMcuts.

Our goals remain:

• The removal of remaining staff from CR.
• The mitigation of impact of VS on remaining staff (in terms of workload) and on staff who may be offered this opportunity yet (in terms of growing unease about the futures of their departments, etc).
• Achieving a commitment from VCG to open their books to staff and unions.
• To push for the development of a UCU standing committee that has regular access to financial and strategic data so that we can avoid future compulsory redundancies
• To achieve an agreed policy framework and procedure (with regular meetings and sharing of relevant financial data and strategic reports) so we can work with the university to avoid future compulsory redundancies – as recommended by national UCU policy guidance
• To achieve a commitment to implement changes in procedures and organisation of admissions, marketing, recruitment, and website/IT departments, where affected staff have raised significant concerns in terms of how this is affecting their ratings as departments and thus putting them at risk of CR and VS.

As you will all know, 48 posts are currently at risk at Brookes across a number of programmes; and the department of Music and Maths are both for the chop.

The negotiating team along with our Regional Official, have been pushing on a number of fronts through a process of negotiation, to save these jobs and departments.

So far we have got the management to agree an extension to the consultation period, to give us longer to interrogate the university finances, and make counter proposals in terms of savings.

We are also looking closely at the criteria for the jobs they want to cut, to challenge where we can, any spurious or simply wrong calculations they have made.

We’ve also been supporting members in individual meetings with local managers to see if we can get a better deal in terms of VS, or a partial buyback etc.

However, the employer seems to be adamant that it is ‘imperative’ that the savings they want to make are made now – and certainly in this financial year. We are doing our own work in the background to find out the real reasons for this haste, because we believe the arguments about external pressures, and falling numbers fail to explain it.

At the recent VC talk to staff, the Finance Director told colleagues that more ’efficiency’ savings may need to be made next year – and when challenged, the VC said that further job cuts couldn’t be ruled out as part of this.

So it could be your job next.

That means that collectively we need to fight the current cuts, and make it as difficult as possible for the management to feel that the easy way out of a financial hole is to sack staff, and to force them to look for other savings – particularly given that the five year plan forecasts significant growth and an increased surplus.

The fight is on two fronts: our campaigns’ rep – Maia Pal –  has organised a rally next week, on Wednesday the 6^th, at 2pm in Chakrabati in the JHB building – with external speakers, including Dr. Jo Grady, General Secretary of UCU. We will also be leafleting, and doing other things to raise awareness of the crisis the university is in, and our response to it. Please make every effort to come along, where alongside Jo, members of the negotiating team will be able to answer your questions and let you know what more we have been doing on your behalf.

We have got the support for the campaign from the Students’ Union, who are understandably seriously angry about losing lecturers and whole subjects, and about the impact this will have on the quality of the student experience.

Second, we will be running an e-ballot to consult members on next steps – with a view to taking industrial action if the threat of compulsory redundancies is not withdrawn: this will give us the authority to formally ballot for six months of action, including strikes if necessary. So please look out for this.

So join with us to stop the SHAM cuts!

In solidarity,

Alan Reeve

OBU UCU Branch Chair

Oxford Brookes University Branch Motions:

Motion 1:

This Branch has no confidence in the financial management of the university by the VC, which is causing staff to be put at threat of compulsory redundancy.

Motion 2:

This Branch notes:

In order to meet claimed financial challenges, the VCG at Oxford Brookes University have proposed significant academic staff cuts across a number of programmes in the university, affecting up to 48 colleagues. These cuts may include compulsory redundancies, a block on any progression or promotion, and the closure of two departments – Maths and Music.

It further notes that the University intends that the majority of these cuts will come into effect from the end of January, 2024, prior to the start of the second semester, and therefore part way through the academic year.

The Branch believes:

First, based on the University’s own public accounts, that these cuts and other measures are unnecessary in order to resolve the current financial challenges of the institution, and are based on untested and unfounded long-term predictions of the student market in general.

Second, that there has been a failure to consult the union in any meaningful manner, and that the consultation period is inadequate for staff and their representatives to provide a substantive response.

Third, that the withdrawal of progression from L to SL is contrary to the principles of the Post 92 Framework Agreement to which Brookes is signed up as a member of JNCHES

The Branch demands:

1. That the threat of redundancies be withdrawn

2. That the university enter into meaningful consultations with the union over an appropriate period to arrive at an agreement on financial savings, avoiding the need for compulsory redundancies, which as a union we oppose; and to avoid the closure of Maths and Music.

3. That the university remove the block on automatic progression from L to SL, and on promotions.

If there is failure to reach agreement on these demands in good time, the Branch will consider possible further steps including industrial action.

Passed at the Extraordinary OBU UCU Branch Meeting, on the 17th of November, 2023

This motion is to express solidarity with the millions of people directly affected in Gaza, Palestine, and Israel by the ongoing conflict. We are also expressing concerns at the attacks on academic freedom and freedom of speech in the UK. Finally, we express our sadness and devastation at the recent immense suffering and loss of life in Palestine and Israel and we unequivocally condemn the murder of civilians, no matter their religion or nationality.

This branch notes:

• The situation of the current conflict has a long and complex history in the region, and beyond.
• The attacks on 7 October by Hamas in Southern Israel.
• The launch of a bombing campaign and ground incursions on the Gaza strip by the Israeli government.
• The UN General Assembly vote in favour of a resolution calling for a ‘humanitarian truce’ on 27 October 2023.
• Voices including 250 UK lawyers, the UN General Secretary, Oxfam, MSF, Amnesty International, the Runnymede Trust, BRISMES, UK trade unionists, and 800 legal scholars worldwide are underlining that international humanitarian law and customary international law are not being upheld.
• UCU nationally, GS Jo Grady, and UK scholars have issued statements of solidarity and empathy with Palestinian and Israeli civilians, and a growing number of branches are passing resolutions expressing solidarity and concerns about attacks and threats to freedom of speech and academic freedom (e.g. SOAS, Edinburgh, Sussex, Goldsmiths, Queen Mary, UCL, Strathclyde, LSE, Brunel).
• On 11 October, the UK Secretary of State for Education sent a letter to all UK Vice Chancellors, suggesting a close monitoring of events and external speakers discussing the conflict under the ‘Prevent Duty’.
• There are Palestinian and Israeli people, and people of all faiths and none, from across the world, who are against all forms of aggression and who wish to see a just and peaceful resolution to the conflict.

This branch believes:

• That academic freedom, freedom of speech, and the right to protest within the law, must be upheld.
• That a peaceful solution should be sought and can be found following the guidelines of international law, and the UN resolutions, and in accordance with international humanitarian law.

This branch resolves:

• To support the call for an immediate ceasefire in Gaza.
• To reaffirm the UCU’s position on the Prevent Duty.
• To support students and staff in their right to protest within the law.
• To support students and staff who are affected by challenges to academic freedom and freedom of speech.

On the 15th of November, Brookes Union’s Executive Committee voted in favour of supporting the UCU staff going on strike in the coming weeks. This was following the precedent of the all student vote in General Meeting last year and after they collected feedback from a variety of students.

Following this vote, the Student Union will write to all students and to the Vice-Chancellor’s Group, making their support clear.

You can see the first statement from UCU here, calling for student support here.

We know that many students will have concerns about the upcomming strike action and it would be disengenuous of us to claim that there will be no negative impact on students.

What is important to sayis that we really don’t want to strike because not simply because we obviously lose pay in doing so but also because we all want to see our students do as well as possible. The issue of course is that the employers aren’t recruiting enough lecturers, they aren’t financing support services well enough and they aren’t paying wages which mean we can recruit enough staff.

All of these things have been going on for years and the quality that students experience has inevitably fallen as a result (unlike their fees). So if we don’t make a stand now then it will simply get worse and worse.

We want the same as students: To provide the quality of education they deserve and which is value for money. It is a real shame that the only way we can get the Universities to provide this is to strike.

Recently we asked the Oxford Brookes Student Union to invite questions from students and below are the answers provided by the Chair of the Oxford Brookes UCU Branch.

Will I and if so, how can I claim monies back from missed lectures due to lecturers not being there.

This would have to be taken up with the university, via Head of School – the union is not in a position to reimburse students for lost learning – we lose pay every time we go on strike, so it would be a double whammy!

Will the strikes impact exams? will we be assessed on missed content?

There is no simple answer to this. In the first instance, if you are concerned about this you should speak to your lecturer and seek their advice: I am sure they will be sympathetic, but need to balance this against the need to ensure that the learning outcomes and assessed appropriately – particularly if the programme is externally validated, so we can’t guarantee their won’t be some impact – but the sooner the employer recognises the union’s claim the less risk there is of this.

What happens about the topics I miss during the strike? Am I just expected to learn about them myself?

As with the previous answer – seek guidance from your lecturer on managing learning and assessment expectations.

Why Can’t the university pay staff what they’re asking?

UCU believes they can – but this is really a question for the VC and governors.

Can you give a breakdown about how we have needed up in this situation and why lectures are striking?

The union has been attempting to negotiate over pay and other issues – workloads, equality and, precarious contracts – for several years, with little progress. The purpose of the strike action is to try and get the national employer – UCEA, which represents all universities and HEs across the country – back to the negotiating table and to put a serious offer to us on all of these. The value of academic pay has gone down in real terms by at least 20% in the last twenty years, and pay has not kept pace with the rise in the cost of living. The employer has imposed a 3% deal for this year and we are seeking a 12% increase, which will only go part way to making up for pay lost over the years. Striking is a last resort – and all members across the country were balloted, and the majority voted in favour of taking this action – so it’s not just Brookes.

This link gives further details: UCU why we are striking

Could you potentially give a rough estimate of which faculty’s will be most impacted?

Impossible to say – we have strong representation across the university, and hopefully all members will be supporting the action.

Will lecturers tell students beforehand if their lectures are cancelled or could we show up to no lecturer?

This will be up to the lecturer – there is no obligation to tell the university if someone is going on strike , only after they have taken the action. My advice to colleagues is that they can tell students, and I can’t see a problem with asking whether a class is going ahead or not – but don’t pressurise the lecturer for an answer.

How are students who are going to be impacted by the strike going to be supported due to missing on on learning time? If there is a support plan, how will lectures be held accountable for providing support?

Lecturers are held accountable by not being paid for time they are on strike. It’s the employer that needs to be accountable for not providing adequate pay and other conditions of employment. If a class is missed because the lecturer is on strike, they will not be required to reschedule since this is work they won’t be paid for.

For the university: what are your plans in regards to raising wages to meet the rise of inflation of living costs?

Good question. You can find the Vice Chancellor’s contact details here. Students should feel free to email and ask

Can students get exceptional circumstances for missed lectures/ delayed responses from strikes and will the uni tell them this if so?

We haven’t seen any guidance on this, and it is not a decision those on strike can take – it should be addressed to the university via Heads of School and Deans

Why is it always students who lose out when there’s an issue? Has anything been done to reduce the impact on students?

Staff are also losing out by losing a significant amount of pay – in the longer term students should benefit from having better motivated lecturers who are properly paid and not overworked, but the point is taken.

Will we be told in advance if our lectures are cancelled? Can we get refunds for travel if we turn up and our lecturers don’t?

See above – if students have suffered unnecessary costs then they should contact the university – Dean or Head of School. In the past, the university has put any pay saved from striking staff into a student hardship fund, so there may be a mechanism for claiming against this under certain criteria which we do control.