Dundee University redundancies cut in half as part of new plan

The number of jobs to be cut at Dundee University has dropped by half as part of a new recovery plan, the institution has said.

Due to a £35 million deficit, the university had initially said it would need to shed 632 full time equivalent (FTE) positions, which would impact around 700 members of staff.

But under new proposals devised and released on Tuesday, “up to 300” FTE will now be lost through a voluntary redundancy scheme.

Previously, the university had been unable to rule out compulsory redundancies.

Under the new plan, the institution will also seek to borrow cash, as well as changing to a new operating model through the “re-configuration of our academic units and professional services”.

But on Tuesday, principal Professor Shane O’Neill said the new plan will need to be backed by “significant additional public funding”.

“A new alternative approach was presented to the university court this morning and they have given their endorsement to this as a revised direction of travel towards financial sustainability,” he said.

Prof O’Neill said: “There are still several challenging steps to be taken in order to clear this pathway to progress.

“We also need to ensure that the steps we take do succeed in allowing us to access commercial lending, as that will be essential for long-term sustainability.

“The proposed route forward will require significant additional public funding. We are engaged in discussions, through the Scottish Funding Council, as we look to secure that support over the next two years, including any related conditions and assurances.

“Further liquidity support funding may also be required.

“We are now working to develop the full details of the proposed pathway and on plans for implementation. This will include details of a voluntary severance scheme.

“We will continue to engage with staff, students and union leaders as we consult on the details of this alternative way forward and begin to implement it.

“This is a significant step towards a more sustainable future for the university and the ongoing delivery of excellent education, research and enterprise.”

Scottish Education Secretary Jenny Gilruth welcomed the University’s “commitment to significantly reduce proposed job losses”.

Ms Gilruth added: “This will remain a difficult period for staff, but this alternative plan provides a sustainable platform for the institution to build on.”

She added she was “encouraged” to note that the University intends to consult on its revised proposals with trade unions and others, as well as the strategic advisory taskforce set up by the Scottish Government to help the university “build a strong, secure and sustainable future”.

The announcement of the reduction in the number of job losses came as supporters of the University staged a protest outside the Scottish Trades Union Congress annual congress in Dundee.

Following the announcement, Scottish Lib Dem education spokesman Willie Rennie said the new plan will be “painful but not as painful as the last one”.

He added: “We now need the SNP Government to agree to the request for financial support without any further delay so that we can move forward, provide certainty for staff and students, rebuild confidence with the bank and start to recover the excellent reputation of Dundee University.

“I feel for the staff who lose their jobs under this plan through no fault of their own. We must do everything we can to support them and ensure that the independent investigation holds the previous leadership to account for their actions.

“This has been a dark episode for Dundee and we now need to move forward to better days.”

Despite the announcement, local Labour MSP Michael Marra said the loss of 300 jobs will still be a “hammer blow” for the area.

He said: “The original plan was an ill-conceived spreadsheet exercise that would have hobbled the university’s future.

“I will be scrutinising the full details and funding of this emerging plan over the coming days.

“The Scottish Government was determined to turn a blind eye given their self-made exposure to a sector in growing crisis but I am glad that we have managed to get them to focus on the survival of an institution that is too big to fail for Dundee and vital for Scotland’s future.

“The message to prospective students is that the University of Dundee is brilliant – it will change your life for the better by helping you to make positive change in the world.”

And University and College Union (UCU) Dundee branch co-president Melissa D’Ascenzio said: “It is a relief that University management has backed away from the brutal plans to cut up to 700 jobs.

“This backtracking is in no doubt down to the relentless pressure from UCU, from all the campus unions and the support they’ve received from the city of Dundee, local communities and from across the political spectrum.

“Given the news of this new plan, we’re urging the employer to take compulsory redundancies off the table, so as we can work with the employer towards a sustainable, successful university that values its staff and students, and continues to deliver the world-class teaching and research.”