In just over three weeks, you will be receiving ballots on pension and pay. There are more details on the ballot below, but the quick version is this:
Watch your mailbox. Ballots are coming. UCU Warwick’s position is vote YES for action short of a strike, vote YES for a strike.
Want to contribute to the ongoing UCU campaign over USS, but don’t have very much time? Here is a short to do list:
1. Make sure you can vote by checking that your employment details and postal address are up to date. You can do so here.
2. Watch this talk given by Sheffield UCU’s branch president Sam Marsh yesterday at the Open University.
3. (A slightly larger time commitment item): We are going to need people to door knock, poster, email, tweet, and generally help us Get the Vote Out in September and October. If you’ll have a few moments to spare over the next couple of months, please email us at email@example.com.
4. (A larger time commitment item): We are in need of a new Treasurer. Please email us if you are interested at firstname.lastname@example.org.
In September, vote YES for pensions, pay, and equality.
A new USS ballot
At the end of May, UCU’s Higher Education conference (which was held on the second day of Congress 2019) voted overwhelmingly to ramp up preparations for an industrial action ballot over USS to begin in September. And as of 7 June, employers including our own were served a letter inviting them to take steps to avoid a re-ignition of the dispute.
Why has UCU decided to ballot? When the Joint Expert Panel’s first report dropped in September, there was hope from all sides that it had the potential to end the dispute. Adopting its recommendations would mean a shift in philosophy from USS and rate increases low enough to negotiate over. Both UCU and Universities UK backed the JEP report, the latter with the strikes still fresh in the mind and eager to put the dispute to bed. The issue, as was always likely to be the case, has been with USS’ response.
A USS timeline from September 2018-now
The first side-step by USS was their proposal for a new, 2018 valuation as a way to incorporate the issues raised by the JEP. This would not replace the 2017 one, but instead follow close on its heels and intercept the large contribution increases that were a consequence of the original valuation. Support for this approach was secured from the employers, and the Joint Negotiating Committee were shown information that if the JEP’s recommendations were applied in full to the 2018 valuation, it would mean that the deficit would vanish and that contributions would fall (although no guarantees were made as to what the final figures would be).
As soon as agreement to proceed with a 2018 valuation was sealed, the USS executive team contacted the board and recommended dropping two of the three key proposals from the JEP report, while the only one that remained would be inextricably tied to ‘contingent contributions’ from employers. The justification for USS’s rejection of the JEP’s recommendations was that adopting them would send the ‘discount rate’ above the internal benchmarks the regulator uses to judge a valuation’s prudence. Yet these internal benchmarks don’t exist! The regulator has made this explicit via a cryptic stab at USS in its annual DB funding report. It is possible – indeed likely – that this was not the first that USS had heard of this issue from TPR. If true, USS’ public statements to the contrary are all the more disingenuous.
This leads to where we are now: USS has rejected both the JEP report and the overwhelming evidence that their methodology is flawed, and is still relying on Test 1. Nothing has changed in their mindset or approach. Based on this, they insist the correct contribution rate is 33.7% of pay, an increase of 7.7% since before the dispute.
The University of Warwick published its response in March, stating its disappointment with the USS’s failure to accept the JEP’s recommendations and calling on the USS to be reformed. This is not surprising. Employers and members alike are horrified at the mess that has developed for no clear reason. Added to this, Prof Jane Hutton, one of three UCU-nominated trustees, has recused herself from the board under “considerable pressure” after whistleblowing to the regulator on the obstruction she faced obtaining data on the valuation. This has now led to over 1,000 academics signing a petition to call for an inquiry into the scheme. Meanwhile the Academics for Pensions Justice group are also preparing a legal challenge to USS. There are serious issues here that need proper answers, and we suspect that we will continue to hear more about USS governance in the days to come.
So, to return to the initial question: why a ballot, especially given the University of Warwick’s largely supportive position? We need a ballot, paradoxically, to support Warwick’s position. Employers across the country are losing faith in the USS, and some (like our own) are starting to raise their voice, but neither their voice nor ours is being listened to. If we don’t push back now, USS will tighten their grip, and will almost assuredly ignore the second report of the JEP, employers will start planning to mitigate against the USS valuation, and this will pose enormous problems and instabilities for our pension.
In 2018, we battled to stop them from taking our defined benefit pension. Now we must fight to make sure our DB pension isn’t taken by other means. No one wants to ballot for a strike, but employers know what they need to do to avert it: work with UUK to make sure that there is a major change of direction in USS, or, failing that, pick up the tab for the contribution increases.
****(Thank you to Sheffield for sharing their materials and information with us)