Surrey drops plans to employ new staff via subsidiary firm

Plans to employ all new professional services staff at the University of Surrey through a subsidiary firm have been put on hold after a backlash from campus unions.

The institution had?proposed to employ new staff through a wholly owned company, Operate Surrey, which would have seen these employees?offered?a reduced pension rate and different terms and conditions.?The?university previously said that this was necessary to maintain its ¡°financial sustainability¡±.

But campus unions?opposed the plans, with the?University and College Union branch (UCU)?starting?a formal trade dispute with management. A petition against the move attracted more than 1,000 signatures.

In communications seen by?Times Higher Education,?staff have now been told that Surrey will ¡°not proceed at this time¡± with the proposals.

The announcement?also means that?staff currently employed through Operate Surrey, which has been in operation since 2022, will have their employment conditions harmonised with those employed directly by the university, and will receive enhanced annual leave and sick pay.

¡°The university¡¯s senior leadership will thoughtfully review all feedback and responses received through the consultation process,¡± the email to staff says.

¡°We will need to assess carefully the financial impact of not implementing the proposed changes and explore alternative approaches, including growth, new sources of income and spending restraint, to support the university¡¯s long-term financial sustainability.

¡°We would like to thank all colleagues who took the time to respond to the consultation. When we consult on matters like this, it is a meaningful process. Your feedback is valuable, and we will always consider it carefully as we strive to find solutions which balance the colleague voice, long-term financial sustainability of the university and the current economic climate.¡±

UCU general secretary Jo Grady said the U-turn was a ¡°huge victory¡± for its members who ¡°resolutely opposed Surrey¡¯s imposition of a two-tier workforce, as well as for current and future students who rely on the support professional services staff provide¡±.

¡°The changes would have forced new hires into accepting worse terms and conditions and worse pensions than their peers. We are glad Surrey management has decided to listen to our members and halt these detrimental plans,¡± Grady said.

Institutions are?increasingly exploring employing staff through subsidiary firms?as they look to reduce employment costs but Surrey was one of the first outside the Teachers¡¯ Pension Scheme to consider such a move.

Universities with staff enrolled in this scheme?¨C typically post-92?institutions ¨C face an employer contribution rate of 28.68 per cent.

In contrast, Surrey, whose staff are mostly in the Universities Superannuation Scheme, typically pays a?much lower contribution rate of 14.5 per cent.

The university has been approached for comment.

juliette.rowsell@timeshighereducation.com