The USS dispute, & pensions as an employment right Jo Grady

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Presentation transcript:

The USS dispute, & pensions as an employment right Jo Grady

USS Dispute phase one: Scale & impact Unprecedented industrial action in UK universities. Unprecedented, sustained, picket lines Initial 14 strike days over four weeks (Feb-March), saw approximately 42,000 university staff, across 61 UK universities go on strike. Estimated working days lost? 644,000? more than total of days lost due to disputes, across all UK sectors, during 2016-17.

What triggered the dispute? In 2017, USS trustees claimed to have found that the cost of funding future pension promises had jumped by a third. USS said that contributions would need to rise from 26 % of salary (18 per cent of which came from the employer and 8 per cent from the employee) to about 32-33 % to keep retirement benefits in their current shape. USS later revised this figure up to 37.4 % after it came to light that the Pensions Regulator had warned the fund in a confidential letter that the future of the scheme was rockier than thought. In turn, UUK announced in October 2017 that DB pensions had become unaffordable and warned that teaching and research budgets would suffer if they were to continue. DC pensions were proposed as replacement. UCU argued this would leave a typical lecturer about £10,000 a year worse off in retirement; £200,000 over a 20 year period. They opposed the change, triggering an industrial dispute on UK campuses. A wave of strikes erupted in February and March, as thousand of academics and university staff staged 14 days of walkouts, manned picket lines in the snow and publicly challenged the USS to “show its workings”.

USS Strike: Characteristics Spike in UCU membership (16,000 new members) and engagement. Confidence: High levels of sustained mobilization & collective action. Grass root & largely autonomous activists emerged. New and online community/use of technology Ongoing source of tension. Solidarities solidified. Staff/student solidarity; anti-marketization, anti-precarity, permeant ASOS. Disrupted the dominant discourse. Disrupted dominant actors/players. Mass engagement in HE: USS, UUK & UCU lack of democracy and transparency. ‘averse to scrutiny’

Social Media & the USS Dispute Played three key functions: Democratized information, educated strikers, and disturbed dominant pensions discourse. Extended political space into private space. Allowed for co-ordinated and effective mobilization.

Democratizing information and Educating Ourselves/Each other

Challenging dominant narratives Both HE sector news and UCU news source are hugely problematic. Feeling during USS dispute that no reliable news source that was challenging dominant narratives. HE news is written and edited by journalists. By wonks. By managers. USSBriefs is probably the only publication online that is written and edited by university staff. Has an editorial slant that doesn't really exist in the wider marketplace. USSBriefs big headache for both employers and union who are so used to controlling the flow of information and communication. USSBriefs are genuinely "disruptive" in that sense. #AcademicTwitter & related blogs also provided this function during USS strikes. © The University of Sheffield

Citizen journalism 27/12/2018 © The University of Sheffield

Education on the picket line : physical picket & digital picket

What fuelled mobilization and activism Intersection of democratizing info, mainly provided by citizen journalists, with burgeoning picket lines functioning as a catalyst. Result was effective mobilization: Unjustified attack on pensions prompted by a manufactured deficit and over represented preference to de-risk. USS Contribution holidays/mini break Punitive pay deductions for ASOS. VC pay/capital projects Hostile management/HR practices/Bullying/Athena SWAN Privatization/Marketization/Casualization

The USS dispute: Phase two

Findings of the Joint Expert Panel JEP 100-page report made for uncomfortable reading for the key players, TPR, which the panel accused of misjudging the ability of the university sector to financially support the scheme. “TPR appears to have taken an approach to the valuation, especially in relation to the employer covenant, that does not fully take account of the specificities of USS”. The USS was criticised for relying too heavily on Test 1, which steered the scheme towards low risk, and low-growth assets, which in turn increased the size of the pension fund deficit to £7.5bn and pushed up projected contributions. UUK was singled out for issuing asked universities how much risk they were prepared for the pension fund to take in a questionnaire. The panel said this “produced misleading results” due to the “framing and context of the questions”. Issue of alleged survey rigging and collusion not included. The panel recommended that DB pensions could continue to be offered with contributions rising to 29 per cent — significantly lower than the 36.6 per cent from April 2020 proposed by USS, based on the valuation as it stands. A further critique of Test 1 – not considered by the panel by Dr Sam Marsh – suggests no increases at all are needed. “The report has given validation to staff who felt compelled to strike over what they saw as a grey area but which was really being painted as a black and white issue,” said Dr Sam Marsh “There was a significant push by employers to get out of DB but they forgot there would be a downside in attempting to pull such a move.”

USS dispute and pensions as an employment right Schrödinger’s strike. The strike was a strike to protect the employment right that was conceptualised and cemented during the dispute on picket lines as a pension right. This conceptualisation mobilised activists on picket lines, and fuelled the solidarities to continue action. It continues to shape and contextualise the dispute for UCU members. Contextualisation and challenge to dominant narrative about pensions has wider ramifications.