De-regulation, corporate form and the privatisation of higher education

The Coalition’s de-regulatory agenda Creating a regulatory level playing field for new private sector providers – eg, access to subsidies, reform of DAPs, University Title: removing the regulatory ‘barriers’ to new entrants. Reshaping taxation in favour of private providers VAT exemption Opening up the assets – giving institutions more ‘flexibility’ in choosing and changing their corporate form.

Why is corporate form important? “Sweating the assets” In part, solving the ‘problem’ of the asset locks on post- 92 universities – the higher education corporation. Chartered corporations and companies limited by guarantee – more ‘freedoms’ to use their assets. Push is coming from private companies looking to take over institutions and from private equity funds active in the sector.

UCU’s national response After the defeat of the ‘Big Bang’ legislation (a UCU led campaign) Coalition’s new strategy: non-legislative means UCU’s response: Strategic response: regulatory blocking; ‘raising the cost’ for private companies; restrictions on institutions’ freedom Our argument that for-profits are different and our regulatory system cannot deal with them Pursued through lobbying and campaigning around consultations on Student number controls and VAT, plus pressure on HEFCE over regulatory framework and corporate form

The nightmare that is the HE regulatory framework

UCU’s future strategy? We have national policies of opposition to privatisation Continue national level campaigning to defend existing barriers and raise regulatory burden on private companies Lobbying/bargaining for workforce regulation National policy debate about what constitutes public post-secondary education and how to rebuild it

The local impact of de-regulation: increased market pressure on HEIs, changing corporate behaviour and ‘innovation’ Bond issues, joint venture companies, subsidiary companies, shared services, outsourcing and…takeovers? ‘two-tier workforces’, race to the bottom and transfer

UCU’s local response Strategy: raise the cost to institutions in terms of reputation damage and raise the cost to private companies (poisoned pills) Our agenda: Asserting our right to early consultation and negotiation Limiting use of assets in relation to corporate form Establishing a Fair Employment Charter to govern transfers and new workforces Active and early campaigning in support of our bargaining objectives (eg. UCLAN)