University staff set for 5% rise

By Gary Eason
Education editor, BBC News website

The three-year pay deal followed industrial action by lecturers

UK university staff are set to receive pay rises of more than twice the government's public sector target rate.

Their three-year pay deal provided for 2.5% in the third year, starting next month - or the September retail prices index, whichever is higher.

This RPI figure is likely to be 5% - as Chancellor Alistair Darling is telling TUC delegates the limit should be 2%.

The employers' body says universities aim to honour the deal, but warn of an impact on the next round of pay talks.

The most recent available RPI figure is July's, which was 5%. The September RPI figure is not due to be published until mid-October.

Deferred

It is thought likely that universities will postpone the pay rise due in October until they have this figure.

Some have told staff that salaries for October will continue to be paid at the rate of the last uplift, in May, rather than including the anticipated 2.5% increase.

The October pay increase would then be paid in November, backdated to 1 October.

HIGHER EDUCATION PAY DEAL August 2006 - greater of 3% or £515 February 2007 - 1% August 2007 - 3% May 2008 - greater of 3% or £420 October 2008 - greater of 2.5% or RPI at September 2008 Autumn 2008 - review of financial and pay data

The higher education pay settlement has been worth more than 10% over 22 months, plus a minimum of 2.5% for this next year.

It was reached after industrial action by lecturers in 2006 which included a boycott of exam marking, and what the employers describe as "lengthy, complicated and intense" negotiations.

The deal also involved a bigger overall percentage rise of 15.5% for the lowest paid cleaners, porters, security staff and other non-academic university workers.

And it said that if a university was in serious financial difficulty "it may defer implementation of any of the above increases by up to 11 months in order to minimise job losses".

Feedback

The University and College Union, representing academic staff, takes the view that the employers have had three years to budget for the settlement.

It said it would question the "financial acumen" of any institution that claimed it could not afford the rise.

The Universities and Colleges Employers Association (Ucea) is meeting on Tuesday to discuss the issue at the annual gathering of the vice-chancellors' organisation, Universities UK.

A spokesman said it had a good track record of honouring all aspects of the settlement and the general feedback so far had been that this final part would be paid.

But he said: "The repercussions are that it will influence the next pay round."

The employers had warned that the settlement was "at the absolute limit of affordability".

"The economic climate has experienced a dramatic change recently and the consequent changes in other costs such as those for energy are also likely to impact on higher education institutions' financial health still further."

The deal was in addition to increases in staff pay under a separate agreement, regular increments and rising costs in pension provision, Ucea added.

The first formal meeting of the joint national pay bargaining body is next March, but with a pre-meeting between employers and unions at the end of the year.