The University and College Union (UCU) has entered a formal trade dispute with Southampton Solent University over plans to move all staff onto what it described as “inferior” pension schemes, warning that strike action could follow if the issue is not resolved.

The dispute follows the university’s announcement, made by vice-chancellor, Professor James Knowles, in a staff video call on 24 September, that all employees are to be transferred to a wholly owned subsidiary company, Solent University Services Limited (SUSL).

According to UCU, the move would force academic and support staff out of the Teachers’ Pension Scheme (TPS) and Local Government Pension Scheme (LGPS), respectively, and onto a defined contribution (DC) arrangement that offered “significantly worse” retirement benefits.

The union said that the university had confirmed that any staff who refused to transfer to the new company would lose their jobs, without a notice period or redundancy pay.

In response to the accusations, a Southampton Solent spokesperson clarified that staff employed by the university prior to Autumn 2018 were currently part of the LGPS, while those who joined after this time had access to a DC pension scheme via a subsidiary.

Nonetheless, UCU has condemned the proposals as “unprecedented”, warning that no other university has previously attempted to unilaterally remove existing staff from the TPS.

The union also suggested that the move could set “a deeply concerning precedent” for the wider higher education sector by encouraging other institutions to sidestep their statutory pension obligations through subsidiary company structures.

UCU accused Solent of engaging in “fire and rehire by another name”, likening the situation to controversial corporate practices such as those used by P&O Ferries.

However, Southampton Solent defended its decision, arguing that "like many universities across the sector, Southampton Solent University is carefully considering a range of measures to ensure our continued financial sustainability and ability to deliver a high-quality education."

“As part of this, and importantly to secure jobs within the university, we are currently carrying out a comprehensive consultation around the proposed transfer of professional services staff from LGPS to a DC scheme, already available to professional service colleagues since 2018," it continued, stressing that "a final decision on this matter has not been made at this time.”

In response, UCU general secretary, Jo Grady, said: “For Solent to even consider stripping staff of their secure pensions under the threat of dismissal is both shameful and unprecedented."

In addition to the pension changes, the union said that Southampton Solent was also seeking to withhold a staff pay rise for the second consecutive year.

“Instead of denying staff a fair pay rise and forcing them onto inferior pension schemes through the use of opaque subsidiary companies, management should be focused on rewarding and retaining the dedicated people who make the university run,” argued Grady.

She added: “By pulling out of the national standard TPS, Solent is undermining standards across the entire sector.

"Unless Solent abandons these plans, it could face serious industrial disruption and long-term damage to its reputation.

“Senior management are cutting their noses off to spite their faces. Who would go to work at an institution which shows such brazen disregard for staff and, by extension, its students?”

UCU confirmed that the move to a formal trade dispute opened the door to an industrial action ballot if the university does not withdraw its proposals.

In its recent skills white paper, the government indicated it was prepared to consider loosening the rules surrounding post-92 universities’ mandatory participation in such pension schemes.

In the meantime, several other institutions have been accused of moving staff to subsidiary firms in order to save costs.

---