University of Cumbria staff face ‘fire and rehire’ over pensions

The University and College Union (UCU) has warned that University of Cumbria staff could face the threat of ‘fire and rehire’ as the university begins a process to remove workers from the Local Government Pension Scheme (LGPS) and move them into a significantly less secure pension arrangement.

The university told affected staff in August that they had until Monday 7 September to sign a new contract which would end their membership of the LGPS and move them into a defined contribution pension scheme run by Scottish Widows.

Staff who agree to move to the new scheme will receive £8,000 in ‘compensation’. Those who do not agree to the change face the prospect of having their existing contracts terminated and being offered new contracts on worse terms.

The university is due to begin this process on Tuesday 8 September.

UCU has strongly opposed the proposed changes, warning that staff who have spent years building up their pension through the LGPS should not be forced into a less secure retirement. The union has also raised concerns about the impact of the proposals on staff who have given long service to the university.

UCU general secretary Jo Grady said:

It is deeply disappointing that the University of Cumbria is seeking to use the outdated and discredited practice of fire and rehire to force through changes to staff pensions.

From the very beginning, the university has failed to properly understand or acknowledge the impact these proposals will have on the individuals affected. These are people who have given years of loyal service to the institution and who deserve security and dignity in retirement.

We have had members come to us asking why the university is seeking to make their position worse in old age. It is truly outrageous that staff should have to face the prospect of losing their existing pension arrangements simply because they refuse to accept a worse deal.

A pension is deferred pay and is therefore a fundamental part of the terms and conditions that staff have worked under for years.

The university should think again about the reputational consequences of unleashing the draconian threat of fire and rehire, and work with staff and trade unions to rebuild the morale which has taken a big hit through the actions that the university has taken during this whole process.