Hidden Costs To Staff Pay Rises

In a statement posted on the portal last month, University Vice-Chancellor Professor David Greenaway outlined the details of a new pay deal for Nottingham’s nearly 7,000 staff.

All academic and non-academic employees of the University are in line for rises of up to 20% over 2006-2009 when all factors are taken into account. Nationally, workers in higher education up and down the country have enjoyed some of the best deals across the public and private sectors during this period.

The announcement was not wholly positive, however, as Professor Greenaway stressed that the package “does place a considerable strain on budgets across this and other institutions. When combined with other financial pressures…there will inevitably be an impact on future national pay and pension negotiations”.

Suggestions that next year’s offer will not be nearly so generous were reinforced by a University spokesperson who stated that “further high settlements will not be sustainable given the current rise”.

More alarming implications include possible job cuts and a government raid on final salary pension schemes. However, the University remains confident of avoiding the former, and was firm in denying that the government would change its current position on pension arrangements for teachers and lecturers, the high standard of which remains one of the major perks of the profession.

The University was also non-committal on the prospect of a rise in tuition fees as a result of the deal and other increases in costs. The current cap of £3,145 is being reviewed next year and although students are voicing concerns over a possible fee increase, Nottingham cannot act until it is lifted.

Tim McFarlan


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