The first day of our current strike on Monday 25th and the BBC maintained their limited understanding of current affairs in reporting our actions. They made the point that the poor down trodden employers are paying more for our pensions and even our own person responsible for directing us undeserving people was invited into the discussion. She was able to draw on her vast knowledge of this matter to offer a view about how both staff pay and pensions were at ‘the limit of affordability’ no less. This of course, is only part of the story behind the pension element in this strike.
Key to the pensions dispute is the valuation of what the pension is worth. This is not only about its value today, but tomorrow and the tomorrow after that and thereon. And it is why a joint negotiating group made up of employers and the UCU, was set up as the Joint Expert Panel (JEP) following the last Big Strike. Even just over 12 months ago in September 2018, there was a belief that all parties concerned had the space to find common ground on the valuation. Yet, as the excellent Sam Marsh explains, it was earlier this year, May 2019, when the headwind behind this dispute was really consolidated.
It was at this time that the USS leadership began to throw their weight around and limit any possible agreement on a so-called ‘trigger’ mechanism as talks began to break down. Prior to this it was felt the trigger mechanism would provide a negotiated means to bring down the costs of contributions, something that all parties could agree upon. Then, like the third element in a famous Sergio Leone Spaghetti Western Billy-big boots Galvin, the CEO of USS, adopted a harder line, rejected the means of negotiation and encouraged the meek response from UUK that we see articulated today. What was lost at this point was the belief that there was “significant scope within the regulatory framework for the current benefits to be maintained at an affordable level without exposing the scheme to unmanageable risk”.
This current position of non negotiation apart from its patronising intent, demonstrates that while senior managers and CEO’s alike are quick to use the narrative of un-affordability, they offer little in the way of a solution other than the adoption of more cost and more risk loaded upon their employees. They do this while giving lectures on civic responsibility, wellbeing and talking about diversity. Irony abounds.
It should come as no surprise that as academics and support staff in higher education, we sort of know a little bit about these things. The way in which pensions are part of a globalised financial system means that there are problems with pension schemes, private and state-run, all over the world. This is why UCU and its members have been willing to negotiate.
It is us for instance, who look at the demographics and the impact on pensions. As people live longer there is greater stress on pension assets. We know that as the age of the population changes there are proportionately fewer younger workers paying taxes so adding stress on government and their responsibilities. And some of our own experts can assess the outlook for investment returns with the knowledge that low interest rates puts further stress on the levels of investment that underpin private pensions.
We are not blind to these global pressures and structures. Then of course, there is the whole matter of how pension finances are structured and for whom. Pension funds have a long horizon and their valuation is subject to method, approach and hypothesising. Even with this in mind the plain fact is that we have paid into our pension scheme over our lifetime and this is our money. For this reason we are well within our rights to demand a better say in how our pension assets and risks are managed.
The strike has begun because the question of the valuation of our pension scheme has again resurfaced. It was always the can that was kicked down the road after the last dispute, but there was scope for negotiation and an agreed value via JEP. A negotiated outcome is the compromise that any reasonable person would want to see. The work of the JEP in seeking to secure this, involving the union and employers, has been undermined by the USS leadership who have been limply backed by UUK.
There will be no turning back from the valuation, whether it is imposed by UUK or more sensibly negotiated based on the work of the JEP.
This dispute did not have to happen! A negotiated settlement was there to be grasped.