UCU condemns De Montfort’s two-tier staffing plan
The university wants new staff to be employed through a wholly owned subsidiary.
The University and College Union has condemned plans by De Montfort University to employ new professional services staff and teaching fellows through a subsidiary company. The union says the arrangement could leave new employees with weaker terms and different pension provision.
UCU said on Wednesday that De Montfort University in Leicester plans to use a wholly owned subsidiary, DMU People, for new professional services appointments and academic teaching fellow roles. The union said employees hired through the company would be placed on amended terms and conditions.
The main dispute concerns pensions. UCU says staff employed through DMU People would not receive the Local Government Pension Scheme or Teachers’ Pension Scheme available to relevant staff employed directly by the university. They would instead join a private pension scheme, creating what the union describes as a two-tier workforce.
The university has linked the changes to financial pressure. A statement reported by the Institute of Education Higher Education says a shortfall in student recruitment is contributing to a deficit and creating a need for savings. De Montfort has opened a voluntary severance scheme, with expressions of interest due by 21 October and decisions expected in December.
The proposals also include a revised academic structure and career framework. The plans would introduce an assistant professor role between the existing senior lecturer and associate professor grades, while the university says it wants to work with recognised unions on career progression and leadership.
UCU has raised concerns about the effect on existing lecturers as well as new recruits. It says the changes could weaken established grading arrangements and create uncertainty over promotion, employment protections and pension rights. The union is calling for greater transparency and for the university to rule out any arrangement that leaves staff worse off.
De Montfort previously announced plans to cut 80 jobs and has offered voluntary severance. UCU says similar subsidiary arrangements have appeared elsewhere in higher education, including at Southampton Solent, and is asking ministers to close what it regards as loopholes around staff entitlements.
The university’s current recruitment information says directly employed professional services staff are eligible for the Local Government Pension Scheme and academics for the Teachers’ Pension Scheme. The sources reviewed do not show a confirmed strike timetable at De Montfort, so the immediate development is the proposed staffing model and the union’s response rather than announced industrial action.
One story, several perspectives
What is established
- De Montfort University is proposing to use a wholly owned subsidiary for some future staff appointments.
- UCU says the proposed employees would receive different terms and pension arrangements.
- The university says financial pressure linked to student recruitment requires savings.
- A voluntary severance scheme is open, with decisions expected in December.
Left
Arguments Universities should not reduce employment protections or pensions by moving new staff into subsidiary companies. Publicly funded higher education should protect secure work and negotiate savings openly with unions.
Values Collective bargaining, equality between workers and public provision.
Consequences Supporters fear a permanent two-tier workforce, recruitment difficulties and lower teaching quality if staff are employed on inferior terms.
Centre
Arguments Universities need room to respond to falling income, but structural changes should be transparent, evidence-based and subject to meaningful consultation. Any savings should be tested against their effect on students and staff.
Values Institutional sustainability, proportionality and due process.
Consequences A negotiated model could protect core services while allowing financial reform; rushed changes could trigger disputes and damage confidence.
Right
Arguments Universities must be able to reorganise and choose employment structures that keep them financially viable. If new roles are lawful and clearly advertised, management should retain responsibility for operational decisions.
Values Institutional autonomy, flexibility and financial discipline.
Consequences Blocking the plan could deepen deficits or lead to larger cuts, although employers would still need to demonstrate value and maintain acceptable standards.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
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The central claims are supported by the union statement and a separate account of the university’s plans. The article distinguishes confirmed proposals from the union’s interpretation and does not claim that a strike has been scheduled.
- confirmed De Montfort plans to employ new professional services staff and teaching fellows through DMU People. — Set out in the UCU statement and the sector report. source
- confirmed The subsidiary is wholly owned by the university. — Stated by UCU. source
- confirmed New staff would be placed in a private pension scheme rather than the public schemes named. — Reported in the sector account and attributed to the proposed arrangement. source
- confirmed De Montfort cited student recruitment shortfalls, a deficit and the need for savings. — Reported from the vice-chancellor’s staff communication. source
- confirmed The university has offered voluntary severance and previously announced 80 job cuts. — Both points appear in the reported plans and UCU statement. source
- confirmed No confirmed strike timetable was found in the sources reviewed. — The current UCU statement announces criticism and demands, but no strike dates. source
Editor's note
The union’s criticism and the university’s stated financial rationale are documented. The detailed proposal is reported through a sector publication, while no confirmed De Montfort strike timetable was found.Sources
- UCU condemns De Montfort University plans to re-employ staff through subsidiary company — University and College Union
- De Montfort to open subsidiary firm and revise academic structure — IOE Higher Education
- Benefits — De Montfort University
More on this in other media
- ITV News — „de montfort university”
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- The Guardian — „de montfort university”