Thoughts on the Augar Review

Thursday 30 May 2019

Some thoughts on the Augar review of HE and FE funding, published today. It’s being billed as a much-needed ‘rebalancing’ of funding away from HE towards FE. But despite one or two positive changes compared with the system we have at present, like the reintroduction of maintenance grants, I’m not convinced by many of its key recommendations.

The first thing to say is that although it presents itself as ‘independent’, this is a Tory review. It was led by an investment banker who was told that abolishing HE tuition fees wasn’t an option. It doesn’t advocate for increased direct public investment in education. Until we start resourcing education properly, we are just rearranging deck chairs on the Titanic: introducing tweaks to our metrics and creating new perverse incentives that distract us from what our students might want or need.

For FE, Augar advises streamlining of colleges via mergers and other forms of consolidation: we supposedly need fewer colleges competing with each other in any given area. Given how much trouble and volatility college mergers have already been causing, this seems like a dangerous idea. I can see it leading to further shifts in favour of private ownership.

It also advocates redistribution of funds from HE to FE. There are fine words about the problems you get when FE staff aren’t paid as much as secondary school teachers, but the concrete recommendations really concentrate on capital expenditure, not staff expenditure. FE could end up with more expensive but impractical buildings, and no easing up on punishing workloads and real-terms pay cuts for our staff.

On a broader political level, the review seems to want to drive us down an even narrower path of ’employability’ and vocational/technical training. I’ve always got the impression that this government does not want working-class people to study potentially liberating subjects, especially in creative arts, humanities, and social sciences. There’s nothing to change my mind in what I’ve seen so far. The thrust of the review seems to be an even stronger reorientation of education around what businesses want, rather than the interests and capabilities of students.

And how is any limited redistribution from HE to FE going to be paid for? By changes to HE tuition fees which will be socio-economically regressive, even compared with the system we have at present. Overall, graduates are likely to pay more, the government less. Some people have been fooled by the proposed cut in headline fees from over £9k to £7.5k, but the terms of repayment will be longer and harsher, which will disproportionately hurt graduates who earn less over the course of their careers. And let’s not forget, graduate earnings are still more closely tied to class background than they are to tertiary qualifications.

Meanwhile, this Tory government looks like it will only protect higher funding for subjects it deems to be of value to businesses. Employability should never be our main reference point when we think about what we want from education, but even so, there’s little evidence that employers actually want what Augar is proposing.

In my speech to Congress as incoming GS on Saturday, I said the Augar review was likely to be ‘mixed at best for FE, potentially disastrous for HE’. So far, I’ve seen nothing that changes my mind – and plenty of reasons to think I was too optimistic. We can’t trust the Tories to get this review right any more than we could trust them to negotiate a Brexit deal. Like Brexit, austerity, and many other things, this is a ham-fisted Tory solution to problems the Tories themselves are responsible for. In any case, with the Prime Minister about to leave, the government in disarray, and the larger post-18 education spending review yet to be completed, we have no idea how many of Augar’s prescriptions, if any, will actually be implemented.

What does this mean for UCU, especially for members in the FE sector? As I said in my manifesto, there are no shortcuts: we can’t get distracted from the task of organising and building power while we wait for any government, especially this one, to rescue us with better policies. The Augar review might present staff with an opportunity, if colleges do end up receiving a slight funding boost, to stand up and remind the government and their managers that they, not construction companies, need to be the first beneficiaries of redistribution. At the same time, we need governance reforms that help us claw back some control from managers who have shown they can’t be trusted to spend any increased funding in the right areas. And whatever bureaucratic measures are taken to streamline the allocation of funding, members in branches should be making their voices heard in order to ensure that those measures reduce their workload and make their working lives more stable. I look forward to leading UCU’s response as soon as I take up my post as General Secretary.

Open letter to Fellows of Trinity College, Cambridge

Wednesday 29 May 2019

To the Fellows of Trinity College, Cambridge

As Fellows of Trinity College, you are aware that your Council, in its capacity as the College’s governing body, has voted to leave the USS pension scheme. I am writing in my capacity as General Secretary Elect of the University and College Union, because the Council’s decision has become a matter of national rather than local significance. You deserve to know exactly what is at stake.

People often speak about the need for different institutions in the Higher Education sector to stand in solidarity with one another. In this case, a small act of solidarity would make a massive material difference for all of us, including you. We have learnt in the last few days that Trinity’s departure gives USS a pretext to downgrade its assessment of the ‘employer covenant’. The practical consequence of this is that if one more similar employer leaves, the Scheme will demand higher contributions from those who remain, or significant cuts in the benefits promised to members.

You have a stark choice. Overturn your Council, or let it threaten the sustainability of the largest private pension scheme in the country: a scheme that provides a good, guaranteed retirement income for you and hundreds of thousands of your colleagues.

Your College will not benefit from the decision to exit. There is no plausible scenario in which USS will need to call on Trinity’s assets. In fact, Trinity’s £1.4bn endowment faces more risk of being wiped out by sudden, unexpected economic downturns and other adverse changes than USS’s globally diversified, £64bn fund, which is backed by many more sponsors, including the universities of Oxford and Cambridge. The reports commissioned by the Council so far are incoherent, inadequate, and often inaccurate. They have not explained or weighed up the risks that actually face the College and the Scheme. You have not been given the kind of expert advice you need if you are to evaluate the Council’s plans properly.

The sum which Trinity is expected to pay to leave USS – thirty million pounds – is a waste. It includes a very large insurance premium. It is twice as much as the amount that would be due to Trinity’s pensioners if the College remained in the Scheme, even on the overly cautious assessment of the liabilities that has been roundly criticised by the Joint Expert Panel (JEP).

The waste of the College’s money will not be the only detrimental effect. As Fellows, you will almost certainly suffer personal losses. If you move to a smaller, College-specific scheme, its trustees and sponsor will encounter far fewer obstacles to reducing Fellows’ benefits than USS employers do at present.

The events of the last 18 months have taught us all the value of sticking together. As a Union, we protected our pension scheme last year by going on strike. Members of your College joined us on the picket lines, from the New Museums to West Road and Sidgwick Avenue. Students occupied the Old Schools, met with the Vice Chancellor, and successfully pressed him to change the University’s position on the USS valuation. If we had not acted, all of us would already be on a vastly inferior ‘Defined Contribution’ scheme. We cannot forget the value of collective action in defense of institutions like USS, that bind our sector together and guarantee a good standard of living for university staff, no matter where they work.

Hundreds of Cambridge academics have already threatened and UCU’s Congress has just resolved that if the College does proceed to sever itself from the rest of the sector, you will be on the receiving end of a boycott. This boycott will target your dependence on the rest of Cambridge and the wider academic community. Along with many other UCU Congress delegates, I voted to make that boycott UCU’s official policy and will pursue it vigorously as General Secretary. Do not let your Council hurt your students and your research by continuing on its current course of action.

My understanding is that at the time of writing, you may still be able to call a meeting of enough Fellows to reverse the Council’s decision, or take other measures against its poorly-informed, irresponsible, and destructive choice. In the meantime, please email me if you have any questions about the decision your Council is taking, or about the Union’s policy regarding USS and your College.

Please do whatever you can in the time you have left.

Yours,

Dr Jo Grady

General Secretary Elect

University and College Union

If I ruled the higher education world: an article on metrics for Research Professional

Below is the text of an article I published this morning (Monday 20 May) with Research Professional, reproduced here with their kind permission. For the original article, click here.

The General Secretary candidates were each asked what they would change if they could change on thing in the Higher Education sector. Here is my answer:

Self-reflection is fundamental to higher education. Those of us who work in the sector and provide or support teaching and research know the value of good, constructive feedback. This comes from students and junior colleagues as well as peers. The notion that higher education staff resent accountability is a fiction.

What we resent is being measured and managed by harmful proxies that don’t reflect the real value our work can have for society. The measurements of performance that the government and other external bodies impose on universities are a Frankenstein’s monster, the product of a system that is neither public nor private.  

Metrics exist partly because public expenditure is regarded as a loss that must be accounted for in the short term, as opposed to a form of investment. One of their purposes is to make higher education function, or appear to function, like a market. But at the same time, metrics thrive because the market is so incomplete. Public funding mechanisms and price controls still prevail. Metrics are used as a substitute measure of “value for money” because prices, in the form of tuition fees and research funding, are strictly regulated. 

The need for diversity

But who decides what constitutes “value for money”, and what are the consequences of their decisions? The people who decide are far less diverse than the actual higher education workforce or student body, in terms of their viewpoints, life experiences, and areas of expertise. This is as true of the Office for Students as it is of the compilers of world rankings and of university ministers.

Representatives of these bodies are overwhelmingly white, male, cisgendered, able-bodied and from the global north, and very few of them have deep roots in higher education. It would not be too much of an exaggeration to say that for most of them, the true “value” of higher education lies in reproducing the world they have benefited from. Thus, the value of undergraduate teaching lies in the number of management consultants it produces, the true “value” of research in the development of new drilling technology for fossil fuel companies. 

What are the effects of the hierarchies of value handed down to us from above? Take, for example, the perspective of an academic who teaches and conducts research on colonialism and aspires to “decolonise” the curriculum and the university itself. What place do our current metrics of success in higher education assign to this person? At worst, very little. A “decolonial” undergraduate curriculum in their subject area might struggle to compete with other subjects in terms of recruitment, or to ensure that its graduates earn enough after leaving to perform well in the Teaching Excellence Framework. In research, papers grounded in intellectual practices hailing from the global south, rather than canonical western theorists, might receive fewer citations and thereby degrade the author’s chances of promotion and the university’s performance in global rankings. 

Best-case scenario?

What is the best-case scenario for this scholar in our current system? If they are lucky, their curriculum will recruit well, and their research will succeed. They will generate money for the university and be rewarded with promotions. They may even ascend to the ranks of senior management. None of this will necessarily have fulfilled their purported intellectual and pedagogical ambitions. The students recruited could all be white and could all go on to work in the worst sections of the private sector. The research might not change minds or have any of its intended consequences. Meanwhile, the university might use the cash generated from that scholar’s recruitment and research income to open a foreign campus, hoovering up international student fees while lending an aura of legitimacy and cultural prestige to the world’s most oppressive governments. 

I could suggest similar examples to illustrate the plight of those working in feminist theory, or disability or transgender studies. What is the alternative? Fund education publicly, open tertiary education up to anyone who wants it, and let the whole community of university staff and students determine what they want to do for society. As general secretary of the UCU, I will lead the resistance to management by metrics, on the basis that something better is possible. Whether the government of the day is hostile or receptive to my ideals, I will create spaces within our union for staff who aspire to work in the right place, to strategise, and develop campaigns for a truly public, social education system. 

Transgender rights and UCU

I am an unequivocal supporter of trans rights and the right to gender self-definition under the law. This will not come as a surprise to anybody who knows me or has followed my public pronouncements in the past. The rights of trans people are under constant attack in this country, in the mainstream press, in workplaces, and, unfortunately, in our colleges and universities. They suffer disproportionately from numerous forms of discrimination and violence. They are among the most vulnerable targets of the far-right ideologies that are becoming increasingly visible and influential in society. No candidate for General Secretary should be able to claim that they care about equality unless they have vocally and publicly defended transgender rights.

Our Union has policies upholding trans rights, updated most recently at its 2018 Congress, as well as academic freedom. To the best of my knowledge, nothing I have said or done is inconsistent with these policies. I will continue to uphold them if I am elected General Secretary. I hope that the other candidates in this election will also commit to doing so.

People sometimes ask me why I began using a service known as ‘TERF Blocker’ on Twitter last year, which provides an easy mechanism for blocking large numbers of accounts that have been identified as articulating transphobic views. The reason is that I was receiving an enormous volume of personal abuse for expressing my opinions about transphobia and trans rights. The right to freedom of speech or academic freedom is not a right to level unlimited personal abuse, in public, at individuals with whom you disagree.

I stopped using TERF Blocker after I stood for election to UCU’s National Executive Committee earlier this year, by which point the abuse directed at me had subsided. At no point did my use of TERF Blocker prevent anybody who was blocked from viewing my tweets, either by using a different account or by browsing Twitter while remaining logged out. Throughout this period, I have continued to receive and, when appropriate, respond to emails from individual members of UCU who disagree with me about this issue.

What are you going to do about Brexit?

I’ve got this question from more than one member, unsurprisingly, including after my first all-member email went out on Monday. Here’s how I’ve been replying:

First of all, I voted Remain, and I prefer Remain to any of the alternatives that would be on the ballot if this Parliament could schedule another referendum. I’ve also criticised UCU for waiting two years to schedule a member consultation on Brexit (in September 2018) without organising any larger campaign on the issue. The lack of a concerted campaign probably explains why only 25% of UCU members voted in that consultation. And since the consultation, we’ve not really seen UCU do anything to enact the will of the membersa press quote here, an announcement there, but nothing concrete. I wrote a blog about this for Times Higher Education which I’d invite you to have a look at if you’ve got a spare couple of minutes: it’s been republished on my campaign website and you can read it here. My manifesto also points out that we can’t trust either of the main political parties, including Labour, ‘to do the right thing on the issues that matter to us, like immigration and border controls, Brexit, or direct funding of education and research’.

In the absence of sympathetic parliamentary forces, the key thing to do is negotiate with employers to protect our EU staff and students as much as we can. For example, I plan to demand that employers pay any costs that fall on EU (as well as non-EU) staff relating to their immigration status if we end up with a Brexit deal that ends freedom of movement. At present, UCU is letting its international members down by failing to demand things like this in its annual negotiations with employers, as my manifesto points out. I’ve also made a statement on the government’s proposals to end home fee reciprocity for EU students after Brexit, which was quoted in The Guardian: click here to have a read.

Some other members have asked me about the prospect of UCU formally affiliating itself with the Labour Party, the way some other trade unions do, partly in order to have an influence on its Brexit policy. My take (which I’ve already offered on Twitter) is that although I’m a Labour member, I would require convincing by our membership on this issue. UCU is small compared with the main affiliated unions and it’s hard to see how much influence we would have in the policy areas that matter most to usand that includes immigration and Brexit.

 

What are you going to do about climate change?

More than one member has asked me about this, one in response to my first all-member email, which went out on Monday, and others on Twitter. Here is my answer:

Thanks for asking me about this very important issue. You may have seen that I talk about climate change in the pensions section of my manifesto. Given the size of the USS pension scheme’s fund (well over £60bn at the moment), my view is that the single most important thing UCU can do is to force USS to divest from its large direct fossil fuel holdings and invest in green assets instead. This is an area where UCU could have a lot of leverage in the near future. The Joint Expert Panel is going to issue its second report soon, which will deal with the question of overhauling USS’s decision-making mechanisms, governance structures, and investment strategies. There may well be more industrial action, or threats of industrial action at that point, and that will be the perfect time to put divestment on the table.

Other members have asked me about other forms of action on climate change, including the possibility of a general strike, and I’ve already said a bit about this on Twitter. There are legal issues around a general strike: since trade union laws prevent workers from striking over anything other than their own terms and conditions, we would need to find workarounds in order to make it clear that we are in dispute with our employers about how they are handling (or rather, failing to handle) climate change, and not directly with the government or any other body. But I think the possibility is there and we have to investigate it. Students have led on this issue, and we need to find ways to support them. And there may be other local opportunities, short of a strike, to make a difference: for example by pushing some of our wealthiest institutions, e.g. the big pre-92 universities, to divest. To my mind that’s bound up with the larger enterprise of governance reform, replacing the corporate figures who tend to direct decision-making at the highest levels of universities with representatives from student and staff bodies.

What will you do for Academic-Related/Professional Services staff?

A lot of members have asked me this question in one form or another. One person, for example, emailed me after my first all-member email to say that their branch was not very good at including ARPS staff in its activities and they were considering joining Unison. Here is an edited version of my replies to the members who asked me about this issue:

I talk in my manifesto about making it possible for UCU’s national committees to learn more about the members they represent, and communicate with them by email. The examples I give there are the equalities committees and the anti-casualisation committee, but this will be equally true of the committee for Academic-Related and Professional Services staff. At the moment, none of these committees is allowed to send emails to members in the categories they represent. They aren’t given access to information about the numbers, geographical distribution etc. of members in those categories, either. In fact, a lot of members don’t even know that they exist. I have pledged to change that. I hope that you would feel more like a valued part of the union if you received information about what UCU was doing on issues that particularly concern academic-related staff.

We have 8,500 professional services staff in pre-92 branches. My view is that UCU has not given nearly enough attention to them in its annual negotiations with employers over pay, casualisation, equality and workload. For example, when UCU makes (very limited) demands for more open-ended, longer-term contracts, it tends to restrict them to teaching and/or research staff only. No wonder professional services staff are discouraged from joining UCU: if we go on strike and get what we’re asking for, the benefits won’t extend to them.

The bottom line is that if I am elected, you’ll see UCU communicating more clearly and directly with you and other professional services staff, and including you properly in its national bargaining. We’re also interested in developing ways of making it easier for professional services staff to support industrial action without repercussions from their line managers.

[One of the members who got back to me said they didn’t even know that UCU had a committee for Academic-Related/Professional Services staff! It just goes to show how much difference it could make if members could be better informed about this sort of thing.]

Can employers afford the higher pay and pensions contributions UCU has asked for?

Your manifesto claims that ‘all Higher Education employers can afford to meet recent national pay and pensions claims made by UCU, and more’. How can you justify this statement?

This question was put to me in a long, politely-worded email from a very senior manager at a pre-92 university. They are still a member of UCU and they were replying to my first all-member email, which went out on Monday 29 April and linked to my manifesto. Their main argument was that universities’ main source of income, tuition fees, has failed to increase in line with inflation, and it was therefore necessary to cut staff pay relative to inflation as well. We decided to ‘agree to disagree’ after their second reply to me, but here is the gist of my argument:

Employers have imposed real-terms pay cuts on staff nearly every year since the financial crisis. They did this even after their per-student funding increased very significantly, when £9,000 fees were introducednot just when the fees were capped and funding stopped rising with inflation. The fact is that employers have repeatedly paid staff less when they could afford to pay them more. But instead of doing that, they chose to increase their capital expenditure and borrowing, while amassing substantial unrestricted reserves.

Either of UCU’s most recent pay claimsa 7.5% salary increase last year, and an increase of 3% + RPI this year (which will almost certainly turn out lower than 7.5%)still would not bring pay back in line with inflation, if implemented. Look at the annual accounts of most universities today, pre- or post-92, and you’ll see a net cash inflow from operating activities which is more than big enough to fund that 7.5% increase on its own. Most universities, to put it in plainer terms, have enough money in their back pocket to fund a significant increase in staff costs. But even those that don’t have the cash upfront can still afford it. Universities now tend to have a ratio of unrestricted reserves to annual income which is far higher than the norm for the charitable and non-profit sector. Our demands are reasonable and the money is there.

The same is true for the USS pension scheme: as information released by the Joint Expert Panel (JEP) has demonstrated, independent reviews by two accounting firms (PwC and EY Parthenon) found that all but one USS employer could increase their contributions from 18% to 21% without making any cuts in other areas of expenditure. And yet throughout the USS strike, employers insisted they had to close the pension scheme because they couldn’t afford to pay to maintain even a half-decent benefit package. In the 12 March Acas deal which UCU branches rejected, employers still only offered us 19.3%. Similar issues are occurring with TPS, too: post-92 universities are already claiming they need to make staff redundant in order to be able to soak up an impending 7% contribution increase, when their accounts are pretty healthy and they haven’t provided the evidence to justify their case, as I point out in my manifesto. So in the case of pensions, just like pay, we simply cannot trust employers when they tell us what they can and can’t afford.*

Another thing that makes it hard for staff to trust their managers is the lack of transparency and, in many cases, good judgement in the ways universities have been spending their money. Most institutions disclose very little to their staff, students, or the general public about their capital expenditure, borrowing activities, cross-subsidies, and the use of external consultancies and other private-sector collaborations.

I think it’s worth bearing the larger political context in mind, too. It really is extremely disappointing to witness just how complicit some of the most powerful figures in UK Higher Education have been in the Coalition Government’s disastrous tuition fee ‘reforms’. There was a reason why I cited the example of vice-chancellors secretly lobbying Labour to keep the current system in my manifesto. That sort of behaviour comes across really badly in the eyes of staff. There is a fundamental divide here: between staff who want a publicly funded tertiary education system, and managers who don’t.

*Of course, in the case of USS, the JEP and subsequent developments have made clear that if USS were governed in a responsible and evidence-based way, staff and employers could enjoy the current benefits at a rate equal to or lower than the one agreed at the 2014 valuationno need for any of the contribution increases USS has imposed on us. Employers should have joined forces with UCU some time ago, before last year’s strike and before the JEP was convened, to try to make the necessary changes. The fact that they didn’t is their fault, not UCU’s, and I believe it’s fair that employers should soak up the costs associated with tolerating USS’s dysfunctional management for as long as they have.