Solent University threatens P&O-style 'Fire & Rehire' with pension cuts

On Wednesday 24 September Solent vice-chancellor Professor James Knowles announced in a video call with staff that the university intends to move all staff to wholly owned subsidiary company, Solent University Services Limited (SUSL). This will force them out of the Local Government Pension Scheme (LGPS) and Teachers' Pension Scheme (TPS) and onto a second-rate defined contribution pension. 

Earlier this month the university confirmed that any staff that object to being moved to the subsidiary company will no longer be employed, with no entitlement to a notice period or redundancy pay. The university intends to move support staff in the LGPS from December, followed by UCU members that are part of TPS.  

As well as trying to destroy staff pensions, the university is also attempting to refuse staff a pay rise for the second-year running. 

The choice faced by staff at Solent University under the current proposals is therefore stark: accept being forced out of the industry standard pension schemes and onto much worse ones, or have your employment terminated with immediate effect. 

UCU described the plan as unprecedented, as no other institution has attempted to unilaterally remove the TPS scheme from existing staff.  It sets a deeply concerning precedent for the wider sector: if Solent University can use a sham subsidiary arrangement to sidestep its statutory obligation to provide defined benefit public sector pensions, other institutions may feel emboldened to follow suit in cutting costs at the expense of staff rights and long-term security. 

While the proposals are being presented as a TUPE transfer, Solent's plans mirror the most egregious fire and rehire practices, such as those seen at P&O. Staff are being forced to accept significant cuts to their retirement benefits or face the loss of their jobs — a choice that is no real choice at all. 

The proposals have come under leadership of vice-chancellor Professor James Knowles, who has had not engaged with staff or unions since the announcement was made, and is on a financial package of over £250,000 a year.  

UCU general secretary Jo Grady said: 'For Solent to even consider stripping staff of their secure pensions under the threat of dismissal, is both shameful and unprecedented. Instead of denying staff a fair pay rise and forcing them onto inferior pension schemes through the use of opaque subsidiary companies, management should be focused on rewarding and retaining the dedicated people who make the university run.

'By pulling out of the national standard Teachers Pension Scheme, Solent is undermining standards across the entire sector. Unless Solent abandons these plans, it could face serious industrial disruption and long-term damage to its reputation. Senior management are cutting their noses off to spite their faces. Who would go to work at an institution which shows such brazen disregard for staff and, by extension, its students?'