STAFF at UCT, both academic and non-academic, could face retrenchment if the institution’s savings target of R120 million to attain sustainability is not achieved.
Austerity measures are under way and staff have until June 30 to apply for early retirement or voluntary restrenchment, the university said.
“Declining state funding is the primary driver for these measures, although pressure on fee increases has added additional impetus to cut recurrent costs,” spokesman Pat Lucas said.
The university was not spared Fees Must Fall campus shutdowns late last year, which led to zero fee increases for the 2016 academic year across all institutions of higher learning. It further saw protracted protests over in-sourcing.
“For the past few years, UCT has received increases in state funding that are below inflation, which means total revenues have increased at rates lower than cost inflation. Balancing this shortfall with increasingly higher fees is not a sustainable model,” Lucas said.
Unions at the university said effort was made to avoid job losses and to ensure fairness.
The National Health Education and Allied Workers Union’s Smartdryck Abrahams said they were in talks with the institution’s management. “All UCT staff, including academics, will be affected in one way or the other. This time we will ensure that managers will also be treated in exactly in the same manner as ordinary staff. Nehawu will be extra vigilant to protect our members.”
Abrahams said while involuntary retrenchment was not being discussed, it could be the next step.
Speaking on behalf of the UCT Academics Union, Kelley Moult said the institution was not yet at the retrenchment stage. According to engagements between the union and the university, efforts were being made to avoid retrenchments. She confirmed the university had introduced austerity measures across faculties and departments, and that these included fast-tracking scheduled retirements through incentives, among other things.
In a statement published on the university’s website, Vice-Chancellor Max Price said: “We have engaged unions on an approach to incentivised early retirement and incentivised voluntary separation, and have now determined the packages that will apply and the time period during which staff may apply for them.”
They did not yet know whether it would be possible to achieved all the required saving through natural attrition and voluntary processes.