The joint union representatives recommend that the budget cuts be postponed until the structural analysis is completed in the summer of 2014.

2013.12.09 | Svend Aage Mogensen

Per Dahl, joint union representative of the Danish Confederation of Professional Associations. Photo: Anders Trærup / AU Communication

Aase Pedersen, joint union representative for technical and administrative staff. Photo: Jesper Rais / AU Communication

Finn Folkmann, joint union representative for academic staff.

It is a good thing that the management are up front about the university’s financial problems and announce it so early on in the process. This is the statement put forward by the three joint union representatives Aase Pedersen, Finn Folkmann and Per Dahl.
“If the management had chosen to launch the process at a later time and have it run over the course of only a few weeks, then we would have had no real opportunity to become involved and influence the outcome,” says Aase Pedersen. “In this way, we have time to discuss options and initiatives, such as a qualified hiring freeze and severance schemes.”
The union representatives had been informed of the budget cuts ahead of the official announcement, and they fully support the scheduled process.
“The dismissal of employees is never fun for a union representative, but since there is no way around it, it is nevertheless a consolation that the course of the process looks reasonable,” says Per Dahl. In the coming months, he and his colleagues will be meeting with the rector every other week.
“The management have provided a proper level of information, and rector is actively looking to engage in dialogue. And he was also, quite remarkably, acknowledged for this after the orientation meeting. It is unusual to give applause after having received the message that there will be extensive budget cuts and dismissals ahead - but the employees actually applauded the rector.”

Wait a year

The union representatives would like to appeal to the University Board to postpone the goal for achieving balance in the university’s budget from 2015 to the 2016.
“Rector took up the position in August and has not had time to act before now. But December is simply too late to start looking for ways to make extensive cost reductions in the coming year.”
“There is a risk that, in order to achieve the savings target in a short amount of time, the budget cuts will be too severe and rash decisions will be made. The teaching in the spring and other activities in 2014 have already been scheduled, and people have a term of notice, which means that the cost reductions cannot take effect until the fall of 2014,” explains Per Dahl.
“It also seems wrong to make cutbacks – and at the same time appoint a panel and an internal group of experts to analyse issues that may lead to further restructuring of the organisation. Especially if the results of the analysis, which will be complete by the summer of 2014, indicate that we should have saved on entirely different areas than we did,” adds Finn Folkmann.
“Moreover, we have a lot of employees who are baby boomers from just after the war, and they are close to retirement age. They might be interested in a severance scheme. If we wait six months or a year, then more people will be able to finish their projects.”

Avoid repetition

The union representatives are requesting a more detailed explanation of the economic development.
“We have heard the management talk about a healthy economy - so what happened? It is because we relied too much on external funding, or is there more to it?” asks Finn Folkmann.
“We have always known that the AU Administration was facing large budget cuts, but on which main areas has there been a change, and why? We need to clarify these things in order to avoid repetition,” he points out.
“I believe that the former management team are responsible for not handling the university’s finances in a timely manner, and it is also about the way the management handled the communication back then,” says Per Dahl.
“As was suggested by the workplace assessment, the management did not succeed in properly explaining the reasons for the decisions that were made. If they had performed – and presented – financial analyses in due time, then we might have been able to regulate the economy in time.”

A tough transition

“Over the course of the next few months, our job will be to find out where to make cost reductions without having to dismiss employees, and we need help from the employees to do so. We therefore urge everyone to submit creative suggestions,” says Finn Folkmann.
“We also need to prepare the local union representatives for the task. After all, very few union representatives have been in this situation before,” says Aase Pedersen.
Per Dahl emphasises that it is crucial to secure proper working conditions for all the employees who will be staying on, not least employees in the administration.
“The AU Administration has been through a tough transition and it’s been an uphill task. And now we are facing a new steep hill. This requires equalisation schemes, which will give us some breathing space afterwards and prevent us from having to run even faster. The effort must be acknowledged.”

Save 20 million on the sixth holiday week

The union representatives also have a concrete cost-cutting proposal for the management:
“On several main academic areas employees can still receive payment for the sixth week of paid holiday. It costs around 20 million. If we abolish this pay-out and use the money to avoid dismissing employees, then all employees together will have contributed with 1/10 of the spending cuts. So now it is interesting to see what the management can come up with,” concludes Per Dahl.