De Montfort to open subsidiary firm and revise academic structure

De Montfort University has become the latest institution to plan to hire a portion of its staff through a subsidiary firm.

Writing to staff, Katie Normington, vice-chancellor at the Leicester-based institution, has outlined the “need to make changes to secure the University’s future” amid “financial challenges”.

A “shortfall” in student recruitment is “leading to a deficit and the need for savings”, she writes, announcing that a voluntary severance scheme will run until 21 October, with decisions expected to be confirmed in December. 

The university is also planning on employing all new professional services staff at its Leicester campus and academics taking on new “teaching fellow” positions through a subsidiary firm, DMU People.

These staff will have “amended terms and conditions” and will no longer be eligible for the Local Government Pension Scheme or the Teacher’ Pension Scheme, and instead be signed up to a private pension scheme.

The changes come on top of plans announced last year by DMU to cut 80 staff, as the university looked to save £8 million.

It is also looking at developing a “revised academic structure and career framework” promising to work with its University and College Union branch, to “offer a clearer and more transparent approach to career pathways and progression and build future academic leadership”.

A university spokesperson added that, like many universities across the UK, “DMU is facing financial pressures. As we respond to these challenges, we need to ensure DMU has the right structures, resources and capabilities to deliver for our students now and in the future”.

“We have opened a voluntary severance scheme and invited our staff to submit expressions of interest. Decisions will be made carefully, balancing the potential savings with the need to maintain effective services, progress our ambitions around research and innovation and ensure a high-quality experience for our students,” they said.

“We remain committed to supporting and listening to our staff throughout this process and we will continue to work closely with our recognised trade unions.”

 juliette.rowsell@timeshighereducation.com