Job cuts at Dundee and Angus College have been confirmed as the college issues proposals to save £2.5 million.
The college’s principal Simon Hewitt has confirmed job losses are unavoidable after only a “flat cash settlement” was received for the next financial year.
He says no additional money was given by the Scottish Government and Scottish Funding Council (SFC) to cover pay rises, which now cannot be provided without “significant action”.
32 jobs could go at Dundee and Angus College
On Thursday staff were sent a 30-page document outlining saving proposals, which are now open to consultation.
Within that document proposals include cutting “less popular” courses, including some in dance, hospitality and professional cookery, hair and beauty, construction and science.
Mr Hewitt said: “The initial proposals are to cut around 32 full time equivalent (FTE) staff – which is about 5% of all FTE staff members.
“This also includes staff at senior management.”
The document confirmed there “will have to be” job losses, with a voluntary severance scheme being offered and compulsory redundancies “only as an absolute last resort”.
It advised there will be redeployment opportunities throughout the process and these will be prioritised to support staff.
Mr Hewitt was keen to stress the proposals are not only about cutting jobs – there are a range of saving tactics being suggested.
He said: “We have to work to save £2.5m – how we reach that is up for grabs but our biggest cost is staff so we will be looking to reduce staff.
“Over the last few years a range of courses have been less popular and don’t meet he needs of the regional area as they don’t lead to regional employment.
“We’ve had to take a step back and look at which areas are leading to growth and which are not.
“As a college it’s really important that we feed the region in terms of the needs of employers and where the jobs are.”
He added that other areas of saving will also be included, such as ICT spending, equipment purchases and restructuring senior management.
£2.5 million black hole
The college is facing a £2.5 million black hole in its budget, a leaked staff letter previously revealed.
The letter said cuts would be needed to claw back the money, and that bosses at the college would undertake a review of “all areas” to see where money can be saved.
Staff were told that for every 1% pay is increased, the college’s deficit will grow by about £350,000.
The letter stated: “This isn’t about whether staff should receive a pay increase, you absolutely should and completely deserve it given the challenges over the past few years.
“The challenge for us is that we aren’t being given additional funding from Scottish Government/SFC to cover the increased costs.”
Senior leadership at the college said they are working with staff and unions to reach an agreement nationally.
Mr Hewitt added: “Staff deserve a pay increase.
“That is not disputed given the challenges they have faced in recent years.
“The issue is how it is paid for, given there is no additional help coming from the Scottish Government, unlike what we have seen recently in some other areas of the public sector.”
It follows similar cuts last year, when job and course cuts were announced to meet a £1.5 million deficit.
‘Nearly £2bn’ to universities and colleges
A Scottish Government spokesman said: “The 2023-24 Budget allocated nearly £2 billion to Scotland’s universities and colleges through the Scottish Funding Council, demonstrating our commitment to supporting our learners and institutions.
“The latest Higher Education Student Statistics showed that 33,880 Scottish Domiciled full-time first degree entrants attended our universities in the 2021-22 academic year – a 31.4% increase since 2006-07.
“Ministers have made an additional £5.5 million capital investment in university innovation, and that this year we are able to continue our £5 million funding to support digital poverty across colleges, universities and Community Learning and Development providers.”
Conversation