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Perth College staff invited to apply for voluntary severance after Covid blows hole in budget

Students at Perth College
Students at Perth College

Cash-strapped Perth College has invited staff to apply for voluntary redundancy.

Management said the move was necessary after the coronavirus pandemic blew a near-£2 million hole in the budget.

It follows last year’s announcement that around 21 jobs would go as a result of a £600,000 deficit.

The college now needs to make savings of £1.925m, with Covid-19 directly blamed for an estimated £1.4m loss of income.

A spokeswoman confirmed staff have been offered voluntary severance packages.

“Like most colleges in the sector, earlier in this year, Perth started a process to identify savings from within its budgets given the current financial position it finds itself in,” she said.

“The college has seen a significant reduction in its income as a direct result of the Covid crisis.”

She added: “The college will continue to work with its trade unions (EIS-FELA and Unison) to ensure that we reach a positive conclusion to this exercise.”

The college said it was too early to say how many jobs could be lost. “We have just announced the scheme and applications will be considered on a case by case basis,” the spokeswoman said.

“Therefore, a this early stage, we cannot predict the number of jobs affected.”

Local SNP MP Pete Wishart said he hoped the move would help prevent compulsory losses.

“This is a disappointing development that will lead to a number of permanent places being lost at the college.

“However, I think everybody appreciates that the college has a significant deficit that has to be tackled. What is important is that there are no compulsory redundancies and that the senior management team continue to work with the college unions to deal with all of the issues in securing these redundancies.”

A group of lecturers at the college, which is part of the University of Highlands and Islands (UHI), has called for a review of management structure. They questioned a recruitment drive for middle-management posts earlier this year, while other staff were facing uncertainty.

A recent report by the Scottish Funding Council suggested that UHI should consider consolidation and shared services.

It claimed the university body was “yet to realise its full potential and deliver the significant wider aims of regionalisation, including curriculum planning, driving further regional coherence, strategic alignment and enhanced offers for students and stakeholders.”

The report added: “We recommend UHI considers consolidation, shared services, recalibrated roles and responsibilities, and options to ensure it survives and thrives, and gets closer to the original mission of a more fully integrated tertiary institution.”

A small number of students tested positive for coronavirus after attending face-to-face classes in September.