An email from the University of Otago’s vice chancellor, David Skegg, to 3000 staff last week warns of job cuts and programme closures as the university tightens its belt in anticipation of reduced funding in 2011.

In the email Dr Skegg tells staff that his management team has started analysing the implications of budget cuts for Otago. “ ”It seems inevitable that we will face a real decline in our income from 2011 onwards.”

“I have appointed a Task Force to advise on possible responses to this situation…”  There is no intention to introduce measures such as a general freeze on new appointments or on the filling of vacancies… Unfortunately, however, it seems inevitable that we will need to contemplate some reductions in the numbers of academic and general staff. “ If this is to be done in a way that does not unduly increase everyone’s workload, we may well have to close some programmes.”

Responding to the news TEU president Tom Ryan told the Otago Daily Times that the Government’s decision to cut tertiary funding during a recession was “bizarre economics” and if the Government did not change its mind, New Zealand institutions would “slip down the ranks internationally” and would have trouble attracting students, staff, researchers and research funds.

TEU deputy secretary Nanette Cormack who is currently leading the combined unions’ university bargaining team in employment negotiations says this is further evidence of the need for universities to commit to the unions’ ‘no compulsory redundancies’ claim.

“The government is making times tougher than they need to be, but the University of Otago, with a $25 million operating surplus last year and another $12 million for the first six months of this year, has options.”  It needs to let its staff know that it won’t be forcing people out of jobs unnecessarily.”