20 January 2010

Message from Rosie Valerio regarding the National Pay Award

Dear Colleague

I am pleased to advise you that the national pay negotiations for the 2009/2010 pay round have now concluded, with an agreement of 0.5% increase applied to all salary points on the national pay spine from 1 August 2009.

This increase comes on top of very considerable previous pay increases for staff, together with significant increases in pensions and national insurance costs for employers. From the media and the recent message to staff from the Vice-Chancellor, you will also be aware that the government has recently announced cuts to Higher Education funding, such that all our additional costs will not be matched by increases in HEFCE income.

After careful consideration of our current financial position and in keeping with our commitment to these sector wide pay negotiations, the University Executive Board have concluded that we should implement this increase in the January payroll. As the Vice-Chancellor indicated, although our recent VSS scheme was very successful, we have yet to identify a further £9.5m in relation to the £25m as had previously been identified, and need to continue to find ways of increasing our income and of reducing expenditure – on space and estates, running costs, and staff. Given that staff costs represent around 55% of expenditure, there is no doubt that in the period ahead we will need to find ways of achieving further savings in our staff costs. We are holding talks with our local trades unions to discuss different options to achieve the necessary staff cost savings, with minimum disruption.

You will find the details of the increase at http://www.sheffield.ac.uk/hr/salaries

Yours sincerely

Rosie Valerio
Director of Human Resource Management