Exclusive:Crisis-hit Scottish university to unveil rescue plan 'within weeks' as SNP warns against compulsory job cuts

The University of Dundee has been under scrutiny since it announced in November that the institution was facing a deficit of up to £30million, with redundancies “inevitable”.

A few weeks later its principal, Professor Iain Gillespie, resigned with immediate effect, amid mounting concerns over the scale of the financial woes.

The UCU union is now balloting for strike action at the university over the failure to rule out compulsory redundancies.

Correspondence released to The Scotsman under freedom of information (FOI) laws has now shown how Higher Education Minister Graeme Dey has been pressing the university to try to limit job losses.

It has emerged that on December 4, just two days before Prof Gillespie’s resignation was announced, the minister wrote to the university principal.

Mr Dey said: “In noting the likelihood that members of staff at the University of Dundee are at risk of redundancy and whilst ministers cannot compel institutions to commit to no compulsory redundancies, my expectation is that all universities work with staff to make every effort to protect jobs.

“I expect employers, workers, and trade unions to work together, in line with our Fair Work principles, to reach the right decisions and ensure workers are treated fairly; and for workers to have appropriate channels for maintaining constructive and meaningful dialogue with employers.”

Nine days later, on December 13, Mr Dey again raised the issue in a letter to Professor Shane O’Neill, who became the university’s interim principal, following Prof Gillespie’s resignation.

The second letter came after the minister was contacted by trade unions “expressing concern” that they had not been involved in conversations relating to the financial situation, including the resignation of the former principal, and the development of the financial recovery plan.

Mr Dey said: “The University of Dundee is of course an autonomous institution with responsibility for its own operational and resourcing decisions to achieve financial sustainability.

“However, as I set out in my letter to Professor Gillespie of 4 December, I expect employers, workers, and trade unions to work together, in line with our Fair Work principles, to reach the right decisions and ensure workers are treated fairly; and for workers to have appropriate channels for maintaining constructive and meaningful dialogue with employers.

“I have also highlighted these points to the Scottish Funding Council in the context of their ongoing dialogue with the university to support financial recovery.”

Mr Dey added: “Both the Scottish Government and Scottish Funding Council will continue to support colleges and universities in developing their own mitigating strategies to minimise negative impacts on short, medium and long-term financial sustainability.

“Ensuring our institutions are on a sustainable trajectory is at the heart of our considerations to reform the post-school system, so that the significant investment we are making delivers the best outcomes for learners, the economy and society.”

The correspondence has emerged amid unanswered questions over why Dundee’s pressures appear to be worse than other Scottish universities, and over the reasons for Prof Gillespie’s resignation.

Mr Dey told Holyrood’s education committee this month that he was “anticipating” that a report would be produced detailing how Dundee University ended up in its current position.

“I think there needs to be an explanation provided, because of the element of public funding. It needs to be provided for the staff, for the students. We need to understand how this occurred. I fully expect there to be a report,” he said.

The minister also signalled that he could use upcoming legislation to strengthen the oversight and intervention powers of the Scottish Funding Council, in the wake of the crisis.

A spokesperson for Dundee University said details of its financial recovery plan would be unveiled imminently.

“We expect to bring forward a recovery plan and associated proposals in a matter of weeks, to address significant financial challenges, ensure the long-term sustainability of the university and allow us to continue to make a positive difference in the city, region and beyond,” he said.

“We are engaging constructively with campus unions and we are committed to an open and constructive consultation process once we are ready to share the plan.”

Mary Senior, Scotland official at the UCU union, said: “It’s welcome that the minister recognises the value and importance of employers engaging with trade unions and ensuring workers views are integral to the ongoing discussions on the future of the university.

“Since Graeme Dey’s intervention, we have seen a positive change in management’s engagement with trade unions at the university although there is still some way to go in ensuring that university staff and unions’ voices are central to future decision making.

“That said, the situation at Dundee university remains dire, with a seemingly inexplicable financial black hole, the threat of job cuts hanging over workers, and cuts to educational provision for students.

“UCU is balloting for strike action at the university in a bid to defend jobs and education. We’re calling on the employer to rule out compulsory redundancies so that no worker is forced out of the door, and we’re calling on the Scottish Government to do more to properly fund university teaching and to end the decade of underinvestment in our university education.”

A Scottish Government spokesperson said: “Our universities play a pivotal role in Scotland’s economy and wider society.

“We value their contribution and have listened closely to the sector in the development of this year’s budget. That is why the 2025/26 budget, if passed, will invest over £1 billion in teaching and research, including an increase in funding for research and innovation.”

“Whilst universities such as Dundee are autonomous institutions with responsibility for their own strategic and operational decision making, the Scottish Government and Scottish Funding Council will continue to offer support to individual universities as they develop their own plans to mitigate their financial challenges.

“The Scottish Government recognises that this will be a worrying time for the staff and students at the University of Dundee, but we expect employers and trade unions to work together, in line with our Fair Work principles, to ensure workers are treated fairly.”