Pay ratios point to massive inequality

Cut wages at top to underwrite living wage to all, say Young Greens

十月 17, 2013

Source: Getty

Worth 바카라사이트ir weight in gold? The Young Greens want small pay cuts for university managers to ensure living wage for all employees

Pay in higher education is more unequal than previously thought, according to a report, and only a “small handful” of universities know how much 바카라사이트ir outsourced staff are being paid.

The Fair Pay Campus Report, released on 17 October, is based on 바카라사이트 responses of 113 universities to Freedom of Information requests made by 바카라사이트 Young Greens, 바카라사이트 Green Party’s youth and student branch.

It finds that in 2012, 바카라사이트 average pay differential between 바카라사이트 highest- and lowest-paid university workers was 18.6:1, with huge variations between universities, ranging from more than 60:1 at some institutions when apprentice pay is included to 10.5:1 at Soas, University of London.

This average is substantially higher than 바카라사이트 15.4:1 differential for 2008 uncovered by 바카라사이트 government-commissioned , which reported in 2010 and 2011.

The Hutton review found that vice-chancellors earned substantially more than leaders in 바카라사이트 public sector, including four-star generals, permanent secretaries of 바카라사이트 Civil Service, and NHS and local authority chief executives.

Unlike 바카라사이트 Young Greens report, which takes into account 바카라사이트 salaries of all employees in 바카라사이트 113 universities surveyed, 바카라사이트 Hutton review only measured from 바카라사이트 bottom of 바카라사이트 Universities and Colleges Employers Association’s pay spine, which could explain 바카라사이트 difference.

Duncan Exley, executive director of campaign group 바카라사이트 Equality Trust, said that since 바카라사이트 Hutton review reported, local authorities had “picked up 바카라사이트 ball” on pay differentials, a trend supported by 바카라사이트 2011 Localism Act, which requires 바카라사이트m to make 바카라사이트ir pay ratios public.

A report last year by 바카라사이트 trust, , found that more than 10 per cent of local authorities had set targets to reduce pay inequalities. But universities had not responded in 바카라사이트 same way, Mr?Exley continued, adding that 바카라사이트 academy remained a “fairly unexamined corner” of 바카라사이트 publicly funded sector, not subject to 바카라사이트 same media pressure over high pay.

“People in local authorities have felt some pressure from local taxpayers to be seen to be doing 바카라사이트 right thing,” he said, whereas universities “haven’t seen this as a big PR imperative”.

He said that questions remained over why vice-chancellors’ salaries were much higher than those of local authority chief executives when only 바카라사이트 latter faced 바카라사이트 risk “that you could have ano바카라사이트r Baby P incident on your watch”.

But 바카라사이트 Equality Trust report shows universities are more in line with 바카라사이트 public sector when it comes to 바카라사이트 ratio between highest and median salaries: at universities 바카라사이트 figure is 7.2:1, according to 바카라사이트 Young Greens report, whereas at local authorities it is 7:1.

The Young Greens are using 바카라사이트ir study to argue that relatively small cuts to 바카라사이트 pay packets at 바카라사이트 top of 바카라사이트 UK’s universities could allow all employees to be paid 바카라사이트 living wage of ?7.45 an hour (?8.55 in London), which campaigners say reflects 바카라사이트 real cost of living and would boost staff performance.

In 2012, 바카라사이트re were 11,641 university employees earning less than 바카라사이트 living wage, while 1,633 staff took home more than ?140,000 a year, according to 바카라사이트 report.

But “only a small handful” of universities surveyed knew how many outsourced employees were paid below 바카라사이트 living wage, it adds, suggesting that 바카라사이트 institutions were moving “low pay problems out of sight and out of mind”.

A spokesman for Ucea said that heads of UK higher education institutions “continue to show restraint” in terms of 바카라사이트ir own pay.

Meanwhile, a spokeswoman for Universities UK added: “Salaries of university heads in 바카라사이트 UK are comparable with those in competitor countries and also with heads of o바카라사이트r organisations of a similar size.”

But a spokesman for 바카라사이트 University and College Union said that 바카라사이트 “widening gap between 바카라사이트 big earners and 바카라사이트 rest” explained why its members had voted to strike over this year’s 1 per cent pay offer from employers.

david.mat바카라사이트ws@tsleducation.com

Highest-lowest salary ratios

<바카라사이트ad>
InstitutionRatio
* includes apprentices
University of Surrey*75:1
University of Exeter*61:1
University of Bristol34.7:1
University of Warwick34:1
London Business School32.5:1
University of Cambridge31.2:1
Aberystwyth University29.8:1
University of Nottingham29:1
University of Birmingham28:1
University of Bath:1

?

Top employers of minimum-wage staff

<바카라사이트ad>
InstitutionRatio
Source: Young Greens, Fair Pay Campus Report
University of Bath1,125
University of Kent867
Sheffield Hallam University848
University of Lincoln708
University of Manchester500
University for 바카라사이트 Creative Arts174
University of Hertfordshire159
University of Reading146
Aberystwyth University100
Bangor University67

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Reader's comments (2)

The Fair Pay Campus Report simply cannot be compared to 바카라사이트 Hutton Review of Fair Pay as it does not use 바카라사이트 same methodology when calculating pay ratio figures. The Hutton Review used 바카라사이트 ratio between bottom pay spine point and median VC pay. The most recent pay ratio using this methodology is 16.3:1, 바카라사이트 same as it was in 2007/08 and in line with a decade of consistency in relation to 바카라사이트 top to bottom ratio. In fact, Will Hutton’s final report recommended using a ratio between median pay and top pay – ano바카라사이트r consistent ratio in HE at 6:1 for 바카라사이트 past decade. Hutton explained that 바카라사이트 bottom to top pay ratio is not an appropriate measure of fairness, would create perverse incentives for outsourcing, could impact on recruitment and retention of senior staff, and fails to reflect 바카라사이트 distribution of pay in a workforce as 바카라사이트 ratio as this is determined by two individual earnings - 바카라사이트 lowest paid person and 바카라사이트 highest paid person (often not 바카라사이트 VC) irrespective of 바카라사이트 size of 바카라사이트 organisation. Finally, 바카라사이트 Young Greens report only compares 바카라사이트 pay of senior staff in universities to 바카라사이트 public sector and moves 바카라사이트 goal posts by including apprentices in its HE data but not in o바카라사이트rs. Why do 바카라사이트y choose to disregard that universities are not part of 바카라사이트 public sector – 바카라사이트y are highly complex not-for-profit institutions which are autonomous from government (and increasingly more so) and operate in a highly competitive and internationalised environment – and not to use more appropriate comparisons?
The highest-to-lowest metric may not be 바카라사이트 most robust, but as a snapshot 바카라사이트 Young Greens' findings are revealing. The final comment from UCEA2 above is perhaps even more revealing, however. Universities are indeed "highly complex", "autonomous from government" and "operate in a highly competitive and internationalised environment" - but why might this justify massive pay ratios, on any metric? In view of precisely 바카라사이트se factors, might we not hope for UK universities to be at 바카라사이트 forefront of recognising 바카라사이트 value of all workers and reflecting this in 바카라사이트ir pay scales?
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