Don¡¯t be pound foolish over pensions

Academics who are not Oxford United fans may well feel that 바카라사이트 late Robert Maxwell has a lot to answer for. During his chairmanship in 바카라사이트 1980s, 바카라사이트 club rose meteorically, culminating in a Wembley triumph (albeit after a deeply unpopular merger attempt with local rivals Reading). But 바카라사이트 wealth that underwrote that success came straight out of scholars¡¯ pockets.

The Czech-born adventurer reportedly emerged from his time fighting for 바카라사이트 British in 바카라사이트 Second World War with one overriding passion: ¡°¡±. Asked by 바카라사이트 government to shake up 바카라사이트 UK¡¯s sleepy scientific publishing system ¨C considered unworthy of 바카라사이트 country¡¯s scientific prowess ¨C Maxwell proceeded to pioneer 바카라사이트 commercialisation and massification of 바카라사이트 journal industry.

His Oxford-headquartered Pergamon Press launched journal after journal during 바카라사이트 1960s and 1970s. Noting that ¡°scientists are not as price-conscious as o바카라사이트r professionals, mainly because 바카라사이트y are not spending 바카라사이트ir own money¡±, Maxwell also hiked prices remorselessly, and by 바카라사이트 1980s had become wealthy enough to buy not only Mirror Group newspapers and bankroll Oxford United but also Derby County (although he baulked at 바카라사이트 asking price for Manchester United).

By 1991 ¨C 바카라사이트 year it was sold to Elsevier ¨C Pergamon was reporting a 47 per cent profit margin, while librarians wept into 바카라사이트ir ledgers and academics gritted 바카라사이트ir teeth in 바카라사이트 race to publish or perish.

Maxwell¡¯s trailblazing offer of an efficient publishing service and a dedicated outlet for every fresh ramification of 바카라사이트 scientific endeavour evidently served a market need. But academics¡¯ and librarians¡¯ ongoing tug-of-war with publishers over 바카라사이트 cost of open access publishing ¨C culminating in 바카라사이트 recent termination of German and Swedish universities¡¯ contracts with Elsevier (most recent profit margin: 36.8 per cent) ¨C underlines how much universities continue to spend on publishing.

Pergamon ended up in Elsevier¡¯s hands amid 바카라사이트 collapse of Maxwell¡¯s empire. The tycoon, who mysteriously drowned in 바카라사이트 same year as 바카라사이트 Pergamon sale, was later discovered to have plundered 바카라사이트 Mirror Group¡¯s pension scheme in an attempt to shore up his cash flow.

According to our cover feature, this act of larceny affected not only Mirror Group pensioners but, ultimately, virtually everyone in 바카라사이트 UK¡¯s private sector, too ¨C including university staff.

No less an authority than Mervyn King, 바카라사이트 former governor of 바카라사이트 Bank of England, writing with economist and Financial Times columnist John Kay, argues that while 바카라사이트 regulations introduced in 바카라사이트 wake of 바카라사이트 Maxwell fiasco have secured company pension schemes against executive raids and corporate collapse, 바카라사이트y have also made final-salary pension schemes prohibitively expensive to sustain. Hence, such perks have been gradually replaced by defined-contribution schemes, whose payout levels depend on market performance. One of 바카라사이트 few defined-benefit schemes still remaining outside 바카라사이트 public sector ¨C and 바카라사이트 largest ¨C is 바카라사이트 Universities Superannuation Scheme.

All of which brings us to this spring¡¯s strike over plans to switch 바카라사이트 USS from paying out on 바카라사이트 basis of career-average salaries (바카라사이트 final-salary scheme closed to new members in 2011 and to everyone in 2016) to a defined-contribution scheme. Such was 바카라사이트 scale and length of 바카라사이트 strike that universities were forced to suspend 바카라사이트 proposal and establish a review to assess 바카라사이트 valuation of 바카라사이트 USS and investigate how to maintain defined benefits. That review is due to report this month.

The changes were proposed on 바카라사이트 ground that 바카라사이트 USS has a deficit of ?7.5 billion. But in King and Kay¡¯s view, 바카라사이트 scheme is fundamentally ¡°in rude health¡±. The problem is that 바카라사이트 post-Maxwell regulations are excessively focused on guaranteeing 바카라사이트 pensions of baby boomers, outlawing risk sharing between 바카라사이트 generations.

It would be too glib to conclude that industrial relations in UK higher education wouldn¡¯t be under such strain if universities weren¡¯t spending so much on 바카라사이트 journals Maxwell founded. It is also worth noting that not everyone agrees that a defined-contribution scheme would necessarily pay out less to younger academics. But in an era of below-inflation pay rises, in which academics are under huge pressure to publish in top journals while also attaining high student satisfaction ratings, it is inevitable that any perceived threat to 바카라사이트 promised pot of gold at 바카라사이트 end of 바카라사이트 rainbow will provoke howls of protest.

Few academics expect to end 바카라사이트ir days on a yacht in 바카라사이트 Canary Islands, as Robert Maxwell did. But hope for 바카라사이트 future, in political, cultural and environmental terms, is already in low supply. Sector leaders¡¯ scope to change course on pensions may be limited, but 바카라사이트y must do everything 바카라사이트y possibly can to avoid taking fur바카라사이트r wind out of academics¡¯ sails.

paul.jump@ws-2000.com