Cost reductions in the administration are being brought forward
Cost reductions at HE Administrative Centre must be implemented a year earlier than planned. This has led the management team to pave the way for senior agreements and voluntary redundancy packages already now. A qualified hiring freeze is also being introduced in the administration.
Planned cost reductions in the administrative centre must be implemented a year earlier than expected. This is being done to offset the pressure faced by revenues from both education and research at Health.
More specifically, the cost reductions mean that the management of HE Administrative Centre has now taken the initiative to specific measures to prevent redundancies.
- Qualified hiring freeze
- A senior agreement option
- A voluntary redundancy package option
The administrative centre must reduce costs by approx. DKK 7.5 million. If the administration is unable to make the savings through the three initiatives that have been presented, then redundancies cannot be ruled out, says Administrative Centre Manager Steen Harrit Jakobsen.
All units in the administrative centre at Health will in future focus on how different services for the departments can be standardised to maintain quality. The solutions will be found in collaboration with the departments.
Background for the cost reductions
The cost reductions are not new. Already in February 2015, AU's management decided to impose an annual two percent cost reduction on the administration until 2020. Most recently, the cost reductions have been extended to 2021, which places further challenges on budgets.
The original agreement was for the cost reductions to be implemented during the period 2018-2021. But because Health is facing particular pressure on both the education and research fronts, the senior management team at Health decided to expedite the process so that the 2020 cutbacks would already be effectuated in 2019.
The cost reductions are being brought forward due to several external circumstances: basic funding for the universities has been reduced; revenues from private foundations is falling, so more researchers must fight for less funding; the study progress reform has put pressure on the revenues at Health; and the health science degree programmes are not developing as positively as at the other faculties. In the case of the medical degree programme, which constitutes the largest part of total degree completion time at Health, students are primarily delayed by the research year. In addition, the government has imposed a two per cent reallocation contribution on the universities and it appears that this will be extended by the Finance Act for 2018.
Facts about the measures to prevent redundancies
Qualified hiring freeze
- All vacant positions must be assessed before being advertised.
- Attempts will be made to fill vacant positions internally.
A senior agreement option
- Anyone who is planning or contemplating retirement or taking the early retirement pension in the coming years may apply for a senior agreement.
- Employees must retire from their job in the period 2018-2021.
- Senior agreements are individually negotiated.
A voluntary redundancy package option
- Anyone who is planning or considering applying for other positions outside of HE Administrative Centre can apply for a voluntary redundancy package.
- The agreement provides the possibility of leaving the position when you wish to do so up until 2021. As a rule, you will not be released from duty during the period up until redundancy.
- Voluntary redundancy packages are individually negotiated.
The time for deliberation is brief. Your immediate manager or union representative must be notified no later than Wednesday 4 October. Everyone can apply for a voluntary redundancy package, but whether or not it can be given will be individually assessed.
Read more about the conditions in the Agency for Modernisation of Public Administration’s circular on senior agreements and voluntary resignations (in Danish only).
Facts about the cutbacks
- HE Administrative Centre's cost reductions during the period 2018 -2021 are DKK 7.5 million.
- The cost reductions correspond to twelve per cent of the administrative centre's budget.
- The departments are also currently working on their budgets.
Contact
Administrative Centre Manager Steen Harrit Jakobsen
Aarhus University, HE Administrative Centre
Mobile: (+45) 2521 9894
Email: shj@au.dk