Job losses feared as Manchester student union deficit reaches half a million pounds

 

Manchester University students’ union has been forced to make drastic cut-backs after it was revealed that they have built up a deficit of over half a million pounds.

During a recent staff meeting, employees were informed that their jobs “may be at risk” and that staff redundancy could be an “eventuality” as union executives agreed £400,821 of budget cuts in light of the crippling deficit, still leaving £130,000 worth of savings to be made.

Other cost saving measures will include campaign budget and society grant budget cuts, reducing staff training and travel budgets, replacing student staff with permanent staff and the closure of the popular Biko’s North Cafe on North Campus.

In a statement posted on the union’s website, Grace Skelton, the general secretary, said that the situation was regrettable but necessary.

She said: “Following a review of the first two months of trading activity, the board have confirmed concerns over a deficit, and a restructure of the business has now become necessary due to financial pressures.

“During our meeting, staff were consulted with and asked to come forward with any suggestions or ideas that could help bridge the gap. Short of that, we may have to concede that job losses will be an eventuality and the union will be in the regrettable position of initially having to implement a voluntarily redundancy programme.

“This is a measure that has been considered very carefully and is something we may have to do in order to support the student union’s ongoing viability.”

It is not yet clear what caused the significant deficit, but an investigation is underway.

“The Trustee Board is in the process of investigating the causes of the financial situation however at this stage our priority is to deal with the ongoing consultation process,” said Skelton.

Tension amongst students is running high, with many claiming that the deficit has come as a direct consequence of the union’s spending in its own department.

William Marlow, studying second year pharmacy, said: “I think it's unfair that there will be reduced opportunities for students, both extracurricular and educational, when it is completely out of our control. Maybe if senior staff took voluntary pay cuts themselves they could save a few thousand pounds and some jobs in the process.”

Georgie Callé, an NUS delegate candidate studying at Manchester University, said: “It is appalling that this has been allowed to take place. When you take into account the union's extensive business assets such as the academy venues and the direct payment every student has to give the union each year, there appears to be no excuse for this situation. The union needs to take drastic steps to make sure that it doesn't happen again.”

The union could not be reached for comment

Have you tried new the Independent Digital Edition apps?
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
iJobs Job Widget
iJobs Student

Recruitment Genius: Project Assistant

£18000 per annum: Recruitment Genius: If you are a recent psychology graduate ...

Recruitment Genius: Junior / Graduate Graphic Designer

£17000 - £20000 per annum: Recruitment Genius: The Largest Independent Motor D...

Ashdown Group: Training Programme Manager - City, London

£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...

Guru Careers: Graduate Sales Executive

£18 - 24k OTE + Uncapped Commission: Guru Careers: A Graduate Sales Executive ...

Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Day In a Page

Where the spooks get their coffee fix: The busiest Starbucks in the US is also the most secretive

The secret CIA Starbucks

The coffee shop is deep inside the agency's forested Virginia compound
Revealed: How the Establishment closed ranks over fallout from Loch Ness Monster 'sighting'

How the Establishment closed ranks over fallout from Nessie 'sighting'

The Natural History Museum's chief scientist was dismissed for declaring he had found the monster
One million Britons using food banks, according to Trussell Trust

One million Britons using food banks

Huge surge in number of families dependent on emergency food aid
Excavation at Italian cafe to fix rising damp unearths 2,500 years of history in 3,000 amazing objects

2,500 years of history in 3,000 amazing objects

Excavation at Italian cafe to fix rising damp unearths trove
The Hubble Space Telescope's amazing journey, 25 years on

The Hubble Space Telescope's amazing journey 25 years on

The space telescope was seen as a costly flop on its first release
Did Conservative peer Lord Ashcroft quit the House of Lords to become a non-dom?

Did Lord Ashcroft quit the House of Lords to become a non-dom?

A document seen by The Independent shows that a week after he resigned from the Lords he sold 350,000 shares in an American company - netting him $11.2m
Apple's ethnic emojis are being used to make racist comments on social media

Ethnic emojis used in racist comments

They were intended to promote harmony, but have achieved the opposite
Sir Kenneth Branagh interview: 'My bones are in the theatre'

Sir Kenneth Branagh: 'My bones are in the theatre'

The actor-turned-director’s new company will stage five plays from October – including works by Shakespeare and John Osborne
The sloth is now the face (and furry body) of three big advertising campaigns

The sloth is the face of three ad campaigns

Priya Elan discovers why slow and sleepy wins the race for brands in need of a new image
How to run a restaurant: As two newbies discovered, there's more to it than good food

How to run a restaurant

As two newbies discovered, there's more to it than good food
Record Store Day: Remembering an era when buying and selling discs were labours of love

Record Store Day: The vinyl countdown

For Lois Pryce, working in a record shop was a dream job - until the bean counters ruined it
Usher, Mary J Blige and Will.i.am to give free concert as part of the Global Poverty Project

Mary J Blige and Will.i.am to give free concert

The concert in Washington is part of the Global Citizen project, which aims to encourage young people to donate to charity
10 best tote bags

Accessorise with a stylish shopper this spring: 10 best tote bags

We find carriers with room for all your essentials (and a bit more)
Paul Scholes column: I hear Manchester City are closing on Pep Guardiola for next summer – but I'd also love to see Jürgen Klopp managing in England

Paul Scholes column

I hear Manchester City are closing on Pep Guardiola for next summer – but I'd also love to see Jürgen Klopp managing in England
Jessica Ennis-Hill: 'I just want to give it my best shot'

Jessica Ennis-Hill: 'I just want to give it my best shot'

The heptathlete has gone from the toast of the nation to being a sleep-deprived mum - but she’s ready to compete again. She just doesn't know how well she'll do...