Robert Gordon University is one of several Scottish higher education institutions in the thick of an alarming financial crisis.
Principal Professor Steve Olivier warned of an “existential threat” to the sector and more than 130 staff risk losing their jobs at the north-east campus.
Dundee University, which is tackling a £30 million deficit, was highlighted as a problem last week when the SNP announced access to an emergency £15 million loan.
Now union chiefs tell the P&J they want the Scottish Government to make sure lifeline opportunities are available for RGU in Aberdeen too.
How bad is it for RGU?
It was claimed in November that the RGU black hole had grown to £22 million.
As a consequence, 135 staff were told they could face the axe.
Bosses previously slashed around half of an £18.8 million savings target, mostly through voluntary redundancies.
Around 130 employees have already left.
But it was warned the latest wave of potential cuts could threaten how the university operates.
Prof Olivier has been frank about the state of RGU’s finances and said funding pressure means all institutions are “feeling the pinch”.
A consultation is running over possible job losses at the university.
Around two-thirds of the university’s budget is spent on jobs.
What support has been given to Dundee University?
Dundee University has a £30 million deficit and it is feared up to 500 jobs could be lost.
The institution’s future is believed to be at risk due to the scale of the crisis, which has also led furious staff to go on strike.
Bosses welcomed access to a £15 million lifeline loan from the Scottish Government on February 25.
The EIS, Scotland’s education trade union, says this support needs to be replicated.
Gary Ross, the union’s national officer, said: “The EIS welcomes the decision by the Scottish Government to offer Dundee University access to additional money.
“Unfortunately, the same cannot be said for Robert Gordon University.
“The loss of jobs will have a detrimental impact on educational provision and research in the Aberdeenshire area.”
He added: “There are many higher education institutions struggling financially and the Scottish Government need to commit to helping as many of them as possible.”
Would a loan help RGU?
While emergency funding could benefit Dundee, the institution admits it will not solve the wider crisis.
It’s a similar story for RGU.
University principal Prof Olivier says a loan in the range of £15 million “cannot mitigate” the full impact.
“It is also at this stage unclear as to how and where any additional funding will be applied,” he told the P&J in a statement.
“The university has been open about the fact that the higher education sector is in dire need of a sustainable funding system.”
Just over 40% of RGU’s income – around £51.7 million – currently comes from public money via grants from the Scottish Funding Council.
Around £52.4 million came from tuition fees, according to the institution’s accounts last year.
A Scottish Government spokesperson said: “The Scottish Government and Scottish Funding Council will continue to offer support to individual universities, including Robert Gordon, as they develop their own plans to mitigate financial challenges.”
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