Rhodes University on Friday criticised a news agency over a report suggesting that it may retrench staff to cut costs.
The university said an internal memo on Wednesday the 5th of April memorandum titled “Rhodes University faces crucial financial choices as financial strain hits higher education sector” was circulated to internal stakeholders. Rhodes said in a statement that the memo was part of regular information updates, which the University issued from time to time. “This has been the case over the last 18 months to inform internal stakeholders about the financial state of the University and other matters,” the statement said.
“A news agency, using the internal memorandum, subsequently published an irresponsible and premature speculation about retrenchments at the University in a bid to cut costs”, Communications Manager Veliswa Mhlope said.
“The Labour Relations Act provides clear guidelines about retrenchment processes, which the University respects. The University has been loyal to its staff over the years and has engaged in all negotiations in good faith and with transparency in the context of the unique socio-economic situation of Makana Municipality.
“What the memorandum sought to highlight was a need for continued internal engagement and creative thinking by stakeholders. It presented a number of austerity measures that the University was implementing to mitigate financial risk. These include:
• Ongoing work and discussion around the academic size and shape needed for the University to become financially sustainable
• Review of support operations with a view to reducing costs;
• An improved approach to identify and harness alternative sources of income.
• A partial moratorium on support staff vacancies;
• A moratorium on non-essential consultancy contracts;
• A partial moratorium on re-grading of support staff posts;
• Limitations on travel, accommodation and catering;
• Cancellation of year-end functions."
