MANAGEMENT at the University of Dundee are in negotiations to secure a bank loan to fund a redundancy scheme, according to reports.
The university recently announced a projected shortfall of up to £30 million, partly as a result of a fall in recruitment of international students.
In an email to staff in November, then-principal and vice-chancellor Professor Iain Gillespie said the financial situation made a reduction in staff numbers “inevitable”.
It is understood the university currently has access to a multi-million pound drawdown facility from its bank but has been forced to renegotiate terms because of cash-flow problems.
A senior insider told The Courier: “If they don’t secure the loan they need then a recovery just won’t be possible without the government stepping in."
It was reported value of the loan has not been confirmed but it’s understood it could top £10m.
The University and College Union (UCU) previously called on the university to “urgently reconsider” the proposed cuts, warning of a “devastating” impact on those made redundant and their families, on the reputation of the institution, and on the student experience.
It added that despite “repeated requests,” the university had failed to provide evidence of the need for cuts, or the likely scale of job losses.
A University of Dundee spokesman said: “We are involved in discussions with a range of external stakeholders as we work towards bringing forward a recovery plan and associated proposals in a matter of weeks, to address significant financial challenges and ensure the long-term sustainability of the university.”
North East MSP Maggie Chapman said: “We know it is not lecturers, researchers, lab techs or the many who support the work of the university who have caused this crisis.
“The idea that it is going to be their jobs on the line is outrageous. Why should they have to pay for the university’s bad decision making and bad governance?”