Aalto decides allocation of effects of the statutory negotiations
Based on the employer’s report that was just finalised, the number of Aalto personnel will decrease by a total of 316 people following the statutory employer-employee negotiations. Included in this total are 188 layoffs due to redundancies, of which 109 are teaching and research personnel and 79 service personnel. In addition, personnel will decrease by the end of 2018 through retirements, expiring fixed-term contracts and other changes. This will affect approximately 128 people, of whom 66 are teaching and research personnel and 62 service personnel. Measures relating to the redundancies will be implemented primarily in the first half of February 2016. Job retraining will be offered to those leaving their positions.
The service personnel of Aalto University was reduced previously by approximately 170 persons as a result of the reorganisation and negotiations conducted in 2014.
The aim of the negotiations was to adapt the university’s operations to the weakened economic situation in a manner that secures Aalto’s long term future for teaching, research and innovation activities. Aalto University’s annual funding will be reduced by an estimated 66 million euros by 2018 compared to the 2015 level. Altogether the university’s funding for 2016–2018 will decrease by 136 million euros.
The Aalto University negotiations concerned all personnel excluding professors. The personnel cost savings will cover around one-fourth of the public funding cuts. The aim is to offset the majority of the public funding cuts by making significant savings in facility and procurement costs, using investment returns from the endowment capital and by securing additional funding. The measures discussed during the negotiations will save 17 million euros annually in personnel costs by the end of 2018 compared to 2015.
Estimated personnel changes by the end of 2018
|
Total (layoffs plus other reductions) |
316 |
|
affected teaching and research personnel |
175 |
|
affected service personnel |
141 |
|
Total layoffs |
188 |
|
affected teaching and research personnel |
109 |
|
affected service personnel |
79 |
|
Total other reductions (retirements, expiring fixed-term contracts etc.) |
128 |
|
affected teaching and research personnel |
66 |
|
affected service personnel |
62 |
Aalto University funding cuts
|
Total funding cuts 2016–2018 |
136 MEUR |
|
Cut in annual funding, 2018 compared to 2015 |
66 MEUR |
Aalto University economic balancing measures
|
Total by the end of 2018 |
2018 compared to 2015 |
Percentage of the economic balancing required, 2016–2018 |
|
|
Additional funding, incl. return on investment |
60 MEUR |
29 MEUR |
44% |
|
Savings in facility costs |
28 MEUR |
14 MEUR |
21% |
|
Savings in procurements |
12 MEUR |
6 MEUR |
9% |
|
Personnel savings |
36 MEUR |
17 MEUR |
26% |
|
Total |
136 MEUR |
66 MEUR |
100% |
Further information and media contacts via Aalto University Communications: Communications Manager Anu Salmi-Savilampi, tel. +358 50 464 4585, anu.salmi-savilampi@aalto.fi
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