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Hiring freezes and layoffs as inflation hits central Europe

Ministries and rectors in Austria and Slovakia are yet to reach agreements on the extra funding needed to cover surging costs

Published on
November 11, 2022
Last updated
November 11, 2022
Frankfurt, Germany - April 24, 2022 Euro sign sculpture in a park among modern office towers in Frankfurt
Source: iStock

Record-breaking 10 per cent inflation is squeezing university budgets across the eurozone, with public universities in central Europe already losing staff as a result.聽

In Slovakia, the government agreed a 鈧17 million (拢14.6 million) top-up to 2022 budgets to cover soaring energy costs, but universities are still debating internally whether to also close a month early in mid-November to trim winter fuel bills, a Slovak Rectors鈥 Conference (SRK) spokeswoman said.聽

罢丑别听厂搁碍听聽to get a 鈧72 million budget for 2023 鈥渨ithout strings attached鈥, responding to a聽government offer of聽just 鈧27 million, with聽a cut of 2,000 university jobs 鈥 10 per cent of the total nationally. The SRK said the proposed decimation of staff was 鈥渁bsolutely unacceptable and unrealistic to implement鈥 and that rectors were 鈥減repared for all forms of protest鈥.聽

Radom铆r Masaryk, vice-rector for external relations at Comenius University Bratislava, told聽探花视频聽that the Ministry of Finance鈥檚 methodology for arriving at the 2,000 layoffs was聽鈥渇uzzy鈥. However, he said the national target might be achieved 鈥渘aturally鈥: by聽retirements and layoffs linked to a recent accreditation round, which closed several programmes.聽

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Professor Masaryk said increased costs聽and recent cuts聽had so far hit arts and humanities staff hardest, with Comenius鈥 Faculty of Philosophy losing聽25 staff to layoffs聽during the 2021-22 academic year. He said the recent cuts 鈥渨ould鈥檝e hurt even if it wasn鈥檛 for all these other developments, but because of them they hurt us much more鈥.聽聽

In Austria, 鈥渃risis talks鈥 between parliament, the ministry and聽the rectors鈥 conference (Uniko) ended without an agreement on聽projected budget shortfalls, which would be driven聽chiefly by the effect of inflation on staff聽costs, about two-thirds of the total across聽the sector.聽

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鈥淚t鈥檚 developed from a walking to a galloping inflation and the budget situation of universities still remains very much the same,鈥 said Uniko vice-president and rector of the University of Klagenfurt,聽Oliver Vitouch, referring to the 2022-24 institutional budgets that were聽fixed with the ministry in mid-October 2020.聽

He said that the national shortfall in university budgets had grown to 鈧1.2 billion, and that a 鈧500 million top-up agreed with the government earlier this year would not even cover the projected shortfall from inflating salaries over 2022-24 鈥 about 鈧509 million.聽

In a statement after the talks, Uniko said the government had decided to wait until a national deal on聽university salaries had been agreed, likely in January, before deciding about the requested extra funding. In the meantime, the University of Vienna has frozen recruitment, including the renewal聽of temporary researcher contracts.聽聽

鈥淲e鈥檙e not cutting any positions; we鈥檙e simply not replacing people that are retiring, that are leaving, for whatever reason,鈥 said University of Vienna rector Sebastian Sch眉tze.聽鈥淭here will certainly be several hundred positions involved in this, we鈥檙e talking about several million euros,鈥 he added, referring to the temporary freeze until February.聽

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Professor Sch眉tze said layoffs聽that hit research or teaching capacities were a聽鈥渞ed line鈥 he would not cross, also ruling out using institutional reserves to cover inflating personnel costs.聽

The University of Innsbruck has no plans to freeze recruitment, but rector Tilmann M盲rk聽said he will limit it to the bare necessities. 鈥淲e will look at each of those positions and whether they are necessary for teaching and research. There are people who are completely necessary, and then there are wishes and nice-to-haves,鈥 he said.

Edeltraud Hanappi-Egger, rector of the Vienna University of Economics and Business (WU), said freezing recruitment would be 鈥渄rops on a hot stone鈥, making little difference to the medium-term sustainability of her small university.聽

Academic eyes in Austria are now set on the upcoming public sector salary negotiations, which will set pay-rise expectations for the subsequent university staff talks. Vienna鈥檚 Professor Sch眉tze said every 1 percentage point increase in salaries would cost his university over 鈧4 million a year. Professor Hanappi-Egger said the same rise would cost WU about 鈧1 million.

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ben.upton@timeshighereducation.com

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