Actions to improve the economy at TEK
The Faculty of Engineering expects negative operating results of – 28 and -9 million DKK in 2023 and 2024. These deficits are largely due to investments in the buildup of research and educational environments. In addition, recurring deficits in parts of the faculty are offset by profits elsewhere, which is not sustainable in the long term.
The student population in Odense Is expected to stabilize at the current level and increase in Sønderborg. The increase in Sønderborg requires buildup of educational and research capacity in Sønderborg. This situation is already included into our forecasts.
Given that there are still investments TEK must implement and that increased external earnings have been taken into account, there is a need to improve the operating results through savings.
The management has assessed that meeting the requirement for cash holdings in 2027, combined with the faculty’s financial prospects and obligations requires savings in the order of DKK 8 million DKK per year from 2024 onwards.
The scale of the savings needed and the limited possibilities for further reductions in operating costs, which have already been cut, mean that the savings must be expected to be realized primarily through payroll reduction.
Redundancies are a possibility.
A prevention phase is now initiated where it may be possible to enter into voluntary resignation agreements. Once this phase is over, it may be necessary to carry out a process of unsolicited redundancies.
The actions to improve our finances will be selected and developed after thorough consideration and in close dialogue with the Liaison Committee. The Employee Representatives will be kept informed and proposals for adjustments considered in the best way possible.
First and foremost, we are, of course, focusing on improving our revenue. In addition, in order to avoid redundancies as far as possible, we will, until 14 April, examine the possibilities for normal attrition, part-time agreements and voluntary resignations. We will also promote the internal re-filling of vacant positions by internal mobility.
It is important that we take the time to ensure the best possible solutions for each employee and for the Faculty. I therefore ask for your kind understanding of the fact that the uncertainty about which consequences the cost reductions may have for you and your colleagues will continue for some time yet.
We expect to inform you about actions to achieve the required savings 25. April og no later than 31 May to be able to announce how the salary cost adjustment will be implemented.
More information
If you have any questions and considerations that you would like to discuss in confidence, please contact your immediate manager your union representative.
In addition, SDU has set up a site on SDUnet: https://sdunet.dk/en/budget2023, where you can view the schedule and read about the various options for voluntary resignation.
Best regards,
Henrik Bindslev