LecturerS are angry a university has threatened to withhold 20 per cent of their pay if they continue a marking boycott.
Dozens of lecturers at the University of Sussex face being docked a fifth of their pay this month if they continue to refuse to mark or assess students' work.
The Association of University Lecturers and Natfhe, the university and college lecturers' union, has asked universities nationally for a 23 per cent pay rise over three years to redress long-term poor pay.
Members have refused to mark students' work since March in protest.
This week the Universities and Colleges Employers' Association offered a 12.6 per cent rise but this was rejected by the unions and the assessment boycott continues, sparking fears students may not be able to graduate if coursework and exams are left unmarked.
On Friday, vice chancellor Professor Alasdair Smith announced union members participating in the boycott would receive only 80 per cent of their pay packet on May 26. The rest would be withheld until they stopped the boycott.
Paul Cecil, an executive member of Sussex AUT, said: "This is a justified, disciplined dispute that's affordable for the employers. Their provocative action will do nothing to speed the results of the dispute.
"We don't want students to graduate with devalued degrees and we have the full support of the students' union."
Prof Smith said: "Our overriding concern is the interests of our students as they complete their years of hard work and study at Sussex. In these difficult circumstances we have to do all that we can to seek to minimise the effects of this action on them."
Director of communications Rob Read said the university was considering offering staff an interim three per cent pay rise from August 1 and a further one per cent in February until the pay dispute was settled. He said it was unclear how much coursework was not being marked as many deadlines had only just passed or were due this month.
He said the exam timetable was completed and looked set to go ahead.
He said: "We are doing everything we can to help students including making transcripts available and writing letters of support so it's clear what their position is as they look for jobs."
Sussex AUT will be holding daily staff surgeries next week and is seeking an urgent meeting with university management to discuss the move.
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