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Melbourne axing 450 permanent staff to fill A$1 billion shortfall

<ÁñÁ«ÊÓƵ class="standfirst">Reductions ¡®necessary to ensure that the university not only survives but thrives¡¯
August 5, 2020
The University of Melbourne - the top ranked institution in Australia
Source: iStock

Australia¡¯s top-ranked university has announced plans to shed some 450 permanent staff as the Covid-19 pandemic blows a A$1 billion (?550 million) hole in its revenue projections over the next three years.

The University of Melbourne said that both its academic and professional workforce would be affected, and that there would be additional reductions to casual and fixed-term staffing. Redundancies were anticipated to be made by the end of the year.

Vice-chancellor Duncan Maskell said that the changes were unavoidable. ¡°Our current rate of expenditure is not sustainable. We must reduce our costs to match our operational requirements,¡± he said.

Professor Maskell said that the university had already taken steps over the past six months to ¡°significantly reduce¡± costs. ¡°[We have] drawn down on our financial reserves to help support our staff and students through this crisis,¡± he said.

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¡°The global pandemic has meant many thousands of international students have not been able to join the university this year as a result of the border closures. The impact of this will continue to be felt for years to come. With fewer students, the university must be smaller and we will need fewer staff.¡±

The university said that the decision had been taken as a ¡°last resort measure¡± following a major review by the executive and two task forces. Its aim was to ¡°reduce costs and protect as many jobs as possible¡±.

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¡°These steps are necessary to ensure that the university not only survives this crisis but is well-positioned to thrive in the future,¡± Professor Maskell said. ¡°We are also very aware that people are seeking clarity and a level of certainty about their own futures.

¡°The global situation may change but, based on all of the information we have available and our current modelling, we know the financial challenge facing the university is significant and we must take action now.¡±

The university said that a ¡°detailed change plan¡± being developed with staff and university leaders was expected to be finalised by mid-September. Professor Maskell said that he was committed to engaging with staff.

¡°All the steps and measures that we take will be consistent with our commitment to transparency, equity, diversity and inclusion within our community,¡± he said.

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The announcement was seen as likely to draw a furious response from the National Tertiary Education Union, after Melbourne?ruled out?participating in a jobs protection framework that the union helped develop earlier this year.

john.ross@timeshighereducation.com

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<ÁñÁ«ÊÓƵ class="pane-title"> Reader's comments (2)
This is a shameful outcome from a university executive that's refused to engage in good faith negotiations with staff and the union. The ABC reported yesterday in relation to Melbourne Uni's theft of casual wages that it has $4.5 billion in reserves. If that is correct, Maskell's commitment to draw $350 million from that amounts to less than 8% of those reserves. He and other members of the executive have encouraged the growth of international student revenue while watching Federal Govt funding steadily decline, while they invest in property and other "assets" that have little or nothing to do with the core business of the university. Ditto for the rest of the Group of Eight and several other urban and regional universities. The neoliberalization of the tertiary sector has created this mess. It's time to get organized! https://australianacademic.wixsite.com/website https://jacobinmag.com/2020/04/australian-universities-coronavirus-austerity-funding-privatization
Ashamed to be a graduate of that once great uni today
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