VC announces savings strategy and rejects union co-sponsored on protection plan

Cuts to come: Deakin U management expects 300 people to leave and 100 empty positions not to be filled as management responds to a 14 per cent fall in revenue this year. The university is quick to point out it employed around 10,500 individuals or 5,700 FTE at the end of 2019.

Vice Chancellor Iain Martin told staff yesterday revenue in 2021 will also be down, by $250-$300m.

Professor Martin says, “optimal navigation through the impact of the COVID-19 pandemic” will require, “spending appreciably more than we earn” for the next 18-36 months. However, the university will also “appreciably reduce” budget expenditure.

Including jobs; “while we will do everything possible to minimise staff impacts, we must look at our employment costs as well as continuing to minimise other expenditure to adjust to where we need to be,” he adds. The university adds the 300 positions to go are not FTEs.

By Deakin for Deakin: Professor Martin also ruled out adopting the wages-condition cuts for jobs proposal from the National Tertiary Education Union and four vice chancellors.

“We have an enterprise agreement that underpins the vast majority of employment contracts at Deakin U, and we see no need to change this to enact measures included in the framework such as stand-downs, forced leave, forced reduction of hours, across the board pay cuts of up to 15 per cent and deferral of incremental progression that we have no desire to implement,” he said.

However, Professor Martin joins other vice chancellors in rejecting the accord’s proposed oversight of participating university emergency finances by a national committee including union representatives. “Our council is responsible for setting the overall strategic pathway for Deakin U, and the framework will constrain its ability to decide what is in the best short, medium, and longer-term interests of the university. That independent governance oversight has served Deakin very well in balancing the needs of now and the imperatives for the future.”

What happens next:  Council has endorsed management’s COVID-19 plan and Professor Martin says a new strategic plan, a “balanced” approach to reducing costs and debt and “a phased approach to staff reductions,” “will now proceed.”

Reaction: NTEU Victorian secretary Mel Slee slams the plan, saying Deakin is in a “financially strong position” but will “embark on a major strategy shift involving a huge reduction of the on-going staffing complement.”

Dr Slee says the university should start with voluntary redundancies.

Last night Deakin responded that, “the proposed change that will soon be put out for consultation does not include a voluntary redundancy programme, however, if staff wish to indicate such an interest as part of the consultation, then that will of course be considered on an individual basis.