THE University of Newcastle will have to go "harder" and "tougher" to dig more out of savings measures, plus cast a wider net for efficiencies, after it failed to reach consensus with unions over changes to enterprise agreements.
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Vice-Chancellor Alex Zelinsky told staff in a Tuesday email he was "disappointed" UON was not able to reach agreement by its August 10 deadline with the National Tertiary Education Union (NTEU) and the Community and Public Sector Union (CPSU) over a proposal to delay salary increases and increments.
He said this would have saved between $12 and $15 million, equal to about 120 jobs and a large slice of $35 million in savings needed to be found for 2021.
"We need to go harder there and maybe have to be much tougher," Professor Zelinsky told the Newcastle Herald - referring to already-announced measures, such as course optimisation that will save $15 to $20 million and restructuring the five faculties into three schools - "and we have to look broader".
The unions have agreed, in principle, to plans to reduce annual and long service leave - staff will be required to take 10 of their 20 days leave in two shut down periods next year - as well as an early retirement scheme.
"We might wait a little while, maybe a year or so to build some savings to get us through tough times, and then we will rehire, but rehire junior people," he said.
"So a senior professor retires and you hire an up and coming young lecturer... if 100 people put their hand up that would really help us, but if only 10 people put their hand up that's not as helpful."
NTEU Newcastle branch president Dan Conway said parties were unable to reach an outcome "because we were the only party in negotiations not to allow management to strip away conditions and entitlements while getting absolutely nothing in return".
The CPSU was "willing to consider any options proposed".
Mr Conway said the NTEU had agreed to deferring pay rises in return for job security, but "not one single job has been secured for any period of time".
He said management "have made it clear that jobs are going regardless of any agreed outcome".
Professor Zelinsky said UON couldn't provide guarantees.
He said there would be job losses, but they could be minimised.
He said jobs may go but people may be redeployed elsewhere.
Mr Conway called on UON to submit finances to the Expert Assessment Panel, which UON said it would have done after agreement.
He also called on management to "promptly return to negotiations to secure the employment of all staff for a period of time, which also achieving management's financial goals".
Professor Zelinsky said "never say never".
"I don't want to rule anything out because we're being stubborn, but it really comes down to what it is they're offering."
Mr Conway asked UON to look at non-staff savings, such as consultants overseeing projects in which UON staff do all the work.
Professor Zelinsky said he favoured using staff where possible and UON was reviewing contracts at renewal.
He said international students across all years and campuses represented annual revenue of $120 million.
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Helen Gregory
Helen Gregory joined the Newcastle Herald in 2010. She is the masthead’s education reporter and has written for the H2 and Weekender sections, as well as across a range of issues. Helen is a Walkley Award winning journalist and was also part of the Newcastle Herald team that won the United Nations World Environment Day Media Award for Environmental Reporting.
Helen Gregory joined the Newcastle Herald in 2010. She is the masthead’s education reporter and has written for the H2 and Weekender sections, as well as across a range of issues. Helen is a Walkley Award winning journalist and was also part of the Newcastle Herald team that won the United Nations World Environment Day Media Award for Environmental Reporting.
