New report reveals $159 million wage theft at Australian universities

Staggering new figures have exposed the depths of systemic underpayment in Australian universities.

An analysis of 55 incidents of wage theft across 32 Australian universities found $158,711,178 in underpayments affecting 97,555 individual staff nationwide.

Australian universities have underpaid their staff by $159 million dollars, a shocking new report has found, prompting union leaders to urge the federal government to criminalise wage theft.

A report released today by The National Tertiary Education Union found more than 97,000 university staff have been underpaid by 32 higher education institutions across the country.

Victorian universities received the highest number of wage theft claims, accused of owing staff more than $75m. NSW institutions have underpaid staff by $65 million and Tasmanian institutions owed workers $11 million, the report found.

NTEU National President Alison Barnes said despite a string of high-profile wage theft cases, she was concerned universities were not taking the issue seriously.

“I think university staff feel pretty demoralised,” Dr Barnes said.

It’s ‘galling’ for underpaid staff to see university executives on million-dollar salaries, Dr Barnes said.

“When you employ two-thirds of your workforce insecurely, you create the conditions that give rise to wage theft and exploitation.

“We need urgent action from all governments to reform the governance model for universities and protect workers.”

Most Australian universities have admitted to wage theft. Picture: Justin Sanson/AAP.

Dr Jonathon Mackay, a lecturer and NTEU delegate at the University of Wollongong, said it was incredibly common for staff to work beyond their paid hours to meet the bare minimum requirements of their job.

“I am constantly in communication with staff who are burnt out due to the non-stop nature of many roles within the institution,” Dr Mackay said.

“We have done the hard yards and made many sacrifices over the past number of years, yet the problems are only getting worse and worse.”

Dr Mackay said poor working conditions had left staff “completely demoralised”, with many resigning from their jobs as a result.

“Although there are slight improvements of material conditions across the board ... one only has to speak to staff to get a sense of the frustration and despondency,” he said.

Melbourne’s RMIT had the third highest number of underpayment claims nationwide. Picture: David Geraghty / The Australian.

Education Minister Jason Clare said in early December that he had commissioned a team to examine wage theft and casualisation in Australian universities as part of his overhaul of the sector.

The Labor government introduced legislation this year to criminalise underpaying workers with a maximum penalty of 10 years imprisonment fines of up to $7.8 million.

The bill is expected to pass in early 2024.

Originally published as New report reveals $159 million wage theft at Australian universities