Central Queensland University projects shortfalls of $100m due to coronavirus downturn

Central Queensland University is set to close its Sunshine Coast campus amid pay cuts, redundancies and payrise freezes after projected shortfalls of $100 million.

CENTRAL Queensland University has announced pay cuts of 20 per cent for executives, a freeze on senior staff’s pay-rises, a restructure and voluntary redundancies after projected shortfalls of $100 million and downturn during COVID-19.

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CQUniversity’s Vice-Chancellor and President Professor Nick Klomp explained that the crisis has impacted all Australian universities but that CQUniversity has been working on post-pandemic recovery for the past two months and has developed a plan to ensure the ongoing viability and sustainability of the University.

Vice-chancellor of CQUniversity Nick Klomp has announced new measures in the university’s bid to recover from COVID-19 crisis. Picture: supplied

Professor Klomp today announced several new measures to help the University recover from the operational and financial disruption caused by the ongoing COVID-19 pandemic crisis.

The university is proposing to close the Biloela (3 staff) and Yeppoon (3 staff) delivery sites and the Sunshine Coast campus (65 staff) based in Noosaville.

CQU associate Vice-Chancellor for Gladstone Owen Nevin at the launch of the New STEM strategy. Picture: supplied

Townsville-based associate Vice-Chancellor Kari Arbouin, Emerald based associate Vice-Chancellor Professor Anita Milroy, and Gladstone’s associate Vice-Chancellor Owen Nevin all accepted redundancy packages as part of the restructure.

As part of the executive restructure, the seven senior executive leadership team has been reduced to four, with Deputy Vice-Chancellor (DVC) strategic development professor Fiona Coulson, DVC student experience and governance Joanne Perry and DVC engagement campuses and Mackay-Whitsunday Region Pierre Viljoen have been given new senior portfolios part of the restructure.

Professor Klomp said without a doubt the crisis had brought with it unprecedented challenges that no one expected.

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“Despite our ability to adapt and support our students, the pandemic has led to projected financial shortfalls for the University of more than $100 million dollars on our budgeted figures for 2020,” he said.

“These projected figures are quite simply not sustainable for the University and it is likely that, as this pandemic continues to play out, we will have further significant revenue losses in 2021.

“Most of these projected losses are as a result of a downturn in current and future international student numbers, and given the travel restrictions, it is unlikely that we will be able to on-board any new international students for Terms 2 and 3 this year, and possibly throughout 2021.

“In order to remain viable and ensure our ongoing success and sustainability long into the future, it is now critical that we make some difficult decisions and swiftly implement new operational measures.”

Vice-Chancellor Professor Nick Klomp (left), Students Kohei Oizumi, Takashi Odashima, visiting Professor Tomonori Ichinose and CQUniversity CQUEnglish Directorate Director of Studies Peter Morcom.

He said existing executive roles would be repositioned within the new structure to focus on specific operational areas.

“”The executive leadership team will also reduce their salary packages by 20 per cent and staff members within senior management positions will forgo their allocated pay increases for the 2020-21 financial year.

“The University has also announced proposed closures of physical delivery sites in Biloela and Yeppoon and the Sunshine Coast campus located in Noosaville.

The University will also offer voluntary separation packages to staff “interested in taking a redundancy or entering early retirement or pre-retirement.”

“These actions will represent significant cost-savings for the University and will allow us to refocus our efforts on defining a new path and business model as we move past this pandemic.”