Melbourne University admits underpaying more than 1000 casual staff in case totalling up to $10m

The University of Melbourne is the latest higher education institution caught up in a “wage theft” crisis — with hundreds of staff underpaid for years.

Casual staff at the University of Melbourne can now claim back pay for several years. Picture: David Geraghty

Melbourne University vice-chancellor Duncan Maskell has formally apologised to more than 1000 casual academic staff who were underpaid for up to seven years.

The underpayments could total as much as $10m across many schools with past casuals urged to come forward to claim lost wages.

In an email to staff, Prof Maskell said the problems was “a systemic failure of respect” to valued employees.

The underpayments relate to six faculties at the University of Melbourne.

“This failure should not, and will not, be tolerated by our institution,’’ he said.

Back pay is being made to current and past staff in six faculties – Arts, Fine Arts and Music, Engineering and IT, Medicine, Dentistry and Health Sciences, and Science.

The moves follows a campaign by the National Tertiary Education Union.

Annette Herrera, the union’s Melbourne University branch president, said the university was told about “wage theft” last December.

“This is all 10 months too late and you have to wonder why they are doing it now … just before bargaining is about to begin,’’ Ms Herrera said.

The underpayments relate to wage levels, marking rates and pay for preparation time.

The Fair Work Ombudsman is still investigating the cases.

University of Melbourne vice-chancellor Duncan Maskell. Picture: Mark Stewart

Prof Maskell said he encouraged affected staff to call a new contact line – 1800 571 187.

“As the vice-chancellor, I give my assurance that the university will continue efforts already under way to fully remediate affected individuals’ claims, and to put in place systems and processes to prevent these underpayments being repeated,’’ he said.

The case comes after RMIT University last month was accused of underpaying hundreds of casual staff.

The Fair Work Ombudsman is looking into the problem which the NTEU alleges is widespread and systematic wage theft of several million dollars dating back several years.

La Trobe University is also conducting an internal inquiry into wage theft claims after an audit raises doubts about the payment system and processes.