East Preston Islamic College staff left without pay as rift between school operators deepens

More than 100 staff at an Islamic college in Melbourne’s east are caught in the middle of an ugly spat, as cruel operators withhold their wages for leverage.

The East Preston Islamic College in Melbourne’s northern suburbs. Picture: David Crosling

More than 100 staff at East Preston Islamic College have had two weeks’ pay withheld due to a serious rift between the school’s operators.

Half of the school’s staff, including teachers and support staff, have been plunged into financial hardship after their fortnightly salary, due to hit their bank accounts on Thursday 26 January, was not paid.

It’s estimated the amount owing could be as much as $300,000.

The school is owned by the Islamic co-ordinating Council of Victoria but the dispute lies with the former and current board of directors of the school.

Staff at East Preston Islamic College in Melbourne's northern suburbs had their pay withheld. Picture: NCA NewsWire / Andrew Henshaw

Independent Education Union deputy general secretary David Brear said lengthy discussions have been held with the board member who is refusing to release the money.

The IEU has filed an urgent dispute at the Fair Work Commission which is due to go to conciliation next Monday and will also initiate action in the Federal Court.

“Alienating your own staff at a time of acute teacher shortage seems a reckless strategy to me, and the IEU is also concerned as to whether funds that should be spent on student needs are instead being squandered on lawyer’s fees,” Mr Brear said.

“This refusal to pay hard working staff is being used to gain leverage by one side over the other. It’s hardly a positive way to start the school year as the staff look forward to welcoming back students, not knowing when they will next be paid.”

A rift between school operators is impacting staff at East Preston Islamic College. Picture: Adam Elwood

“Our members just want to do the job they love at the school they love – but not surprisingly they expect to get paid to do so.”

A total of 54 staff have now applied for financial hardship from the school and will be offered temporary loans.

A letter from the Board of Directors of the Islamic Co-ordinating Council of Victoria to staff sent on January 28 called the pay delay “unfortunate”.

The letter said the school’s new board, which was established in October 2022, had not yet taken control of the school’s assets and its bank accounts had not been registered with ASIC.

“These two tasks can only be done with the co-operation of the outgoing board members as they hold the security codes, and they are the registered authority to make any of the required changes,” council secretary Fouad Hassan told staff.

Half of the school’s staff have been plunged into financial hardship after their fortnightly salary due to a serious rift between the school’s operators. Picture: Andrew Henshaw

“PLEASE NOTE, It usually takes less than a working day to process this handover and can be done online. However, this has not been completed by the outgoing board for almost 3 months.

“Unfortunately, none of the old board members are willing to do the necessary obligations needed for the new board to take control. It is an offence under The Corporations Act to maintain their position as EPIC directors when they are not entitled to,” Mr Hassan said in the letter.

He said it was hoped mediation in the Supreme Court on Tuesday 31 January would result in the issue so the salaries could be paid.

Letter to staff at East Preston Islamic College. Picture: supplied

A copy of the letter sent to East Preston Islamic College staff. Picture: supplied

“In the interim, we humbly request and appreciate your patience through these difficult times while these pressing issues are resolved.”

The letter urges staff to “please do not be alarmed by the correspondence

you may have received from Neil Hasankolli”, the school’s principal.

However, a spokesman for the previous board said its members were “distressed about the situation” and had made “frantic attempts” to resolve the matter.

“We were there to assist them but this was rejected by the new board. They had ample opportunity to act but did not,” the spokesman said.

ASIC records list the directors of East Preston Islamic College Limited as Zafer Ismail, Mat Allday, Sidki Guzel, Ebrahim Hoosen, Amad Kazi and Durmus Oruc. They were all appointed in February 2021.

The school’s accumulated funds were $3.9 million in 2020 and it receives more than $12 million a year in government funding.

The Herald Sun has contacted Mr Hasankolli and Mr Hassan for comment.