Fair Work Ombudsman probes 28 universities for wage theft as sector rails against over-regulation
Australian universities have stolen $218m from 110,000 staff members while their executives earn more than state premiers, a Senate inquiry has heard.
Universities have blamed rising compliance costs for cuts to teaching and research, as the Fair Work Ombudsman revealed 110,000 academics and professional staff have been robbed of $218m in stolen wages.
The “catastrophic’’ consequences of mismanagement were aired on Tuesday at a Senate inquiry into university governance, resurrected after the Albanese government’s re-election.
The National Tertiary Education Union said poor governance had led to a “hiring-firing yoyo’’ as well as “hundreds of millions of dollars in wage theft’’ at universities.
“Intimidation, secrecy and exclusion have become routine features of governing body culture,’’ NTEU national president Alison Barnes told the hearing in Canberra.
“Teaching and research (have become) hollowed out while vice-chancellors receive million-dollar salaries and more than 300 senior executives pocket more than their state premiers.’’
Dr Barnes said union representatives on university boards had reported widespread bullying.
She said “intimidation, secrecy and exclusion have become routine features of governance culture’’.
The NTEU said half of all university council members should be elected by staff or students.
Greens higher education spokeswoman Mehreen Faruqi called out a potential conflict of interest in the federal government’s own review of university governance.
She said the secretive Expert Council on University Governance, which is advising federal Education Minister Jason Clare on reforms, has its secretariat hosted by the University Chancellors Council (UCC), representing the chairs of university governing councils.
“It’s almost like making Dracula in charge of the blood bank,’’ she said. “People might not even put in submissions criticising (university) councils if they put it through the UCC.
“It does raise questions of conflict of interest. There is a lot of criticism of chancellors and governing bodies, and UCC obviously has all the chancellors there, so why isn’t a separation there?’’
The federal Education Department’s deputy secretary in charge of the higher education, research and international division, Ben Rimmer, said federal and state education ministers had decided the UCC should host the expert council’s one-person secretariat.
“I see where you’re coming from, I don’t share the concern,’’ he said.
“The chair of UCC and the relevant staff member are operating in good faith.’’
The expert council started work in January but has refused to make public any of its advice – or even its submissions.
Mr Rimmer said it would provide a final report to education ministers by the end of the year, and suggested its work may even be extended.
“Given the kinds of concerns this (Senate) committee has heard … it may well be the case that education ministers think there is ongoing need for expertise in governance matters,’’ he said.
Mr Rimmer said the new Australian Tertiary Education Commission (ATAC) – which has yet to be legislated – would not have a formal role in university governance.
The Senate inquiry also heard evidence from Fair Work Ombudsman Anna Booth, who revealed her office was investigating wage theft at 28 universities – including nine cases still under wraps.
“We’ve recovered over $218m for more than 110,000 employees,’’ she said.
Ms Booth said compliance with the terms and conditions of employment should be a permanent agenda item at every university council meeting.
Universities Australia chief executive Luke Sheehy said the sector was struggling with “an enormous amount of additional regulation’’, including 300 pieces of legislation or regulations.
“It’s seemingly with each piece of additional funding or intervention from the government, particularly this government, there is a regulatory sting,’’ he said.
“We don’t get any additional funding to comply with any additional regulations so effectively, we have to divert core teaching and research funding to compliance and regulation.
“We’re doing more regulation with less, which is diverting funding from our core mission.’’
Group of Eight chief executive Vicki Thomson said governments kept “bolting on’’ new regulatory requirements, which was a “handbrake on productivity’’.
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