Australian National University asks all staff to take pay cut amid financial woes

ANU’s vice-chancellor is taking an immediate 10 per cent reduction to her $1.15m salary, as she asks staff to also take a pay cut.

Australian National University vice-chancellor Genevieve Bell is slashing her own salary by 10 per cent. Picture: Martin Ollman/NewsWire

Australian National University’s vice-chancellor is taking a 10 per cent reduction to her $1.15m salary, as she asks her staff to also take a pay cut amid the university’s deep financial woes.

ANU is undergoing a $250m cost-cutting exercise by 2025, slashing an estimated 50 jobs in a major academic restructure, amid a projected $200m deficit this year.

In an email to all staff on Tuesday, Professor Genevieve Bell re­iterated the dire state of the university’s financial situation, calling it a “real and substantial” challenge, before saying “we must take action” and that “everything needs to be on the table including all of our salaries”.

She told staff she would take a 10 per cent salary cut effective immediately, bringing her salary down to $1.035m, with super, and making her the lowest paid vice-chancellor in the Group of Eight universities.

Her predecessor Vice Chancellor Brian Schmidt negotiated a base salary of $484,000 in 2021, down from $560,000 in 2020, after ANU had suffered a $162 million deficit in 2020.

Professor Bell also asked all staff to scrap an automatic pay increase due in December.

“I have also asked the university’s senior leaders employed on performance-based employment contracts (PBECs) to consider foregoing the 2.5 per cent salary increase due in December this year. This would save our university around $1.2m,” she said in the email.

These senior leaders are paid more than $240,000, and include directors of divisions and academic school directors.

“As part of putting all options on the table, I will soon be asking you to consider forgoing the upcoming 2.5 per cent December pay increase under the ANU Enterprise Agreement (EA),” she continued.

This request would need to be agreed by the majority of ANU staff employed under the EA through a vote.

She added that staff would still receive a 16 per cent pay increase over the life of the current Enterprise Agreement.

The National Tertiary Education Union was already slated to rally at the university at midday tomorrow as a result of what it says could be more than 600 job losses, and the ANU Branch Committee is unanimously recommending the pay cut proposal is rejected.

Professor Bell told staff it would save further job losses.

“I know that asking you to forgo a salary increase you were expecting to receive is a significant decision, particular in the current broader economic context. But I encourage you to think about what this sacrifice could mean for our community,” she said in an email.

“Forgoing the December 2024 increase, coupled with the PBEC staff also forgoing a 2.5 per cent pay rise, could reduce the salary savings we need to find in 2025 by as much as $15m. This will save jobs.

“I know this is a big ask, but I hope it is a sacrifice you are prepared to make along with me and our university’s leaders. I would be grateful if you take time to reflect on this decision. If we take it collectively, it will prevent some job losses in our community.”

NTEU ACT secretary Lachlan Clohesy said staff had “heard it all before”. He said in 2020, Brian Schmidt asked staff to defer two pay increases with the promise that it would save jobs but soon announced 465 redundancies.

“Our members remember quite clearly that it didn’t save jobs then and they don’t think it will save jobs now either.”

He also said members were not impressed by staff cuts that saw Professor Bell still receive more than $1m, adding that “staff don’t see it as a significant sacrifice”.

Chancellor and former foreign affairs minister Julie Bishop receives an annual honorarium of $75,000 and is not a member of staff, so will not be taking a pay cut.

On October 3, Professor Bell announced a major academic restructure at the ANU “to ensure ­financial viability”, including ­cutting the number of academic colleges from seven to six.

She said recurring operating costs would need to be reduced by $250m over the next 15 months through both salary costs and non-­salary costs.