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 an immediate 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, that would include the disestablishment of the College of Health and Medicine.

It comes as the ANU recorded an operating deficit of more than $400m from 2020 to 2023, with 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, saying the “challenge we are ­facing is real and substantial”.

“We must take action. That is what we are doing, and everything needs to be on the table including all of our salaries,” Professor Bell said in the email.

“It is deeply important to me to return this institution I have been around for much of my life to a ­financially sustainable footing matching the strength and quality of our education and research. This morning I informed the ANU Council I will be reducing my salary by 10 per cent effective immediately.”

This would make her new salary $1.035m – the lowest-paid vice-chancellor in the Group of Eight and the lowest-paid female vice-chancellor in Australia.

“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.”

These senior leaders are the university’s highest income earners including 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).

“If approved by a majority vote of our community, staff would still receive a 16 per cent pay increase over the life of the current Enterprise Agreement,” Professor Bell said in the email.

“To be clear, I am only asking that staff forgo the December 2024 pay increase, which would be the second automatic increase this year.”

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

“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.

“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.”

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.