University of Adelaide cancels pay cuts, reveals Peter Rathjen settlement

The University of Adelaide has cancelled pay cuts and revealed the details of its controversial settlement with former vice chancellor Peter Rathjen.

Catherine Branson AC QC, the 17th Chancellor of the University of Adelaide pictured on her campus. Picture: Matt Turner

The University of Adelaide has moved to win back the support of angry staff by cancelling planned pay cuts and revealing full details of its controversial secret settlement with disgraced former vice chancellor Peter Rathjen.

In separate emails to staff, the university’s chancellor, Cathy Branson, took the dramatic step of disclosing that Professor Rathjen received a $326,400 payout when he quit due to ill-health in July, while acting vice-chancellor Mike Brooks said a better than expected financial position meant a scheduled 3.5 per cent pay cut were now off the table.

The payout to Professor Rathjen — found guilty by the South Australian Independent Commission Against Corruption “serious misconduct” over allegations he groped two employees and had a secret affair with another — is a hefty sum but considerably less than the rumoured $1m.

Its disclosure is an about-face for Ms Branson, the former Federal Court judge appointed in July, who had argued previously that the payout was confidential, causing outrage among staff who last month voted to accept a pay cut.

In her email, Ms Branson says she understands the level of anxiety among staff. “Working in an environment when your workplace is under scrutiny and subject to criticism is never easy,” she wrote. “We know that our staff care deeply about our university and its reputation.”

She also attempts to head off criticisms that the university paid Professor Rathjen a settlement despite the imminent release of the ICAC investigation’s findings.

“At the time of the former vice-chancellor’s resignation, he was on paid leave, pending the outcome of the ICAC investigation, which was being conducted in private and was ongoing,” she wrote. “The course and outcome of the investigation was not then known to the University.

“In deciding to make this payment, the (governing) council had regard to a number of factors.

“One was that the former vice-chancellor’s lawyers provided the university with a substantial specialist medical report that supported the claim of ill-health.”

In his email about staff remuneration, Professor Brooks said with overseas student enrolments not falling away to the extent they had, a rare bit of good news.

“It was predicted the university would be $100m short of budget in 2020 and that this would be dealt with by $65m of savings across faculties and divisions (already in hand) and $35m of borrowings,” Professor Brooks wrote.

“It now appears that we will recoup approximately $40m this year and that borrowing may no longer be necessary in 2020.”

“Better than expected offshore enrolments have been the main contributing factor to the improved 2020 position.

“It is gratifying that students continue to seek a world-class quality of education from the University of Adelaide at a time of great difficulty globally.”

The chaos at the university has overshadowed its ongoing search for a new vice-chancellor, with retiring University of Queensland vice-chancellor Peter Hoj still considered a frontrunner for the role.