University of Tasmania takes action to address falling revenue due to COVID-19 impacts

Staff cuts, pay freezes and voluntary contributions by senior executives have been proposed as the University of Tasmania deals with an unprecedented hit to revenue due to coronavirus.

THE sheer cost of coronavirus on the University of Tasmania’s bottom line has been revealed, with staff reductions, pay freezes and salary contributions by senior executives among measures adopted in an attempt to soften the blow.

UTAS said the absence of thousands of international students due to COVID-19 travel restrictions was mostly to blame for the university’s expected decline in revenue of between $30-$34 million this year.

Last year, UTAS had more than 6500 international students.

UTAS vice-chancellor Rufus Black. Picture: Zak Simmonds

UTAS vice-chancellor Rufus Black said revenue was expected to further decline by between $60 million and $120 million per year across 2021-2022.

Prof Black said the large range in the predicted decline was due to the uncertainty about the continuation of travel restrictions.

He said the university would take on $130 million of debt to ensure costs were shared between current and future generations.

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Prof Black said UTAS needed to cut between $40 million and $50 million from its salary budget through a range of measures.

He said in consultation with unions, a hold on salaries was proposed, including not passing on the two per cent increase under a staff agreement, which he said would save 50 jobs.

Further measures include reducing employment fractions of some staff and prioritising staff with existing relationships to the university.

Extensive voluntary redundancies and early retirement options would be proposed, Prof Black said.

UTAS student accommodation at Inveresk, Launceston. University of Tasmania. Picture: PATRICK GEE

Prof Black said the university’s senior executive team, along with other staff, had made significant salary contributions — 65 staff members have contributed $350,000.

UTAS said staff numbers would inevitably be reduced due to the circumstances, including the changing of course offerings.

In March, UTAS announced it would slash the number of degrees it offers from 514 to less than 120.

Prof Black said UTAS needed to manage the transition in ways “that are fair and that protect jobs”.

“We’ve also recognised this is a challenge that goes across a generation,’’ he said.

“This is a once in a 100-year event. So in order that it doesn’t fall unduly on the people who are here now, we will also take on some debt.

“Over these four years, we will take on about $130 million worth of debt in order to not just cut our way out of this, but to actually see the burden shared across time.”

UTAS said oversight of job reductions would be undertaken by an independent national committee made up of representatives from the National Tertiary Education Union and the higher education sector.

Prof Black said in-principle agreement had been reached with state and national leadership of the NTEU and CPSU for the measures to respond to the COVID-19 challenge.