Vice-chancellor also takes 10% pay cut to reduce costs
Staff at the Australian National University (ANU) have been asked to forego their December pay hike in ANU's latest attempt to reduce its recurring cost base by $250 million by the end of 2025.
Genevieve Bell, vice-chancellor and president of ANU, is asking employees to consider foregoing their upcoming 2.5% pay increase in December.
"I know that asking you to forego a salary increase you were expecting to receive is a significant decision, particular in the current broader economic context," Bell said. "But I encourage you to think about what this sacrifice could mean for our community."
According to Bell, she also asked ANU's senior leaders employed on the Performance Based Employment Contracts to forego their 2.5% salary hike due in December this year.
"Foregoing the December 2024 increase, coupled with the PBEC staff also [foregoing] a 2.5% pay rise, could reduce the salary savings we need to find in 2025 by as much as $15 million. This will save jobs," the vice-chancellor said.
She made the request as she announced that she is also taking a 10% pay cut "effective immediately."
The ANU's council said Bell's pay cut was a "personal sacrifice" and her way of "leading by example" as the university seeks to return to financial stability by 2026.
Proposed job cuts at ANU
Meanwhile, the ANU is also proposing to cut a total of 108 jobs across three central divisions, according to the National Tertiary Education Union (NTEU).
While the ANU did not provide an exact number of affected roles on its website, it said it is currently consulting staff on proposed changes in its Facilities and Services, and the central Research & Innovation and Academic portfolios.
"Staff in these portfolios attended meetings today where the change proposals were discussed, and further town hall meetings will occur next week providing opportunities to ask questions of the University leadership," Bell said on Thursday.
The ANU previously confirmed that removing the December 2024 pay rise will help save jobs at risk.
"If a majority of staff vote to remove the December 2024 pay rise, it will save up to $15 million. Every dollar saved from the bottom line helps us to retain jobs," it said on its website.
The proposed job cuts have drawn flak from the NTEU, who said staff are "furious" that Bell is promising to save jobs while cutting them.
"Staff were asked to give up pay to save jobs in 2020. It didn't save jobs then, and it won't save jobs this time around," said Millan Pintos-Lopez, president of the NTEU ANU branch, in a statement.
Financial challenges of ANU
The ANU reported more than $400 million in cumulative operating deficits between 2020 and 2023, with the institution remaining on an "unsustainable trajectory" after missing its 2024 financial target.
"Without structural intervention, the university will not be financially sustainable," the ANU said on its website.
The ANU now needs to reduce its recurring operating costs by $250 million by January 1, 2026, with the organisation implementing permanent reductions in salary and non-salary spending.
"The University will achieve the $250 million reduction in our recurring operating costs by reducing the University's non-salary spending by $150 million and its salary spend by $100 million," the ANU said.
