Third university signals big job cuts despite new funding

Wednesday, 28 June 2023

Massey University is the latest tertiary institute looking at slashing jobs, with reports there are 300 to 400 to go.

People are calling for the university to pause restructure policies in the wake of a Government funding announcement for the tertiary sector.

Universities across the country have been grappling with budget deficits and fewer enrolments, and this week the Government announced $128 million of funding for tertiary education, a one-off boost for the next two years.

Massey could get an extra $12.8 million over 2024 and 2025 depending on enrolments, but it said this wouldn’t solve the problems the tertiary sector was facing.

Major job losses at Victoria and Otago universities are also due to go ahead despite the Government rescue package.

**READ MORE:

* Massey University policies from a 'secret society' - academic board voices opposition

* 'A perfect storm': inside the decline in student numbers at the University of Otago

* 'The hard work starts now': Otago University yet to confirm which jobs on chopping block

**

Massey university had been looking at ways to ensure its financial viability and recently introduced the no and low enrolment policy, and the digital plus policy, which will manage and potentially close courses with low enrolments, and remove the duplication of courses across its three campuses.

It also announced its intention to accelerate its work in managing its “academic footprint” and staffing levels.

This involved determining student-to-staff ratios to inform its planning and ensure the university was sustainable. Areas with a student-to-staff ratio below target level would be examined.

In a message to staff, Massey said it was going to announce plans for rounds of voluntary redundancy and proposals for change.

A Massey academic staff member, who only spoke to Stuff on the condition of anonymity for fear of punishment, said the proposed policies could affect two thirds of subjects.

“If [the policies] go ahead then it will devastate the university. Massive cuts, massive closures of programmes.”

They said subjects such as fine arts and social sciences could be closed, and the university could revert to offering only profitable subjects such as business, agriculture and veterinary studies.

They said the university was restructuring areas one by one, “death by 1000 cuts”, rather than doing it in one big blow, with many staff shocked and worried about their careers.

“[There are] rumours of 300 to 400 jobs going. A worse situation than Victoria or Otago universities. We’re really worried.”

The staff member was happy the Government had made the funding announcement but didn’t think it was enough.

“So I’m calling for the university to make a pause on these policies.”

Stuff asked Massey about student-to-staff ratios, the Government funding, the staff member’s concerns and the university’s financial situation.

A Massey spokesperson said the university welcomed the Government announcement and was working to consider the effects of the funding.

“The funding is unlikely to resolve the longer-term financial challenges faced by the sector in this economic climate.

“Therefore, to ensure our university has a sustainable future, we are focused on the important work of examining the university’s academic offering to reduce the proportions of courses with low enrolment, along with other strategic initiatives.”

Tertiary Education Union organiser Ben Schmidt also wanted the university to press pause on the policies and consult with staff.

He said the union would not support any changes that resulted in job losses, with union members concerned at what the changes could do to teaching.

At the university's May council meeting it announced a year-to-date operating deficit of $17.4 million, which was $700,000 worse than budgeted.

The year-to-date income was $2m below budget due to lower than budgeted student fees and research income, but it was partially offset by higher consultancy and other income.

Victoria University

Victoria University is staring down a $30 million deficit and has announced 229 job cuts to target geography, teaching and language courses.

Vice-chancellor Nic Smith said newly announced funding would provide about $6m extra per year for Victoria. This would be enough to save about a third of the 229 jobs the university had proposed to cut.

Otago University

The University of Otago has also signalled several hundred job losses and its acting vice-chancellor, Helen Nicholson, said it would continue with voluntary redundancies.

She said it was too early to say how many roles the Government's funding announcement might save.