The University of Wollongong has announced it will repay $6.6 million to over 5,000 staff members who were underpaid over the past decade. This decision follows the discovery of significant governance issues and flaws in its payroll system, which came to light after staff inquiries prompted the university to report itself to the Fair Work Ombudsman in 2023.
An investigation revealed that more than 5,340 employees were affected, predominantly casual workers in non-teaching roles at the Wollongong main campus. However, the issue also impacted full-time and part-time academic and support staff. The university was found to have violated several payment obligations, including failing to pay casual staff for a minimum of three hours per shift and underpaying penalty rates, weekend rates, public holiday pay, overtime, leave entitlements, and severance pay.
Details of the Repayment and Compliance Measures
The University of Wollongong has entered into an enforceable undertaking with the Fair Work Ombudsman to address these issues. As part of this agreement, the university will backpay the affected staff, covering a period from 2014 to 2024. The total repayment includes over $4.9 million in underpaid wages and entitlements, more than $1.1 million in interest, and over $630,000 in superannuation and interest.
Payments to individuals vary significantly, ranging from less than $20 to more than $36,000. Most affected staff have already received their payments, although the university has been unable to locate approximately 200 former employees. Additionally, the university will make a contrition payment of $130,000 and implement measures to ensure future compliance with workplace laws. These measures include commissioning two independent audits, establishing an employee payments complaint and review mechanism, and creating a standing body for consultation between the university, its employees, and the union.
Wider Implications and Sector-Wide Issues
This development comes as the University of Wollongong faces a $35 million financial shortfall, resulting in up to 95 job cuts. The institution has taken full responsibility for the underpayments and issued an apology to the affected staff. Vice-President Stephen Phillips stated, “We deeply regret the distress and inconvenience caused to our staff by these errors. We are committed to fully remedying these underpayments and continue to work proactively to strengthen our systems and processes so that staff can have absolute confidence in the accuracy of their pay now and in the future.”
Fair Work Ombudsman Anna Booth acknowledged the university’s efforts to rectify the situation, noting, “The matter serves as a warning of the significant long-running problems that can result from an employer failing to have appropriate checks and balances to ensure workplace compliance.” The Fair Work Ombudsman has been targeting systemic non-compliance in the university sector since 2022.
Expert Opinions and Broader Context
The National Tertiary Education Union (NTEU) has described the situation as part of a “wage theft epidemic” affecting universities across Australia. NTEU National President Alison Barnes stated, “This is the latest disgraceful chapter in what has become a $278 million national scandal affecting more than 100,000 university staff across Australia.” She criticized the systemic nature of wage theft in universities’ business models and called for accountability among university executives.
The Fair Work Ombudsman has entered into enforceable undertakings with several other universities, including the University of Sydney, University of Technology Sydney, University of Newcastle, La Trobe University, University of Melbourne, Charles Sturt University, and Griffith University. It has also secured court penalties against the University of Melbourne and is pursuing ongoing legal action against the University of NSW.
The announcement underscores the need for robust governance and compliance frameworks within educational institutions to prevent similar issues in the future. As universities across the country grapple with financial and operational challenges, ensuring fair and accurate compensation for staff remains a critical priority.
For ongoing updates on this story and other breaking news, download the 9NEWS app, available on the Apple App Store and Google Play.
