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Pay Freeze

From: directorhr@uq.edu.au [mailto:directorhr@uq.edu.au]
Sent: Wed 9/24/2008 5:09 PM
To: XXXXXXXXXXXXXXXXXX
Subject: UQ Response to Unions Logs of Claims

To All Staff

The University of Queensland, this week,  met with representatives of the Academic and General staff unions to respond  to their logs of claims following the expiry of the current Enterprise Agreements for Academic, General and Institute for Continuing and TESOL Education (ICTE) staff.  These Agreements will continue to be observed until they are replaced.

The Unions proposals are all very similar and involve the equivalent of a 27% increase in pay and a large number of other claims for improved entitlements which in many cases go well beyond current community standards, or the situation at this University.  The Unions propose a short agreement expiring on December 31, 2009, followed by a second more comprehensive agreement until June 30, 2011.

The Universitys position, like that of many other Universities, both Go8 and otherwise, is that this level of pay increase is neither affordable nor sustainable in the current financial climate in which Universities must operate, particularly in 2009.

An increase of this magnitude would inevitably result in significant re-structuring of parts of the University involving retrenchment of many staff.  Our initial calculations are that, unless we receive massive additional funding from the Federal Government, the University would need to reduce its staff numbers by approximately 20% to fund such an increase.

Whilst the University has rejected the proposed pay rise, it has offered to commence bargaining with a single bargaining unit for one Agreement covering all Academic, General and ICTE staff, with the Agreement running for at least three years.  A single bargaining agreement would reflect the many common conditions already in existence for all staff at UQ and be administratively more efficient.

Given the great uncertainty about the impact on Universities of the Federal Governments reform of the industrial relations environment and the likelihood that the future financial position will not be known until the Federal Government responds to the Cutler Innovation Review and the Bradley Review of Higher Education, the only responsible position for the University to take is to delay bargaining until these parameters are known.

The Senior Executive pay tribute to the outstanding performance of all staff and the contribution they make to the success of the University.   The Vice-Chancellor has approved an increase in academic and general staff salaries administratively from 1 January 2009 of 4%.  ICTE staff, who received a 3.5% increase in July of this year, will receive a further 0.5% from 1 January 2009 to bring them into line with the rest of the staff.

Noting that there are 27 pay periods in 2009 and taking into account incremental progression and income tax cuts, the University believes that, these increases will enable the purchasing power of staff salaries to be maintained. (emphasis added)

Professor Alan Rix              Mr Douglas Porter
Pro-Vice-Chancellor (Academic)  Secretary and Registrar        

24 September 2008


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