A financial battle induced by Covid-19 has brought Southern Cross University into crisis, with the university considering some major changes, including withholding wage increases for staff.

Stating an income shortfall of $58 million over the next two years, the University’s Vice Chancellor Professor Adam Shoemaker outlined the scale of the crisis in a video address to all staff on Monday.

“I cannot sugar-coat this,” Professor Shoemaker said.

“We are experiencing an economic crisis which is still building in intensity.

“Southern Cross University stands at a critical juncture. The decisions and actions that we take together over the coming weeks and months will either serve to secure our future; or see us lose the right to determine it.”

The address to staff outlined key issues being considered, including:

Withholding two wage increases proposed for July 2020 and July 2021; staff voluntarily reducing their work hours; and further transformation across the institution through the proposed New Southern Cross Academic Model. 

No job cuts

A university spokesperson said at this stage there are no job cuts planned, and a series of meetings with university staff are being held to get ideas on potential cost saving measures. 

The outcomes of these meetings will be shared with staff first, before a public announcement is made.

Pandemic

In his address to staff, Professor Shoemaker said “you are all aware of the global devastation being caused by the Covid-19 pandemic”.

“Our immediate priority has been to secure the health and wellbeing of our students and colleagues," he said.

"We have done that incredibly well. But it is not over.

“We must now apply the same clear and unified focus on our response to the economic challenges which we face as an institution. Health and financial health—together. We must solve for both. 

“The financial impact on us in 2021 will definitely be greater than in 2020.

“That is mainly due to the pipeline effects of the enormous downturn in international student recruitment which we have all seen. I wish it were different.

No return

“We are not returning—we never will return—to the way we were before Covid-19 struck. There is no return to an ideal state.

"There is a new world of work and of academic work ahead of us.

“There is no option of a return to what used to be thought of as the ‘status quo’. That ship has sailed permanently.”

Unions step in

The Community and Public Sector Union (CPSU) NSW, which looks after professional staff on university campuses in NSW, is meeting with university staff this week to find a way through the crisis.

CPSU NSW organiser Asren Pugh said union staff will attempt to find a solution “that doesn't hurt staff and puts the university in a stable and resilient position".

“According to research by the Grattan Institute, the electorate of Page has already suffered a 10% blow to jobs during the COVID-19 crisis,” Mr Pugh said.

"Lismore and the North Coast can't afford any more job losses.

“University campuses are the hub of regional economies - we need to invest in them to keep the broader community afloat. 

"It is clear the university sector is in a perilous situation - we need JobKeeper in our universities now, and then we need a fundamental rethink of the higher education system."