University of Sydney’s Shocking $23M Payback to 14,000 Staff Over Underpayment Scandal
The University of Sydney faces a $23 million payout to over 14,000 staff due to underpayment issues, sparking a major investigation and reforms.
University of Sydney, Australia, Underpayment, Fair Work Ombudsman, Staff, Wage Theft
Sydney: The University of Sydney is in hot water after agreeing to pay over $23 million to more than 14,000 staff members who were underpaid. This deal comes after a review by the Fair Work Ombudsman.
As part of the agreement, the university will also cough up an extra $500,000 as a “contrition payment” to the government. They’re also promising to fix their payment issues moving forward.
On top of the $23 million, they’ve found another $12.6 million owed to about 2,534 employees. So far, they’ve managed to pay back nearly $20.5 million to over 11,700 staff, but there’s still more to do.
Some individual underpayments were as high as $83,271, which is pretty shocking. The Fair Work Ombudsman, Anna Booth, mentioned that this agreement is a step towards changing the culture at the university and beyond.
Booth pointed out that the university has recognized its mistakes and is working hard to make things right. Their latest report showed over $70 million in liabilities for underpayments, so they’re bracing for more issues to come to light.
Alison Barnes, president of the National Tertiary Education Union, emphasized the need for an inquiry into how university leaders are managing these situations, especially when they’re earning big salaries.
Mark Scott, the university’s vice-chancellor, said they’ve already spent $12 million on fixing these payment problems. But some politicians, like Abigail Boyd, criticized this spending, saying it shows a flawed governance culture.
Scott’s deputy, Annamarie Jagose, apologized to the affected staff, stressing the importance of paying everyone correctly. The university is committed to making sure this doesn’t happen again.
This agreement is a formal commitment to fix the issues rather than going to court. Since 2022, several other Australian universities have faced similar scrutiny and agreements with the Fair Work Ombudsman.
In fact, the Ombudsman is currently taking legal action against the University of NSW for its own record-keeping failures. It seems like this is a widespread issue in the university sector.