In a recent development, Central Queensland University (CQU) has come under scrutiny for underpaying its staff by a staggering $1.3 million. This revelation, uncovered by the Fair Work Ombudsman, sheds light on a systemic issue that has affected not only the university's academics but also its professional staff and vocational trainers.
The underpayments, which can be traced back to the 2012 enterprise agreement, were brought to light in April 2023. The average underpayment per staff member amounts to approximately $1,250, with one staff member reportedly losing out on more than $63,000.
So, what went wrong? According to the university, the blame lies with a poorly designed payroll system and an overreliance on manual processes, which led to errors by staff members. However, the National Tertiary Education Union's Queensland secretary, Michael McNally, believes the university should have invested in its payroll system long ago.
"Often, the university will address individual issues when raised, but getting them to conduct a systemic review has required the involvement of the ombudsman," McNally said.
This incident is not an isolated case. Universities across Queensland, New South Wales, Tasmania, and the Northern Territory have all signed enforceable undertakings with the ombudsman, highlighting a widespread issue with wage underpayments in the higher education sector.
For instance, the University of Queensland had to repay over $7.8 million to more than 10,000 casual staff for underpayments spanning seven years.
McNally believes that CQU's underpayment figure, while lower compared to other universities, is symptomatic of a larger problem.
"It's indicative of how universities treat their staff. They should have ensured that proper systems were in place to guarantee that employees receive every cent they are owed," he said.
As a result of this incident, CQU has signed an enforceable undertaking with the ombudsman and established a dedicated "wage integrity" team. Vice-chancellor Nick Klomp acknowledged the university's mistake and attributed some underpayments to complicated awards and supervisors' lack of awareness of entitlements.
"We wanted to be transparent and admit that we made a mistake. Our systems and training will be enhanced to prevent this from happening again," Klomp said.
The ombudsman reported that 875 former and current employees have already received their wages, with another 163 awaiting payment. As part of the enforceable undertaking, CQU will also make a contrition payment of $30,000, with a future payment of up to $100,000, which will be distributed to approved recipient organizations by the ombudsman.
This case raises important questions about the responsibility of institutions to ensure fair and accurate compensation for their employees. It also highlights the need for robust payroll systems and regular reviews to prevent such significant underpayments from occurring in the future.
In my opinion, this incident serves as a stark reminder of the importance of employee rights and the need for institutions to prioritize the well-being and fair treatment of their staff.
