WA tangled up in wages web

A report into wages theft across all Australian universities has found about $160 million in systemic underpayments to staff, including in Western Australia.

The National Tertiary Education Union (NTEU) last year released its second report into wages theft, claiming underpayments totalling $158.7 million since 2014.

The union further claimed the number could be higher amid ongoing cases.

In the report, the NTEU said it analysed 55 incidents of wages theft across 32 institutions and found 97,281 individual higher education staff had been underpaid by their employers.

“A further eight wage theft cases are not included in the total because they are yet to be finalised,” the NTEU report said.

“Those involve serious underpayment incidents at Monash University, University of NSW, Melbourne University, FedUni, Murdoch University, Curtin University, Deakin University and Charles Darwin University.

“These claims are worth millions of dollars, meaning the true higher education wage theft tally will easily exceed $160 million.

“On top of this, there are still a number of universities that are yet to undertake audits.”

While a review of pay conditions was ongoing at Curtin University, a spokesperson said the institution was taking steps to address the issue.

“Since February 2023, Curtin University has proactively been engaged in a pay review to ensure our employees have been and continue to be paid correctly,” the spokesperson told Business News.

“Curtin’s pay review is initially focused on current and former casual employees dating back to 2015.

“Given the size of our workforce and our varied activities, this is a complex piece of work that is still under way.

“Curtin takes its obligations to comply with workplace laws very seriously and has been engaging with the Fair Work Ombudsman and the NTEU as this work progresses.”

A Murdoch University spokesperson said it was aware the underpayment of casual academic staff in universities was an ongoing concern for staff, the NTEU and the government.

“Since 2022, Murdoch has been proactive in rectifying this issue to ensure our staff receive their correct entitlements,” the spokesperson said.

“A remediation project team identified an issue with casual professional employees where in some instances incorrect classifications and step increments were applied.

“It also identified some incorrect application of penalty rates and minimum engagement for employees in Murdoch Active (our sport and recreation facility).

“In both cases, all current employees have been repaid any monies due, along with interest and superannuation where applicable.”

The Murdoch uni spokesperson said most former employees’ underpayments had been resolved and work was being done to contact others, with apologies already given to those affected.

“We continue to review payroll compliance and will share any findings of these reviews with staff, Fair Work Australia and the NTEU,” the spokesperson said.

“Murdoch has also invested in significant process and system changes to prevent a similar issue from occurring again.”

The NTEU report claimed that WA’s $26,000 in wages theft occurred at the University of Western Australia and involved five cases of underpayment.

However, the $26,000 is significantly smaller than the millions of dollars and thousands of victims the union claims in the eastern states institutions.

The union has also made major moves of its own, launching two legal actions against universities last month, including against UWA on behalf of five academic employees.

In a Federal Court document obtained by Business News, the union claimed UWA withheld about $71,000 in total.

The allegations centred on lectures given at a Hong Kong university for units that counted towards a UWA degree, according to the court document.

A UWA spokesperson said it acknowledged the industrial framework and legislation for employee benefits was complex.

“The university has a program of review over the application of its instruments and engages external specialist advice, where deemed appropriate,” the spokesperson said.

“Given the inconsistent application and ongoing claims of underpayments across the sector, as well as evolving legislative interpretations and ongoing investigations, the university continues to monitor and review its application of employee benefits and is committed to fair remediation.”

NTEU national president Alison Barnes called on all governments to urgently reform the governance model for universities.

“If universities are to finally become exemplary employers, then we need to end the scourge of casualisation using state and federal powers, including funding,” she said.

Last September, the federal government announced plans to criminalise wages theft across the nation as part of proposed industrial relations reforms.

Under the new legislation, the maximum penalty for the offence is 10 years’ imprisonment and fines of up to $7.8 million, or three times the amount that was underpaid.

The Bill passed both houses of parliament in December.