Wage theft is running rampart in higher education

Michael Evans National Organiser (Media & Engagement)

As if the COVID-19 crisis isn’t causing enough grief for insecure employees, investigations by the ABC and NTEU have revealed at least ten Australian universities are in the spotlight for various forms of wage theft involving casual and fixed-term staff.

The University of Melbourne, Macquarie What is ‘wage theft’? University and the University of Sydney are repaying millions of dollars to hundreds ‘Wage theft’ occurs when employers either of employees after errors were identified irregularly or systematically under pay involving the incorrect classification of staff. In higher education it happens in types of work and unrealistic timeframes for various ways – failure to pay for the work marking students’ work. required, underpaying the required rate.

The University of NSW is conducting a wage arbitrarily, and in the private providers, using theft audit after an NTEU survey of casual sham contracting – classifying workers as academic staff revealed concerns regarding contractors responsible for their own leave, the payment of wages.

Disputes over underpayments are also rather than as genuine employees, and occurring at the University of Queensland, paying them at ‘contract’ rates. UTS and Murdoch University, while RMIT Almost everyone affected by wage theft is University was recently taken to the Fair insecurely employed. Casual or fixed-term Work Commission (FWC) by NTEU over employment are almost pre-conditions for new reduced marking rates. UWA engaged wage theft. NTEU investigations of some external auditors after allegations of private higher education providers indicated underpayments. that wage theft was practically a business.

NTEU National President Dr Alison model to suppress wage costs and drive up Barnes said that ‘the key driver of wage profits. theft is casual and insecure employment, which is absolutely rife at Australian universities, and creates a fertile environment for exploitation.

'Wage theft has terrible consequences. It deprives consequences... We know of cases modestly paid casual workers where members have lost up to half the of the income to pay bills, plan for their future or take a basic income they are entitled to. holiday. We know of cases where members have lost up to half the income they are entitled to. Senate inquiry.

‘This is widespread in our sector. We need tougher penalties for those who steal from their workers, including criminal penalties. Following widespread instances of wage theft in many sectors of the economy, a Senate inquiry called for submissions.

‘Unions need far better access to records in March and held hearings in April. The including for former employees and noncommittee was originally to report back members. And we need the right to inspect to the Senate by the last sitting day in those records quickly, without having to wait June 2020, but because of the COVID-19 24 hours. pandemic, this has been extended to June.

‘Australian universities should also be compelled to report accurate figures on The NTEU submission’s recommendations casual and limited contract employment. to the inquiry included two specific changes This would provide a much clearer picture of in higher education that would go some way which university employees are likely to be towards identifying and dealing with wage exploited.’

theft. These are: These revelations in public universities follow the NTEU uncovering millions of dollars’ worth of wage theft from employees at private higher education providers over the last two years. for the work done, under-classifying work 2021. Requiring universities to accurately report the actual numbers of casual staff they employ, and the actual functions performed. Only Victorian universities are currently required by State legislation to

What is ‘wage theft’?

‘Wage theft’ occurs when employers either irregularly or systematically under pay staff. In higher education it happens in various ways – failure to pay for the work required, underpaying the required rate for the work done, under-classifying work arbitrarily, and in the private providers, using sham contracting – classifying workers as contractors responsible for their own leave, superannuation, and workers compensation, rather than as genuine employees, and paying them at ‘contract’ rates.

Almost everyone affected by wage theft is insecurely employed. Casual or fixed-term employment are almost pre-conditions for wage theft. NTEU investigations of some private higher education providers indicated that wage theft was practically a business model to suppress wage costs and drive up profits.

Senate inquiry

Following widespread instances of wage theft in many sectors of the economy, a Senate inquiry called for submissions in March and held hearings in April. The committee was originally to report back to the Senate by the last sitting day in June 2020, but because of the COVID-19 pandemic, this has been extended to June 2021.

The NTEU submission’s recommendations to the inquiry included two specific changes in higher education that would go some way towards identifying and dealing with wage theft. These are:

• Requiring universities to accurately report the actual numbers of casual staff they employ, and the actual functions performed. Only Victorian universities are currently required by State legislation to include this information in their annual reports.

• That all higher education providers who receive funding from the Federal Government (including FEE-HELP income) can demonstrate historical and ongoing compliance with core labour standards including the correct rates of pay.

NTEU is following up with individual and groups of members who may have a claim for compensation which the Union will take up with the relevant universities.

Dr Barnes said that NTEU has already recovered millions in lost wages for members and is now preparing fresh legal campaigns.

‘We do not believe wage theft is confined to the ten universities that have admitted to it. If a quarter of the sector now admits to underpayment you can be sure the problem goes a lot further.

‘We would’ve liked to have seen the vice chancellors appear before the Senate inquiry and explain their employment practices,’ Dr Barnes said.

‘But more importantly we are pushing to flip the proportion of insecure employment in universities on its head. Currently, aroundseven in ten university employees are insecurely employed. This is scandalously high. Insecure employment should be fleeting and rare. Unfortunately the opposite is true.’

NTEU submission to the Senate inquiry: www.nteu.org.au/wagetheft