'Catastrophic mismanagement': Major Victoria Uni job cuts proposal lambasted

Thursday, 25 May 2023

Te Herenga Waka-Victoria University of Wellington has a $33m deficit. It is considering axing up to 260 jobs.

A $33 million deficit threatening more than 200 jobs at Te Herenga Waka-Victoria University of Wellington is the result of “chronic underfunding” and “catastrophic mismanagement”, opponents argue.

Vice-chancellor Nic Smith announced up to 260 jobs could go during a staff forum yesterday, as part of cost-cutting measures to address its dire financial situation.

The university, which has 2330 full-time equivalent staff, is considering cuts to up to 110 academic staff and 150 professional staff with a proposal document to be finalised for consultation in June.

In a letter sent to university students seen by The Post, Smith said staff had already done a significant amount to reduce spending, but the university was still being affected by Covid-19 and a 12.1% drop in student enrolments – accounting for 2600 fewer students in the capital.

Tertiary Education Union branch president at Victoria University of Wellington, Dougal McNeill, says staff are angry about the situation that many feel could have been avoided.

However, Tertiary Education Union branch president at Victoria University of Wellington, Dougal McNeill, believed the proposal was the result of “catastrophic mismanagement” by previous senior leadership.

He said he felt for Smith, who had “inherited a mess that’s really not of his making”. There was a lot of anger from the staff who felt the university had been “mismanaged” and in a “state of dysfunction” for a number of years.

McNeill, also a senior lecturer in the English programme, was still in a “state of shock” and said his own role was within the scope of the proposal.

Writing on the wall

Te Herenga Waka–Victoria University of Wellington vice-chancellor Nic Smith announced the potential job cuts during a staff forum on Wednesday.

He felt the situation could have been avoided, and it was no accident the same thing was happening at Otago, where hundreds of jobs were also set to go.

“We’re in a situation where government funding has been under inflation for a very long time – even the current announcement in Budget is under inflation. We’ve been wearing cuts for years and years and that’s added up.”

In a written statement, Smith said there were no easy options and returning to financial sustainability was a major task. He declined to comment further until the final staff forums had been held on Thursday. .

His confidence in the university was strong though: “We have outstanding people and significant opportunities in front of us.”

A lack of significant Government funding increases, ongoing impacts of Covid-19 and a significant drop in student numbers are all being blamed for the situation.

Jessica Ye, president of the Victoria University of Wellington's Student Association (VUWSA), who also attended the forum on Wednesday, described it as “very sobering”.

The impacts of potential cuts would have “long term ramifications” and be felt for years to come, she said.

Ye understood the proposed cuts would impact 59 courses across many subject areas, but particularly in the arts and humanities. Students will be able to complete their degrees.

Ye said many students had sensed this was coming, but was thankful for Smith’s leadership: “He’s walked into a tragedy.”

Education Minister Jan Tinetti says a 5% increase in tertiary subsidies announced in the budget is the bigggest increase in over two decades.

The university’s dire financial situation was outlined during a university council meeting last week, with chancellor John Allen saying it did not have the student numbers and revenue “to be able to sustain the university in its current shape”.

It comes as $521m funding was announced in the budget over four years for an across-the-board 5% increase to help tertiary institutions manage increases in delivery costs.

Education Minister Jan Tinetti described it as the biggest increase in at least 20 years.

“We know global inflationary pressures and the tough economic outlook have had a profound impact on our tertiary providers,” she said.

“Universities have the autonomy to determine how they manage their financial performance, course offerings, and organisational structures. As minister, I do not get involved in any such decisions,” she said in a statement.

Tinetti said it was the responsibility of university councils to ensure institutions operated in a financially responsible manner that maintained long-term viability.

In McNeill’s view the funding boost was “too late”, but wasn’t yet a “done deal”. The union was planning a campaign of industrial and political action in response, he said.

“If this goes through it will damage student learning. Cuts to staff are cuts to student learning conditions.”