Major universities across Australia have embarked on a major cost cutting exercise, including staff cuts, in order to make up for the collapse in international student fees:
The University of Sydney, Monash University and the University of NSW all sent messages to staff this week outlining planned cuts, following the loss of international students due to COVID-19 travel bans…
UNSW estimates it will have a $600m revenue shortfall this year, followed by revenue reductions of about $450m in each of the following two years…
Monash University vice-chancellor Margaret Gardner told her staff on Monday that the university would fall short of its revenue target by $350m this year…
University of Sydney vice-chancellor Michael Spence told his staff on Tuesday the university needed to find another $270m in cost savings in 2020 and 2021, on top of $200m savings announced earlier, to deal with the university’s expected $470m budget shortfall this year.
Hilariously, the University of Sydney has refused to cut salaries to its Vice-Chancellor and senior staff:
Dr Spence ignored the precedents set by his counterparts at the University of Melbourne, Monash University and UNSW, who are also implementing major budget cuts and who each voluntarily took a 20 per cent pay reduction.
Asked why Dr Spence and his executive team did not reduce their salaries, a university spokeswoman said: “All universities are focusing their recovery efforts in different ways”…
As we know, Vice Chancellors and their executive teams have been arguably the biggest winners from the international student revenue boom:
They have received massive salaries that far outweigh their counterparts overseas:
Therefore, any university cost cutting should focus first and foremost on them, not on lower paid teaching staff. indeed, 20% pay cuts for vice-chancellors and senior management (zero for the University of Sydney) barely hits the side.
Looking further ahead, Australia’s universities need to wean off their reliance on international students.
While universities have collected many billions of dollars in fees from international students, this has come with high costs to the Australian community.
High among these costs is the compromise to academic standards that has occurred as universities ensure they don’t kill the ‘golden goose’ by passing international students whose academic ability and English language skills would not normally warrant an Australian degree.
There is also the detrimental impact on Australian students and workers of tens of thousands of international students competing for casual jobs, as well as having to carry the load in group assignments.
Moreover, study in Australia has often been used as a backdoor for gaining working rights and permanent residency, with countless examples of lower skilled applicants taking advantage of the additional points and other concessions awarded for Australian study.
Finally, there is the political problems and loss of academic freedom associated with the huge influx of students from mainland China, as evidenced currently at the University of Queensland.
Universities must return to their central role of educating Australians, not behaving as profit maximising degree factories.
