Up to 260 jobs may go at Victoria University to address massive deficit

Between 230 and 260 jobs at Te Herenga Waka-Victoria University of Wellington could go, with the university having told staff its plan to address a $33 million deficit.

The news was announced during a series of staff forums, which began on Wednesday morning with Vice-chancellor Nic Smith​ breaking the news.

Tertiary Education Union branch president at Victoria University of Wellington, Dougal McNeill saw the proposal as the result of “catastrophic mismanagement” but that those involved had not taken any responsibility.​

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.

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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.

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.”

McNeill said it wasn’t yet a “done deal” and the union was planning a campaign of industrial and political action in response.

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

The university, which has 2330 full-time equivalent staff according to its website, has been investigating cost-saving measures across all its operations in order to return to financial sustainability.

In a written statement, Smith said there were no easy options and returning to financial sustainability was a major task.

“But I want to emphasise that my confidence in this university is strong. We have outstanding people and significant opportunities in front of us. All of us are determined that this University will adapt and thrive in the future.”

Further staff forums are set to be held on Thursday, with Smith saying discussions would be completed with them before further details were provided to media.

Last week, chancellor John Allen​ said its dire financial situation “cannot be ignored”.

“We simply do not have the student numbers and revenue we need to be able to sustain the university in its current shape,” he stated in a report shared with the university council.

Recent student enrolment figures released to Stuff show enrolments across the board at the university dropped 12.1%​ compared with last year, accounting for 2600​ fewer students in the capital.

“We must continue to invest in those areas which we believe are our current and future strengths and which differentiate us on the national and international stage. The focus on our teaching and research mandate must remain,” Allen wrote.

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.

However, for those like McNeill the funding boost was “too late”.