The National Tertiary Education Union has called for the Fair Work Ombudsman’s new anti-wage theft model at the University of Melbourne – which underpaid workers $72 million – to be adopted nationally.
The university has entered into a comprehensive enforceable undertaking with the Fair Work Ombudsman over the underpayments which affected more than 25,000 staff.
As well as paying back the stolen wages and superannuation, a worker voice mechanism will be embedded in a joint consultative committee to raise wages and entitlements issues.
The undertakings require the university to have a more transparent compliance reporting regime that includes a ‘worker voice’ and direct role for the unions.
This includes requiring that discussions and activities of the Joint Consultative Committee, being the established body for engagement between unions and the university, are reported to university leadership.
The university will also be required to establish more robust workplace relations compliance oversight at the Council and Executive Level.
The university will ensure that there is a committee of council and a committee of the university executive, with an explicit focus on workplace relations compliance matters.
The university has also committed to take a leading role in driving sector-wide changes and raising compliance at the Group of Eight universities forum.
The national university wage theft tally is now a confirmed $249 million in underpayments, with a further $159 million million set aside by universities to repay workers for suspected wage theft incidents.
NTEU National President Dr Alison Barnes said:
“This is a major win for workers who have been fighting hard for a meaningful response to systemic wage theft.
“We welcome Education Minister Jason Clare’s commitment to tackling systemic wage theft and governance reform, and now he has a blueprint to implement nationally.
“All universities should use this new model which gives workers a stronger voice in raising underpayments and strengthens the governance model which has allowed wage theft to flourish.”
NTEU Victorian Division Secretary Sarah Roberts said:
“Melbourne University has earned the disgraceful title of Australia’s worst wage thief, denying more than 25,000 staff pay to the tune of $72 million.
“After years of fighting for justice, we’re finally seeing concrete steps to end this systemic scourge. The enforceable undertaking with the Fair Work Ombudsman sets a precedent that must be adopted across the university sector.”
NTEU Victorian Division President and University of Melbourne Branch President David Gonzalez said:
“More than 25,000 workers were ripped off at Melbourne University — a staggering breach of trust with devastating consequences for livelihoods, families, and futures.
“This enforceable undertaking isn’t just about paying back wages, it’s about ensuring that wage theft on this scale can never happen again.”
Contact details:
Matt Coughlan 0400 561 480 / matt@hortonadvisory.com.au
