La Trobe University to back pay staff $3.5 million following union wage theft campaign

Thousands of La Trobe University employees will be back paid more than $3.5 million following a long-running campaign by the National Tertiary Education Union (NTEU).

The NTEU has repeatedly raised concerns over wage theft perpetrated against casual academic and professional staff at La Trobe University since September 2020.

The University has now admitted it breached its enterprise agreement and statutory obligations over the past six years.

This includes but is not limited to:

  • Withholding $2 million in wages to professional casual staff by failing to observe the three-hour ‘minimum engagement period’.

  • Withholding $300,000 from academic casual staff by failing to pay PhD rates to employees with relevant doctoral qualifications.

  • Withholding $400,000 from academic casual staff by incorrectly applying the “standard” vs “repeat” lecture and tutorial rate.

The university has also admitted to committing wage theft in the form of implementing illegal piece-rates for casual academic marking, but does not expect to be in a position to remedy these breaches until March and has not quantified the total underpayment.

The total wage bill inclusive of superannuation and 5 per cent interest is $3,540,000.

NTEU La Trobe Branch President Alysia Rex said the outcome is a result of the tireless efforts of union members.

“La Trobe has only now admitted to large-scale wage theft after spending the last 12 months trying to ignore our claims,” Ms Rex said.

“We raised multiple instances of wage theft on behalf of members to HR in September 2020 which were uncovered through a wage theft survey conducted earlier that year.

“In response, management agreed to set up a working group to ascertain and undertake preliminary investigation but after a month, we were told there was no problem and there was ‘nothing to see here’.

“However, our members did not give up and thanks to our investigations, the Fair Work Ombudsman got involved, helping to bring about this result.

NTEU Victorian Division Assistant Secretary Sarah Roberts said it is a win for the union and its members but the matter is far from over.

“Millions of dollars will now be back paid to workers due to the hardworking NTEU members who relentlessly raised their concerns over wage theft with La Trobe University,” Ms Roberts said.

“La Trobe University’s HR department have stated they are very disappointed with themselves for the noncompliance and the impact it’s had on staff, and they absolutely should be.

“Wage theft deprives modestly paid casual staff of the ability to pay bills, plan for their future or take leave.

“For some, it is the difference between whether they can make ends meet one week to the next.

“However, this is just the tip of the iceberg. We are disappointed the University has failed to reconcile underpayments for piece-rates despite having more than 12 months to figure it out.

“Universities across Australia are on notice. The NTEU has recovered almost $30 million in underpayments so far and we won’t stop until all staff are paid what they are owed.

“We will continue to fight on behalf of our members for the wages and conditions they deserve.”

/Public Release. View in full here.