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‘Irreconcilable’ pressures as watchdog derails UTS restructure

Vice-chancellor feels ‘pulled in different directions’ as health concerns force pause in job cuts plans he says are needed to break even

Published on
September 5, 2025
Last updated
September 4, 2025
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The latest intervention in an Australian university’s cost-cutting efforts leaves its administrator sandwiched between “a rock and a hard place”, in breach of occupational health law unless he stops restructuring and at risk of incurring a financial watchdog’s censure unless he persists.

University of Technology Sydney (UTS) vice-chancellor Andrew Parfitt said institutions were being put in an “irreconcilable” position as they navigated the demands of state and federal workplace regulators, the higher education regulator Teqsa and the nascent Australian Tertiary Education Commission.

“The reality is that we’re pulled in so many different ways,” Parfitt said. “This latest step just highlights how hard it is.”

A New South Wales (NSW) agency has ordered a pause to restructuring efforts that UTS says are necessary to maintain its financial sustainability. The prohibition notice from SafeWork NSW, issued on 2 September, ordered the university to cancel meetings with around 800 staff the following day.

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The meetings had been arranged to discuss the imminent release of an “academic change proposal” which could cost 150 jobs. SafeWork NSW said the meetings would have exposed staff to “a serious and imminent risk of psychological harm” and that the workers had been “distressed” by the unexpected meeting invitations and their “finalistic” language.

The regulator also ordered the university not to release the change proposal until an inspector was “satisfied” that the risk had been “remedied”.

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UTS said it had been discussing cutbacks with staff since late last year and the order – the latest in a series of delays that had prevented it from releasing the change proposal since July – would stress staff further by extending the uncertainty.

“We want to have full and meaningful consultation to find solutions but to do so we need to release the change proposal showing what is proposed,” a spokesman said. “We have had deficits for five years and our revenue does not cover our ongoing operating costs.?This is not financially or operationally sustainable. Continued losses erode our cash position and [can] compromise our ongoing operations.”

The meetings had been due to take place on the day the federal government released a on proposals to strengthen Teqsa’s powers. The paper says the agency needs more clout, citing concerns about issues including universities’ financial management.

“Teqsa does not have powers to act quickly in response to acute risks, many of which can evolve suddenly and have serious impacts on large numbers of students,” the paper says. “Examples could include serious financial risks.”

Teqsa is already investigating another institution in the throes of restructure, the Australian National University, citing financial oversight as a primary reason for the probe.

The National Tertiary Education Union says UTS has exaggerated its financial problems and snubbed staff proposals to resolve them. “At every turn so far, staff have been met with dismissal after dismissal,” said branch president Sarah Attfield.

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“It seems like management isn’t interested in the ideas of the staff who run this university. I hope this decision makes it clear to management that…they can’t just ram through changes that prioritise profit over people.”

Vince Caughley, the union’s NSW secretary, said UTS management had underestimated the “serious and damaging impacts” of its “disastrous” change plans. “SafeWork NSW’s intervention is a rare and damning rebuke that underlines just how reckless these cuts have been.”

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The SafeWork order, which threatens a A$663,080 (?322,716) fine for non-compliance, says UTS gave staff inadequate time to prepare for the 3 September meetings. The university had promised “additional supports” but with no explanation of how to access them. It had been consulting on a draft risk assessment on psychosocial risks relating to the change proposal, but had scheduled the meeting before considering the feedback.

Parfitt said the university’s normal practice was to consult on psychosocial risks at the same time as lodging change proposals. He said he had brought the psychosocial safety consultation forward at the request of SafeWork, which had been investigating the university since midyear, on the understanding that the change proposal process could continue.

He said many of the staff proposals to resolve the university’s financial problems had already been considered and deemed unworkable. He insisted that the university was not engaging in sham consultation, although “I can understand why staff would not trust that view”.

“We are open to alternatives [but] we still have a financial problem to solve. I think there’s a misunderstanding of where we are in the process on all sides. It is very complicated and it’s very drawn out.”

UTS drew outrage in August when internal communications about its suspension of almost 150 courses contained a link to from an external health company, with tips including “floss your teeth every day” and “do that task you’ve been dreading, like washing delicates”.

The university is also a target of a new parliamentary inquiry into university governance. Its proponent, NSW Labor politician and former industrial relations bureaucrat Sarah Kaine, was an associate professor at UTS.

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john.ross@timeshighereducation.com

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