Adelaide University offers staff early retirement packages amid financial struggles
Adelaide University is offering staff early retirement packages as it faces a significant revenue shortfall due to a decline in international student enrolments. The university has projected a revenue shortfall of around $90 million, with international student enrolments 40 per cent below target.
Adelaide University is introducing a Voluntary Early Retirement Scheme (VERS) for staff, as it faces a significant revenue shortfall due to a decline in international student enrolments. The scheme, open to employees over 55 with five or more years of continuous service, aims to help the university manage its workforce and finances.
The university has projected a revenue shortfall of around $90 million, with international student enrolments 40 per cent below target. Vice-Chancellor Professor Nicola Phillips said the university is managing costs carefully and has reassured staff that there are no plans for radical restructuring or compulsory redundancies.
Early retirement scheme details
The VERS is not a voluntary redundancy process, but the university may consider redundancies in the future if it aligns with broader workforce planning and financial considerations. Some roles vacated through the retirement scheme may be filled again, but not every position will be replaced.
"It is important to note that participation in the VERS is entirely voluntary," Adelaide University's head of people and culture, Joanne Fox, said in an all-staff email. "No one is expected or required to express interest, apply or retire."
Expressions of interest for the early retirement scheme will close on October 27, and successful applicants are expected to leave the university by March 31 next year, unless an exemption is granted. No participant will remain beyond June 30, 2027.
Union support and government response
The National Tertiary Education Union has expressed support for the scheme, with Adelaide University branch co-president Associate Professor Virginie Masson saying it is a good way to address the issue without forcing people out of a job.
"I think that some people may decide to get their retirement a bit forward because of the stress of the merger — it is very difficult at the moment with the workload,"she said.
State Development Minister Chris Picton said the university is taking a "sensible approach" and that the government continues to support the merger, which it believes will "pay off in spades" in the long-term.
"We continue to encourage the federal government to support international students because we think that they play an important role for the economy overall,"Mr Picton said.
University's financial situation
Professor Phillips said in a pre-recorded video message to staff that changes to migration policy had "created a challenging financial situation that we need to negotiate over the next few years".
"We're starting in an advantageous position," Professor Phillips said. "But please don't underestimate how carefully we're going to need to manage costs for the foreseeable future, so that we can continue investing in our people and what matters most for our university."
The university has previously said that its international student enrolments are 40 per cent below target, creating a projected revenue shortfall of around $90 million.