A review into the underpayment of some University of Tasmania (UTAS) staff, which has determined the institution owes more than $11 million, is dragging into 2023 — while it spends more than $130 million on a new facility despite a majority vote against it.
The university apologised in February last year after announcing it would review thousands of payments, becoming one of a string of tertiary institutions found to have incorrectly paid staff.
In the latest notice to potentially affected staff, UTAS said it anticipated it would begin making payments in April.
"Allowing for employee on-costs and interest, the total amount is approximately $11 million," the notice read.
"This amount will increase as we complete work for the years 2014-2015, which is the period before the current payroll system was installed."
It said external firms had identified two main factors contributing to the issue: not paying people enough for minimum-engagement periods, and some cases of penalty rates not being correctly applied.
"These problems have arisen because of historically inconsistent practice across the institution and varying interpretations of our complex staff agreements," it read.
Secretary of the Tasmanian division of the National Tertiary Education Union Ruth Barton said the focus on UTAS's move into the city had become "all consuming".
"They've been focusing on that rather than proper processes to pay their staff, which is an indictment on the university," she said.
Dr Barton said it was a "novel excuse" to pin the payment issues on the enterprise agreement.
"They are negotiating that enterprise agreement with us themselves, so it's not like it's a set of rules that apply from outside," she said.
UTAS chief people officer Kristen Derbyshire said in a statement the university "proactively investigated and identified historic payment issues".
"We are sorry and committed to making it right," she said.
"Keeping our staff informed along the way, we have been working to identify everyone impacted so they can be paid in full, with interest, what they are owed."
Ms Derbyshire also said UTAS would implement processes to ensure it did not happen again.
New CBD building despite opposition
It comes as UTAS spruiked construction beginning at the forestry building in Hobart's CBD for a relocation of the College of Business and Economics and Law School, even despite Hobart residents resoundingly rejecting the university's planned move into the city.
An elector poll of City of Hobart residents, conducted at the same time as the 2022 local government elections, returned a no vote of 74 per cent out of 30,000 ballots.
UTAS withdrew its planning scheme amendment for a redesigned Sandy Bay campus following the vote and promised to work with the council on its next steps.
In December, the Hobart City Council voted to request the University of Tasmania pause "all activities pertaining to its proposed campus relocation" from Sandy Bay into the Hobart CBD until further consultation was done.
The redevelopment of the former headquarters of the state-owned timber enterprise, which has sat vacant for years, will cost $131 million and was approved by the council before the elector poll.
"We are proud to be making this significant investment in educational facilities for students and staff, and in the capital city we all share, through the restoration of an important piece of Hobart's architecture," vice-chancellor Rufus Black said in a statement.
"As central business districts around the world adapt to the changes wrought by the global pandemic, our hope is that the University of Tasmania can play a positive role in supporting a vibrant, thriving future for Hobart by creating high-quality civic spaces that are hubs for students, staff and the community, and bring life into the city."
