“Confusion and Angst”: Explaining ANU’s Enterprise Agreement

Written by Finn Slattery-O’Brien

Whether it be voluntary redundancies, no-confidence votes or pay-cut votes, there has been one thing at the crux of debate at ANU in recent months, even if (like me) you didn’t realise it: ANU’s Enterprise Agreement. 

But, I hear you say, that’s a big scary business word for real adults with mortgages and people who believe high school debating counts as sport.

So, what is it?

The ANU Enterprise Agreement is a 182-page long pdf available online to anyone with a laptop and ANU’s usual half-bar of Wi-Fi.

But more importantly, it is a legally enforceable contract, which is the result of a bargaining process between the employer (ANU), and the employees (ANU staff), often through the National Tertiary Education Union (‘NTEU’).

According to the Fair Work Commission (cf. Fair Work Act 2009, section 172), an enterprise agreement is: “an agreement made at the enterprise level that contains terms and conditions of employment, including wages, for a period of up to 4 years from the date of approval.” 

The current agreement was finally reached in September 2023 (and expires in 2026), following staff protests for better pay. With the NTEU satisfied, approval was given to an enterprise agreement which included twice-yearly pay rises of 2.5%. These would be set to occur in December and July of each year, starting December 2023, as per section 22 of the agreement.

This comes despite Vice-Chancellor Genevieve Bell asking staff late last year to forgo the December increase as part of the ANU’s cost-cutting measures dubbed ‘Renew ANU’ (see last year’s Observer article for more).

According to the Fair Work Act 2009, section 208(1): “An employer covered by an enterprise agreement may request the affected employees for a proposed variation of the agreement to approve the proposed variation by voting for it.” The legislation also stipulates a simple majority is required to pass any such variations (section 209).

Accordingly, the vote to forgo the December 2024 pay rise was held on the 20th of November 2024. According to ANU, “A total of 4,782 staff participated in the vote, with 88 per cent voting not in favour of the proposed variation to the Agreement.”

Despite this, ANU stated that it was “grateful that so many staff voted and appreciates their engagement with the consultation process.”

Since the vote, the NTEU has committed to a vote of no confidence in ANU leadership. The voting period opened on the 26th of February and will close on the 26th of March.

This vote has no legal or binding effect. The NTEU has no official power to change university leadership, and it appears the vote is being conducted as a symbolic gesture by the union of dissatisfaction with the manner in which ‘Renew ANU’ has been conducted.

Observer reached out to NTEU for comment, but did not receive a response in time for the publication of this article. 

The NTEU claims a “lack of clarity” on the “budget crisis” and the proposed job cuts as reason for the vote.

Notably, the ANU Enterprise Agreement places an onus on the university to act in a certain manner when executing such major changes.

According to section 70(4) of the agreement, “[s]ound management of major workplace change implies the timely consultation and involvement of the staff members who will be directly affected by the change…”. 

A general reading of section 70 (‘Organisational Change’) seems to indicate that this principle should be an express feature of any major organisational change conducted by ANU leadership.

The section also stipulates that due notice be given to union representatives to have time to “hold a meeting(s) with staff members” (section 70(11)(a)) and respond in other ways (sections 70(11)(b), 70(11)(c)).

Parts of section 57, including sections 57(4) and 57(5) also make clear that the redundancy process is justified in cases including “financial imperative” or “reduced demand”. The university also commits to “reasonable efforts” to redeploy staff deemed redundant (section 57(6)).

ANU also recently opened up a voluntary redundancy scheme to help cut down staff deemed excess. This deal, if taken by staff, secures them a pay-out proportional to their tenure at the university, and their salary as it changed during that tenure (cf. ANU Enterprise Agreement section 57(17)).

Neither the NTEU or staff have made any formal or legal claim of ANU breaching the Enterprise Agreement beyond the vote of no-confidence, which holds no legal force and is purely symbolic.

A university spokesperson also told Observer that “the University has extensively consulted with our staff and NTEU about these challenges and continues to do so. Through open and transparent dialogue, the University aims to ensure all staff perspectives are considered.”

In a public statement, Jonathan Churchill, ANU’s Chief Operating Officer (COO), said that he was concerned about the “white noise of confusion and angst” the symbolic no-confidence vote creates. 

“Despite this”, Churchill said, “I still firmly believe unions can and should play an important role in a modern workplace, and I remain optimistic that the NTEU will engage with us constructively.” 

Churchill also used the release to voice concerns about the NTEU using “the vote as a vehicle for mis- and disinformation” and to “question the serious financial challenge” faced by ANU.

The dispute between university leadership and the NTEU continues.

More to come.

Graphics by Shé Chani

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