Canberra to up retirement contributions for casual workers

One of Australia’s smallest universities has kickstarted a possible change in sectoral employment practices by committing to subsidise casual workers’ retirements at the higher rate granted to tenured staff.

The University of Canberra (UC) will increase its contributions to casual staff’s superannuation from 12 per cent of their pay – the standard rate for Australian workers, required under Superannuation Guarantee legislation – to the 17 per cent enjoyed by permanent and fixed-term university staff across the country.

The commitment is outlined in a draft enterprise agreement awaiting approval from the Fair Work Commission, following endorsement from UC staff.

Vice-chancellor Bill Shorten, a former federal cabinet minister who oversaw superannuation between 2010 and 2013 – and initiated a gradual increase in compulsory contributions from 9 to 12 per cent – said the change was “overdue and sensible”.

“I’m a newcomer to the sector, but when I’ve looked at the landscape here, I could see no rationale to maintain two classes of superannuation…for people who might be teaching the same course, marking the same exams and doing similar research,” he said.

“If I’m paying it to 87 per cent of my staff, I’m not sure why I shouldn’t pay it to 100 per cent of my staff.”

Under the proposal, UC’s superannuation contributions for casual staff will rise to 13 per cent from the beginning of next year, 14 per cent from 2028, 15 per cent from 2029 and 17 per cent from 2030. The agreement also provides for pay rises of about 15 per cent, new leave categories, up to 30 weeks’ paid parental leave and expanded flexible work provisions, among other benefits.

The Australian Capital Territory secretary of the National Tertiary Education Union, Lachlan Clohesy, said UC was “certainly not the richest university. If the University of Canberra can do it, any university in the country should be able to do it.”

The University of Newcastle has agreed in principle to pay 17 per cent superannuation contributions to casual staff from 2030. The University of Tasmania’s enterprise agreement, which is yet to be endorsed by staff, includes 17 per cent superannuation for casuals from 2029.

Clohesy said his union had campaigned for higher casual superannuation rates for over a decade. He said academics needed more superannuation than most workers because they tended to start their careers later in life, after spending years earning doctorates. Casual academics suffered the “double whammy” of lower earnings and lower superannuation.

“By the time they are…tracking into non-casual jobs, they’re already way behind the eight ball when it comes to super,” said Clohesy, who said he had worked as a casual for almost eight years after submitting his PhD. The higher rate will “help guarantee dignity in retirement” for staff in “a predominantly female sector”, he said.

Shorten said universities had “got themselves into all sorts of trouble” over casual pay. “I think it’s because casuals haven’t been seen as equal in value. If you have a mindset that the casual is an inferior employee…then I guess you will get yourself into trouble.

“I think what we’re doing is the right way to treat casuals. It’s certainly right for us.”

Universities have paid 17 per cent superannuation to permanent and many fixed-term employees since the turn of the century, as part of an industry standard approach which required staff to use the university-owned superannuation fund, UniSuper.

The 17 per cent figure was gradually enshrined in enterprise agreements after a change of legislation prevented employers from specifying staff’s superannuation funds.

john.ross@timeshighereducation.com