Three Out of Four Institutions Offer 2-3% Pay Rises

New Zealand universities and their academic and support staff, three of the four institutions facing strike action on Thursday have extended pay rise offers ranging from two to three percent for most employees. However, these offers have been met with resistance from the unions, which are demanding higher wages to match inflation and reflect the increasing cost of living.

The strikes, planned for September 28, are set to disrupt academic services and affect thousands of students. The Tertiary Education Union (TEU), representing more than 4000 members in the upcoming industrial action, has made it clear that the offered wage increases are inadequate, considering that university employees have seen slower pay growth compared to other sectors of the workforce. Inflation rates, which have reached 30-year highs in the country, are further fueling the discontent.

Details of Pay Offers by Universities

• Lincoln University
  Lincoln University, one of the four institutions facing strike action, has announced a three percent salary increase as part of its negotiations with three unions: the Tertiary Education Union (TEU), the Public Service Association (PSA), and the E tū union. This three percent hike would apply to salaries and allowances under three collective agreements.
• Lincoln University, a key player in New Zealand’s agricultural and environmental education sector, said it aimed to balance fairness to staff with the need for financial responsibility. While it expressed a commitment to its employees’ well-being, the unionized workforce remains unsatisfied, pushing for further concessions.
• University of Auckland
  The University of Auckland, New Zealand’s largest and most prestigious university, has made a tiered pay increase offer, which includes a three percent increase from February 2024, followed by two percent in 2025, and 1.8 percent in 2026. Additionally, staff earning $65,000 or less would receive an additional 0.5 percent pay bump in the first year, and a further 0.25 percent in 2026.“This offer rewards staff to the maximum extent possible while still maintaining financial responsibility,” the University of Auckland said in a statement. The university noted that the new offer follows a 9 percent pay increase over the past two years, which included an enhanced general revision of 11 percent.Despite the university’s efforts to provide what it describes as a “sustainable” offer, the unions argue that this still falls short of adequately addressing inflation and meeting the needs of university employees.
• Massey University
  Massey University, another key institution involved in the dispute, initially offered a modest 1.5 percent pay rise. However, it has now raised this offer to two percent in response to improvements in its financial position. Massey University noted that while it had revised its offer upwards, there had been “no movement from the unions” in their wage claims.“Following lack of movement to date in respect of negotiations, the university is taking a short period of time to reflect on aspects of its bargaining position and is hopeful we can get back to negotiations as soon as possible,” the university said.Massey’s updated offer signals a potential willingness to negotiate further, but the unions remain unswayed by the proposal, pushing for more substantial increases in wages.
• Canterbury University

Canterbury University, the final institution facing industrial action, has been more tight-lipped about its specific pay offer. Although the university confirmed that its negotiations with the unions had been constructive, it declined to provide details on its current offer to the media. As talks with the unions continue, Canterbury University has not made significant public gestures regarding the impending strike, leaving many union members frustrated by the lack of transparency.

Union Demands and Discontent

The Tertiary Education Union (TEU) is leading the charge in advocating for higher wages across New Zealand’s university sector. The union is seeking a six percent pay increase for its members, a figure that is considerably higher than what the universities have offered thus far.

TEU’s assistant national secretary, Daniel Benson-Guiu, emphasized that wage growth in the university sector has lagged behind other parts of the economy, particularly during a time of high inflation and increased financial pressures on workers. Benson-Guiu warned that union members are prepared to take significant action to achieve better pay.

“Pay growth in the universities has been much slower than the rest of the workforce, at a time when inflation has been at 30-year highs. Our members will not take that lying down,” Benson-Guiu said. “They fought two years ago when 7000 of our members took action, they are fighting now, and they will keep fighting until they get the recognition they are owed.”

The TEU has organized similar strikes in the past, and Benson-Guiu indicated that this time would be no different. The union is also in negotiations with Victoria University of Wellington and Otago University, and it has ongoing discussions with other institutions that are not currently facing industrial action, such as the University of Waikato and Auckland University of Technology (AUT).

Impacts of Industrial Action

With more than 4000 members expected to participate in the strikes on Thursday, the disruption to university operations could be significant. Academic staff—including lecturers, tutors, and support personnel—are the backbone of New Zealand’s tertiary education system, and their withdrawal from duties could affect student services, assessments, and teaching schedules.

For students, the looming strikes create uncertainty at a critical time in the academic calendar. As the year-end approaches, many students are preparing for final exams and assessments. Delays or disruptions to teaching could hinder their academic progress, adding pressure to an already stressful period.

Universities, too, face the challenge of managing operational continuity amid the planned strikes. While some institutions may look to contingency plans to keep services running, others may be forced to pause certain activities, leading to a backlog of work when staff return.

Beyond the immediate disruption, the strikes shine a light on the broader issues facing New Zealand’s university sector. Financial pressures have been mounting, with many institutions reporting deficits as they struggle to manage rising costs, lower international student numbers due to the COVID-19 pandemic, and government funding challenges. The debate over staff wages is a symptom of these larger structural issues, and finding a long-term solution may require more than just adjustments to pay scales.

The wage negotiations come at a time when New Zealand’s university sector is grappling with significant financial challenges. Universities have been hit hard by the fallout from the COVID-19 pandemic, with reduced international student numbers severely impacting revenue streams. International students contribute substantial tuition fees, which universities have relied on to supplement government funding.

With border restrictions now eased, universities are hoping for a resurgence in international enrolments, but recovery has been slow, and financial pressures remain. In addition to the financial challenges posed by the pandemic, inflationary pressures have increased operating costs, from utilities to staff salaries, putting further strain on university budgets.

Universities have pointed to these financial difficulties as justification for their conservative pay offers, arguing that they must maintain fiscal responsibility to ensure long-term sustainability. However, unions argue that staff should not bear the brunt of these financial challenges, particularly when inflation is making it harder for workers to meet their everyday expenses.

Responses from Other Universities

• While the upcoming strikes are centered around four universities, other institutions are also embroiled in ongoing wage negotiations with staff unions.
• Victoria University of Wellington and Otago University are in the midst of discussions with the TEU, though they are not currently facing industrial action.
• Auckland University of Technology (AUT), on the other hand, is not engaging in negotiations this year, having settled its collective agreement previously.

The University of Waikato recently concluded negotiations, with its new collective agreement taking effect in July. However, this settlement may provide insight into the potential direction of future wage agreements across the sector.

As the deadline for strike action looms, the rift between university management and staff unions shows no signs of narrowing. With three of the four universities offering pay rises of two to three percent, unions remain adamant that their members deserve more in light of inflation and the slow pace of pay growth over recent years.

The TEU’s call for a six percent pay rise underscores the growing frustration within the sector, where employees feel underappreciated and underpaid. For now, the prospect of continued industrial action seems likely unless universities significantly adjust their offers.

While universities argue that they are offering the best possible pay increases within the constraints of their budgets, staff and unions are clear that their patience is running thin. The outcome of this impasse will have far-reaching consequences, not just for the affected universities and their staff, but also for the students whose education may be disrupted in the coming days.