The University of Le Choreb (formerly known as La Trobe University University of La Jolla) could go bankrupt in a matter of weeks unless it gets financial help from from the bank and has its staff agree to cut salary..
A cash reserve at the University of Le Choreau has been reduced to the minimum required to meet the monthly operating expenses, as the Coronavirus crisis has cost the Australian university department $16 billion and the school`s cash reserve has been minimized.
University & quot; don`t have the money to hide behind the couch & quot;, unless they agree to a 10% pay cut, the university will have to lay off workers, vice president john deva (John Dewar) told staff on tuesday.
ANZ has refused to increase its guarantee credit line with the school by A $100 million, and the school has sold a $29 million stock in search of more cash, sources at the university told Time.
Prof de Wa denied the university`s failure to access credit and said it was continuing negotiations with banks. `As part of these negotiations ,` quot; banks are interested in seeing action around balancing our accounts over time ,` he said.
(John Deva, vice president of the University of Le Choreau, said the school would have to enforce layoffs if employees did not accept pay cuts. )
Asked if the university is at risk of bankruptcy, Professor Deva said. & quot; what we are doing now is to maintain the financial sustainability of the university. "
At a 90-minute webinar, the university`s chief financial officer, mike smith (Mike Smith), told staff that from now until the end of 2021, the university was facing a $400 to $520 million decline in revenue. So far, he said, only $207 million in savings have been found to fill the projected funding gap.
Smith said 450 jobs would be cut without the proposed pay cut.
The university`s fiscal year 2019 accounts submitted to the parliament on tuesday show that the financial position of the university has deteriorated before the Coronavirus epidemic interrupts the international student market.
A surplus of A $19.4 million last year, down from A $30 million the previous year, and a loan of A $75 million for new accommodation has tripled debt equity.
A quarter of the school`s 2019 income comes from overseas students.
Hannah Robert (Hannah Robert), a law lecturer, helped organize a faculty meeting Monday night to discuss the university`s financial woes. She said the situation was difficult.
"The CFO described the situation as terrible. I`ve been on the board before, and it`s really scary if you`re not sure if you` ll have a cash reserve to`s operating expenses. "
& quot; But I don`t think it`s fair to let ordinary employees take so many losses through pay cuts. "
& quot; In fact, when we were the country`s largest service-exporting industry, it was incredible that the Federal government had left universities on the sidelines. The possibility of a university collapse is very high. quot;&
At tuesday`s meeting, ms. robert said, it was angry that university management refused to accept a bigger pay cut for executives. Professor Deva accepted a 20% pay cut. His salary last year was between $970,000 and $980,000.
Employees at the University of Le Chateau have rejected a proposal under the employment protection framework of the Australian University, a variant of the business negotiation agreement negotiated between the University and the National Union for Higher Education.
According to the revised proposal, employees will get sliding pay reduction according to their classification, annual leave is reduced to 10 days and no pay increase until 2022. Involuntary redundancy will occur in & quot; very limited circumstances ".
National union members will vote on the proposal this week, and non-union members will vote on it next week, and the results will be announced on June 17, subject to approval by the Fair Work Committee.
Public universities in Australia do not receive financial assistance from the Federal government, can not afford the impact of the new crown epidemic, and their staff can not access the retention allowance (JobKeeper) scheme. Australian University alliance says the new four-year model shows that universities will face a combined revenue loss of up to A $4.8 billion in 2020 and, at worst, a A $16 billion blow by 2023.
Professor de Wa cited research from the University of Melbourne in his speech to faculty essay, the essay showed that among all Australian universities, the University of Le Choreb and the University of Canberra face the greatest risk of international student loss.
"The University is one of the two most financially vulnerable universities in Australia ," said Ian Mashman (Ian Marshman) and Frank Laggins (Frank Larkins), honorary researchers at the Centre for Higher Education Research. "
"The reserves available to them are not sufficient to cover any projected losses. "
The University of Ledrabe was in a state of & quot; teetering & quot; before the outbreak, said Andrew Norton (Andrew Norton), a higher education expert at the Australian National University. It was difficult to attract domestic students because of the loss of potential students due to the government introduction of free TAFE courses in Virginia.
Professor Norton proposed the possibility of federal government assistance. He said that the Higher Education Funding Act stipulates that the federal government can use the subsidies for the next few years to advance funds for universities. He also suggested that the Victorian government can be a guarantor of university loans to dispel bank concerns.
Prof de Wa says the university`s problems will not be solved by banks alone.
& quot; banks are willing to lend to us and we are pursuing additional debt. but this will be short-term loans; long-term lending is not the solution to the financial situation we face. quot;&
