17 Apr 2025

Job losses loom, as Ucol faces $7m budget cuts

4:02 pm on 17 April 2025
UCOL Whanganui

The cuts would affect campuses in Whanganui, Palmerston North and Masterton. Photo: Bevan Conley

The Tertiary Education Union (TEU) says lower North Island polytechnic Ucol has proposed cutting up to 74 jobs.

The union said the proposed cuts were equivalent to 17 percent of the institute's staff, with more than half involving administrative roles.

TEU president Sandra Grey said Ucol was trying to make savings, so it could stand on its own, after national institute Te Pūkenga was disestablished at the end of next year.

"They need to save $7.1 million," she said. "Now, what that means is they're going to have to cut provision to their communities, and they're going to have over 70 staff who are in the firing line and might not have jobs in a few months' time.

"For the community, that's devastating - for those staff, it is absolutely heartbreaking."

Grey said the proposed cuts were spread across Ucol campuses in Palmerston North, Whanganui and Masterton, with 47 among administration and support staff.

"They do things like enrolment, but they also do things like disability support, and they support Māori and Pacific students to achieve, so these cuts will have a really harsh impact on students who need people to help them."

Grey said Northtec recently announced course and job cuts, and Wintec and Toi Ohomai made cuts last year in Rotorua and Tauranga.

Canterbury institute Ara last month proposed cuts.

"It is devastating across the network and there are more to come, because this is about making sure these institutions are financially viable in a funding system that, everyone acknowledges, does not put enough money in."

Grey said the tertiary education funding system was not fit for purpose and some regions were losing courses that were important for local industries.

"They range from courses for students with intellectual disabilities through to creative courses, through to pre-trades courses in carpentry and mechanics," she said.

"The criteria is, 'Do you consistently get enough students to make money', so it's nothing to do with whether the programmes are needed, desired, wanted by their communities. It is all about, 'Can you meet a funding model that says this is the number of students you must have on a course?'

"It is purely financial decision-making."

Ucol said it had not been financially sustainable since 2019 and the proposed cuts were part of a plan to reach surplus again next year.

"In 2024, Ucol worked with financial consultants to review the state of our finances and explore opportunities for sustainable viability," Ucol operations lead Jasmine Groves said.

"This strong focus on financial viability is challenging, as we consider a reduction in property, a decrease in programmes and therefore change in kaimahi [worker] numbers.

"However, it is our opportunity to address issues that have plagued Ucol since 2019."

Groves said change was difficult, especially when it involved reducing the size of the workforce.

"While Ucol has a long-standing history of being financially sustainable, the institution has not been in this position since 2019, for a range of complex reasons.

"Should this proposal go ahead, any ākonga [students] in impacted programmes will be 'taught out', enabling them to complete their qualifications."

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