Education sector with liquidity problems facing a widespread loss of jobs

This story was originally posted on RNZ.co.nz and is being republished with permission.

The loss of millions of dollars in foreign student fees means that hundreds of jobs are at risk in the country’s schools, universities and polytechnics.

There are only about 50,000 foreign students in the country, less than half the normal number, and school principals and university leaders have told RNZ that there could be a widespread loss of jobs in a few months because they expect even fewer students. next year.

The recession has already cost more than 250 jobs at private tertiary institutions and language schools, where hundreds more depend on applications for a government support fund.

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However, no one has a clear idea how many jobs in the education sector are directly dependent on international student fees.

The president of the high school teachers union, the Post Elementary Teachers Association, Jack Boyle, said schools were starting to talk about layoffs.

“There was a school in the South Island where the principal said ‘I’m looking to lose 15 employees,'” he said.

“That’s quite a large number. You would expect that since there are schools that can have 30 to 50 international students, the number would be less than 15, you could be talking about one or two, or in some cases half a dozen.”

Boyle said the union was working with directors to persuade the government to hoard more money to save jobs.

The president of the International Schools Education Business Association, Patrick Walsh, said the government had already provided money to protect the jobs of international student principals and homestay coordinators, but other jobs were still at risk.

“Many schools across the country have additional teaching staff overall to reduce class sizes and provide a broader curriculum. Since we will not have international students for some time, principals and boards are considering whether they need to leave. these people hang out because they just can’t bear that financial burden, “he said.

“It will affect not only the teachers themselves, but also the curriculum that is offered at the school and class sizes may have to increase as a result.”

Walsh said he didn’t know how many teaching jobs could be lost.

Teacher layoffs not only in Auckland

Auckland’s secondary schools are the largest enrollment of foreign students in the school sector, but a director from another region told RNZ that he expected all secondary schools in his area would have to lay off at least one teacher due to the loss. of foreign students.

Universities New Zealand President Derek McCormack said the eight universities lost $ 200 million in revenue this year mainly due to the drop in foreign enrollments, and they expected that figure to double next year if they were not allowed in. new students to the country.

“This year was difficult, but not as difficult as next year if we cannot bring in any international students from abroad,” he said.

The loss of millions of dollars in foreign student fees means that hundreds of jobs are at risk in the country’s schools, universities and polytechnics.

There are only about 50,000 foreign students in the country, less than half the normal number, and school principals and university leaders have told RNZ that there could be a widespread loss of jobs in a few months because they expect even fewer students. next year.

The recession has already cost more than 250 jobs at private tertiary institutions and language schools, where hundreds more depend on applications for a government support fund.

However, no one has a clear idea how many jobs in the education sector are directly dependent on international student fees.

The president of the high school teachers union, the Post Elementary Teachers Association, Jack Boyle, said schools were starting to talk about layoffs.

“There was a school in the South Island where the principal said ‘I’m looking to lose 15 employees,'” he said.

“That’s quite a large number. You would expect that since there are schools that can have 30 to 50 international students, the number would be less than 15, you could be talking about one or two, or in some cases half a dozen.”

Boyle said the union was working with directors to persuade the government to hoard more money to save jobs.

The president of the International Schools Education Business Association, Patrick Walsh, said the government had already provided money to protect the jobs of international student principals and homestay coordinators, but other jobs were still at risk.

“Many schools across the country have additional teaching staff overall to reduce class sizes and provide a broader curriculum. Since we will not have international students for some time, principals and boards are considering whether they need to leave. these people hang out because they just can’t bear that financial burden, “he said.

“It will affect not only the teachers themselves, but also the curriculum that is offered at the school and class sizes may have to increase as a result.”

Walsh said he didn’t know how many teaching jobs could be lost.

Teacher layoffs not only in Auckland

Auckland’s secondary schools are the largest enrollment of foreign students in the school sector, but a director from another region told RNZ that he expected all secondary schools in his area would have to lay off at least one teacher due to the loss. of foreign students.

Universities New Zealand President Derek McCormack said the eight universities lost $ 200 million in revenue this year mainly due to the drop in foreign enrollments, and they expected that figure to double next year if they were not allowed in. new students to the country.

“This year was difficult, but not as difficult as next year if we cannot bring in any international students from abroad,” he said.

Jack Boyle, left, and Derek McCormack Photo: RNZ / Supplied

He said universities expected more domestic students in 2021, but would still have to make cuts.

“We could end up in a situation where we have the same number of students that we would have expected, with domestic students making up for the losses of international students, but we would have significantly less income to do the same job,” he said. .

McCormack said universities had to approve their 2021 budgets by the end of December and it was difficult to plan without knowing when foreign students would be allowed to return.

Some universities may decide to take financial losses while they wait for the border to reopen, but they may have to lay off staff.

“There will be a reduction in staffing. Part of that may appear in the form of losses of positions that would otherwise be safe, another part may appear in the form of non-replacement or non-hiring of temporary and short-term staff. a combination of measures that could affect the university’s total staffing, “he said.

Courts in polytechnics

Polytechnics also expected more domestic students, but far fewer foreign students, and some were planning cuts as a result.

Porirua and Wellington Polytechnics, Whitireia and Weltec, had initiated consultations on the closure of their Auckland campus at the end of the year with the loss of more than 30 jobs.

Tertiary Education Union President Michael Gilchrist said universities and polytechnics should not cut jobs because national enrollments would increase next year.

He said institutions were often too quick to fire staff.

“Staff were cut and two, three, four months later, maybe six months, the staff has to be re-employed because the cuts were not in fact well judged,” he said.

“That’s the family pattern. We want to avoid that pain and completely unnecessary difficulties that come with prematurely cutting.”

Gilchrist said universities and polytechnics should run deficits next year to show insufficient government funding.

“They need to do that to expose the extent to which international students have subsidized the national offering,” he said.

The president of New Zealand Independent Tertiary Education, which represents hundreds of private tertiary institutions, Craig Musson, said its members had already laid off about 100 employees.

He said members of the organization estimated that they would lose 250 more jobs due to the loss of foreign students, but would rise to 500 layoffs if their applications to a government support fund failed.

English New Zealand, which represents the largest English schools, said its members have so far laid off more than 150 employees.

“On top of that, the schools laid off many temporary and fixed-term employees prior to the layoffs, some staff members took extended leave without pay while the border is closed, and others moved,” he said.

This story was originally posted on RNZ.co.nz and is being republished with permission.