Dear members,
You will have received an email yesterday from Professor Derrick Armstrong, the University’s Deputy Vice-Chancellor (Education), regarding the
University’s proposed future of the USU, in particular the catering and retail outlets.
The USU Board found the email highly concerning and feel it is important to begin by looking at the bare facts of the relationship between the USU and the University.
It is true that Voluntary Student Unionism, which took away $8.4 million in funding from the USU, led the University and the Student Union to enter three working agreements.
These agreements are:
- The Occupation License: The USU built three buildings upon University land using member funds, the Holme, Manning and Wentworth Buildings. This agreement provides the USU the right to occupy these Union buildings without incurring a rent, as well as the right to occupy affiliate site catering outlets run by the Union, such as, The Conservatorium of Music, Bosch and Mallet Street. This license is not due to expire until 2017.
- The Service Level Agreement: This is funding (approx $3.6 million annually) provided to the Union by the University to spend on the student spaces for maintenance, cleaning, repair and utilities of its three buildings. This expires on 31 December 2011.
- The University of Sydney Venue Collection (USVC) Joint Venture: This agreement allows the USU to book University venues (such as MacLaurin Hall and The Great Hall) and to provide the catering for corporate, wedding and University clients using the venues for event purposes. As a result of the joint venture, the USVC now receives 50 per cent (from 12 per cent prior to the joint venture) of all catering, resulting in greater revenue (approximately $900,000 per annum) back into the USU student experience. With the ending of this agreement, the University will take back the responsibility of booking their venues (but not USU venues – Holme, Manning and Wentworth which will remain under the existing USU Venue Collection). This agreement expires on 31 December 2011.
The Deputy Vice-Chancellor failed to mention the fact that USU members hold the ultimate authority in deciding the future of the Union. Any transfer of commercial services or termination of the Occupation Licence prior to 2017 must be put to a vote of USU Members (of which there are over 13,100).The proposals outlined in Prof. Armstrong’s email breach the Occupation Licence and cannot occur without the consent of Union Members. Specifically, a two-thirds majority vote is required by USU members at a Special General Meeting. We find it disappointing and concerning that the University went ahead and sent this email to all students without acknowledging this crucial fact.
The USU Board was not consulted about the email sent by the Deputy Vice-Chancellor. Judging from the response on social media, many students were also shocked by the content. The University did advise us of the termination of the Joint Venture and the SLA late in 2010, and when the negotiation process began this year, the University requested it not become a public negotiation and as such asked both parties to enter the negotiations in good faith.
Forming a good-faith working relationship was stressed as a priority in these negotiations, which the USU took very seriously. Unfortunately, progress was slow; meetings were often short with no agendas, the University failed to abide by their own deadlines and repeated assurances were made that a resolution of mutual benefit was in sight. In May this year, the University advised us that formal negotiations had begun and at this time they would present us with their proposed Retail Plan. However, this plan was not received until October and it proposed that the University take over catering and retail outlets in 2012.
The University’s proposal to take over the catering and retail outlets has not been agreed upon by the USU. In fact, the USU expressed several concerns relating to the plan to the University of Sydney Senate’s Safety and Risk Management Committee. Several Senate Fellows also shared these concerns, in particular the University’s desire to market the USU outlets to external commercial operators. We know the catering and retail operations require improvements, and we’re committed to delivering that outcome. However, unlike the University, our methodology is to reach out directly to the campus community to set our targets and to make changes based on the wants and needs of the student population. The University made a commitment to the USU throughout the negotiations that they would consider the USU’s own vision for commercial operations which was to be delivered after we received the University’s Retail Plan. The email sent by Prof. Armstrong demonstrates a breach of that commitment, and an unwillingness to negotiate any outcome other than a complete transfer. At no point in the negotiations was it indicated that the University would be so audacious as to inform the student populace of a proposal not agreed upon by the USU, without even consulting or warning the USU. The move has left the USU’s Student Board feeling somewhat betrayed that this trust in good faith was compromised.
The Board also find it unsettling that the University shifted its negotiation tact immediately after the Student Service and Amenities Fee (SSAF) was passed by the Federal Senate in October (it should be noted that the SSAF is not a compulsory union fee and goes directly to the University – see
previous post.) From the SSAF it’s estimated that the University will receive approximately $10 million per year. Despite this windfall in student funds, the University has attempted to threaten the USU into accepting their proposal by stating that any funding for next year is contingent on a transfer of our commercial operations. The USU will not be intimidated by such negotiation tactics into an unsatisfactory outcome for students.
We feel at the heart of the issue lies the interpretation of the term: ‘student experience’. As the Student Union believe the student experience goes beyond the programs and services, the Clubs and Societies and the big events like O-Week and Verge. To us, it is about making every experience on campus ideal for students – that includes your morning coffee; your lunchtime break and the grey bits in between class. We strive to fill that with colour – it is the USU’s directive as an organisation led by students and has been since 1874. The University, as you can see from Prof. Armstrong’s email, assume to know what students want, but we believe students can and should decide for themselves. We want to continue the wonderful evolutionary trademark that makes the USU such an historic and relevant organisation – driven by student ideals - not by profit.
The Union is a non-profit organisation. The revenue we generate goes directly back into our student experience programs, which is why the operation of our outlets, our Venue Collection and the Access Program is so important to us. We seek to serve the students. It makes sense to us that students are the ones who define what a ‘student experience’ entails.
Allow me to stress that nobody is here to politicise student affairs. The vision of the University and the USU are the same: to deliver the best possible experience to the campus community. We believe that a student experience becomes superficial when it is restricted to programs and services - the USU is an organisation that wants students at the University of Sydney to appreciate every moment they have on campus. We know the University provides a world class environment for learning and an educational experience that is second-to-none. We, as your Student Union, are responsible for providing a world class experience outside of the lecture halls and classrooms; we believe it should stay that way. Maintaining student control over student spaces is key to achieving this aim.
So we turn to you, students and members to make your voice heard, because it’s your voice that really matters. This is a valuable chance to have your say on what direction you believe the future of these essential components of the student experience – food, retail, bars, and student spaces – should be. Comment below, put your hand up for the
Are You With Us cause on Facebook and be vocal. Keep student life, student run – it makes sense, doesn’t it?
We will keep you updated throughout the process and we will seek to answer any questions you may have. Find us on
Facebook and
Twitter.
Yours sincerely,
USU Board of Directors