Heavy job cuts to CSIRO research positions have edged closer with formal consultation set to begin as embattled Chief Executive Doug Hilton confirmed that the organisation faces a billion-dollar funding shortfall over the next decade.
Last November, CSIRO Executive revealed plans to cut up to 350 full-time equivalent positions, citing refocussed research priorities following a science portfolio shake-up, in addition to more than 800 job losses over the previous eighteen months.
Despite a $233 million lifeline announced by the Federal Government during December’s Mid-Year Economic and Fiscal Outlook (MYEFO), CSIRO commenced early engagement on the proposed cuts which are expected to hit Environment (130-150 FTE positions), Health and Biosecurity (100-110), Agriculture and Food (45-55) and Minerals (25-35).
“As you’re aware, in December several of our Research Units completed the early engagement stage of our Major Change Process. Research Unit Directors received a wealth of feedback through early engagement and will start sharing proposals for consultation in the coming weeks.”
It’s widely anticipated that this process will start with the Environment research unit, where up to 150 scientists will be individually tapped on the shoulder.
“As the consultation step in our Major Change Process sets out the proposed impact on individual roles, Research Unit leaders will hold conversations with individuals or groups first, before sharing the proposals for feedback more broadly,” Dr Hilton said.
Elsewhere, in response to question from Independent Senator David Pocock in Senate Estimates, Dr Hilton admitted that the Government’s near quarter billion-dollar bailout would not prevent proposed research cuts from proceeding and that CSIRO continued to face a significant funding shortfall.
“As part of our research portfolio review that we conducted last year, we identified between 300 to 350 potentially impacted staff members. Those changes will go ahead irrespective of the funding that we receive through MYEFO,” Dr Hilton said.
“This is part of our commitment to ensure that the workforce that we have and the programs that we’re working on deliver the greatest possible impact for the country by focusing on priority areas.”
The revelation that CSIRO research job cuts will proceed despite the MYEFO rescue package has been met with disbelief and dismay. As a result, there are renewed questions regarding the accountability of senior leadership at Australia’s premier science organisation.
In a survey that informed the Staff Association’s submission to the Senate’s CSIRO inquiry, over 66 per cent of respondents said they do not believe CSIRO leadership understands the importance of specific scientific work when making resource allocation decisions, while over 80 per cent can’t agree that CSIRO leadership genuinely consults staff about priorities before making resource allocation decisions.
As one media commentator quipped, “if $233m can’t save a single job, CSIRO is in trouble.”
Back at Estimates, Dr Hilton outlined the funding shortfall: “For us to be sustainable over the next ten years – which is the commitment the board and the senior management have made and communicated to staff – we need, each year, to find approximately $80 million to $135 million per annum over that period.”
“That allows us to ensure that the depreciation backlog does not continue to increase, we can get on top of (site) repairs and maintenance, and we can provide a safe, fit-for-purpose working environment for our staff,” Dr Hilton said.
CSIRO Chief Operating Officer Tom Munyard went on to provide some detail on the cost increases that CSIRO is struggling to contain.
“Our IT costs have increased by 35 per cent over five years. We’ve seen that our site operating costs have increased by 23 per cent over the last five years as well, from $49.6 million to $61.2 million.
“There are some challenges that we’re facing across the organisation, and that’s one of the reasons why we’re very grateful for the MYEFO funding, as it’s enabled us to start that process towards long-term sustainability.
“For example, the 45 sites we have across the organisation are very expensive to run and being able to start that long-term sustainability work is very important to us to try and reduce that overhead,” Mr Munyard said.
Comments by Science Minister Tim Ayres underscore the scale of the funding challenge.
“There is a mountain of work to do to make sure that the CSIRO is in the condition it needs to be in with the capabilities and infrastructure that it needs to have for the long-term future.”
“Dr Hilton and the board do have an enormous job to do, and the government will support them in that work,” Minister Ayres said.