This is in addition to the $13.5 million saved by deferring the salary increase – all the money saved through the deferral was directly donated to maintain 90 positions at the ANU. Savings in 2020 are an important contribution to our financial sustainability, voluntary separations and other austerity measures leading to savings of $70.5 million in 2020. Certain positions are considered essential or critical to our activities and local areas. It is neither appropriate nor financially sound for the university to offer voluntary separations to staff in these positions. If we did, it would mean that we would have to hire to fill the position to ensure the operational needs of the university. Overall, this would not contribute to downsizing and would be a net cost factor for the university, rather than contributing to overall wage savings. 56.2. By appointment, the university and the agent, and if the officer elects his union or his representative, may amend the redundancy provisions under this clause. At this stage, the university is not considering early retirement.
Employees interested in a possible voluntary separation are encouraged to speak to their area manager or department head. Voluntary separation is a mutually agreed separation between the university and the outgoing staff member, who negotiates the departure date and the terms of departure. Under the current voluntary separation agreements, we are compliant with the provisions of the ANU Enterprise Agreement. All employees will continue to receive information about possible changes in their local space and location, whether they are on extended vacation (or not). If employees currently on extended leave and their positions are dismissed, they are formally informed in writing and informed of all relevant information. The university will work directly with staff on options that include offering redeployment opportunities, working on vacation dates or responding to staff requests in the event of premature separation. ANU has significant financial assets on our balance sheet, consisting of liquidity in commercial banks and holdings in the Long-Term Investment Pool (LTIP). At the end of July, our available cash was approximately $600 million (including $200 million in debt to be used for voluntary investments and separations, as well as $27 million in net insurance revenue to be used for renovations and library replacements required in the wake of the flood). In addition, we have $285 million in the LTIP, which is available at the discretion of the university and can be liquidated by the sale of units in the LTIP. Involuntary redundancy is one of the potential outcomes of a change management process.
As part of a change management proposal, the university may propose the dissolution of a position. After consultation, the university is required, as part of the UNA enterprise contract, to explore job security options and, if it is unable to take one of these options, it may be necessary to establish the position and dismiss the position.