Staff at the University of the South Pacific have agreed to reduce their annual leave from 25 to 10 days.
The USP Staff Association said this would help save the regional institution over $US2 million.
Elizabeth Reade Fong, (in black) Photo: USP
Association president Elizabeth Fong said staff also agreed on the reduction of their superannuation which has also been supported by the unions.
Fong said so far there had been no salary adjustments.
She said the association had decided there would be no rewards, no increments and no pay rises for this year.
The university had been rocked with months of conflict between the governing council and the university management.
The latest setback came with Fiji suspending its funding grants to the USP.
Fiji had allocated almost $US13 million in grants to the university for the current financial year.
Attorney-General Aiyaz Sayed-Khaiyum said the government was concerned at the "continuous question marks about the lack of adherence to the principles of good governance in the day to day administration of USP".
The Staff Association and the USP Staff Union expressed their disappointment at the minister's move.
The unions have written to Prime Minister Frank Bainimarama urging the government to reconsider its decision.
Elizabeth Fong said the university management understood the way staff lived communally.
She said if the university decided to cut the pay or reduce positions the "domino effect is that it affects a lot of people".
Meanwhile, Vice Chancellor and President Professor Pal Ahluwalia said senior staff had taken a five percent cut through their superannuation and a five percent reduction in leave.
Ahluwalia said this meant nobody was getting more than 10 days' leave.
He said the university had not laid off any staff, nor were they planning to do so anytime soon.
Earlier, the USP's head of finance said the Fiji government's decision to withhold its grant contribution to the university would not have an "immediate impact on the institution's operations".
Kolinio Boila said even though the money was not forthcoming, the university could run on its contingency funds.
He said Fiji was the first of the Pacific Island Countries, (that operated the USP), to seek a decrease in its grant contributions.
The university expected other member states to seek the same.
"This year we are forecasting more decrease in contributions with the Fiji government announcing it's withholding $11.5 million," Boila said.
"What they have announced is basically what they were left to pay the university covering the period from August to December 2020."