The Tertiary Education Union (TEU) is pushing to keep pay in line with the climbing cost of living, seeking an 8% pay rise as negotiations to renew university collective agreements take place nationwide.
"Hey hey, ho ho, 2% is way too low" was among the chants taken up by the crowd at the rally yesterday.
Signs, such as one depicting a smiling fecal emoji, also referenced the figure, which had been undisclosed by the TEU.
Participants included not only TEU members but also staff belonging to the Public Service Association (PSA) and E tu unions, who are also participating in negotiations.
A member of the PSA, who did not want to be named, said they had been a member of general staff for more than two decades.
Many staff did not remain working at the university for long, and it had become a sad place to work.
"I want the university to realise there are staff who are hurting, there are staff who are struggling, and there are staff who think that thank you isn’t good enough anymore.
"We need more than 2%."
Philosophy professor Lisa Ellis said staff were not prioritised, despite the important work they did in research and teaching the next generation.
"Certainly during the covid pandemic the government was happy to rely on the universities for the knowledge we needed, and of course that happens all the time," she said.
Mathematics professor David Bryant had worked for 12 years at the university, and while he was hopeful about the future, it had changed from the place he had been so proud to work at.
The event, initially scheduled for last Thursday but postponed due to snow, was the first time staff rallied for higher pay since 2004.
Branch organiser Philip Edwards estimated at least 500 people attended the rally, a "great" turnout which showed how important the issue was to staff.
"It’s been very tough for our members," he said.
With bargaining ongoing, he was unsure about the likelihood of further rallies.
"We are bargaining in good faith and so if the employer presents us with something we can take back to members, and members feel that’s acceptable, then of course we will conclude bargaining.
"Of course, we’re quite a long way apart at the moment."
University of Otago vice-chancellor Prof David Murdoch said he acknowledged the current environment was difficult for staff, who were "very much" valued.
"Staff and students are my priority and we do our best to ensure that the University of Otago is a good employer with a number of benefits for our employees.
The university aimed to make a fair offer which rewarded staff as best it could while remaining financially responsible.
"We remain hopeful of finding a solution through continued bargaining which resumes again on Friday."
The current offer was confidential to the bargaining process, he said.