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Home / New Zealand

ACC cutting 390 jobs - nearly 10 per cent of workforce

Isaac Davison
By Isaac Davison
Senior Reporter·NZ Herald·
9 May, 2024 05:51 AM4 mins to read

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ACC outlined spending cuts today as part of the Government's crackdown on public service spending. Photo / Angus Dreaver, RNZ

ACC outlined spending cuts today as part of the Government's crackdown on public service spending. Photo / Angus Dreaver, RNZ

The Accident Compensation Corporation (ACC) says it will disestablish 390 roles as part of a cost-saving drive - nearly 10 per cent of its workforce.

Chief executive Megan Main said this afternoon that the proposals had been shared with staff today.

“We’re proposing a reduction of 390 roles, of which 81 are vacant, in areas that sit outside our client-facing teams that work directly with New Zealanders to rehabilitate and care for them,” she said in a statement. “This equates to a proposed 9 per cent reduction of our total workforce.

“We’re also proposing to invest in 65 new roles that support the delivery of our services to New Zealanders, and our board has also endorsed a plan to reinvest some of the proposed savings in approximately 250 additional client-facing roles. The exact nature of these roles is yet to be finalised.”

Main said the proposals supported the Government’s saving priorities and “set up ACC up for the future”.

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The Crown agency, which manages injury claims, was not directed by the Government to tighten its belt but decided to pursue savings of around 6.5 per cent.

Main said all of the changes would go through a consultation process and no decisions would be made until feedback was considered. Final decisions on the changes will be made in June.

“We recognise that times of uncertainty and change can be difficult, and we have several support pathways available to our people through our Employee Assistance Programme and wellbeing resources. We’re working as hard as we can to provide certainty for all our people as soon as possible.”

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The Public Service Association (PSA) said it was alarmed by the proposals, which included 29 dedicated injury prevention jobs at a time when the number and cost of injuries was rising in New Zealand.

“ACC is a unique, world-leading no-fault compensation scheme, and the envy of many other countries,” said PSA assistant secretary Fleur Fitzsimons.

“It makes no sense to propose these cuts, particularly as our working-age population is increasing.”

“This is just more dumb stuff forced on ACC by the Government’s spending cuts. We will all pay the price for years to come with more accidents, injuries and harm.”

The injury prevention teams were “vital” and worked on prevention of sexual violence and road safety, Fitzsimons said.

“ACC can’t possibly do better with fewer staff, particularly when stress on the organisation is growing. All the evidence points to investment in injury prevention reducing harm and being the best value for money.”

The Herald reported earlier that entire departments would be disestablished at the corporation, including the Enterprise Change Delivery business group.

ACC’s website said this group “comprises our business performance, technology and platforms, information and technology integration, architecture, commercial strategy and services, customer solutions and business capabilities functions”.

The group was also in charge of overseeing the recommendations made by the Miriam Dean review of ACC in 2016.

A presentation to staff, seen by the Herald, also showed a large number of management roles being disestablished and some lower roles being shifted into other departments, in lower numbers.

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A source, who asked to remain anonymous, said many of the managers were aged in their 60s and the proposals appeared to be “a bit of a clean out”.

It is understood that most ACC contracts offer three months of redundancy pay, with a maximum payout of around $45,000.

Responding to the proposed cuts, Labour said it was concerning the jobs included roles in the areas of prevention of sexual violence, road safety and workplace safety.

“These cuts are irresponsible and morally wrong. The Government is choosing to put tax cuts before preventing serious incidents that can cause long-term harm to people’s lives,” Labour ACC spokesperson Rachel Boyack claimed.

“We have a world-class ACC system and Kiwis expect they should be able to pick up the phone and receive support. Hundreds of thousands of people each year make claims for their injuries.

“ACCs work is all about preventing injuries and stopping them from happening in the first place. All of the evidence points to investment in injury prevention reducing harm as being the best value for money.”

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Boyack also claimed had its “priorities all wrong”.

Meanwhile, the New Zealand Transport agency has also proposed some job cuts.

That includes 12 jobs, including in the Customer and Services and Digital business groups.

Other departments include the Digital team, where roles would be reduced from 30 to 18.

Isaac Davison is an Auckland-based reporter who covers health issues. He joined the Herald in 2008 and has previously covered the environment, politics, and social issues

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