Some ACC staff were told of proposals yesterday which would likely “reduce headcount” at the corporation. The proposed changes were expected to be announced at 2pm today.
In a presentation seen by the Herald, staff were told that the Crown agency needed to rein in costs.
“ACC need to make significant changes to the size, structure and balance of our workforce and, importantly, how we work,” one of the slides said.
The document said Cabinet had set clear expectations for the wider public sector to “embed a culture of fiscal discipline and constraint”.
It said the proposed changes focused on areas which would realise savings “in the parts of our organisation that don’t work directly with clients to care for and rehabilitate them”.
Another slide said: “We need to create headroom in our existing budget by reducing current operating costs, stopping lower priority work, and subject to good faith consultation, reducing our headcount in those areas of business that don’t work directly with New Zealanders.”
The documents did not specify how many jobs could be cut, but it is understood the proposals could lead to a net loss of 100 jobs - though that was dependent on the outcome of consultation. ACC employs around 4000 workers.
Some departments and units will be disestablished within ACC, 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 presentation also showed a large number of management roles being disestablished and some lower roles being shifted into other departments, in lower numbers.
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. The source said this was not a significant amount for a senior manager.
The presentation said it could be an “unsettling time” for some staff affected by the proposed changes.
“You are encouraged to seek the support you need.”
Consultation on the proposed changes will begin today and run until May 30, with final decisions confirmed on June 26.
Finance Minister Nicola Willis has directed public sector organisations to cut spending by $1.5 billion. Photo / Mark Mitchell
The Public Service Association said in March that ACC had to find savings of around 6.5 per cent as part of the Government’s crackdown on public service spending.
The union said 72 per cent of ACC’s 4000 staff were women.
It was concerned that the spending cuts could have an impact on ACC’s core work on rehabilitation and supporting clients.
“We have seen in the past when ACC cuts spending, that means declining claims, limiting client’s access to entitlements (like home care hours or home modifications) and returning injured people to work before they are ready.”
Finance Minister Nicola Willis has directed ministries and agencies to cut spending in an attempt to reduce public service spending by $1.5 billion.
So far, more than 4000 jobs have been cut across the public service.
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
