Ministry of Social Development job cuts: Public sector savings see 200 voluntary redundancies, more roles to go

The Ministry of Social Development has cut 200 jobs through voluntary redundancies and is proposing to axe more staff next month.

The union representing public sector workers, the Public Service Association (PSA), has slammed the decision, saying it was reckless to reduce the welfare providers’ workforce at a time of increased job losses and economic strife.

The Ministry of Social Development’s (MSD) deputy chief executive for people and capability, Nadine Kilmister, acknowledged that the redundancies, even being voluntary, were difficult for staff involved.

“This is an unsettling time for our people, and we thank them for the dedication as we work through it,” Kilmister said.

But the PSA said cuts at MSD, and further job losses in May, “do not make sense”.

“These [staff] are the very people who make the system work effectively for the hundreds of thousands of New Zealanders who need the support that MSD provides,” PSA national secretary Kerry Davies said.

Public Service Association national secretary Kerry Davies.

Davies also questioned why MSD would cut their “transformation group”, the department responsible for changing the ministry’s systems and making it simpler for those needing welfare to access it.

On the transformation group, Davies said: “Isn’t that the efficiency the Government wants?

“What the Government is forcing MSD and many other ministries to do, is to drain the oil out of the engine, and somehow still expect the machinery of government to run smoothly. This really is dumb stuff,” she said.

“This Government is proving again how out of touch it is with the needs of New Zealanders to feel safe and secure, and to be supported by a well-resourced public service. Giving away billions of dollars in tax cuts for landlords and others should not be a priority.”

The cuts come after the New Zealand Customs Service and Department of Internal Affairs slashed more than 100 roles yesterday amid sweeping cuts to the public service.

It is part of plans to reduce headcounts by more than 3000 staff across the public service in a bid to find $1.5 billion worth of savings each year.

The savings are comprised of cuts to certain “backroom” spending of 2 per cent, ordered by Labour before it left office last year, and 6.5 or 7.5 per cent ordered by National, as well as cuts to consultant spending.

MSD said 404 staff lodged voluntary redundancy applications and 200 were accepted.

MSD has indicated more cuts would impact other departments, including people and capability, organisational assurance and communications, transformation and strategy and insights, Kilmister said.

She said the details of those changes were being worked through and the ministry would tell affected staff in late May. The PSA expected the date staff would find out more to be the week of May 20.

On the future cuts to be announced, MSD’s leadership were taking into consideration today’s voluntary redundancies, priority work, attrition rates and “other factors”, Kilmister said.

Raphael Franks is an Auckland-based reporter who covers breaking news. He joined the Herald as a Te Rito cadet in 2022.