Public sector cuts: Health NZ plans to axe nearly 1500 more roles, union says

Health New Zealand has acknowledged the changes could be "unsettling" for impacted staff. Photo / Mark Mitchell

• Health NZ Te Whatu Ora has confirmed plans to cut “a large number of roles”, with the Public Service Association saying a net 1478 roles face the chop.
• The health agency has also confirmed an increase in the number of people taking voluntary redundancy, to a total of 564.
• The PSA has described the cuts as “another shameful attack on an already stretched public health system”.

Health NZ has confirmed plans to cut another “large number” of jobs at the Government agency, on top of 564 people taking voluntary redundancy.

Prime Minister Christopher Luxon told reporters “there’s 1500″ roles in-scope. “I’ve seen up to 700 could be vacancies rather than people in permanent roles”.

The Public Service Association (PSA), a union that is consulted on proposals, said a net 1478 roles are likely to be axed, including advisers helping people to quit smoking, and dedicated Māori and Pacific public health advisers.

The union said a net 1120 roles would go from Health NZ’s data and digital group, representing 47% of its workforce.

A net 358 roles would be cut from the National Public Health Service, 24% of its workforce, according to the PSA.

Aout 300 are understood to be vacant, the PSA said when asked.

Health NZ has disputed the way the union framed the cuts.

In a statement, chief executive Margie Apa said the proposed net reduction in NPHS roles was 57.

“We will deliver public health campaigns and work closely with communities, as we always have.

We are focused on strengthening frontline public health services, with more clinical leadership, provided closer to communities.

Health NZ would also continue to invest in IT systems and data and digital services,” Apa added.

The PSA said about 700 of the roles proposed to be axed were vacant.

Staff are understood to have been called into meetings today around the cost savings.

PSA spokesman Ashok Shankar called the proposal “another shameful attack on an already stretched public health system that will end up hurting the health of all New Zealanders”.

“It beggars belief that the National Public Health Service is planning to cut one in four roles at the very moment when we are battling a whooping cough epidemic, which hits Māori and Pasifika babies particularly hard.

“Specifically, Te Whatu Ora plans to cut dedicated Māori and Pacific public health advisers who drive health promotion strategies targeting the unique needs of Māori and Pacific populations.”

Apa confirmed “a large number of positions are proposed to be removed”, but would not give an exact figure.

The public sector agency was “still spending more than we have in our budget” despite “making good progress towards living within our means”.

The agency was “resetting” in a bid to strengthen its front line.

Health NZ has confirmed 564 voluntary redundancy applications have now been accepted — a jump from the 400 the agency approved in October.

Staff considered frontline were not eligible to take voluntary redundancy.

“Over the coming few weeks we expect to release a number of consultation proposals, with more to follow in the new year. Feedback is sought from our staff on how we reset our functions to get back to budget while also taking opportunities to strengthen how we work in regions,” Apa said.

Staff have been asked for feedback on the consultation proposals.

“We know working through these changes will be unsettling for affected staff and acknowledge a large number of positions are proposed to be removed. We are committed to supporting people throughout this process,” Apa added.

A memo leaked to Green Party MP Hūhana Lyndon confirmed the agency had set up what it calls the Te Whatu Ora Central Change Team, aiming to deal with savings and cuts.

A further memo from Health NZ national director of public health service Dr Nick Chamberlain acknowledged the difficult time of year to receive such news.

“I just heard my first Christmas song of the year on the radio; Bruce Springsteen’s Santa Claus Is Comin’ to Town, and like many of you, I didn’t feel in the least bit Christmassy.

“I know how incredibly difficult the last few months have been and for many, the waiting is probably worse than knowing. I am aware in detail of the impact this is having on many of you and I want to assure you that if I and my leadership team could have done anything to speed this up, we would have,” he wrote.

Health NZ’s spending has been called into question recently, and hundreds of jobs have already been axed.

In July, the Government sacked the board of Health NZ, replacing it with a commissioner.

“The previous Government’s botched health reforms have created significant financial challenges at Health NZ that, without urgent action, will lead to an estimated deficit of $1.4 billion by the end of 2024/25 — despite this Government’s record investment in health of $16.68b in this year’s Budget,” Health Minister Shane Reti said at the time.

Commissioner Dr Lester Levy has promised urgent, wide-reaching and potentially painful reforms in his bid to strengthen services.

Levy has been tasked with cutting $1.4b.

When asked for clarification, Health NZ confirmed no decisions would be made this side of Christmas.

Azaria Howell is a Wellington-based multimedia reporter with an eye across the region. She joined NZME in 2022 and has a keen interest in city council decisions, public service agency reform and transport.