"The current funding circumstances facing our business are a serious concern to our Board. For years contractual funding from funding agencies has seen very limited increases; many contracts are now very tight. Efficiency improvements are essential if we are to remain truly sustainable."
The Public Service Association (PSA), which opposes the proposal, has urged the company to go back to the drawing board and prioritise the needs of its staff and the local communities they serve.
"We have serious concerns about the impact proposed job losses will have on both staff and clients," PSA national secretary Kerry Davies said.
"We believe the company is making the wrong decision for the wrong reasons.
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"We are determined to ensure workers' voices are heard and respected, and we remain hopeful a different and better outcome can be reached. These workers are dedicated both to their profession and to the vulnerable people they help care for, and this must be recognised as a key factor in any proposal the company puts forward."
Staff have until February 20 to provide feedback on the proposal and the company expects to give its final decision on March 3. If it proceeds with the proposed changes, they would take effect from May 4.
Healthcare NZ provides home care and support to vulnerable people for multiple district health boards, and manages community houses that provide 24-hour support for people with disabilities.
The Whanganui District Health Board has been approached for comment.